Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jul. 02, 2017 | Aug. 04, 2017 | Dec. 30, 2016 | |
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 | Jul. 2, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | STRT | ||
Current Fiscal Year End Date | --07-02 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 142,424,000 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock Shares Outstanding | 3,672,704 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Income Statement [Abstract] | |||
NET SALES | $ 417,325 | $ 401,419 | $ 411,475 |
Cost of goods sold | 357,163 | 336,594 | 338,815 |
GROSS PROFIT | 60,162 | 64,825 | 72,660 |
Engineering, selling, and administrative expenses | 46,460 | 43,917 | 41,534 |
INCOME FROM OPERATIONS | 13,702 | 20,908 | 31,126 |
Interest income | 136 | 25 | 185 |
Equity earnings (loss) of joint ventures | 666 | (2,235) | (788) |
Interest expense | (417) | (176) | (71) |
Other income, net | 2,307 | 668 | 3,481 |
INCOME BEFORE PROVISION FOR INCOME TAXES AND NON- CONTROLLING INTEREST | 16,394 | 19,190 | 33,933 |
Provision for income taxes | 4,284 | 5,068 | 9,382 |
NET INCOME | 12,110 | 14,122 | 24,551 |
Net income attributable to non-controlling interest | 4,913 | 4,973 | 3,897 |
NET INCOME ATTRIBUTABLE TO STRATTEC SECURITY CORPORATION | 7,197 | 9,149 | 20,654 |
COMPREHENSIVE INCOME: | |||
NET INCOME | 12,110 | 14,122 | 24,551 |
Currency translation adjustments, net of tax | (426) | (5,248) | (5,133) |
Pension and postretirement plan funded status adjustment, net of tax | 5,768 | (5,880) | (1,851) |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | 5,342 | (11,128) | (6,984) |
COMPREHENSIVE INCOME | 17,452 | 2,994 | 17,567 |
Comprehensive income attributable to non-controlling interest | 5,470 | 4,659 | 3,574 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO STRATTEC SECURITY CORPORATION | $ 11,982 | $ (1,665) | $ 13,993 |
EARNINGS PER SHARE ATTRIBUTABLE TO STRATTEC SECURITY CORPORATION: | |||
Basic | $ 2.01 | $ 2.55 | $ 5.80 |
Diluted | $ 1.96 | $ 2.51 | $ 5.66 |
AVERAGE SHARES OUTSTANDING: | |||
Basic | 3,588 | 3,559 | 3,515 |
Diluted | 3,670 | 3,621 | 3,604 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 02, 2017 | Jul. 03, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 8,361 | $ 15,477 |
Receivables, less allowance for doubtful accounts of $500 at July 2, 2017 and July 3, 2016 | 64,933 | 63,726 |
Inventories, net | 35,476 | 38,683 |
Customer tooling in progress, net | 11,544 | 6,971 |
Income taxes recoverable | 1,987 | 3,826 |
Other current assets | 6,704 | 5,768 |
Total current assets | 129,005 | 134,451 |
INVESTMENT IN JOINT VENTURES | 16,840 | 14,168 |
DEFERRED INCOME TAXES | 256 | 5,387 |
OTHER LONG-TERM ASSETS | 16,022 | 3,021 |
PROPERTY, PLANT AND EQUIPMENT, NET | 111,591 | 85,149 |
Total assets | 273,714 | 242,176 |
CURRENT LIABILITIES: | ||
Accounts payable | 39,679 | 32,416 |
Accrued liabilities: | ||
Payroll and benefits | 13,055 | 11,210 |
Environmental | 1,308 | 1,365 |
Warranty | 5,550 | 9,228 |
Other | 8,303 | 9,996 |
Total current liabilities | 67,895 | 64,215 |
Commitments and Contingencies | ||
BORROWINGS UNDER CREDIT FACILITIES | 30,000 | 20,000 |
ACCRUED PENSION OBLIGATIONS | 1,492 | 1,466 |
ACCRUED POSTRETIREMENT OBLIGATIONS | 1,003 | 1,262 |
OTHER LONG-TERM LIABILITIES | 610 | 721 |
SHAREHOLDERS’ EQUITY: | ||
Common stock, authorized 12,000,000 shares, $.01 par value, issued 7,216,103 shares at July 2, 2017 and 7,188,363 shares at July 3, 2016 | 72 | 72 |
Capital in excess of par value | 93,813 | 92,076 |
Retained earnings | 225,913 | 220,728 |
Accumulated other comprehensive loss | (32,888) | (37,673) |
Less: Treasury stock at cost (3,619,487 shares at July 2, 2017 and 3,622,506 shares at July 3, 2016) | (135,822) | (135,871) |
Total STRATTEC SECURITY CORPORATION shareholders’ equity | 151,088 | 139,332 |
Non-controlling interest | 21,626 | 15,180 |
Total shareholders’ equity | 172,714 | 154,512 |
Total liabilities and shareholders' equity | $ 273,714 | $ 242,176 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 02, 2017 | Jul. 03, 2016 |
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 | 7,216,103 | 7,188,363 |
Treasury stock, shares | 3,619,487 | 3,622,506 |
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 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 ($0.48,$0.52 and $56 per share for the twelve months ended 2015, 2016 and 2017 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 |
NET INCOME | 14,122 | 9,149 | 4,973 | ||||
Currency translation adjustments | (5,248) | (4,934) | (314) | ||||
Pension and postretirement plan funded status adjustment, net of tax | (5,880) | (5,880) | |||||
Cash dividends declared ($0.48,$0.52 and $56 per share for the twelve months ended 2015, 2016 and 2017 respectively) | (1,863) | (1,863) | |||||
Cash dividends paid to non-controlling interests of subsidiaries | (1,568) | (1,568) | |||||
Stock-based compensation and shortfall tax benefit | 2,075 | 2,075 | |||||
Stock option exercises | 364 | 1 | 363 | ||||
Employee stock purchases | 109 | 78 | 31 | ||||
Ending balance at Jul. 03, 2016 | 154,512 | 72 | 92,076 | 220,728 | (37,673) | (135,871) | 15,180 |
NET INCOME | 12,110 | 7,197 | 4,913 | ||||
Currency translation adjustments | (426) | (983) | 557 | ||||
Pension and postretirement plan funded status adjustment, net of tax | 5,768 | 5,768 | |||||
Cash dividends declared ($0.48,$0.52 and $56 per share for the twelve months ended 2015, 2016 and 2017 respectively) | (2,012) | (2,012) | |||||
Cash dividends paid to non-controlling interests of subsidiaries | (1,964) | (1,964) | |||||
Contribution from non-controlling interestsof subsidiaries | 2,940 | 2,940 | |||||
Stock-based compensation and shortfall tax benefit | 1,601 | 1,601 | |||||
Stock option exercises | 79 | 79 | |||||
Employee stock purchases | 106 | 57 | 49 | ||||
Ending balance at Jul. 02, 2017 | $ 172,714 | $ 72 | $ 93,813 | $ 225,913 | $ (32,888) | $ (135,822) | $ 21,626 |
Consolidated Statements of Sha6
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Statement Of Stockholders Equity [Abstract] | |||
Pension and postretirement funded status adjustment tax impact | $ 3,387 | $ 3,454 | $ 1,087 |
Cash dividends declared per share | $ 0.56 | $ 0.52 | $ 0.48 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 12,110 | $ 14,122 | $ 24,551 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity (earnings) loss of joint ventures | (666) | 2,235 | 788 |
Depreciation and amortization | 11,418 | 10,121 | 8,815 |
Foreign currency transaction (gain) loss | (1,128) | (2,559) | (3,075) |
Unrealized (gain) loss on peso forward contracts | (2,010) | 889 | |
Loss (gain) on disposition of property, plant and equipment | 213 | (17) | 154 |
Deferred income taxes | 1,851 | 3,027 | (3,330) |
Stock based compensation expense | 1,508 | 1,625 | 1,323 |
Change in operating assets and liabilities: | |||
Receivables | (1,707) | (5,129) | 9,155 |
Inventories | 3,207 | (3,897) | (4,284) |
Other assets | (6,499) | (9,481) | (1,482) |
Accounts payable and accrued liabilities | 5,168 | (3,003) | (1,463) |
Other, net | (323) | 285 | 307 |
Net cash provided by operating activities | 23,142 | 8,218 | 31,459 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Investment in joint ventures | (400) | (1,720) | (4,384) |
Loan to joint ventures | (2,230) | (225) | (315) |
Repayments from loan to joint ventures | 100 | 100 | |
Additions to property, plant and equipment | (37,010) | (23,496) | (26,097) |
Proceeds received on sale of property, plant and equipment | 2 | 76 | 1 |
Net cash used in investing activities | (39,538) | (25,265) | (30,795) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Borrowings under credit facilities | 36,000 | 26,500 | 9,000 |
Repayments under credit facilities | (26,000) | (16,500) | (1,500) |
Exercise of stock options and employee stock purchases | 241 | 473 | 553 |
Excess tax benefits from stock-based compensation | 21 | 170 | 367 |
Contribution from non-controlling interest of subsidiaries | 2,940 | ||
Dividends paid to non-controlling interests of subsidiaries | (1,964) | (1,568) | (882) |
Dividends paid | (2,012) | (1,865) | (1,711) |
Net cash provided by financing activities | 9,226 | 7,210 | 5,827 |
FOREIGN CURRENCY IMPACT ON CASH | 54 | (381) | (552) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (7,116) | (10,218) | 5,939 |
CASH AND CASH EQUIVALENTS | |||
Beginning of year | 15,477 | 25,695 | 19,756 |
End of year | 8,361 | 15,477 | 25,695 |
Cash Paid During the Period For: | |||
Income taxes | 318 | 4,699 | 14,754 |
Interest | 350 | 157 | 47 |
Non-Cash Investing Activities: | |||
Change in capital expenditures in accounts payable | $ (99) | 2,625 | 136 |
Guarantee of joint venture revolving credit facility | $ 505 | 995 | |
Guarantee of joint venture contract | $ 250 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Jul. 02, 2017 | |
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 (“WITTE”) of Velbert, Germany and ADAC Automotive (“ADAC”) 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 each partner’s products. We also maintain a 51 percent interest in a joint venture, STRATTEC Advanced Logic, LLC (“SAL LLC”), which exists to introduce a new generation of biometric security products based on the designs of Actuator Systems, our partner and the owner of the remaining ownership interest. 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 and Leon, Mexico. Equity investments in Vehicle Access Systems Technology LLC (“VAST LLC”) and SAL 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. SAL 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 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 permits two methods of adoption: the full retrospective method, which requires retrospective restatement of each prior reporting period presented, or the cumulative catch-up transition method, which requires the cumulative effect of initially applying the guidance be recognized at the date of initial application. We currently anticipate adopting the standard using the full retrospective method. 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 do not anticipate early adoption. Our ability to adopt using the full retrospective method is dependent on system readiness and the completion of our analysis of information necessary to restate prior period financial statements. While we are continuing to assess all potential impacts of the application of the standard to STRATTEC, we currently do not expect that the adoption of this pronouncement will have a material impact on our consolidated financial statements. 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 guidance 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 July 2015, the FASB issued an accounting standard to simplify the measurement of inventory by changing the subsequent measurement guidance from the lower of cost or market to the lower of cost and net realizable value for inventory. The standard update is effective for fiscal years beginning after December 15, 2016 and interim periods within those years, and early adoption is permitted. The standard is to be applied prospectively. We do not expect that the adoption of this pronouncement will have a material impact on our consolidated financial statements. In February 2016, the FASB issued an update to the accounting guidance for leases. The update increases the transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and to disclose key information about leasing arrangements. The guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those years. We do not expect that the adoption of this pronouncement will have a material impact on our consolidated financial statements. In March 2016, the FASB issued an update to the accounting guidance for share-based payments. The update simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification of such items in the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2016 and interim periods within those years. We do not expect that the adoption of this pronouncement will have a material impact on our consolidated financial statements. In August 2016, the FASB issued an update to the accounting guidance on the classification of certain cash receipts and cash payments. The update aims to eliminate diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those years. We do not expect that the adoption of this pronouncement will have a material impact on our consolidated financial statements. In March 2017, the FASB issued an update to the accounting guidance for the presentation of net periodic pension cost and net periodic postretirement benefit cost. The update requires the service cost component of net periodic benefit cost be reported in the same line items as other compensation costs arising from services rendered by the pertinent employees during the applicable period. The remaining components of net periodic benefit cost are required to be presented separately from the service cost component outside a subtotal of income from operations. Additionally, the update allows only the service cost component to be eligible for capitalization when applicable. The guidance requires retrospective restatement for each period presented for the presentation of the service cost component and the other components of net periodic benefit cost in the income statement and prospective application for the capitalization of the service cost component of net periodic benefit cost. The guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those years, with early adoption permitted. We anticipate early adoption beginning with the interim periods of our fiscal 2018. We anticipate the adoption of this guidance will result in the reclassification of expense within our Consolidated Statements of Income and Comprehensive Income for the years ended July 2, 2017 and July 3, 2016 from cost of goods sold and engineering, selling and administrative expenses to other income, net of approximately $1.1 million and $1.3 million, respectively. Fiscal Year: Our fiscal year ends on the Sunday nearest June 30. The years ended July 2, 2017, July 3, 2016 and June 28, 2015 are comprised of 52, 53 and 52 weeks, respectively. 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. 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 due to changes in the U.S. dollar/Mexican peso exchange rate. We executed contracts with Bank of Montreal that provide for bi-weekly and monthly Mexican peso currency forward contracts for a portion of our estimated peso denominated operating costs. These peso currency forward contracts include settlement dates that began on October 16, 2015 and end on June 15, 2018. No forward contracts were in place during fiscal 2015. Our objective in entering into these currency forward contracts is to minimize our earnings volatility resulting from changes in exchange rates affecting the U.S. dollar cost of our Mexican operations. The Mexican peso forward contracts are not used for speculative purposes and are not designated as hedges. As a result, all currency forward contracts are recognized in our accompanying consolidated financial statements at fair value and changes in the fair value are reported in current earnings as part of Other Income, net. The following table quantifies the outstanding Mexican peso forward contracts as of July 2, 2017 (thousands of dollars, except average forward contractual exchange rates): Effective Dates Notional Amount Average Forward Contractual Exchange Rate Fair Value Buy MXP/Sell USD July 15, 2017 - June 15, 2018 $ 12,000 20.37 $ 1,121 The fair market value of all outstanding Mexican peso forward contracts in the accompanying Consolidated Balance Sheets was as follows (thousands of dollars): July 2, 2017 July 3, 2016 Not designated as hedging instruments: Other current assets: Mexican peso forward contracts $ 1,121 $ — Other long-term assets: Mexican peso forward contracts $ — $ 107 Other current liabilities: Mexican peso forward contracts $ — $ 996 The pre-tax effects of the Mexican peso forward contracts on the accompanying Consolidated Statements of Income and Comprehensive Income consisted of the following (thousands of dollars): Other Income, net Years Ended July 2, 2017 July 3, 2016 June 28, 2015 Not Designated as Hedging Instruments: Realized loss $ 1,650 $ 1,196 $ — Unrealized loss $ — $ 889 $ — Unrealized gain $ 2,010 $ — $ — Fair Value of Financial Instruments: The fair value of our cash and cash equivalents, accounts receivable, accounts payable and borrowings under our credit facilities approximated their book value as of July 2, 2017 and July 3, 2016. 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 July 2, 2017 and July 3, 2016 (thousands of dollars): July 2, 2017 July 3, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Rabbi Trust assets: Stock index funds: Small cap $ 382 $ — $ — $ 382 $ 356 $ — $ — $ 356 Mid cap 391 — — 391 357 — — 357 Large cap 519 — — 519 498 — — 498 International 541 — — 541 389 — — 389 Fixed income funds 763 — — 763 700 — — 700 Cash and cash equivalents — 3 — 3 — 3 — 3 Mexican peso forward contracts — 1,121 — 1,121 — 107 — 107 Total assets at fair value $ 2,596 $ 1,124 $ — $ 3,720 $ 2,300 $ 110 $ — $ 2,410 Liabilities: Mexico peso forward contracts $ — $ — $ — $ — $ — $ 996 $ — $ 996 The Rabbi Trust assets fund our amended and restated supplemental executive retirement plan and are included in Other Long-Term Assets in the accompanying Consolidated Balance Sheets. Refer to discussion of Mexican peso forward contracts under Derivative Instruments above. The fair value of the Mexican peso forward contracts considers the remaining term, current exchange rate and interest rate differentials between the two currencies. There were no transfers between Level 1 and Level 2 assets during 2017 or 2016. 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, Beginning of Year Provision for Doubtful Accounts Net Write-Offs Balance, End of Year Year ended July 2, 2017 $ 500 $ — $ — $ 500 Year ended July 3, 2016 $ 500 $ — $ — $ 500 Year ended June 28, 2015 $ 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): July 2, 2017 July 3, 2016 Finished products $ 9,976 $ 10,137 Work in process 9,328 8,291 Purchased materials 20,682 23,055 39,986 41,483 Excess and obsolete reserve (4,510 ) (2,800 ) Inventories, net $ 35,476 $ 38,683 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, Beginning of Year Provision Charged to Expense Amounts Written Off Balance, End of Year Year ended July 2, 2017 $ 2,800 $ 2,718 $ 1,008 $ 4,510 Year ended July 3, 2016 $ 2,300 $ 844 $ 344 $ 2,800 Year ended June 28, 2015 $ 2,150 $ 655 $ 505 $ 2,300 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 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 $3.7 million at July 2, 2017 and $3.2 million at July 3, 2016. 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, Beginning of Year Provision Charged to Expense Amounts Written Off Balance, End of Year Year ended July 2, 2017 $ 700 $ 438 $ 238 $ 900 Year ended July 3, 2016 $ 620 $ 366 $ 286 $ 700 Year ended June 28, 2015 $ 585 $ 348 $ 313 $ 620 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 for these assets were as follows (thousands of dollars): July 2, 2017 July 3, 2016 Patents, engineering drawings and software $ 890 $ 890 Less: accumulated amortization (849 ) (750 ) $ 41 $ 140 The remaining useful life of the intangible assets in the table above is approximately 0.4 years. Intangible amortization expense was $99,000 for each of the years ended July 2, 2017, July 3, 2016 and June 28, 2015. Intangible amortization expense is expected to be $41,000 in fiscal year 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 Useful Lives Land improvements 20 years Buildings and improvements 15 to 35 years Machinery and equipment 3 to 15 years Property, plant and equipment consisted of the following (thousands of dollars): July 2, 2017 July 3, 2016 Land and improvements $ 4,732 $ 4,686 Buildings and improvements 36,046 29,361 Machinery and equipment 210,741 182,812 251,519 216,859 Less: accumulated depreciation (139,928 ) (131,710 ) $ 111,591 $ 85,149 Depreciation expense was as follows for the periods indicated (thousands of dollars): Depreciation Expense 2017 $ 11,319 2016 $ 10,022 2015 $ 8,716 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): July 2, 2017 July 3, 2016 Gross book value $ 130,166 $ 97,537 Net book value $ 69,652 $ 43,954 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 July 2, 2017, July 3, 2016 or June 28, 2015. 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 Inventory Purchases Number of Suppliers 2017 39 % 7 2016 36 % 6 2015 27 % 5 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 3,892 full-time associates of which approximately 275 or 7.1 percent were represented by a labor union at July 2, 2017. 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 $4.6 million in 2017, $430,000 in 2016 and $280,000 in 2015. 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 currency forward contracts and Rabbi Trust gains. Foreign currency transaction gains and losses resulted from activity associated with foreign denominated assets held by our Mexican subsidiaries. We entered into the Mexican peso currency forward contracts during fiscal 2016 and 2017 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 July 2, 2017 July 3, 2016 June 28, 2015 Foreign currency transaction gain $ 1,128 $ 2,559 $ 3,075 Rabbi Trust gain (loss) 296 (41 ) 96 Unrealized gain (loss) on Mexican peso forward contracts 2,010 (889 ) — Realized loss on Mexican peso forward contracts (1,650 ) (1,196 ) — Other 523 235 310 $ 2,307 $ 668 $ 3,481 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 2014 through 2017. 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. As additional information becomes available, actual results may differ from recorded estimates, which may require us to adjust the amount of our estimated liability for claims incurred but not reported. 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, Beginning of Year Provision Charged to Expense Payments Balance, End of Year Year ended July 2, 2017 $ 420 $ 5,796 $ 5,796 $ 420 Year ended July 3, 2016 $ 420 $ 5,032 $ 5,032 $ 420 Year ended June 28, 2015 $ 420 $ 4,756 $ 4,756 $ 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. During 2017 and 2016, the warranty liability was reduced as a result of settlement payments of previously accrued customer warranty issues. 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. Changes in the warranty reserve were as follows (thousands of dollars): Balance, Beginning of Year (Recoveries) Provision Charged to Expense Payments Balance, End of Year Year ended July 2, 2017 $ 9,228 $ (843 ) $ 2,835 $ 5,550 Year ended July 3, 2016 $ 11,835 $ 583 $ 3,190 $ 9,228 Year ended June 28, 2015 $ 3,462 $ 8,975 $ 602 $ 11,835 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 accumulated other 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): July 2, 2017 July 3, 2016 June 28, 2015 Unrecognized pension and postretirement benefit liabilities, net of tax $ 18,750 $ 24,518 $ 18,638 Foreign currency translation, net of tax 14,138 13,155 8,221 $ 32,888 $ 37,673 $ 26,859 The following tables summarize the changes in accumulated other comprehensive loss (“AOCL”) for the years ended July 2, 2017 and July 3, 2016 (thousands of dollars): Year Ended July 2, 2017 Foreign Currency Translation Adjustments Retirement and Postretirement Plans Total Balance July 3, 2016 $ 13,155 $ 24,518 $ 37,673 Other comprehensive loss before reclassifications 534 (6,142 ) (5,608 ) Income Tax (108 ) 2,272 2,164 Net other comprehensive loss before reclassifications 426 (3,870 ) (3,444 ) Reclassifications: Prior service credits (A) — 753 753 Actuarial gains (A) — (3,766 ) (3,766 ) Total reclassifications before tax — (3,013 ) (3,013 ) Income Tax — 1,115 1,115 Net reclassifications — (1,898 ) (1,898 ) Other comprehensive loss (income) 426 (5,768 ) (5,342 ) Other comprehensive income attributable to non-controlling interest (557 ) — (557 ) Balance July 2, 2017 $ 14,138 $ 18,750 $ 32,888 Year Ended July 3, 2016 Foreign Currency Translation Adjustments Retirement and Postretirement Plans Total Balance June 28, 2015 $ 8,221 $ 18,638 $ 26,859 Other comprehensive loss before reclassifications 5,248 11,640 16,888 Income Tax — (4,307 ) (4,307 ) Net other comprehensive loss before reclassifications 5,248 7,333 12,581 Reclassifications: Prior service credits (A) — 753 753 Actuarial gains (A) — (3,059 ) (3,059 ) Total reclassifications before tax — (2,306 ) (2,306 ) Income Tax — 853 853 Net reclassifications — (1,453 ) (1,453 ) Other comprehensive loss 5,248 5,880 11,128 Other comprehensive loss attributable to non-controlling interest 314 — 314 Balance July 3, 2016 $ 13,155 $ 24,518 $ 37,673 (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 appreciati |
Investment in Joint Ventures an
Investment in Joint Ventures and Majority Owned Subsidiaries | 12 Months Ended |
Jul. 02, 2017 | |
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 equity interest, exists to seek opportunities to manufacture and sell each company’s products in areas of the world outside of North America and Europe. VAST LLC has investments in Sistema de Veicular Ltda, VAST Fuzhou, VAST Great Shanghai, VAST Shanghai Co. and Minda-VAST Access Systems. Sistema de Acesso Veicular Ltda is located in Brazil and services customers in South America. VAST Fuzhou, VAST Great Shanghai and VAST Shanghai Co. (collectively known as VAST China), provide 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 with Minda Management Services Limited to become a 50:50 joint venture partner in the former Minda-Valeo Security Systems joint venture entity, based in Pune, India. This joint venture entity was renamed Minda-VAST Access Systems (“Minda-VAST”). Minda Management Services Limited is an affiliate of both Minda Corporation Limited and Spark Minda, Ashok Minda Group of New Delhi, India (collectively “Minda”). 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 and 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 $2.6 million during 2017, equity loss of joint ventures to STRATTEC of approximately $639,000 during 2016 and equity earnings of joint ventures to STRATTEC of approximately $1.3 million during 2015. The 2016 equity loss of joint ventures for VAST LLC included a $6.0 million impairment charge related to its Minda-VAST Access Systems joint venture in India. STRATTEC’s portion of this impairment charge for 2016 totaled $2.0 million. During 2017 and 2016, capital contributions totaling $1.2 million and $660,000, respectively, were made to VAST LLC for purposes of funding operations in Brazil. STRATTEC’s portion of the capital contributions totaled $400,000 in 2017 and $220,000 in 2016. 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 the Brazilian entity. STRATTEC’s portion of the cash capital contributions totaled $4.4 million. ADAC-STRATTEC LLC, a Delaware limited liability company, was formed in fiscal year 2007 to support injection molding and door handle assembly operations in Mexico. ADAC-STRATTEC LLC was 51 percent owned by STRATTEC and 49 percent owned by ADAC for all periods presented in this report. An additional Mexican entity, ADAC-STRATTEC de Mexico, 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 $3.1 million in 2017, $2.9 million in 2016 and $2.6 million in 2015. In accordance with the provisions of the ADAC-STRATTEC Credit Facility a capital contribution to ADAC-STRATTEC LLC of $6 million collectively from STRATTEC and ADAC was completed during 2017. STRATTEC’s portion of this capital contribution totaled $3.06 million. No capital contributions to ADAC-STRATTEC LLC were made during 2016 or 2015. STRATTEC POWER ACCESS LLC (“SPA”) was formed in fiscal year 2009 to supply the North American portion of the power sliding door, lift gate and deck lid system access control products which were acquired from Delphi Corporation. SPA was 80 percent owned by STRATTEC and 20 percent owned by WITTE for all periods presented in this report. An additional Mexican entity, STRATTEC POWER ACCESS de Mexico, is wholly owned by SPA. The financial results of SPA are consolidated with the financial results of STRATTEC and resulted in increased net income to STRATTEC of approximately $2.6 million in 2017, increased net income to STRATTEC of approximately $2.0 million in 2016 and reduced net income to STRATTEC of approximately $269,000 in 2015. SAL LLC was formed in fiscal 2013 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. SAL LLC was 51 percent owned by STRATTEC for all periods presented in this report. Our investment in SAL 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 SAL LLC resulted in an equity loss of joint ventures to STRATTEC of approximately $1.9 million in 2017, $1.6 million in 2016 and $2.0 million in 2015. Effective with our fiscal 2015 fourth quarter, 100 percent of the funding for SAL LLC was being made through loans from STRATTEC to SAL LLC and through STRATTEC’s guarantee of the SAL Credit Facility which is discussed herein. Therefore, effective with our fiscal 2015 fourth quarter, even though STRATTEC maintains a 51 percent ownership interest in SAL LLC, STRATTEC began recognizing 100 percent of the losses of SAL LLC up to our committed financial support through Equity Earnings (Loss) of Joint Ventures in the accompanying Consolidated Statements of Income and Comprehensive Income. In addition, the equity loss of joint ventures for SAL LLC included the following for the periods presented (thousands of dollars): Years Ended July 2, 2017 July 3, 2016 June 28, 2015 Loss on guarantee of SAL LLC vendor contract $ — $ — $ 123 Loss on loan to SAL LLC $ — $ 225 $ 100 Loss on guarantee of SAL LLC credit facility $ — $ 247 $ 488 During fiscal 2018, we, along with our joint venture partner, intend to wind down and discontinue operating the business of SAL LLC. STRATTEC’s joint venture investments are included in the accompanying Consolidated Balance Sheets as follows (thousands of dollars): July 2, 2017 July 3, 2016 Investment in Joint Ventures: Investment in VAST LLC $ 16,840 $ 14,168 Other Current Liabilities: Investment in SAL LLC $ 463 $ 1,265 |
Equity Earnings (Loss) of Joint
Equity Earnings (Loss) of Joint Ventures | 12 Months Ended |
Jul. 02, 2017 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Equity Earnings (Loss) of Joint Ventures | EQUITY EARNINGS (LOSS) 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 July 2, 2017 July 3, 2016 June 28, 2015 Net sales $ 128,963 $ 114,338 $ 124,929 Cost of goods sold 101,910 94,060 105,132 Gross profit 27,053 20,278 19,797 Engineering, selling and administrative expense 19,710 15,866 16,155 Impairment charge — 6,000 — Income (loss) from operations 7,343 (1,588 ) 3,642 Other income (expense), net 1,662 (115 ) 123 Income (loss) before provision for income taxes 9,005 (1,703 ) 3,765 Provision for income taxes 1,235 168 41 Net income (loss) $ 7,770 $ (1,871 ) $ 3,724 STRATTEC’s share of VAST LLC net income (loss) $ 2,590 $ (624 ) $ 1,241 Intercompany profit eliminations 3 (15 ) 10 STRATTEC’s equity earnings (loss) of VAST LLC $ 2,593 $ (639 ) $ 1,251 July 2, 2017 July 3, 2016 Cash and cash equivalents $ 11,757 $ 6,584 Receivables, net 41,942 24,557 Inventories, net 15,185 13,500 Other current assets 11,782 13,007 Total current assets 80,666 57,648 Property, plant and equipment, net 31,017 26,557 Other long-term assets 12,850 11,086 Total assets $ 124,533 $ 95,291 Current liabilities $ 70,753 $ 50,462 Long-term liabilities 2,960 2,019 Total liabilities $ 73,713 $ 52,481 Net assets $ 50,820 $ 42,810 STRATTEC’s share of VAST LLC net assets $ 16,940 $ 14,270 The 2016 equity loss of joint ventures for VAST LLC included a $6 million impairment charge related to its Minda-VAST Access Systems joint venture in India. STRATTEC’s portion of this impairment charge in 2016 totaled $2 million. As discussed above under the note Investment in Joint Ventures and Majority Owned Subsidiaries, we hold a 51 percent ownership interest in a joint venture company, SAL LLC, which exists to introduce a new generation of biometric security products based upon the designs of Actuator Systems LLC, our partner. SAL LLC had a $1.5 million revolving credit facility with BMO Harris Bank N.A. with a maturity date of February 16, 2016, which was fully guaranteed by STRATTEC. Outstanding borrowings under the SAL Credit Facility as of February 16, 2016 totaled $1.5 million. SAL LLC did not have cash available to pay the outstanding debt balance as of the maturity date. Therefore, STRATTEC made a payment of $1.5 million on its guarantee on February 16, 2016. Prior to making the guarantee payment, STRATTEC had recorded a liability related to the guarantee of $1.5 million at February 16, 2016. STRATTEC’s proportionate share of the guarantee based on our ownership percentage in SAL LLC totaled $765,000 as of February 16, 2016, and accordingly, our investment in SAL LLC included this amount as of this date. Our joint venture partner did not guarantee their proportionate share of the SAL Credit Facility. As a result, we recorded a loss equal to our partner’s proportionate share of the fair value of the STRATTEC guarantee based upon our partner’s ownership interest in the joint venture of $488,000 during fiscal 2015 and $247,000 during 2016. This loss is included in Equity Earnings (Loss) of Joint Ventures for 2016 and 2015, as applicable, in the accompanying Consolidated Statements of Income and Comprehensive Income. SAL LLC is considered a variable interest entity based on the STRATTEC guarantee and additional loans from STRATTEC as discussed below. STRATTEC is not the primary beneficiary and does not control the entity. Accordingly, our investment in SAL LLC is accounted for using the equity method. SAL LLC maintains a license agreement with Westinghouse allowing SAL LLC to do business as Westinghouse Security. Payments due to Westinghouse under the license agreement were guaranteed by STRATTEC. As of July 2, 2017 and July 3, 2016, STRATTEC had recorded a liability equal to the estimated fair value of the future payments due under this guarantee of $250,000. This liability is included in the accompanying Consolidated Balance Sheets in Accrued Liabilities: Other as of July 2, 2017 and in Other Long-term Liabilities as of July 3, 2016. STRATTEC’s proportionate share of the guarantee of these payments based on our ownership percentage in SAL LLC totals $127,000, and accordingly, our investment in SAL LLC was increased by this amount as of July 2, 2017 and July 3, 2016. 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 Earnings (Loss) of Joint Ventures for 2015 in the accompanying Consolidated Statements of Income and Comprehensive Income. Loans were made from STRATTEC to SAL LLC in support of operating expenses and working capital needs. The outstanding loan amounts totaled $2.6 million and $325,000 as of July 2, 2017 and July 3, 2016, respectively. As of July 2, 2017, the outstanding loan amount was eliminated against STRATTEC’s negative Investment in SAL LLC in the preparation of the consolidated financial statements. Even though we maintain a 51 percent ownership interest in SAL LLC, effective with our fiscal 2015 fourth quarter, 100 percent of the funding for SAL LLC was being made by loans from STRATTEC to SAL LLC. Therefore, STRATTEC began recognizing 100 percent of the losses of SAL LLC up to our committed financial support through Equity Earnings (Loss) of Joint Ventures in the accompanying Consolidated Statements of Income and Comprehensive Income effective with our fiscal 2015 fourth quarter. The following are summarized statements of operations and summarized balance sheet data for SAL LLC (thousands of dollars): Years Ended July 2, 2017 July 3, 2016 June 28, 2015 Net sales $ 369 $ 603 $ 49 Cost of goods sold 610 382 450 Gross (loss) profit (241 ) 221 (401 ) Engineering, selling and administrative expense 1,534 1,311 1,492 Loss from operations (1,775 ) (1,090 ) (1,893 ) Other expense, net (155 ) (34 ) (4 ) Net loss $ (1,930 ) $ (1,124 ) $ (1,897 ) STRATTEC’s share of SAL LLC loss $ (1,927 ) $ (1,124 ) $ (1,328 ) Loss on guarantee of SAL LLC vendor contract — — (123 ) Loss on loan to SAL LLC — (225 ) (100 ) Loss on guarantee of SAL LLC credit facility — (247 ) (488 ) STRATTEC’s equity loss of SAL LLC $ (1,927 ) $ (1,596 ) $ (2,039 ) July 2, 2017 July 3, 2016 Cash and cash equivalents $ 11 $ 21 Receivables, net 11 60 Inventories, net 345 283 Total assets $ 367 $ 364 Current liabilities $ 3,189 $ 1,256 Net liabilities $ (2,822 ) $ (892 ) STRATTEC’s share of SAL LLC net liabilities $ (1,439 ) $ (455 ) During fiscal 2018, we, along with our joint venture partner, intend to wind down and discontinue operating the business of SAL LLC. We have sales of component parts to VAST LLC and SAL LLC, purchases of component parts from VAST LLC, expenses charged to VAST LLC for engineering and accounting services and expenses charged from VAST LLC to STRATTEC for general headquarter expenses. The following tables summarize the related party transactions with VAST LLC and SAL LLC for the periods indicated (thousands of dollars): Years Ended July 2, 2017 July 3, 2016 June 28, 2015 Sales to VAST LLC $ 1,966 $ 304 $ 2,298 Sales to SAL LLC $ 234 $ 363 $ 157 Purchases from VAST LLC $ 245 $ 149 $ 164 Expenses charged to VAST LLC $ 843 $ 1,034 $ 832 Expenses charged from VAST LLC $ 1,134 $ 1,526 $ 1,825 July 2, 2017 July 3, 2016 Accounts receivable from VAST LLC $ — $ 55 Accounts receivable from SAL LLC (A) $ — $ 450 Current loan receivable from SAL LLC (A) $ — $ 325 Long-term loan receivable from VAST LLC $ 300 $ 400 Accounts payable to VAST LLC $ — $ 213 (A) As of July 2, 2017, outstanding loan and accounts receivable balances due from SAL LLC to STRATTEC totaled $2.6 million and $185,000, respectively. As of July 2, 2017, these outstanding balances have been offset against our investment in SAL LLC, which is included in Other Current Liabilities in the Consolidated Balance Sheet. As of July 3, 2016, a valuation allowance was established for the full amount of the outstanding loan balance of $325,000 due from SAL LLC to STRATTEC. |
Credit Facilities
Credit Facilities | 12 Months Ended |
Jul. 02, 2017 | |
Debt Disclosure [Abstract] | |
Credit Facilities | CREDIT FACILITIES STRATTEC has a $30 million secured revolving credit facility (the “STRATTEC Credit Facility”) with BMO Harris Bank N.A. ADAC-STRATTEC LLC has a $25 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, 2020. Borrowings under either credit facility are secured by our U.S. cash balances, accounts receivable, inventory and fixed assets located in the U.S. Interest on borrowings under both credit facilities is at varying rates based at our option, on the 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. The ADAC-STRATTEC Credit Facility also required that a capital contribution to ADAC-STRATTEC LLC of $6 million collectively from STRATTEC and ADAC be completed by September 30, 2016. This capital contribution was completed as required. STRATTEC’s portion of the capital contribution totaled $3.06 million. As of July 2, 2017, we were in compliance with all financial covenants required by these credit facilities. Outstanding borrowings under the credit facilities referenced in the above paragraph as of the end of 2017 and 2016 were as follows (thousands of dollars): July 2, 2017 July 3, 2016 STRATTEC Credit Facility $ 16,000 $ 11,500 ADAC-STRATTEC Credit Facility $ 14,000 $ 8,500 Average outstanding borrowings and the weighted average interest rate under each such credit facility during 2017 and 2016 were as follows (thousands of dollars): Average Outstanding Borrowings Weighted Average Interest Rate Years Ended Years Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 STRATTEC Credit Facility $ 12,490 $ 7,608 1.8 % 1.5 % ADAC-STRATTEC Credit Facility $ 10,865 $ 4,443 1.8 % 1.3 % 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. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jul. 02, 2017 | |
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. Additionally, in fiscal 2016, STRATTEC obtained updated third party estimates for adequately covering the cost of active remediation of this contamination. Based upon the updated estimates, no further adjustment to the reserve was required. From 1995 through July 2, 2017, costs of approximately $567,000 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 $1.3 million at July 2, 2017, is adequate. At July 2, 2017, we had purchase commitments related to the construction of a new ADAC-STRATTEC de Mexico manufacturing facility in Leon, Mexico, which is expected to be used primarily to paint and assemble door handle products, paint equipment to be installed and used at this new facility, zinc, other purchased parts and natural gas. We also had minimum rental commitments under non-cancelable operating leases with a term in excess of one year. The purchase and minimum rental commitments are payable as follows (thousands of dollars): Purchase Minimum Rental Fiscal Year Commitments Commitments 2018 $ 17,413 $ 884 2019 $ 8,699 $ 606 2020 $ 3,897 $ 190 2021 $ — $ — 2022 $ — $ — Rental expense under all non-cancelable operating leases was as follows (thousands of dollars): Fiscal Year Rental Expense 2017 $ 704 2016 $ 691 2015 $ 993 |
Income Taxes
Income Taxes | 12 Months Ended |
Jul. 02, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The provision for income taxes consisted of the following (thousands of dollars): Years Ended July 2, 2017 July 3, 2016 June 28, 2015 Currently payable: Federal $ 228 $ 18 $ 9,891 State 3 130 657 Foreign 2,202 1,893 2,164 2,433 2,041 12,712 Deferred tax provision (benefit) 1,851 3,027 (3,330 ) $ 4,284 $ 5,068 $ 9,382 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: Years Ended July 2, 2017 July 3, 2016 June 28, 2015 U.S. statutory rate 35.0 % 34.0 % 34.7 % State taxes, net of Federal tax benefit 1.2 1.3 0.7 Foreign subsidiaries (1.1 ) 0.6 (1.3 ) U.S. taxation on non-U.S. earnings 3.8 — — Research and development tax credit (2.7 ) — — Non-controlling interest (9.9 ) (9.3 ) (4.1 ) Other (0.2 ) (0.2 ) (2.4 ) 26.1 % 26.4 % 27.6 % The components of deferred tax assets were as follows (thousands of dollars): July 2, 2017 July 3, 2016 Unrecognized pension and postretirement benefit plan liabilities $ 11,191 $ 14,579 Accrued warranty 925 1,376 Payroll-related accruals 2,605 2,108 Stock-based compensation 1,488 1,258 Inventory reserve 1,249 873 Environmental reserve 484 505 Repair and maintenance supply parts reserve 333 259 Allowance for doubtful accounts 185 185 NOL/credit carry-forwards 1,669 145 Postretirement obligations (405 ) (227 ) Accumulated depreciation (6,034 ) (6,135 ) Accrued pension obligations (14,483 ) (13,197 ) Joint Ventures 808 1,706 Other 241 1,952 $ 256 $ 5,387 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. Federal foreign tax credit carry-forwards at July 2, 2017 resulted in future benefits of approximately $1.4 million and expire in 2027. State operating loss and credit carry-forwards at July 2, 2017 resulted in future benefits of approximately $269,000 and expire at varying times between 2024 and 2031. A valuation allowance of $267,000 has been recorded as of July 2, 2017, due to our assessment of the future realization of certain 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 $5.3 million in 2017, $6.0 million in 2016 and $5.9 million in 2015. The income tax provision for 2017 included $424,000 related to the recognition of a deferred tax liability resulting from a change in assertion regarding the permanent reinvestment of earnings from two of our Mexican subsidiaries. Prior to 2017, the accumulated undistributed earnings from such subsidiaries were considered to be permanently reinvested in Mexico. Accordingly, we did not previously record deferred income taxes on these earnings in our financial statements. During 2017, the strength of the U.S. dollar to the Mexican peso significantly decreased the U.S. tax cost associated with a distribution from the Mexican entities as compared to the U.S. tax cost associated with such a distribution in prior periods. Consequently, we changed our assertion regarding the permanent reinvestment of earnings from these Mexican subsidiaries. Such earnings are no longer considered permanently reinvested. We repatriated $15.8 million from Mexico to the U.S. during 2017, recognized the deferred tax liability resulting from the change in assertion, and concluded that, with some restrictions and tax implications, the remaining current and future accumulated undistributed earnings of these subsidiaries will be available for repatriation as deemed necessary. The total liability for unrecognized tax benefits was $610,000 as of July 2, 2017 and $471,000 as of July 3, 2016 and was included in Other Long-term Liabilities in the accompanying Consolidated Balance Sheets. This liability includes approximately $571,000 of unrecognized tax benefits at July 2, 2017 and $441,000 at July 3, 2016 and approximately $39,000 of accrued interest at July 2, 2017 and $30,000 at July 3, 2016. 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 $143,000 at July 2, 2017 and $20,000 at July 3, 2016. 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 July 2, 2017 and July 3, 2016 (thousands of dollars): Years Ended July 2, 2017 July 3, 2016 Unrecognized tax benefits, beginning of year $ 441 $ 437 Gross increases – tax positions in prior years 28 — Gross decreases – tax positions in prior years — (3 ) Gross increases – current period tax positions 177 71 Tax years closed (75 ) (64 ) Unrecognized tax benefits, end of year $ 571 $ 441 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 2014 through 2017 for Federal, fiscal 2011 through 2017 for most states and calendar 2012 through 2016 for foreign jurisdictions. |
Retirement Plans and Postretire
Retirement Plans and Postretirement Costs | 12 Months Ended |
Jul. 02, 2017 | |
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 employed by us before January 1, 2010. Benefits under the Qualified Pension Plan are based on credited years of service and final average compensation. Our policy is to fund the Qualified Pension Plan with 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, the Board of Directors amended the Qualified Pension Plan to freeze benefit accruals and future eligibility. The Board of Directors has approved the termination of the Qualified Pension Plan with a proposed termination date of December 31, 2017. The termination of the Qualified Pension Plan is contingent upon receipt of an IRS determination letter that the Qualified Pension Plan was qualified upon termination and approval by the Pension Benefit Guaranty Corporation (“PBGC”). The date the termination will be approved and benefits can be distributed will not be known until we receive all required regulatory approvals. We intend to submit our request to the IRS for a determination letter that the Qualified Pension Plan is qualified upon termination prior to the end of the 2017 calendar year. Depending on the time receipt of IRS and PBGC approval, we intend to distribute Qualified Pension Plan assets prior to the end of the 2018 calendar year. Additionally, in connection with preparing for the termination of the Qualified Pension Plan, we have amended the 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 will contribute to the Trust Fund for the Qualified Pension Plan as necessary to ensure there are sufficient assets to provide all Qualified Pension Plan benefits as required by the PBGC. The financial impact of the Qualified Pension 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. Subsequent to December 31, 2013, each eligible participant receives a supplemental retirement benefit equal to the foregoing lump sum benefit, plus an annual benefit accrual equal to 8 percent of the participant’s base salary and cash bonus, plus annual credited interest on the participant’s account balance. All then current participants as of December 31, 2013 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 of the Internal Revenue Code, 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 Rabbi Trust assets had a value of $2.6 million at July 2, 2017 and $2.3 million at July 3, 2016, and are included in Other Long-Term Assets in the accompanying Consolidated Balance Sheets. The projected benefit obligation under the amended SERP was $1.8 million at both July 2, 2017 and July 3, 2016. 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 July 2, 2017, which have not yet been recognized in net periodic benefit cost were as follows (thousands of dollars): Pension and Postretirement Prior service cost (credit) $ 7 $ (768 ) Net actuarial loss 17,279 2,232 $ 17,286 $ 1,464 Prior service cost (credit) and unrecognized net actuarial losses included in accumulated other comprehensive loss at July 2, 2017 which are expected to be recognized in net periodic benefit cost (credit) in fiscal 2018, 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 1,282 302 $ 1,289 $ (179 ) 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 July 2, 2017 July 3, 2016 June 28, 2015 July 2, 2017 July 3, 2016 June 28, 2015 COMPONENTS OF NET PERIODIC BENEFIT COST (CREDIT): Service cost $ 54 $ 50 $ 64 $ 13 $ 12 $ 14 Interest cost 3,926 4,387 4,173 55 87 114 Expected return on plan assets (5,854 ) (5,509 ) (6,174 ) — — — Amortization of prior service cost (credit) 11 11 11 (764 ) (764 ) (764 ) Amortization of unrecognized net loss 3,228 2,443 2,775 538 616 693 Net periodic benefit cost (credit) $ 1,365 $ 1,382 $ 849 $ (158 ) $ (49 ) $ 57 Pension and SERP Benefits Postretirement Benefits 2017 2016 2017 2016 WEIGHTED-AVERAGE ASSUMPTIONS: Benefit Obligations: Discount rate 3.91 % 3.79 % 3.91 % 3.79 % Rate of compensation increases - SERP 3.0 % 3.0 % n/a n/a Net Periodic Benefit Cost: Discount rate 3.79 % 4.53 % 3.79 % 4.53 % Expected return on plan assets 5.45 % 5.45 % 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 $ 106,152 $ 99,329 $ 1,602 $ 2,179 Service cost 54 50 13 12 Interest cost 3,926 4,387 55 87 Actuarial (gain) loss (4,342 ) 6,783 (80 ) (281 ) Benefits paid (4,524 ) (4,397 ) (322 ) (395 ) Benefit obligation at end of year $ 101,266 $ 106,152 $ 1,268 $ 1,602 CHANGE IN PLAN ASSETS: Fair value of plan assets at beginning of year $ 104,460 $ 105,472 $ — $ — Actual return on plan assets 7,574 371 — — Employer contribution 5,014 3,014 322 395 Benefits paid (4,524 ) (4,397 ) (322 ) (395 ) Fair value of plan assets at end of year $ 112,524 $ 104,460 $ — $ — Funded status – prepaid (accrued) benefit obligations $ 11,258 $ (1,692 ) $ (1,268 ) $ (1,602 ) AMOUNTS RECOGNIZED IN CONSOLIDATED BALANCE SHEETS: Other long-term assets $ 13,082 $ 72 $ — $ — Accrued payroll and benefits (current liabilities) (332 ) (299 ) (265 ) (340 ) Accrued benefit obligations (long-term liabilities) (1,492 ) (1,465 ) (1,003 ) (1,262 ) Net amount recognized $ 11,258 $ (1,692 ) $ (1,268 ) $ (1,602 ) CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE INCOME: Net periodic benefit cost (credit) $ 1,365 $ 1,382 $ (158 ) $ (49 ) Net actuarial (gain) loss (6,063 ) 11,921 (80 ) (281 ) Amortization of prior service (cost) credits (11 ) (11 ) 764 764 Amortization of unrecognized net loss (3,228 ) (2,443 ) (538 ) (616 ) Total recognized in other comprehensive (income) loss, before tax (9,302 ) 9,467 146 (133 ) Total recognized in net periodic benefit cost and other comprehensive (income) loss, before tax $ (7,937 ) $ 10,849 $ (12 ) $ (182 ) 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 July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 Accumulated benefit obligation $ 99,442 $ 104,388 $ 1,591 $ 1,435 Projected benefit obligation $ 99,442 $ 104,388 $ 1,824 $ 1,764 For measurement purposes as it pertains to the estimated obligation associated with retirees prior to January 1, 2012, a 7.2 percent annual rate increase in the per capita cost of covered health care benefits was assumed for fiscal 2018; the rate was assumed to decrease gradually to 4.5 percent by the year 2025 and remain at that level thereafter. The health care cost trend assumption has a minimal effect on our 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 2017 $ — $ — Effect on postretirement benefit obligation as of July 2, 2017 $ 7 $ (7 ) 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. 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 2017 and 2016: Target Allocation July 2, 2017 July 3, 2016 Equity investments 35 % 38 % 38 % Fixed-income Investments 30 56 27 Cash 35 6 35 Total 100 % 100 % 100 % The following is a summary, by asset category, of the fair value of pension plan assets at the June 30, 2017 and June 30, 2016 measurement dates (thousands of dollars): June 30, 2017 June 30, 2016 Asset Category Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ — $ 7,233 $ — $ 7,233 $ — $ 36,706 $ — $ 36,706 Equity securities/funds: Small cap 1,008 — — 1,008 1,714 — — 1,714 Mid cap 12,414 — — 12,414 12,341 — — 12,341 Large cap 19,961 — — 19,961 18,678 — — 18,678 International 8,941 — — 8,941 7,132 — — 7,132 Fixed income: Bond funds/bonds 5,718 57,249 — 62,967 4,837 23,052 — 27,889 Total $ 48,042 $ 64,482 $ — $ 112,524 $ 44,702 $ 59,758 $ — $ 104,460 There were no transfers in or out of Level 3 investments during the measurement year ended June 30, 2017. The expected long-term rate of return on U.S. pension plan assets used to calculate net periodic benefit cost was 5.45 percent for 2018 and 2017. The target asset allocation is 35 percent public equity and 65 percent fixed income/cash. The 5.45 percent is approximated by applying returns of 10 percent on public equity and 3 percent on fixed income/cash to the target allocation. The actual historical returns are also relevant. Annualized returns for periods ended June 30, 2017 were 5.22 percent for 5 years, 3.71 percent for 10 years, 4.83 percent for 15 years, 4.96 percent for 20 years, 5.90 percent for 25 years and 6.33 percent for 30 years. We expect to contribute approximately $3.0 million to our qualified pension plan, $333,000 to our SERP and $265,000 to our postretirement health care plan in fiscal 2018. 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 Benefits Postretirement Benefits 2018 $ 5,308 $ 265 2019 $ 5,304 $ 217 2020 $ 5,668 $ 164 2021 $ 6,239 $ 146 2022 $ 6,257 $ 132 2023-2027 $ 29,998 $ 315 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): Years Ended July 2, 2017 July 3, 2016 June 28, 2015 Company contributions $ 1,805 $ 1,783 $ 1,729 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jul. 02, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY We have 12,000,000 shares of authorized common stock, par value $.01 per share, with 3,596,616 and 3,565,857 shares outstanding at July 2, 2017 and July 3, 2016, 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 of our common stock as of July 2, 2017. As of July 2, 2017, 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 2017 or 2016. |
Earnings Per Share (''EPS'')
Earnings Per Share (''EPS'') | 12 Months Ended |
Jul. 02, 2017 | |
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 applicable 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 applicable 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): Years Ended July 2, 2017 July 3, 2016 June 28, 2015 Net income attributable to STRATTEC $ 7,197 $ 9,149 $ 20,654 Less: Income attributable to participating securities 1 58 258 Net income attributable to common shareholders $ 7,196 $ 9,091 $ 20,396 Weighted average shares of common stock outstanding 3,588 3,559 3,515 Incremental shares – stock based compensation 82 62 89 Diluted weighted average shares of common stock outstanding 3,670 3,621 3,604 Basic earnings per share $ 2.01 $ 2.55 $ 5.80 Diluted earnings per share $ 1.96 $ 2.51 $ 5.66 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: Years Ended Number of Excluded July 2, 2017 9,010 July 3, 2016 9,010 June 28, 2015 10,000 |
Stock Option and Purchase Plans
Stock Option and Purchase Plans | 12 Months Ended |
Jul. 02, 2017 | |
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 Weighted Average Remaining Contractual Aggregate Intrinsic Value Shares Exercise Price Term (in years) (in thousands) 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 Exercised (16,909 ) $ 21.55 Terminated (2,000 ) $ 17.59 Balance at July 3, 2016 144,998 $ 28.86 Exercised (6,490 ) $ 20.96 Balance at July 2, 2017 138,508 $ 29.23 4.4 $ 1,361 Exercisable as of: July 2, 2017 129,498 $ 25.71 4.2 $ 1,361 July 3, 2016 103,798 $ 21.39 4.6 $ 2,174 June 28, 2015 91,103 $ 19.86 4.1 $ 4,592 Options granted at a price greater than the market value on the date of grant included in the table above were as follows: 2015 Shares 10,000 Exercise price $ 79.73 No options were granted during either fiscal 2017 or 2016. A summary of restricted stock activity under our stock incentive plan was as follows: Weighted Average Grant Date Shares Fair Value 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 Granted 28,750 $ 69.02 Vested (20,300 ) $ 23.69 Forfeited (3,050 ) $ 59.92 Nonvested Balance at July 3, 2016 71,750 $ 60.05 Granted 27,150 $ 43.87 Vested (21,250 ) $ 37.53 Forfeited (1,800 ) $ 58.24 Nonvested Balance at July 2, 2017 75,850 $ 60.61 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 on such date. A total of 100,000 shares may be issued under the plan. Shares issued from treasury stock under the plan totaled 3,019 at an average price of $34.88 during 2017, 1,948 at an average price of $55.77 during 2016 and 1,038 at an average price of $76.06 during 2015. A total of 64,165 shares remain available for purchase under the plan as of July 2, 2017. |
Export Sales
Export Sales | 12 Months Ended |
Jul. 02, 2017 | |
Segment Reporting [Abstract] | |
Export Sales | EXPORT SALES Total export sales, sales from the United States to locations outside of the United States, are summarized as follows (thousands of dollars and percent of total net sales): Years Ended July 2, 2017 July 3, 2016 June 28, 2015 Net Sales % Net Sales % Net Sales % Export sales $ 160,275 38 % $ 152,728 38 % $ 141,584 34 % Countries for which customer sales account for ten percent or more of total net sales are summarized as follows (thousands of dollars and percent of total net sales): Years Ended July 2, 2017 July 3, 2016 June 28, 2015 Net Sales % Net Sales % Net Sales % Export sales into Canada $ 73,481 18 % $ 74,310 19 % $ 60,987 15 % |
Product Sales
Product Sales | 12 Months Ended |
Jul. 02, 2017 | |
Segment Reporting [Abstract] | |
Product Sales | PRODUCT SALES Sales by product group were as follows (thousands of dollars and percent of total net sales): Years Ended July 2, 2017 July 3, 2016 June 28, 2015 Net Sales % Net Sales % Net Sales % Keys & locksets $ 114,938 28 % $ 113,765 28 % $ 114,287 28 % Power access 84,457 20 83,747 21 68,078 16 Door handles & exterior trim 67,722 16 61,376 15 60,864 15 Driver controls 56,983 14 55,955 14 57,894 14 Aftermarket & OE service 47,216 11 48,200 12 78,717 19 Latches 35,307 8 28,023 7 24,320 6 Other 10,702 3 10,353 3 7,315 2 $ 417,325 100 % $ 401,419 100 % $ 411,475 100 % |
Sales and Receivable Concentrat
Sales and Receivable Concentration | 12 Months Ended |
Jul. 02, 2017 | |
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): Years Ended July 2, 2017 July 3, 2016 June 28, 2015 Net Sales % Net Sales % Net Sales % Fiat Chrysler Automobiles $ 100,575 24 % $ 115,858 29 % $ 116,914 28 % General Motors Company 88,624 21 79,893 20 105,809 26 Ford Motor Company 62,314 15 57,317 14 45,415 11 $ 251,513 60 % $ 253,068 63 % $ 268,138 65 % Receivables from our largest customers were as follows (thousands of dollars and percent of gross receivables): July 2, 2017 July 3, 2016 Receivables % Receivables % Fiat Chrysler Automobiles $ 17,107 26 % $ 18,103 28 % General Motors Company 13,395 21 13,090 21 Ford Motor Company 8,644 13 6,863 11 $ 39,146 60 % $ 38,056 60 % |
Organization and Summary of S21
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jul. 02, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Principles of Consolidation and Presentation | Principles of Consolidation and Presentation: The accompanying consolidate d 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 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 permits two methods of adoption: the full retrospective method, which requires retrospective restatement of each prior reporting period presented, or the cumulative catch-up transition method, which requires the cumulative effect of initially applying the guidance be recognized at the date of initial application. We currently anticipate adopting the standard using the full retrospective method. 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 do not anticipate early adoption. Our ability to adopt using the full retrospective method is dependent on system readiness and the completion of our analysis of information necessary to restate prior period financial statements. While we are continuing to assess all potential impacts of the application of the standard to STRATTEC, we currently do not expect that the adoption of this pronouncement will have a material impact on our consolidated financial statements. 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 guidance 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 July 2015, the FASB issued an accounting standard to simplify the measurement of inventory by changing the subsequent measurement guidance from the lower of cost or market to the lower of cost and net realizable value for inventory. The standard update is effective for fiscal years beginning after December 15, 2016 and interim periods within those years, and early adoption is permitted. The standard is to be applied prospectively. We do not expect that the adoption of this pronouncement will have a material impact on our consolidated financial statements. In February 2016, the FASB issued an update to the accounting guidance for leases. The update increases the transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and to disclose key information about leasing arrangements. The guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those years. We do not expect that the adoption of this pronouncement will have a material impact on our consolidated financial statements. In March 2016, the FASB issued an update to the accounting guidance for share-based payments. The update simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification of such items in the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2016 and interim periods within those years. We do not expect that the adoption of this pronouncement will have a material impact on our consolidated financial statements. In August 2016, the FASB issued an update to the accounting guidance on the classification of certain cash receipts and cash payments. The update aims to eliminate diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those years. We do not expect that the adoption of this pronouncement will have a material impact on our consolidated financial statements. In March 2017, the FASB issued an update to the accounting guidance for the presentation of net periodic pension cost and net periodic postretirement benefit cost. The update requires the service cost component of net periodic benefit cost be reported in the same line items as other compensation costs arising from services rendered by the pertinent employees during the applicable period. The remaining components of net periodic benefit cost are required to be presented separately from the service cost component outside a subtotal of income from operations. Additionally, the update allows only the service cost component to be eligible for capitalization when applicable. The guidance requires retrospective restatement for each period presented for the presentation of the service cost component and the other components of net periodic benefit cost in the income statement and prospective application for the capitalization of the service cost component of net periodic benefit cost. The guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those years, with early adoption permitted. We anticipate early adoption beginning with the interim periods of our fiscal 2018. We anticipate the adoption of this guidance will result in the reclassification of expense within our Consolidated Statements of Income and Comprehensive Income for the years ended July 2, 2017 and July 3, 2016 from cost of goods sold and engineering, selling and administrative expenses to other income, net of approximately $1.1 million and $1.3 million, respectively. |
Fiscal Year | Fiscal Year: Our fiscal year ends on the Sunday nearest June 30. The years ended July 2, 2017, July 3, 2016 and June 28, 2015 are comprised of 52, 53 and 52 weeks, respectively. |
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 assump tions 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 maturit y of three months or less due to the short-term nature of the instruments. Excess cash balances are placed in short-term commercial paper. |
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 due to changes in the U.S. dollar/Mexican peso exchange rate. We executed contracts with Bank of Montreal that provide for bi-weekly and monthly Mexican peso currency forward contracts for a portion of our estimated peso denominated operating costs. These peso currency forward contracts include settlement dates that began on October 16, 2015 and end on June 15, 2018. No forward contracts were in place during fiscal 2015. Our objective in entering into these currency forward contracts is to minimize our earnings volatility resulting from changes in exchange rates affecting the U.S. dollar cost of our Mexican operations. The Mexican peso forward contracts are not used for speculative purposes and are not designated as hedges. As a result, all currency forward contracts are recognized in our accompanying consolidated financial statements at fair value and changes in the fair value are reported in current earnings as part of Other Income, net. The following table quantifies the outstanding Mexican peso forward contracts as of July 2, 2017 (thousands of dollars, except average forward contractual exchange rates): Effective Dates Notional Amount Average Forward Contractual Exchange Rate Fair Value Buy MXP/Sell USD July 15, 2017 - June 15, 2018 $ 12,000 20.37 $ 1,121 The fair market value of all outstanding Mexican peso forward contracts in the accompanying Consolidated Balance Sheets was as follows (thousands of dollars): July 2, 2017 July 3, 2016 Not designated as hedging instruments: Other current assets: Mexican peso forward contracts $ 1,121 $ — Other long-term assets: Mexican peso forward contracts $ — $ 107 Other current liabilities: Mexican peso forward contracts $ — $ 996 The pre-tax effects of the Mexican peso forward contracts on the accompanying Consolidated Statements of Income and Comprehensive Income consisted of the following (thousands of dollars): Other Income, net Years Ended July 2, 2017 July 3, 2016 June 28, 2015 Not Designated as Hedging Instruments: Realized loss $ 1,650 $ 1,196 $ — Unrealized loss $ — $ 889 $ — Unrealized gain $ 2,010 $ — $ — |
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 our credit facilities approximated their book value as of July 2, 2017 and July 3, 2016. 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 July 2, 2017 and July 3, 2016 (thousands of dollars): July 2, 2017 July 3, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Rabbi Trust assets: Stock index funds: Small cap $ 382 $ — $ — $ 382 $ 356 $ — $ — $ 356 Mid cap 391 — — 391 357 — — 357 Large cap 519 — — 519 498 — — 498 International 541 — — 541 389 — — 389 Fixed income funds 763 — — 763 700 — — 700 Cash and cash equivalents — 3 — 3 — 3 — 3 Mexican peso forward contracts — 1,121 — 1,121 — 107 — 107 Total assets at fair value $ 2,596 $ 1,124 $ — $ 3,720 $ 2,300 $ 110 $ — $ 2,410 Liabilities: Mexico peso forward contracts $ — $ — $ — $ — $ — $ 996 $ — $ 996 The Rabbi Trust assets fund our amended and restated supplemental executive retirement plan and are included in Other Long-Term Assets in the accompanying Consolidated Balance Sheets. Refer to discussion of Mexican peso forward contracts under Derivative Instruments above. The fair value of the Mexican peso forward contracts considers the remaining term, current exchange rate and interest rate differentials between the two currencies. There were no transfers between Level 1 and Level 2 assets during 2017 or 2016. |
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 afte rmarket 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, Beginning of Year Provision for Doubtful Accounts Net Write-Offs Balance, End of Year Year ended July 2, 2017 $ 500 $ — $ — $ 500 Year ended July 3, 2016 $ 500 $ — $ — $ 500 Year ended June 28, 2015 $ 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): July 2, 2017 July 3, 2016 Finished products $ 9,976 $ 10,137 Work in process 9,328 8,291 Purchased materials 20,682 23,055 39,986 41,483 Excess and obsolete reserve (4,510 ) (2,800 ) Inventories, net $ 35,476 $ 38,683 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, Beginning of Year Provision Charged to Expense Amounts Written Off Balance, End of Year Year ended July 2, 2017 $ 2,800 $ 2,718 $ 1,008 $ 4,510 Year ended July 3, 2016 $ 2,300 $ 844 $ 344 $ 2,800 Year ended June 28, 2015 $ 2,150 $ 655 $ 505 $ 2,300 |
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 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 t o 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 $3.7 million at July 2, 2017 and $3.2 million at July 3, 2016. 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, Beginning of Year Provision Charged to Expense Amounts Written Off Balance, End of Year Year ended July 2, 2017 $ 700 $ 438 $ 238 $ 900 Year ended July 3, 2016 $ 620 $ 366 $ 286 $ 700 Year ended June 28, 2015 $ 585 $ 348 $ 313 $ 620 |
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 co nsist 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 for these assets were as follows (thousands of dollars): July 2, 2017 July 3, 2016 Patents, engineering drawings and software $ 890 $ 890 Less: accumulated amortization (849 ) (750 ) $ 41 $ 140 The remaining useful life of the intangible assets in the table above is approximately 0.4 years. Intangible amortization expense was $99,000 for each of the years ended July 2, 2017, July 3, 2016 and June 28, 2015. Intangible amortization expense is expected to be $41,000 in fiscal year 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 Useful Lives Land improvements 20 years Buildings and improvements 15 to 35 years Machinery and equipment 3 to 15 years Property, plant and equipment consisted of the following (thousands of dollars): July 2, 2017 July 3, 2016 Land and improvements $ 4,732 $ 4,686 Buildings and improvements 36,046 29,361 Machinery and equipment 210,741 182,812 251,519 216,859 Less: accumulated depreciation (139,928 ) (131,710 ) $ 111,591 $ 85,149 Depreciation expense was as follows for the periods indicated (thousands of dollars): Depreciation Expense 2017 $ 11,319 2016 $ 10,022 2015 $ 8,716 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): July 2, 2017 July 3, 2016 Gross book value $ 130,166 $ 97,537 Net book value $ 69,652 $ 43,954 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 July 2, 2017, July 3, 2016 or June 28, 2015. 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 Inventory Purchases Number of Suppliers 2017 39 % 7 2016 36 % 6 2015 27 % 5 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 3,892 full-time associates of which approximately 275 or 7.1 percent were represented by a labor union at July 2, 2017. 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 recogniz ed 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 $4.6 million in 2017, $430,000 in 2016 and $280,000 in 2015. |
Other Income, Net | Other Income, Net: Net other income included in the accompanying Consolidated Statements of Income and Comprehensive Income primarily included foreig n currency transaction gains and losses, realized and unrealized gains and losses on our Mexican peso currency forward contracts and Rabbi Trust gains. Foreign currency transaction gains and losses resulted from activity associated with foreign denominated assets held by our Mexican subsidiaries. We entered into the Mexican peso currency forward contracts during fiscal 2016 and 2017 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 July 2, 2017 July 3, 2016 June 28, 2015 Foreign currency transaction gain $ 1,128 $ 2,559 $ 3,075 Rabbi Trust gain (loss) 296 (41 ) 96 Unrealized gain (loss) on Mexican peso forward contracts 2,010 (889 ) — Realized loss on Mexican peso forward contracts (1,650 ) (1,196 ) — Other 523 235 310 $ 2,307 $ 668 $ 3,481 |
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 2014 through 2017. 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. As additional information becomes available, actual results may differ from recorded estimates, which may require us to adjust the amount of our estimated liability for claims incurred but not reported. 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, Beginning of Year Provision Charged to Expense Payments Balance, End of Year Year ended July 2, 2017 $ 420 $ 5,796 $ 5,796 $ 420 Year ended July 3, 2016 $ 420 $ 5,032 $ 5,032 $ 420 Year ended June 28, 2015 $ 420 $ 4,756 $ 4,756 $ 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. During 2017 and 2016, the warranty liability was reduced as a result of settlement payments of previously accrued customer warranty issues. 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. Changes in the warranty reserve were as follows (thousands of dollars): Balance, Beginning of Year (Recoveries) Provision Charged to Expense Payments Balance, End of Year Year ended July 2, 2017 $ 9,228 $ (843 ) $ 2,835 $ 5,550 Year ended July 3, 2016 $ 11,835 $ 583 $ 3,190 $ 9,228 Year ended June 28, 2015 $ 3,462 $ 8,975 $ 602 $ 11,835 |
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, co sts and expenses. Foreign currency translation adjustments are included as a component of accumulated other 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): July 2, 2017 July 3, 2016 June 28, 2015 Unrecognized pension and postretirement benefit liabilities, net of tax $ 18,750 $ 24,518 $ 18,638 Foreign currency translation, net of tax 14,138 13,155 8,221 $ 32,888 $ 37,673 $ 26,859 The following tables summarize the changes in accumulated other comprehensive loss (“AOCL”) for the years ended July 2, 2017 and July 3, 2016 (thousands of dollars): Year Ended July 2, 2017 Foreign Currency Translation Adjustments Retirement and Postretirement Plans Total Balance July 3, 2016 $ 13,155 $ 24,518 $ 37,673 Other comprehensive loss before reclassifications 534 (6,142 ) (5,608 ) Income Tax (108 ) 2,272 2,164 Net other comprehensive loss before reclassifications 426 (3,870 ) (3,444 ) Reclassifications: Prior service credits (A) — 753 753 Actuarial gains (A) — (3,766 ) (3,766 ) Total reclassifications before tax — (3,013 ) (3,013 ) Income Tax — 1,115 1,115 Net reclassifications — (1,898 ) (1,898 ) Other comprehensive loss (income) 426 (5,768 ) (5,342 ) Other comprehensive income attributable to non-controlling interest (557 ) — (557 ) Balance July 2, 2017 $ 14,138 $ 18,750 $ 32,888 Year Ended July 3, 2016 Foreign Currency Translation Adjustments Retirement and Postretirement Plans Total Balance June 28, 2015 $ 8,221 $ 18,638 $ 26,859 Other comprehensive loss before reclassifications 5,248 11,640 16,888 Income Tax — (4,307 ) (4,307 ) Net other comprehensive loss before reclassifications 5,248 7,333 12,581 Reclassifications: Prior service credits (A) — 753 753 Actuarial gains (A) — (3,059 ) (3,059 ) Total reclassifications before tax — (2,306 ) (2,306 ) Income Tax — 853 853 Net reclassifications — (1,453 ) (1,453 ) Other comprehensive loss 5,248 5,880 11,128 Other comprehensive loss attributable to non-controlling interest 314 — 314 Balance July 3, 2016 $ 13,155 $ 24,518 $ 37,673 (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 July 2, 2017 were 204,939. 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 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 one year 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. Prior to August 2016, the restricted stock grants issued vest or vested 3 to 5 years after the date of grant. As of August 2016, restricted stock grants issued vest 1 to 5 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 July 2, 2017 related to stock options and restricted stock granted under the plan was as follows (thousands of dollars): Compensation Cost Weighted Average Period over which Cost is to be Recognized (in years) Stock options granted $ 14 0.1 Restricted stock granted $ 1,461 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 from Stock Option Exercises Income Tax Benefit 2017 $ 136 $ 25 2016 $ 364 $ 196 2015 $ 474 $ 458 The intrinsic value of stock options exercised and the fair value of options vested were as follows (thousands of dollars): Years Ended July 2, 2017 July 3, 2016 June 28, 2015 Intrinsic value of options exercised $ 115 $ 529 $ 1,375 Fair value of stock options vested $ 566 $ 331 $ 382 The grant date fair values and assumptions used to determine compensation expense recorded in the accompanying financial statements were as follows: Options Granted During 2015 Weighted average grant date fair value: Options issued at grant date market value n/a Options issued above grant date market value $ 34.93 Assumptions: Risk free interest rates 1.90 % Expected volatility 57.83 % Expected dividend yield 0.62 % Expected term (in years) 6.0 No options were granted during the fiscal years ended July 2, 2017 and July 3, 2016. The range of options outstanding as of July 2, 2017 was as follows: Number of Options Outstanding/ Exercisable Weighted Average Exercise Price Outstanding/ Exercisable Weighted Average Remaining Contractual Life Outstanding (In Years) $10.92-$18.49 42,214/42,214 $15.36/$15.36 2.2 $26.53-$38.71 87,284/87,284 $30.72/$30.72 5.2 $79.73 9,010/- $79.73/- 7.1 $29.23/$25.71 |
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 S22
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jul. 02, 2017 | |
Schedule of Quantification of Outstanding Mexican Peso Forward Contracts | The following table quantifies the outstanding Mexican peso forward contracts as of July 2, 2017 (thousands of dollars, except average forward contractual exchange rates): Effective Dates Notional Amount Average Forward Contractual Exchange Rate Fair Value Buy MXP/Sell USD July 15, 2017 - June 15, 2018 $ 12,000 20.37 $ 1,121 |
Fair Market Value of All Outstanding Peso Forward Contracts | The fair market value of all outstanding Mexican peso forward contracts in the accompanying Consolidated Balance Sheets was as follows (thousands of dollars): July 2, 2017 July 3, 2016 Not designated as hedging instruments: Other current assets: Mexican peso forward contracts $ 1,121 $ — Other long-term assets: Mexican peso forward contracts $ — $ 107 Other current liabilities: Mexican peso forward contracts $ — $ 996 |
Pre-Tax Effects of the Peso Forward Contracts | The pre-tax effects of the Mexican peso forward contracts on the accompanying Consolidated Statements of Income and Comprehensive Income consisted of the following (thousands of dollars): Other Income, net Years Ended July 2, 2017 July 3, 2016 June 28, 2015 Not Designated as Hedging Instruments: Realized loss $ 1,650 $ 1,196 $ — Unrealized loss $ — $ 889 $ — Unrealized gain $ 2,010 $ — $ — |
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 July 2, 2017 and July 3, 2016 (thousands of dollars) July 2, 2017 July 3, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Rabbi Trust assets: Stock index funds: Small cap $ 382 $ — $ — $ 382 $ 356 $ — $ — $ 356 Mid cap 391 — — 391 357 — — 357 Large cap 519 — — 519 498 — — 498 International 541 — — 541 389 — — 389 Fixed income funds 763 — — 763 700 — — 700 Cash and cash equivalents — 3 — 3 — 3 — 3 Mexican peso forward contracts — 1,121 — 1,121 — 107 — 107 Total assets at fair value $ 2,596 $ 1,124 $ — $ 3,720 $ 2,300 $ 110 $ — $ 2,410 Liabilities: Mexico peso forward contracts $ — $ — $ — $ — $ — $ 996 $ — $ 996 |
Changes in the Allowance for Doubtful Accounts | Changes in the allowance for doubtful accounts were as follows (thousands of dollars) Balance, Beginning of Year Provision for Doubtful Accounts Net Write-Offs Balance, End of Year Year ended July 2, 2017 $ 500 $ — $ — $ 500 Year ended July 3, 2016 $ 500 $ — $ — $ 500 Year ended June 28, 2015 $ 500 $ — $ — $ 500 |
Inventories | Inventories consisted of the following (thousands of dollars): July 2, 2017 July 3, 2016 Finished products $ 9,976 $ 10,137 Work in process 9,328 8,291 Purchased materials 20,682 23,055 39,986 41,483 Excess and obsolete reserve (4,510 ) (2,800 ) Inventories, net $ 35,476 $ 38,683 |
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, Beginning of Year Provision Charged to Expense Amounts Written Off Balance, End of Year Year ended July 2, 2017 $ 2,800 $ 2,718 $ 1,008 $ 4,510 Year ended July 3, 2016 $ 2,300 $ 844 $ 344 $ 2,800 Year ended June 28, 2015 $ 2,150 $ 655 $ 505 $ 2,300 |
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, Beginning of Year Provision Charged to Expense Amounts Written Off Balance, End of Year Year ended July 2, 2017 $ 700 $ 438 $ 238 $ 900 Year ended July 3, 2016 $ 620 $ 366 $ 286 $ 700 Year ended June 28, 2015 $ 585 $ 348 $ 313 $ 620 |
Intangible Assets Carrying Value and Accumulated Amortization | The carrying value and accumulated amortization for these assets were as follows (thousands of dollars) July 2, 2017 July 3, 2016 Patents, engineering drawings and software $ 890 $ 890 Less: accumulated amortization (849 ) (750 ) $ 41 $ 140 |
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 Useful Lives Land improvements 20 years Buildings and improvements 15 to 35 years Machinery and equipment 3 to 15 years |
Property, Plant and Equipment | Property, plant and equipment consisted of the following (thousands of dollars): July 2, 2017 July 3, 2016 Land and improvements $ 4,732 $ 4,686 Buildings and improvements 36,046 29,361 Machinery and equipment 210,741 182,812 251,519 216,859 Less: accumulated depreciation (139,928 ) (131,710 ) $ 111,591 $ 85,149 |
Schedule of Depreciation Expenses | Depreciation expense was as follows for the periods indicated (thousands of dollars): Depreciation Expense 2017 $ 11,319 2016 $ 10,022 2015 $ 8,716 |
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 Inventory Purchases Number of Suppliers 2017 39 % 7 2016 36 % 6 2015 27 % 5 |
Summary of Other Income Net | The impact of these items for the periods presented was as follows (thousands of dollars): Years Ended July 2, 2017 July 3, 2016 June 28, 2015 Foreign currency transaction gain $ 1,128 $ 2,559 $ 3,075 Rabbi Trust gain (loss) 296 (41 ) 96 Unrealized gain (loss) on Mexican peso forward contracts 2,010 (889 ) — Realized loss on Mexican peso forward contracts (1,650 ) (1,196 ) — Other 523 235 310 $ 2,307 $ 668 $ 3,481 |
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, Beginning of Year Provision Charged to Expense Payments Balance, End of Year Year ended July 2, 2017 $ 420 $ 5,796 $ 5,796 $ 420 Year ended July 3, 2016 $ 420 $ 5,032 $ 5,032 $ 420 Year ended June 28, 2015 $ 420 $ 4,756 $ 4,756 $ 420 |
Changes in Warranty Reserve | Changes in the warranty reserve were as follows (thousands of dollars): Balance, Beginning of Year (Recoveries) Provision Charged to Expense Payments Balance, End of Year Year ended July 2, 2017 $ 9,228 $ (843 ) $ 2,835 $ 5,550 Year ended July 3, 2016 $ 11,835 $ 583 $ 3,190 $ 9,228 Year ended June 28, 2015 $ 3,462 $ 8,975 $ 602 $ 11,835 |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss: Accumulated other comprehensive loss was comprised of the following (thousands of dollars): July 2, 2017 July 3, 2016 June 28, 2015 Unrecognized pension and postretirement benefit liabilities, net of tax $ 18,750 $ 24,518 $ 18,638 Foreign currency translation, net of tax 14,138 13,155 8,221 $ 32,888 $ 37,673 $ 26,859 |
Summary of Changes in Accumulated Other Comprehensive Loss | The following tables summarize the changes in accumulated other comprehensive loss (“AOCL”) for the years ended July 2, 2017 and July 3, 2016 (thousands of dollars): Year Ended July 2, 2017 Foreign Currency Translation Adjustments Retirement and Postretirement Plans Total Balance July 3, 2016 $ 13,155 $ 24,518 $ 37,673 Other comprehensive loss before reclassifications 534 (6,142 ) (5,608 ) Income Tax (108 ) 2,272 2,164 Net other comprehensive loss before reclassifications 426 (3,870 ) (3,444 ) Reclassifications: Prior service credits (A) — 753 753 Actuarial gains (A) — (3,766 ) (3,766 ) Total reclassifications before tax — (3,013 ) (3,013 ) Income Tax — 1,115 1,115 Net reclassifications — (1,898 ) (1,898 ) Other comprehensive loss (income) 426 (5,768 ) (5,342 ) Other comprehensive income attributable to non-controlling interest (557 ) — (557 ) Balance July 2, 2017 $ 14,138 $ 18,750 $ 32,888 Year Ended July 3, 2016 Foreign Currency Translation Adjustments Retirement and Postretirement Plans Total Balance June 28, 2015 $ 8,221 $ 18,638 $ 26,859 Other comprehensive loss before reclassifications 5,248 11,640 16,888 Income Tax — (4,307 ) (4,307 ) Net other comprehensive loss before reclassifications 5,248 7,333 12,581 Reclassifications: Prior service credits (A) — 753 753 Actuarial gains (A) — (3,059 ) (3,059 ) Total reclassifications before tax — (2,306 ) (2,306 ) Income Tax — 853 853 Net reclassifications — (1,453 ) (1,453 ) Other comprehensive loss 5,248 5,880 11,128 Other comprehensive loss attributable to non-controlling interest 314 — 314 Balance July 3, 2016 $ 13,155 $ 24,518 $ 37,673 (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 July 2, 2017 related to stock options and restricted stock granted under the plan was as follows (thousands of dollars): Compensation Cost Weighted Average Period over which Cost is to be Recognized (in years) Stock options granted $ 14 0.1 Restricted stock granted $ 1,461 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 from Stock Option Exercises Income Tax Benefit 2017 $ 136 $ 25 2016 $ 364 $ 196 2015 $ 474 $ 458 |
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 July 2, 2017 July 3, 2016 June 28, 2015 Intrinsic value of options exercised $ 115 $ 529 $ 1,375 Fair value of stock options vested $ 566 $ 331 $ 382 |
Grant Date Fair Values and Assumptions Used to Determine Compensation Expense | The grant date fair values and assumptions used to determine compensation expense recorded in the accompanying financial statements were as follows: Options Granted During 2015 Weighted average grant date fair value: Options issued at grant date market value n/a Options issued above grant date market value $ 34.93 Assumptions: Risk free interest rates 1.90 % Expected volatility 57.83 % Expected dividend yield 0.62 % Expected term (in years) 6.0 |
Range of Options Outstanding | The range of options outstanding as of July 2, 2017 was as follows Number of Options Outstanding/ Exercisable Weighted Average Exercise Price Outstanding/ Exercisable Weighted Average Remaining Contractual Life Outstanding (In Years) $10.92-$18.49 42,214/42,214 $15.36/$15.36 2.2 $26.53-$38.71 87,284/87,284 $30.72/$30.72 5.2 $79.73 9,010/- $79.73/- 7.1 $29.23/$25.71 |
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): July 2, 2017 July 3, 2016 Gross book value $ 130,166 $ 97,537 Net book value $ 69,652 $ 43,954 |
Investment in Joint Ventures 23
Investment in Joint Ventures and Majority Owned Subsidiaries (Tables) | 12 Months Ended |
Jul. 02, 2017 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investment in Joint Ventures and Majority Owned Subsidiaries | In addition, the equity loss of joint ventures for SAL LLC included the following for the periods presented (thousands of dollars): Years Ended July 2, 2017 July 3, 2016 June 28, 2015 Loss on guarantee of SAL LLC vendor contract $ — $ — $ 123 Loss on loan to SAL LLC $ — $ 225 $ 100 Loss on guarantee of SAL LLC credit facility $ — $ 247 $ 488 STRATTEC’s joint venture investments are included in the accompanying Consolidated Balance Sheets as follows (thousands of dollars): July 2, 2017 July 3, 2016 Investment in Joint Ventures: Investment in VAST LLC $ 16,840 $ 14,168 Other Current Liabilities: Investment in SAL LLC $ 463 $ 1,265 |
Equity Earnings (Loss) of Joi24
Equity Earnings (Loss) of Joint Ventures (Tables) | 12 Months Ended |
Jul. 02, 2017 | |
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 July 2, 2017 July 3, 2016 June 28, 2015 Net sales $ 128,963 $ 114,338 $ 124,929 Cost of goods sold 101,910 94,060 105,132 Gross profit 27,053 20,278 19,797 Engineering, selling and administrative expense 19,710 15,866 16,155 Impairment charge — 6,000 — Income (loss) from operations 7,343 (1,588 ) 3,642 Other income (expense), net 1,662 (115 ) 123 Income (loss) before provision for income taxes 9,005 (1,703 ) 3,765 Provision for income taxes 1,235 168 41 Net income (loss) $ 7,770 $ (1,871 ) $ 3,724 STRATTEC’s share of VAST LLC net income (loss) $ 2,590 $ (624 ) $ 1,241 Intercompany profit eliminations 3 (15 ) 10 STRATTEC’s equity earnings (loss) of VAST LLC $ 2,593 $ (639 ) $ 1,251 July 2, 2017 July 3, 2016 Cash and cash equivalents $ 11,757 $ 6,584 Receivables, net 41,942 24,557 Inventories, net 15,185 13,500 Other current assets 11,782 13,007 Total current assets 80,666 57,648 Property, plant and equipment, net 31,017 26,557 Other long-term assets 12,850 11,086 Total assets $ 124,533 $ 95,291 Current liabilities $ 70,753 $ 50,462 Long-term liabilities 2,960 2,019 Total liabilities $ 73,713 $ 52,481 Net assets $ 50,820 $ 42,810 STRATTEC’s share of VAST LLC net assets $ 16,940 $ 14,270 |
SAL LLC | |
Summarized Statements of Operations and Balance Sheet Data | The following are summarized statements of operations and summarized balance sheet data for SAL LLC (thousands of dollars): Years Ended July 2, 2017 July 3, 2016 June 28, 2015 Net sales $ 369 $ 603 $ 49 Cost of goods sold 610 382 450 Gross (loss) profit (241 ) 221 (401 ) Engineering, selling and administrative expense 1,534 1,311 1,492 Loss from operations (1,775 ) (1,090 ) (1,893 ) Other expense, net (155 ) (34 ) (4 ) Net loss $ (1,930 ) $ (1,124 ) $ (1,897 ) STRATTEC’s share of SAL LLC loss $ (1,927 ) $ (1,124 ) $ (1,328 ) Loss on guarantee of SAL LLC vendor contract — — (123 ) Loss on loan to SAL LLC — (225 ) (100 ) Loss on guarantee of SAL LLC credit facility — (247 ) (488 ) STRATTEC’s equity loss of SAL LLC $ (1,927 ) $ (1,596 ) $ (2,039 ) July 2, 2017 July 3, 2016 Cash and cash equivalents $ 11 $ 21 Receivables, net 11 60 Inventories, net 345 283 Total assets $ 367 $ 364 Current liabilities $ 3,189 $ 1,256 Net liabilities $ (2,822 ) $ (892 ) STRATTEC’s share of SAL LLC net liabilities $ (1,439 ) $ (455 ) |
VAST LLC and SAL LLC | |
Summarize of Related Party Transaction | We have sales of component parts to VAST LLC and SAL LLC, purchases of component parts from VAST LLC, expenses charged to VAST LLC for engineering and accounting services and expenses charged from VAST LLC to STRATTEC for general headquarter expenses. The following tables summarize the related party transactions with VAST LLC and SAL LLC for the periods indicated (thousands of dollars): Years Ended July 2, 2017 July 3, 2016 June 28, 2015 Sales to VAST LLC $ 1,966 $ 304 $ 2,298 Sales to SAL LLC $ 234 $ 363 $ 157 Purchases from VAST LLC $ 245 $ 149 $ 164 Expenses charged to VAST LLC $ 843 $ 1,034 $ 832 Expenses charged from VAST LLC $ 1,134 $ 1,526 $ 1,825 July 2, 2017 July 3, 2016 Accounts receivable from VAST LLC $ — $ 55 Accounts receivable from SAL LLC (A) $ — $ 450 Current loan receivable from SAL LLC (A) $ — $ 325 Long-term loan receivable from VAST LLC $ 300 $ 400 Accounts payable to VAST LLC $ — $ 213 (A) As of July 2, 2017, outstanding loan and accounts receivable balances due from SAL LLC to STRATTEC totaled $2.6 million and $185,000, respectively. As of July 2, 2017, these outstanding balances have been offset against our investment in SAL LLC, which is included in Other Current Liabilities in the Consolidated Balance Sheet. As of July 3, 2016, a valuation allowance was established for the full amount of the outstanding loan balance of $325,000 due from SAL LLC to STRATTEC. |
Credit Facilities (Tables)
Credit Facilities (Tables) | 12 Months Ended |
Jul. 02, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Borrowings Under the Credit Facilities | Outstanding borrowings under the credit facilities referenced in the above paragraph as of the end of 2017 and 2016 were as follows (thousands of dollars): July 2, 2017 July 3, 2016 STRATTEC Credit Facility $ 16,000 $ 11,500 ADAC-STRATTEC Credit Facility $ 14,000 $ 8,500 |
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 2017 and 2016 were as follows (thousands of dollars): Average Outstanding Borrowings Weighted Average Interest Rate Years Ended Years Ended July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 STRATTEC Credit Facility $ 12,490 $ 7,608 1.8 % 1.5 % ADAC-STRATTEC Credit Facility $ 10,865 $ 4,443 1.8 % 1.3 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jul. 02, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Purchase and Minimum Rental Commitments Under Non-Cancelable Operating Leases | At July 2, 2017, we had purchase commitments related to the construction of a new ADAC-STRATTEC de Mexico manufacturing facility in Leon, Mexico, which is expected to be used primarily to paint and assemble door handle products, paint equipment to be installed and used at this new facility, zinc, other purchased parts and natural gas. We also had minimum rental commitments under non-cancelable operating leases with a term in excess of one year. The purchase and minimum rental commitments are payable as follows (thousands of dollars): Purchase Minimum Rental Fiscal Year Commitments Commitments 2018 $ 17,413 $ 884 2019 $ 8,699 $ 606 2020 $ 3,897 $ 190 2021 $ — $ — 2022 $ — $ — |
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 2017 $ 704 2016 $ 691 2015 $ 993 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jul. 02, 2017 | |
Income Tax Disclosure [Abstract] | |
Provision (Benefit) for Income Taxes | The provision for income taxes consisted of the following (thousands of dollars): Years Ended July 2, 2017 July 3, 2016 June 28, 2015 Currently payable: Federal $ 228 $ 18 $ 9,891 State 3 130 657 Foreign 2,202 1,893 2,164 2,433 2,041 12,712 Deferred tax provision (benefit) 1,851 3,027 (3,330 ) $ 4,284 $ 5,068 $ 9,382 |
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: Years Ended July 2, 2017 July 3, 2016 June 28, 2015 U.S. statutory rate 35.0 % 34.0 % 34.7 % State taxes, net of Federal tax benefit 1.2 1.3 0.7 Foreign subsidiaries (1.1 ) 0.6 (1.3 ) U.S. taxation on non-U.S. earnings 3.8 — — Research and development tax credit (2.7 ) — — Non-controlling interest (9.9 ) (9.3 ) (4.1 ) Other (0.2 ) (0.2 ) (2.4 ) 26.1 % 26.4 % 27.6 % |
Components of Deferred Tax Assets | The components of deferred tax assets were as follows (thousands of dollars): July 2, 2017 July 3, 2016 Unrecognized pension and postretirement benefit plan liabilities $ 11,191 $ 14,579 Accrued warranty 925 1,376 Payroll-related accruals 2,605 2,108 Stock-based compensation 1,488 1,258 Inventory reserve 1,249 873 Environmental reserve 484 505 Repair and maintenance supply parts reserve 333 259 Allowance for doubtful accounts 185 185 NOL/credit carry-forwards 1,669 145 Postretirement obligations (405 ) (227 ) Accumulated depreciation (6,034 ) (6,135 ) Accrued pension obligations (14,483 ) (13,197 ) Joint Ventures 808 1,706 Other 241 1,952 $ 256 $ 5,387 |
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 July 2, 2017 and July 3, 2016 (thousands of dollars): Years Ended July 2, 2017 July 3, 2016 Unrecognized tax benefits, beginning of year $ 441 $ 437 Gross increases – tax positions in prior years 28 — Gross decreases – tax positions in prior years — (3 ) Gross increases – current period tax positions 177 71 Tax years closed (75 ) (64 ) Unrecognized tax benefits, end of year $ 571 $ 441 |
Retirement Plans and Postreti28
Retirement Plans and Postretirement Costs (Tables) | 12 Months Ended |
Jul. 02, 2017 | |
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 July 2, 2017, which have not yet been recognized in net periodic benefit cost were as follows (thousands of dollars): Pension and Postretirement Prior service cost (credit) $ 7 $ (768 ) Net actuarial loss 17,279 2,232 $ 17,286 $ 1,464 |
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 July 2, 2017 which are expected to be recognized in net periodic benefit cost (credit) in fiscal 2018, 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 1,282 302 $ 1,289 $ (179 ) |
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 July 2, 2017 July 3, 2016 June 28, 2015 July 2, 2017 July 3, 2016 June 28, 2015 COMPONENTS OF NET PERIODIC BENEFIT COST (CREDIT): Service cost $ 54 $ 50 $ 64 $ 13 $ 12 $ 14 Interest cost 3,926 4,387 4,173 55 87 114 Expected return on plan assets (5,854 ) (5,509 ) (6,174 ) — — — Amortization of prior service cost (credit) 11 11 11 (764 ) (764 ) (764 ) Amortization of unrecognized net loss 3,228 2,443 2,775 538 616 693 Net periodic benefit cost (credit) $ 1,365 $ 1,382 $ 849 $ (158 ) $ (49 ) $ 57 Pension and SERP Benefits Postretirement Benefits 2017 2016 2017 2016 WEIGHTED-AVERAGE ASSUMPTIONS: Benefit Obligations: Discount rate 3.91 % 3.79 % 3.91 % 3.79 % Rate of compensation increases - SERP 3.0 % 3.0 % n/a n/a Net Periodic Benefit Cost: Discount rate 3.79 % 4.53 % 3.79 % 4.53 % Expected return on plan assets 5.45 % 5.45 % 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 $ 106,152 $ 99,329 $ 1,602 $ 2,179 Service cost 54 50 13 12 Interest cost 3,926 4,387 55 87 Actuarial (gain) loss (4,342 ) 6,783 (80 ) (281 ) Benefits paid (4,524 ) (4,397 ) (322 ) (395 ) Benefit obligation at end of year $ 101,266 $ 106,152 $ 1,268 $ 1,602 CHANGE IN PLAN ASSETS: Fair value of plan assets at beginning of year $ 104,460 $ 105,472 $ — $ — Actual return on plan assets 7,574 371 — — Employer contribution 5,014 3,014 322 395 Benefits paid (4,524 ) (4,397 ) (322 ) (395 ) Fair value of plan assets at end of year $ 112,524 $ 104,460 $ — $ — Funded status – prepaid (accrued) benefit obligations $ 11,258 $ (1,692 ) $ (1,268 ) $ (1,602 ) AMOUNTS RECOGNIZED IN CONSOLIDATED BALANCE SHEETS: Other long-term assets $ 13,082 $ 72 $ — $ — Accrued payroll and benefits (current liabilities) (332 ) (299 ) (265 ) (340 ) Accrued benefit obligations (long-term liabilities) (1,492 ) (1,465 ) (1,003 ) (1,262 ) Net amount recognized $ 11,258 $ (1,692 ) $ (1,268 ) $ (1,602 ) CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE INCOME: Net periodic benefit cost (credit) $ 1,365 $ 1,382 $ (158 ) $ (49 ) Net actuarial (gain) loss (6,063 ) 11,921 (80 ) (281 ) Amortization of prior service (cost) credits (11 ) (11 ) 764 764 Amortization of unrecognized net loss (3,228 ) (2,443 ) (538 ) (616 ) Total recognized in other comprehensive (income) loss, before tax (9,302 ) 9,467 146 (133 ) Total recognized in net periodic benefit cost and other comprehensive (income) loss, before tax $ (7,937 ) $ 10,849 $ (12 ) $ (182 ) |
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 July 2, 2017 July 3, 2016 July 2, 2017 July 3, 2016 Accumulated benefit obligation $ 99,442 $ 104,388 $ 1,591 $ 1,435 Projected benefit obligation $ 99,442 $ 104,388 $ 1,824 $ 1,764 |
Minimal Effect of Health Care Trend on our Postretirement Benefit | The health care cost trend assumption has a minimal effect on our 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 2017 $ — $ — Effect on postretirement benefit obligation as of July 2, 2017 $ 7 $ (7 ) |
Schedule of Asset Allocations of Pension Plan | The pension plan weighted-average asset allocations by asset category were as follows for 2017 and 2016: Target Allocation July 2, 2017 July 3, 2016 Equity investments 35 % 38 % 38 % Fixed-income Investments 30 56 27 Cash 35 6 35 Total 100 % 100 % 100 % The following is a summary, by asset category, of the fair value of pension plan assets at the June 30, 2017 and June 30, 2016 measurement dates (thousands of dollars): June 30, 2017 June 30, 2016 Asset Category Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ — $ 7,233 $ — $ 7,233 $ — $ 36,706 $ — $ 36,706 Equity securities/funds: Small cap 1,008 — — 1,008 1,714 — — 1,714 Mid cap 12,414 — — 12,414 12,341 — — 12,341 Large cap 19,961 — — 19,961 18,678 — — 18,678 International 8,941 — — 8,941 7,132 — — 7,132 Fixed income: Bond funds/bonds 5,718 57,249 — 62,967 4,837 23,052 — 27,889 Total $ 48,042 $ 64,482 $ — $ 112,524 $ 44,702 $ 59,758 $ — $ 104,460 |
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 Benefits Postretirement Benefits 2018 $ 5,308 $ 265 2019 $ 5,304 $ 217 2020 $ 5,668 $ 164 2021 $ 6,239 $ 146 2022 $ 6,257 $ 132 2023-2027 $ 29,998 $ 315 |
Schedule of 401(k) Plan Contribution | Our contributions to the 401(k) Plan were as follows (thousands of dollars): Years Ended July 2, 2017 July 3, 2016 June 28, 2015 Company contributions $ 1,805 $ 1,783 $ 1,729 |
Earnings Per Share (''EPS'') (T
Earnings Per Share (''EPS'') (Tables) | 12 Months Ended |
Jul. 02, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Components of 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): Years Ended July 2, 2017 July 3, 2016 June 28, 2015 Net income attributable to STRATTEC $ 7,197 $ 9,149 $ 20,654 Less: Income attributable to participating securities 1 58 258 Net income attributable to common shareholders $ 7,196 $ 9,091 $ 20,396 Weighted average shares of common stock outstanding 3,588 3,559 3,515 Incremental shares – stock based compensation 82 62 89 Diluted weighted average shares of common stock outstanding 3,670 3,621 3,604 Basic earnings per share $ 2.01 $ 2.55 $ 5.80 Diluted earnings per share $ 1.96 $ 2.51 $ 5.66 |
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: Years Ended Number of Excluded July 2, 2017 9,010 July 3, 2016 9,010 June 28, 2015 10,000 |
Stock Option and Purchase Pla30
Stock Option and Purchase Plans (Tables) | 12 Months Ended |
Jul. 02, 2017 | |
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 Weighted Average Remaining Contractual Aggregate Intrinsic Value Shares Exercise Price Term (in years) (in thousands) 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 Exercised (16,909 ) $ 21.55 Terminated (2,000 ) $ 17.59 Balance at July 3, 2016 144,998 $ 28.86 Exercised (6,490 ) $ 20.96 Balance at July 2, 2017 138,508 $ 29.23 4.4 $ 1,361 Exercisable as of: July 2, 2017 129,498 $ 25.71 4.2 $ 1,361 July 3, 2016 103,798 $ 21.39 4.6 $ 2,174 June 28, 2015 91,103 $ 19.86 4.1 $ 4,592 |
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 Shares 10,000 Exercise price $ 79.73 |
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 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 Granted 28,750 $ 69.02 Vested (20,300 ) $ 23.69 Forfeited (3,050 ) $ 59.92 Nonvested Balance at July 3, 2016 71,750 $ 60.05 Granted 27,150 $ 43.87 Vested (21,250 ) $ 37.53 Forfeited (1,800 ) $ 58.24 Nonvested Balance at July 2, 2017 75,850 $ 60.61 |
Export Sales (Tables)
Export Sales (Tables) | 12 Months Ended |
Jul. 02, 2017 | |
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, are summarized as follows (thousands of dollars and percent of total net sales): Years Ended July 2, 2017 July 3, 2016 June 28, 2015 Net Sales % Net Sales % Net Sales % Export sales $ 160,275 38 % $ 152,728 38 % $ 141,584 34 % |
Geographic Concentration Risk | Canada | |
Schedule of Sales to Locations Outside of the United States | Countries for which customer sales account for ten percent or more of total net sales are summarized as follows (thousands of dollars and percent of total net sales): Years Ended July 2, 2017 July 3, 2016 June 28, 2015 Net Sales % Net Sales % Net Sales % Export sales into Canada $ 73,481 18 % $ 74,310 19 % $ 60,987 15 % |
Product Sales (Tables)
Product Sales (Tables) | 12 Months Ended |
Jul. 02, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Product Sales | Sales by product group were as follows (thousands of dollars and percent of total net sales): Years Ended July 2, 2017 July 3, 2016 June 28, 2015 Net Sales % Net Sales % Net Sales % Keys & locksets $ 114,938 28 % $ 113,765 28 % $ 114,287 28 % Power access 84,457 20 83,747 21 68,078 16 Door handles & exterior trim 67,722 16 61,376 15 60,864 15 Driver controls 56,983 14 55,955 14 57,894 14 Aftermarket & OE service 47,216 11 48,200 12 78,717 19 Latches 35,307 8 28,023 7 24,320 6 Other 10,702 3 10,353 3 7,315 2 $ 417,325 100 % $ 401,419 100 % $ 411,475 100 % |
Sales and Receivable Concentr33
Sales and Receivable Concentration (Tables) | 12 Months Ended |
Jul. 02, 2017 | |
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): Years Ended July 2, 2017 July 3, 2016 June 28, 2015 Net Sales % Net Sales % Net Sales % Fiat Chrysler Automobiles $ 100,575 24 % $ 115,858 29 % $ 116,914 28 % General Motors Company 88,624 21 79,893 20 105,809 26 Ford Motor Company 62,314 15 57,317 14 45,415 11 $ 251,513 60 % $ 253,068 63 % $ 268,138 65 % |
Receivables from Largest Customers | Receivables from our largest customers were as follows (thousands of dollars and percent of gross receivables): July 2, 2017 July 3, 2016 Receivables % Receivables % Fiat Chrysler Automobiles $ 17,107 26 % $ 18,103 28 % General Motors Company 13,395 21 13,090 21 Ford Motor Company 8,644 13 6,863 11 $ 39,146 60 % $ 38,056 60 % |
Organization and Summary of S34
Organization and Summary of Significant Accounting Policies (Details Textual) | 12 Months Ended | ||||
Jul. 02, 2017USD ($)SubsidiaryJoint_VentureSegmentAssociatesshares | Jul. 03, 2016USD ($)shares | Jun. 28, 2015USD ($)Contractshares | Jun. 29, 2014USD ($) | Apr. 05, 2013 | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Number of reporting segments related to STRATTEC Security Corporation | Segment | 1 | ||||
Fiscal year duration | 364 days | 371 days | 364 days | ||
Fair value, assets, level 1 to level 2 transfers, amount | $ 0 | $ 0 | |||
Gross balance of the repair and maintenance supply parts inventory | $ 3,700,000 | 3,200,000 | |||
Remaining useful life of intangible assets | 4 months 24 days | ||||
Intangible amortization expense | $ 99,000 | 99,000 | $ 99,000 | ||
Estimated intangible amortization expense for the next twelve months | 41,000 | ||||
Estimated intangible amortization expense thereafter | 0 | ||||
Property, plant and equipment impairment | $ 0 | 0 | 0 | ||
Number of full time associates | Associates | 3,892 | ||||
Number of associates represented by labor union | Associates | 275 | ||||
Percentage of associate represent by labor union | 7.10% | ||||
Research and development expenditures | $ 4,600,000 | 430,000 | 280,000 | ||
Per individual per calendar year health coverage stop loss limit | $ 150,000 | $ 150,000 | $ 150,000 | $ 150,000 | |
Options, granted | shares | 0 | 0 | 10,000 | ||
Employee Stock Option | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Options expires after date of grant | 10 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 | 204,939 | ||||
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] | |||||
Vesting period after the date of grant | 1 year | ||||
Minimum | Restricted stock | Prior to August 2015 | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Vesting period after the date of grant | 3 years | ||||
Minimum | Restricted stock | August 2015 and Thereafter | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Vesting period after the 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] | |||||
Vesting period after the date of grant | 4 years | ||||
Maximum | Restricted stock | Prior to August 2015 | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Vesting period after the date of grant | 5 years | ||||
Maximum | Restricted stock | August 2015 and Thereafter | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Vesting period after the date of grant | 5 years | ||||
Mexican Peso Forward Contracts | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Number of Mexican Peso Option Contract | Contract | 0 | ||||
Forward contract settlement dates, beginning | Oct. 16, 2015 | ||||
Forward contract settlement dates, ending | Jun. 15, 2018 | ||||
Reclassification from Cost of Goods Sold and Engineering, Selling and Administrative Expenses to Other Income, Net | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Estimate result of future adoption of accounting guidance | $ 1,100,000 | $ 1,300,000 | |||
SAL, LLC | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
STRATTEC's percentage ownership in joint venture | 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 | Subsidiary | 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 S35
Organization and Summary of Significant Accounting Policies - Schedule of Quantification of Outstanding Mexican Peso Forward Contracts (Details) - Currency buy sell under contract one | 12 Months Ended |
Jul. 02, 2017USD ($)$ / MXN | |
Derivative [Line Items] | |
Effective Dates, Beginning | Jul. 15, 2017 |
Effective Dates, Ending | Jun. 15, 2018 |
Notional Amount | $ 12,000,000 |
Average Forward Contractual Exchange Rate | $ / MXN | 20.37 |
Fair Value, Asset | $ 1,121,000 |
Organization and Summary of S36
Organization and Summary of Significant Accounting Policies - Fair Market Value of All Outstanding Peso Forward Contracts (Details) - Mexican Peso Forward Contracts - USD ($) $ in Thousands | Jul. 02, 2017 | Jul. 03, 2016 |
Other Current Assets | ||
Not designated as hedging instruments: | ||
Fair market value of derivative instruments | $ 1,121 | |
Other Long-Term Assets | ||
Not designated as hedging instruments: | ||
Fair market value of derivative instruments | $ 107 | |
Other Current Liabilities | ||
Not designated as hedging instruments: | ||
Fair market value of derivative instruments | $ 996 |
Organization and Summary of S37
Organization and Summary of Significant Accounting Policies - Pre-Tax Effects of the Peso Forward Contracts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 02, 2017 | Jul. 03, 2016 | |
Pre-tax effects of the Mexican peso forward contracts | ||
Realized loss | $ 1,650 | $ 1,196 |
Not Designated as Hedging Instrument | Other Income, Net | ||
Pre-tax effects of the Mexican peso forward contracts | ||
Realized loss | 1,650 | 1,196 |
Unrealized loss | $ 889 | |
Unrealized gain | $ 2,010 |
Organization and Summary of S38
Organization and Summary of Significant Accounting Policies (Details1) - USD ($) $ in Thousands | Jul. 02, 2017 | Jul. 03, 2016 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Assets at Fair Value | $ 3,720 | $ 2,410 |
Fixed Income Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Assets at Fair Value | 763 | 700 |
Stock Index Fund | Small Cap | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Assets at Fair Value | 382 | 356 |
Stock Index Fund | Mid Cap | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Assets at Fair Value | 391 | 357 |
Stock Index Fund | Large Cap | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Assets at Fair Value | 519 | 498 |
Stock Index Fund | International | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Assets at Fair Value | 541 | 389 |
Cash and Cash Equivalents | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Assets at Fair Value | 3 | 3 |
Mexican Peso Forward Contracts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Assets at Fair Value | 1,121 | 107 |
Total Liabilities at Fair Value | 996 | |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Assets at Fair Value | 2,596 | 2,300 |
Level 1 | Fixed Income Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Assets at Fair Value | 763 | 700 |
Level 1 | Stock Index Fund | Small Cap | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Assets at Fair Value | 382 | 356 |
Level 1 | Stock Index Fund | Mid Cap | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Assets at Fair Value | 391 | 357 |
Level 1 | Stock Index Fund | Large Cap | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Assets at Fair Value | 519 | 498 |
Level 1 | Stock Index Fund | International | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Assets at Fair Value | 541 | 389 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Assets at Fair Value | 1,124 | 110 |
Level 2 | Cash and Cash Equivalents | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Assets at Fair Value | 3 | 3 |
Level 2 | Mexican Peso Forward Contracts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Assets at Fair Value | $ 1,121 | 107 |
Total Liabilities at Fair Value | $ 996 |
Organization and Summary of S39
Organization and Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
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 S40
Organization and Summary of Significant Accounting Policies (Details 3) - USD ($) $ in Thousands | Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | Jun. 29, 2014 |
Inventories | ||||
Finished products | $ 9,976 | $ 10,137 | ||
Work in process | 9,328 | 8,291 | ||
Purchased materials | 20,682 | 23,055 | ||
Inventory, Gross, Total | 39,986 | 41,483 | ||
Excess and obsolete reserve | (4,510) | (2,800) | $ (2,300) | $ (2,150) |
Inventories, net | $ 35,476 | $ 38,683 |
Organization and Summary of S41
Organization and Summary of Significant Accounting Policies (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Activity related to the excess and obsolete inventory reserve | |||
Balance, Beginning of Year | $ 2,800 | $ 2,300 | $ 2,150 |
Provision Charged to Expense | 2,718 | 844 | 655 |
Amounts Written Off | 1,008 | 344 | 505 |
Balance, End of Year | $ 4,510 | $ 2,800 | $ 2,300 |
Organization and Summary of S42
Organization and Summary of Significant Accounting Policies (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Activity related to the repair and maintenance supply parts reserve | |||
Balance, Beginning of Year | $ 700 | $ 620 | $ 585 |
Provision Charged to Expense | 438 | 366 | 348 |
Amounts Written Off | 238 | 286 | 313 |
Balance, End of Year | $ 900 | $ 700 | $ 620 |
Organization and Summary of S43
Organization and Summary of Significant Accounting Policies (Details 6) - USD ($) $ in Thousands | Jul. 02, 2017 | Jul. 03, 2016 |
Intangible assets carrying value and accumulated amortization | ||
Patents, engineering drawings and software | $ 890 | $ 890 |
Less: accumulated amortization | (849) | (750) |
Total | $ 41 | $ 140 |
Organization and Summary of S44
Organization and Summary of Significant Accounting Policies (Details 7) | 12 Months Ended |
Jul. 02, 2017 | |
Land improvements | |
Estimated useful lives of the assets | |
Expected Useful Lives | 20 years |
Minimum | Buildings and improvements | |
Estimated useful lives of the assets | |
Expected Useful Lives | 15 years |
Minimum | Machinery and equipment | |
Estimated useful lives of the assets | |
Expected Useful Lives | 3 years |
Maximum | Buildings and improvements | |
Estimated useful lives of the assets | |
Expected Useful Lives | 35 years |
Maximum | Machinery and equipment | |
Estimated useful lives of the assets | |
Expected Useful Lives | 15 years |
Organization and Summary of S45
Organization and Summary of Significant Accounting Policies (Details 8) - USD ($) $ in Thousands | Jul. 02, 2017 | Jul. 03, 2016 |
Property, plant and equipment | ||
Gross | $ 251,519 | $ 216,859 |
Less: accumulated depreciation | (139,928) | (131,710) |
Total | 111,591 | 85,149 |
Land and improvements | ||
Property, plant and equipment | ||
Gross | 4,732 | 4,686 |
Buildings and improvements | ||
Property, plant and equipment | ||
Gross | 36,046 | 29,361 |
Machinery and equipment | ||
Property, plant and equipment | ||
Gross | $ 210,741 | $ 182,812 |
Organization and Summary of S46
Organization and Summary of Significant Accounting Policies (Details 9) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Depreciation Expense | $ 11,319 | $ 10,022 | $ 8,716 |
Organization and Summary of S47
Organization and Summary of Significant Accounting Policies (Details 10) - USD ($) $ in Thousands | Jul. 02, 2017 | Jul. 03, 2016 |
Gross and net book value of property plant and equipment | ||
Property, plant and equipment, gross | $ 251,519 | $ 216,859 |
Property, plant and equipment, net | 111,591 | 85,149 |
MEXICO | ||
Gross and net book value of property plant and equipment | ||
Property, plant and equipment, gross | 130,166 | 97,537 |
Property, plant and equipment, net | $ 69,652 | $ 43,954 |
Organization and Summary of S48
Organization and Summary of Significant Accounting Policies (Details 11) - Supplier | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Supplier Concentrations | |||
Percentage of inventory purchases from major suppliers | 39.00% | 36.00% | 27.00% |
Number of major Suppliers | 7 | 6 | 5 |
Organization and Summary of S49
Organization and Summary of Significant Accounting Policies (Details 12) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Other Income and Expenses [Abstract] | |||
Foreign currency transaction gain | $ 1,128 | $ 2,559 | $ 3,075 |
Rabbi Trust gain (loss) | 296 | (41) | 96 |
Unrealized gain (loss) on Mexican peso forward contracts | 2,010 | (889) | |
Realized loss on Mexican peso forward contracts | (1,650) | (1,196) | |
Other | 523 | 235 | 310 |
Other income, net | $ 2,307 | $ 668 | $ 3,481 |
Organization and Summary of S50
Organization and Summary of Significant Accounting Policies (Details 13) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Changes in balance sheet amounts under self insured plans | |||
Balance, Beginning of Year | $ 420 | $ 420 | $ 420 |
Provision Charged to Expense | 5,796 | 5,032 | 4,756 |
Payments | 5,796 | 5,032 | 4,756 |
Balance, End of Year | $ 420 | $ 420 | $ 420 |
Organization and Summary of S51
Organization and Summary of Significant Accounting Policies (Details 14) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Changes in warranty reserve | |||
Balance, Beginning of Year | $ 9,228 | $ 11,835 | $ 3,462 |
(Recoveries) Provision Charged to Expense | (843) | 583 | 8,975 |
Payments | 2,835 | 3,190 | 602 |
Balance, End of Year | $ 5,550 | $ 9,228 | $ 11,835 |
Organization and Summary of S52
Organization and Summary of Significant Accounting Policies (Details 15) - USD ($) $ in Thousands | Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 |
Accumulated other comprehensive loss | |||
Unrecognized pension and postretirement benefit liabilities, net of tax | $ 18,750 | $ 24,518 | $ 18,638 |
Foreign currency translation, net of tax | 14,138 | 13,155 | 8,221 |
Accumulated other comprehensive loss, total | $ 32,888 | $ 37,673 | $ 26,859 |
Organization and Summary of S53
Organization and Summary of Significant Accounting Policies (Details 16) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | $ (154,512) | $ (152,401) | $ (134,903) |
Other comprehensive loss before reclassifications | (5,608) | 16,888 | |
Retirement and Postretirement Plan Reclassification Adjustment, Income Tax Amount | 2,164 | (4,307) | |
Net other comprehensive loss before reclassifications | (3,444) | 12,581 | |
Reclassifications: | |||
Prior service credits | 753 | 753 | |
Actuarial gains | (3,766) | (3,059) | |
Total reclassifications before tax | (3,013) | (2,306) | |
Retirement and Postretirement Plans Reclassifications, Income Tax | 1,115 | 853 | |
Net reclassifications | (1,898) | (1,453) | |
Other comprehensive loss (income) | (5,342) | 11,128 | 6,984 |
Ending balance | (172,714) | (154,512) | (152,401) |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | 13,155 | 8,221 | |
Other comprehensive loss before reclassifications | 534 | 5,248 | |
Retirement and Postretirement Plan Reclassification Adjustment, Income Tax Amount | (108) | ||
Net other comprehensive loss before reclassifications | 426 | 5,248 | |
Reclassifications: | |||
Other comprehensive loss (income) | 426 | 5,248 | |
Other comprehensive (income) loss attributable to non- controlling interest | (557) | 314 | |
Ending balance | 14,138 | 13,155 | 8,221 |
Retirement and Postretirement Benefit Plans | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | 24,518 | 18,638 | |
Other comprehensive loss before reclassifications | (6,142) | 11,640 | |
Retirement and Postretirement Plan Reclassification Adjustment, Income Tax Amount | 2,272 | (4,307) | |
Net other comprehensive loss before reclassifications | (3,870) | 7,333 | |
Reclassifications: | |||
Prior service credits | 753 | 753 | |
Actuarial gains | (3,766) | (3,059) | |
Total reclassifications before tax | (3,013) | (2,306) | |
Retirement and Postretirement Plans Reclassifications, Income Tax | 1,115 | 853 | |
Net reclassifications | (1,898) | (1,453) | |
Other comprehensive loss (income) | (5,768) | 5,880 | |
Ending balance | 18,750 | 24,518 | 18,638 |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | 37,673 | 26,859 | 20,198 |
Reclassifications: | |||
Ending balance | 32,888 | 37,673 | $ 26,859 |
AOCI Including Portion Attributable to Noncontrolling Interest | |||
Reclassifications: | |||
Other comprehensive loss (income) | (5,342) | 11,128 | |
AOCI Attributable to Noncontrolling Interest | |||
Reclassifications: | |||
Other comprehensive (income) loss attributable to non- controlling interest | $ (557) | $ 314 |
Organization and Summary of S54
Organization and Summary of Significant Accounting Policies (Details 17) $ in Thousands | 12 Months Ended |
Jul. 02, 2017USD ($) | |
Employee Stock Option | |
Unrecognized compensation cost related to stock options and restricted stock granted under the plan | |
Compensation Cost | $ 14 |
Weighted Average Period Over Which Cost is to be Recognized (in years) | 1 month 6 days |
Restricted stock | |
Unrecognized compensation cost related to stock options and restricted stock granted under the plan | |
Compensation Cost | $ 1,461 |
Weighted Average Period Over Which Cost is to be Recognized (in years) | 1 year |
Organization and Summary of S55
Organization and Summary of Significant Accounting Policies (Details 18) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Cash Received From Stock Option Exercises And Related Income Tax Benefit | |||
Cash Received from Stock Option Exercises | $ 136 | $ 364 | $ 474 |
Income Tax Benefit | $ 25 | $ 196 | $ 458 |
Organization and Summary of S56
Organization and Summary of Significant Accounting Policies (Details 19) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Intrinsic value of stock options exercised and the fair value of stock options vested | |||
Intrinsic value of options exercised | $ 115 | $ 529 | $ 1,375 |
Fair value of stock options vested | $ 566 | $ 331 | $ 382 |
Organization and Summary of S57
Organization and Summary of Significant Accounting Policies (Details 20) | 12 Months Ended |
Jun. 28, 2015$ / shares | |
Assumptions: | |
Risk free interest rates | 1.90% |
Expected volatility | 57.83% |
Expected dividend yield | 0.62% |
Expected term (in years) | 6 years |
Options Issued Above Grant Date Market Value | |
Weighted average grant date fair value: | |
Weighted average grant date fair value | $ 34.93 |
Organization and Summary of S58
Organization and Summary of Significant Accounting Policies (Details 21) | 12 Months Ended |
Jul. 02, 2017$ / sharesshares | |
Range of options outstanding | |
Weighted Average Exercise Price Outstanding | $ 29.23 |
Weighted Average Exercise Price Exercisable | $ 25.71 |
Exercise Price Range One | |
Range of options outstanding | |
Number of Options Outstanding | shares | 42,214 |
Number of Options Exercisable | shares | 42,214 |
Weighted Average Exercise Price Outstanding | $ 15.36 |
Weighted Average Exercise Price Exercisable | $ 15.36 |
Weighted Average Remaining Contractual Life Outstanding (In Years) | 2 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 | shares | 87,284 |
Number of Options Exercisable | shares | 87,284 |
Weighted Average Exercise Price Outstanding | $ 30.72 |
Weighted Average Exercise Price Exercisable | $ 30.72 |
Weighted Average Remaining Contractual Life Outstanding (In Years) | 5 years 2 months 12 days |
Exercise Price Range, Lower Range Limit | $ 26.53 |
Exercise Price Range, Upper Range Limit | $ 38.71 |
Exercise Price Range Three | |
Range of options outstanding | |
Number of Options Outstanding | shares | 9,010 |
Weighted Average Exercise Price Outstanding | $ 79.73 |
Weighted Average Remaining Contractual Life Outstanding (In Years) | 7 years 1 month 6 days |
Exercise Price Range | $ 79.73 |
Investment in Joint Ventures 59
Investment in Joint Ventures and Majority Owned Subsidiaries (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Jun. 28, 2015 | Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | Apr. 30, 2015 | Apr. 05, 2013 | Jun. 28, 2009 | Jun. 24, 2007 | |
Schedule Of Equity Method Investments [Line Items] | ||||||||
Equity earnings (loss) of joint ventures | $ 666,000 | $ (2,235,000) | $ (788,000) | |||||
Payments to acquire interest in joint venture | $ 400,000 | $ 1,720,000 | $ 4,384,000 | |||||
ADAC-STRATTEC LLC | ||||||||
Schedule Of Equity Method Investments [Line Items] | ||||||||
Percentage ownership interest in less than wholly owned consolidated subsidiary | 51.00% | 51.00% | 51.00% | 51.00% | 51.00% | |||
Income (loss) from majority owned subsidiaries, impact on net income | $ 3,100,000 | $ 2,900,000 | $ 2,600,000 | |||||
Capital contribution from registrant during the period as required under the credit agreement | 3,060,000 | |||||||
Capital contribution from partners during the period as required under the credit agreement | $ 6,000,000 | $ 0 | $ 0 | |||||
STRATTEC POWER ACCESS LLC | ||||||||
Schedule Of Equity Method Investments [Line Items] | ||||||||
Percentage ownership interest in less than wholly owned consolidated subsidiary | 80.00% | 80.00% | 80.00% | 80.00% | 80.00% | |||
Income (loss) from majority owned subsidiaries, impact on net income | $ 2,600,000 | $ 2,000,000 | $ (269,000) | |||||
ADAC | ||||||||
Schedule Of Equity Method Investments [Line Items] | ||||||||
Percentage ownership interest in less than wholly owned consolidated subsidiary | 49.00% | 49.00% | 49.00% | 49.00% | 49.00% | |||
WITTE | ||||||||
Schedule Of Equity Method Investments [Line Items] | ||||||||
Percentage ownership interest in less than wholly owned consolidated subsidiary | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | |||
VAST LLC | ||||||||
Schedule Of Equity Method Investments [Line Items] | ||||||||
Equity earnings (loss) of joint ventures | $ 2,593,000 | $ (639,000) | $ 1,251,000 | |||||
Payments to acquire interest in joint venture | $ 1,200,000 | 660,000 | 13,200,000 | |||||
VAST LLC | MINDA-VAST ACCESS SYSTEMS | ||||||||
Schedule Of Equity Method Investments [Line Items] | ||||||||
Percentage ownership interest in equity method investment | 50.00% | |||||||
Impairment charge | 6,000,000 | |||||||
VAST LLC | STRATTEC | ||||||||
Schedule Of Equity Method Investments [Line Items] | ||||||||
Percentage ownership interest in equity method investment | 33.33% | |||||||
Payments to acquire interest in joint venture | $ 400,000 | 220,000 | 4,400,000 | |||||
Impairment charge | 2,000,000 | |||||||
VAST LLC | ADAC | ||||||||
Schedule Of Equity Method Investments [Line Items] | ||||||||
Percentage ownership interest in equity method investment | 33.33% | |||||||
VAST LLC | WITTE | ||||||||
Schedule Of Equity Method Investments [Line Items] | ||||||||
Percentage ownership interest in equity method investment | 33.33% | |||||||
SAL LLC | ||||||||
Schedule Of Equity Method Investments [Line Items] | ||||||||
Percentage ownership interest in equity method investment | 51.00% | 51.00% | ||||||
Equity earnings (loss) of joint ventures | $ (1,927,000) | $ (1,596,000) | $ (2,039,000) | |||||
Percentage of funding in joint venture through loans | 100.00% | 100.00% | 100.00% | |||||
Percentage of losses of joint venture recognized by STRATTEC | 100.00% | 100.00% | 100.00% |
Investment in Joint Ventures 60
Investment in Joint Ventures And Majority Owned Subsidiaries (Details) - SAL LLC - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 03, 2016 | Jun. 28, 2015 | |
Schedule Of Equity Method Investments [Line Items] | ||
Loss on guarantee for license agreement of SAL LLC, proportionate share of partner | $ 123 | |
Loss on loan from STRATTEC to SAL LLC | $ 225 | 100 |
Loss on guarantee of SAL LLC credit facility | $ 247 | $ 488 |
Investment in Joint Ventures 61
Investment in Joint Ventures And Majority Owned Subsidiaries (Details1) - USD ($) $ in Thousands | Jul. 02, 2017 | Jul. 03, 2016 |
Schedule Of Equity Method Investments [Line Items] | ||
INVESTMENT IN JOINT VENTURES | $ 16,840 | $ 14,168 |
VAST LLC | ||
Schedule Of Equity Method Investments [Line Items] | ||
INVESTMENT IN JOINT VENTURES | 16,840 | 14,168 |
SAL LLC | ||
Schedule Of Equity Method Investments [Line Items] | ||
Other Current Liabilities | $ 463 | $ 1,265 |
Equity Earnings (Loss) of Joi62
Equity Earnings (Loss) of Joint Ventures (Details Textual) - USD ($) | Feb. 16, 2016 | Jun. 28, 2015 | Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | Apr. 05, 2013 |
Schedule Of Equity Method Investments [Line Items] | ||||||
Repayments of borrowings under credit facility | $ 26,000,000 | $ 16,500,000 | $ 1,500,000 | |||
VAST LLC | ||||||
Schedule Of Equity Method Investments [Line Items] | ||||||
Impairment charge | 6,000,000 | |||||
VAST LLC | MINDA-VAST ACCESS SYSTEMS | ||||||
Schedule Of Equity Method Investments [Line Items] | ||||||
Impairment charge | 6,000,000 | |||||
VAST LLC | STRATTEC | ||||||
Schedule Of Equity Method Investments [Line Items] | ||||||
STRATTEC's percentage ownership in joint venture | 33.33% | |||||
Impairment charge | 2,000,000 | |||||
SAL LLC | ||||||
Schedule Of Equity Method Investments [Line Items] | ||||||
STRATTEC's percentage ownership in joint venture | 51.00% | 51.00% | ||||
Loss on guarantee of SAL LLC credit facility | 247,000 | 488,000 | ||||
Loss on guarantee for license agreement of SAL LLC, proportionate share of partner | 123,000 | |||||
Outstanding balance on loan from STRATTEC to equity method investment | $ 2,600,000 | $ 325,000 | ||||
Percentage of funding in joint venture through loans | 100.00% | 100.00% | 100.00% | |||
Percentage of losses of joint venture recognized by STRATTEC | 100.00% | 100.00% | 100.00% | |||
SAL LLC | Westinghouse Agreement | ||||||
Schedule Of Equity Method Investments [Line Items] | ||||||
Guarantee liability | $ 250,000 | $ 250,000 | ||||
SAL LLC | STRATTEC Advanced Logic Credit Facility | ||||||
Schedule Of Equity Method Investments [Line Items] | ||||||
Secured revolving credit facility | $ 1,500,000 | |||||
Credit facility maturity date | Feb. 16, 2016 | |||||
Outstanding borrowings under the credit facility | 1,500,000 | |||||
SAL LLC | STRATTEC Advanced Logic Credit Facility | Registrant's Guarantee of STRATTEC Advanced Logic Credit Facility | ||||||
Schedule Of Equity Method Investments [Line Items] | ||||||
Repayments of borrowings under credit facility | 1,500,000 | |||||
Guarantee liability | 1,500,000 | |||||
STRATTEC's proportionate share of guarantor obligations | $ 765,000 | |||||
Loss on guarantee of SAL LLC credit facility | 247,000 | 488,000 | ||||
SAL LLC | STRATTEC | Westinghouse Agreement | ||||||
Schedule Of Equity Method Investments [Line Items] | ||||||
Guarantee liability | $ 127,000 | $ 127,000 | ||||
Loss on guarantee for license agreement of SAL LLC, proportionate share of partner | $ 123,000 |
Equity Earnings (Loss) of Joi63
Equity Earnings (Loss) of Joint Ventures (Details) - USD ($) | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Summarized statements of operations | |||
Equity (loss) earnings of joint ventures | $ 666,000 | $ (2,235,000) | $ (788,000) |
VAST LLC | |||
Summarized statements of operations | |||
Net sales | 128,963,000 | 114,338,000 | 124,929,000 |
Cost of goods sold | 101,910,000 | 94,060,000 | 105,132,000 |
Gross (loss) profit | 27,053,000 | 20,278,000 | 19,797,000 |
Engineering, selling and administrative expense | 19,710,000 | 15,866,000 | 16,155,000 |
Impairment charge | 6,000,000 | ||
Income (loss) from operations | 7,343,000 | (1,588,000) | 3,642,000 |
Other income (expense), net | 1,662,000 | (115,000) | 123,000 |
Income (loss) before provision for income taxes | 9,005,000 | (1,703,000) | 3,765,000 |
Provision for income taxes | 1,235,000 | 168,000 | 41,000 |
Net income (loss) | 7,770,000 | (1,871,000) | 3,724,000 |
STRATTEC’s share of VAST LLC net income (loss) | 2,590,000 | (624,000) | 1,241,000 |
Intercompany profit eliminations | 3,000 | (15,000) | 10,000 |
Equity (loss) earnings of joint ventures | 2,593,000 | (639,000) | 1,251,000 |
SAL LLC | |||
Summarized statements of operations | |||
Net sales | 369,000 | 603,000 | 49,000 |
Cost of goods sold | 610,000 | 382,000 | 450,000 |
Gross (loss) profit | (241,000) | 221,000 | (401,000) |
Engineering, selling and administrative expense | 1,534,000 | 1,311,000 | 1,492,000 |
Income (loss) from operations | (1,775,000) | (1,090,000) | (1,893,000) |
Other income (expense), net | (155,000) | (34,000) | (4,000) |
Net income (loss) | (1,930,000) | (1,124,000) | (1,897,000) |
STRATTEC's share of SAL LLC loss | (1,927,000) | (1,124,000) | (1,328,000) |
Loss on guarantee of SAL LLC vendor contract | (123,000) | ||
Loss on loan to SAL LLC | (225,000) | (100,000) | |
Loss on guarantee of SAL LLC credit facility | (247,000) | (488,000) | |
Equity (loss) earnings of joint ventures | $ (1,927,000) | $ (1,596,000) | $ (2,039,000) |
Equity Earnings (Loss) of Joi64
Equity Earnings (Loss) of Joint Ventures (Details 1) - USD ($) $ in Thousands | Jul. 02, 2017 | Jul. 03, 2016 |
VAST LLC | ||
Summarized balance sheets | ||
Cash and cash equivalents | $ 11,757 | $ 6,584 |
Receivables, net | 41,942 | 24,557 |
Inventories, net | 15,185 | 13,500 |
Other current assets | 11,782 | 13,007 |
Total current assets | 80,666 | 57,648 |
Property, plant and equipment, net | 31,017 | 26,557 |
Other long-term assets | 12,850 | 11,086 |
Total assets | 124,533 | 95,291 |
Current liabilities | 70,753 | 50,462 |
Long-term liabilities | 2,960 | 2,019 |
Total liabilities | 73,713 | 52,481 |
Net (liabilities) assets | 50,820 | 42,810 |
STRATTEC's share of net assets (liabilities) | 16,940 | 14,270 |
SAL LLC | ||
Summarized balance sheets | ||
Cash and cash equivalents | 11 | 21 |
Receivables, net | 11 | 60 |
Inventories, net | 345 | 283 |
Total assets | 367 | 364 |
Current liabilities | 3,189 | 1,256 |
Net (liabilities) assets | (2,822) | (892) |
STRATTEC's share of net assets (liabilities) | $ (1,439) | $ (455) |
Equity Earnings (Loss) of Joi65
Equity Earnings (Loss) of Joint Ventures (Details 2) - Equity Method Investee - USD ($) | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
VAST LLC | |||
Schedule Of Equity Method Investments [Line Items] | |||
Sales to Joint Venture | $ 1,966,000 | $ 304,000 | $ 2,298,000 |
Purchases from VAST LLC | 245,000 | 149,000 | 164,000 |
Expenses charged to VAST LLC | 843,000 | 1,034,000 | 832,000 |
Expenses charged from VAST LLC | 1,134,000 | 1,526,000 | 1,825,000 |
Accounts receivable from joint venture entity | 55,000 | ||
Long-term loan receivable from VAST LLC | 300,000 | 400,000 | |
Accounts payable to VAST LLC | 213,000 | ||
SAL LLC | |||
Schedule Of Equity Method Investments [Line Items] | |||
Sales to Joint Venture | $ 234,000 | 363,000 | $ 157,000 |
Accounts receivable from joint venture entity | 450,000 | ||
Current loan receivable from SAL LLC | $ 325,000 |
Equity Earnings (Loss) of Joi66
Equity Earnings (Loss) of Joint Ventures (Parenthetical) (Details 2) - SAL LLC - Equity Method Investee - USD ($) | Jul. 02, 2017 | Jul. 03, 2016 |
Schedule Of Equity Method Investments [Line Items] | ||
Outstanding loan due from SAL LLC to STRATTEC | $ 2,600,000 | |
Outstanding loan due from SAL LLC to STRATTEC | $ 325,000 | |
Accounts receivable balances due from SAL LLC to STRATTEC | $ 185,000 |
Credit Facilities (Details Text
Credit Facilities (Details Textual) | 12 Months Ended |
Jul. 02, 2017USD ($) | |
STRATTEC Credit Facility | |
Line Of Credit Facility [Line Items] | |
Secured revolving credit facility | $ 30,000,000 |
Credit facility maturity date | Aug. 1, 2020 |
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 | $ 25,000,000 |
Credit facility maturity date | Aug. 1, 2020 |
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% |
Capital contribution from partners during the period as required under the credit agreement | $ 6,000,000 |
ADAC-STRATTEC Credit Facility | STRATTEC | |
Line Of Credit Facility [Line Items] | |
Capital contribution from registrant during the period as required under the credit agreement | $ 3,060,000 |
Credit Facilities (Details)
Credit Facilities (Details) - USD ($) $ in Thousands | Jul. 02, 2017 | Jul. 03, 2016 |
Line Of Credit Facility [Line Items] | ||
Outstanding Borrowing | $ 30,000 | $ 20,000 |
STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Outstanding Borrowing | 16,000 | 11,500 |
ADAC-STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Outstanding Borrowing | $ 14,000 | $ 8,500 |
Credit Facilities (Details 1)
Credit Facilities (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 02, 2017 | Jul. 03, 2016 | |
STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Average Outstanding Borrowings | $ 12,490 | $ 7,608 |
Weighted Average Interest Rate | 1.80% | 1.50% |
ADAC-STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Average Outstanding Borrowings | $ 10,865 | $ 4,443 |
Weighted Average Interest Rate | 1.80% | 1.30% |
Commitments and Contingencies70
Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | |
Jul. 02, 2017 | Jul. 03, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Cost incurred inception to date on installation and on-going monitoring of wells | $ 567,000 | |
Environmental | $ 1,308,000 | $ 1,365,000 |
Purchase and Minimum Rental Com
Purchase and Minimum Rental Commitments Under Non-Cancelable Operating Leases (Details) $ in Thousands | Jul. 03, 2016USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Minimum rental commitments, 2018 | $ 884 |
Minimum rental commitments, 2019 | 606 |
Minimum rental commitments, 2020 | 190 |
Purchase commitments, 2018 | 17,413 |
Purchase commitments, 2019 | 8,699 |
Purchase commitments, 2020 | $ 3,897 |
Rental Expense Under Non-Cancel
Rental Expense Under Non-Cancelable Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Rental expense | $ 704 | $ 691 | $ 993 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Currently payable: | |||
Federal | $ 228 | $ 18 | $ 9,891 |
State | 3 | 130 | 657 |
Foreign | 2,202 | 1,893 | 2,164 |
Total current income tax expense | 2,433 | 2,041 | 12,712 |
Deferred tax provision (benefit) | 1,851 | 3,027 | (3,330) |
Total tax provision | $ 4,284 | $ 5,068 | $ 9,382 |
Income Taxes (Details 1)
Income Taxes (Details 1) | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Difference between income taxes computed at the Federal statutory tax rate and the provision for income taxes | |||
U.S. statutory rate | 35.00% | 34.00% | 34.70% |
State taxes, net of Federal tax benefit | 1.20% | 1.30% | 0.70% |
Foreign subsidiaries | (1.10%) | 0.60% | (1.30%) |
U.S. taxation on non-U.S. earnings | 3.80% | ||
Research and development tax credit | (2.70%) | ||
Non-controlling interest | (9.90%) | (9.30%) | (4.10%) |
Other | (0.20%) | (0.20%) | (2.40%) |
Total | 26.10% | 26.40% | 27.60% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | Jul. 02, 2017 | Jul. 03, 2016 |
Income Tax Disclosure [Abstract] | ||
Unrecognized pension and postretirement benefit plan liabilities | $ 11,191 | $ 14,579 |
Accrued warranty | 925 | 1,376 |
Payroll-related accruals | 2,605 | 2,108 |
Stock-based compensation | 1,488 | 1,258 |
Inventory reserve | 1,249 | 873 |
Environmental reserve | 484 | 505 |
Repair and maintenance supply parts reserve | 333 | 259 |
Allowance for doubtful accounts | 185 | 185 |
NOL/credit carry-forwards | 1,669 | 145 |
Postretirement obligations | (405) | (227) |
Accumulated depreciation | (6,034) | (6,135) |
Accrued pension obligations | (14,483) | (13,197) |
Joint Ventures | 808 | 1,706 |
Other | 241 | 1,952 |
Deferred tax assets, net | $ 256 | $ 5,387 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) | 12 Months Ended | ||
Jul. 02, 2017USD ($)Subsidiary | Jul. 03, 2016USD ($) | Jun. 28, 2015USD ($) | |
Income Tax [Line Items] | |||
Federal foreign tax credit carry-forwards | $ 1,400,000 | ||
State operating loss and credit carry-forwards | 269,000 | ||
Valuation allowance | 267,000 | ||
Foreign income before income taxes | 5,300,000 | $ 6,000,000 | $ 5,900,000 |
Total liability for unrecognized tax benefits including interest | 610,000 | 471,000 | |
Unrecognized tax benefits | 571,000 | 441,000 | $ 437,000 |
Unrecognized tax benefits, accrued interest | 39,000 | 30,000 | |
Unrecognized tax benefits, would effect tax rate | 143,000 | $ 20,000 | |
MEXICO | |||
Income Tax [Line Items] | |||
Deferred tax liability attributed to undistributed foreign earnings recognized during the period due to assertion change | $ 424,000 | ||
Number of Mexican subsidiaries for which we changed our assertion regarding the permanent reinvestment of earnings during the period | Subsidiary | 2 | ||
Foreign earnings repatriated | $ 15,800,000 | ||
Domestic | |||
Income Tax [Line Items] | |||
Expiration year of federal foreign tax credit carry-forwards | 2,027 | ||
Earliest Tax Year | State | |||
Income Tax [Line Items] | |||
Expiration year of state operating loss and credit carry-forwards | 2,024 | ||
Latest Tax Year | State | |||
Income Tax [Line Items] | |||
Expiration year of state operating loss and credit carry-forwards | 2,031 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) | 12 Months Ended | |
Jul. 02, 2017 | Jul. 03, 2016 | |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ||
Unrecognized tax benefits, beginning of year | $ 441,000 | $ 437,000 |
Gross increases – tax positions in prior years | 28,000 | |
Gross decreases – tax positions in prior years | (3,000) | |
Gross increases – current period tax positions | 177,000 | 71,000 |
Tax years closed | (75,000) | (64,000) |
Unrecognized tax benefits, end of year | $ 571,000 | $ 441,000 |
Retirement Plans and Postreti78
Retirement Plans and Postretirement Costs (Details Textual) - USD ($) | 12 Months Ended | |||
Jul. 02, 2018 | Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Proposed date the Board of Directors approved to terminate the qualified retirement plan | Dec. 31, 2017 | |||
Termination of Qualified Pension Plan, description | The Board of Directors has approved the termination of the Qualified Pension Plan with a proposed termination date of December 31, 2017. The termination of the Qualified Pension Plan is contingent upon receipt of an IRS determination letter that the Qualified Pension Plan was qualified upon termination and approval by the Pension Benefit Guaranty Corporation (“PBGC”). The date the termination will be approved and benefits can be distributed will not be known until we receive all required regulatory approvals. We intend to submit our request to the IRS for a determination letter that the Qualified Pension Plan is qualified upon termination prior to the end of the 2017 calendar year. Depending on the time receipt of IRS and PBGC approval, we intend to distribute Qualified Pension Plan assets prior to the end of the 2018 calendar year. Additionally, in connection with preparing for the termination of the Qualified Pension Plan, we have amended the 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% | |||
Rabbi Trust Assets - SERP | $ 2,600,000 | $ 2,300,000 | ||
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 | 7.20% | |||
Ultimate health care cost trend rate | 4.50% | |||
Net Periodic Benefit Cost, Expected return on plan assets | 5.45% | |||
Percentage target asset allocation | 100.00% | |||
Return applied to target allocation in determining expected long term rate of return | 5.45% | |||
Actual Historical Annualized Returns Using Target Allocation - 5 Years | 5.22% | |||
Actual Historical Annualized Returns Using Target Allocation - 10 Years | 3.71% | |||
Actual Historical Annualized Returns Using Target Allocation - 15 Years | 4.83% | |||
Actual Historical Annualized Returns Using Target Allocation - 20 Years | 4.96% | |||
Actual Historical Annualized Returns Using Target Allocation - 25 Years | 5.90% | |||
Actual Historical Annualized Returns Using Target Allocation - 30 Years | 6.33% | |||
401(K) Plan | ||||
Defined Benefit 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 Disclosure [Line Items] | ||||
Net Periodic Benefit Cost, Expected return on plan assets | 5.45% | |||
Stock Index Fund | ||||
Defined Benefit 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/cash | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage target asset allocation | 65.00% | |||
Return applied to target allocation in determining expected long term rate of return | 3.00% | |||
Supplemental Employee Retirement Plan, Defined Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of participant's base salary received as Supplemental Retirement Benefits | 8.00% | |||
Vesting period, SERP | 5 years | |||
Projected benefit obligation | $ 1,824,000 | 1,764,000 | ||
Expected employer contributions in next fiscal year | 333,000 | |||
Qualified Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected employer contributions in next fiscal year | 3,000,000 | |||
Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Projected benefit obligation | 1,268,000 | $ 1,602,000 | $ 2,179,000 | |
Expected employer contributions in next fiscal year | $ 265,000 |
Retirement Plans and Postreti79
Retirement Plans and Postretirement Costs (Details) - USD ($) $ in Thousands | Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 |
Amounts Included in Accumulated Other Comprehensive Loss, Net of Tax | |||
Total | $ 18,750 | $ 24,518 | $ 18,638 |
Pension and SERP Benefits | |||
Amounts Included in Accumulated Other Comprehensive Loss, Net of Tax | |||
Prior service cost (credit) | 7 | ||
Net actuarial loss | 17,279 | ||
Total | 17,286 | ||
Postretirement | |||
Amounts Included in Accumulated Other Comprehensive Loss, Net of Tax | |||
Prior service cost (credit) | (768) | ||
Net actuarial loss | 2,232 | ||
Total | $ 1,464 |
Retirement Plans and Postreti80
Retirement Plans and Postretirement Costs (Details 1) $ in Thousands | 12 Months Ended |
Jul. 02, 2017USD ($) | |
Pension and SERP Benefits | |
Amounts Included in Accumulated Other Comprehensive Loss, Net of Tax | |
Prior service cost (credit) | $ 7 |
Net actuarial loss | 1,282 |
Total | 1,289 |
Postretirement | |
Amounts Included in Accumulated Other Comprehensive Loss, Net of Tax | |
Prior service cost (credit) | (481) |
Net actuarial loss | 302 |
Total | $ (179) |
Retirement Plans and Postreti81
Retirement Plans and Postretirement Costs (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Net Periodic Benefit Cost: | |||
Net Periodic Benefit Cost, Expected return on plan assets | 5.45% | ||
CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE INCOME: | |||
Amortization of prior service (cost) credits | $ 753 | $ 753 | |
Amortization of unrecognized net loss | (3,766) | (3,059) | |
Pension and SERP Benefits | |||
COMPONENTS OF NET PERIODIC BENEFIT COST (CREDIT): | |||
Service cost | 54 | 50 | $ 64 |
Interest cost | 3,926 | 4,387 | 4,173 |
Expected return on plan assets | (5,854) | (5,509) | (6,174) |
Amortization of prior service cost (credit) | 11 | 11 | 11 |
Amortization of unrecognized net loss | 3,228 | 2,443 | 2,775 |
Net periodic benefit cost (credit) | $ 1,365 | $ 1,382 | 849 |
Benefit Obligations: | |||
Benefit Obligations, Discount rate | 3.91% | 3.79% | |
Benefit Obligations, Rate of compensation increases - SERP | 3.00% | 3.00% | |
Net Periodic Benefit Cost: | |||
Net Periodic Benefit Cost, Discount rate | 3.79% | 4.53% | |
Net Periodic Benefit Cost, Expected return on plan assets | 5.45% | 5.45% | |
Net Periodic Benefit Cost, Rate of compensation increases - SERP | 3.00% | 3.00% | |
CHANGE IN PROJECTED BENEFIT OBLIGATION: | |||
Benefit obligation at beginning of year | $ 106,152 | $ 99,329 | |
Service cost | 54 | 50 | 64 |
Interest cost | 3,926 | 4,387 | 4,173 |
Actuarial (gain) loss | (4,342) | 6,783 | |
Benefits paid | (4,524) | (4,397) | |
Benefit obligation at end of year | 101,266 | 106,152 | 99,329 |
CHANGE IN PLAN ASSETS: | |||
Fair value of plan assets at beginning of year | 104,460 | 105,472 | |
Actual return on plan assets | 7,574 | 371 | |
Employer contribution | 5,014 | 3,014 | |
Benefits paid | (4,524) | (4,397) | |
Fair value of plan assets at end of year | 112,524 | 104,460 | 105,472 |
Funded status – prepaid (accrued) benefit obligations | 11,258 | (1,692) | |
AMOUNTS RECOGNIZED IN CONSOLIDATED BALANCE SHEETS: | |||
Other long-term assets | 13,082 | 72 | |
Accrued payroll and benefits (current liabilities) | (332) | (299) | |
Accrued benefit obligations (long-term liabilities) | (1,492) | (1,465) | |
Net amount recognized | 11,258 | (1,692) | |
CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE INCOME: | |||
Net periodic benefit cost (credit) | 1,365 | 1,382 | 849 |
Net actuarial (gain) loss | (6,063) | 11,921 | |
Amortization of prior service (cost) credits | (11) | (11) | |
Amortization of unrecognized net loss | (3,228) | (2,443) | |
Total recognized in other comprehensive (income) loss, before tax | (9,302) | 9,467 | |
Total recognized in net periodic benefit cost and other comprehensive (income) loss, before tax | (7,937) | 10,849 | |
Postretirement Benefits | |||
COMPONENTS OF NET PERIODIC BENEFIT COST (CREDIT): | |||
Service cost | 13 | 12 | 14 |
Interest cost | 55 | 87 | 114 |
Amortization of prior service cost (credit) | (764) | (764) | (764) |
Amortization of unrecognized net loss | 538 | 616 | 693 |
Net periodic benefit cost (credit) | $ (158) | $ (49) | 57 |
Benefit Obligations: | |||
Benefit Obligations, Discount rate | 3.91% | 3.79% | |
Net Periodic Benefit Cost: | |||
Net Periodic Benefit Cost, Discount rate | 3.79% | 4.53% | |
CHANGE IN PROJECTED BENEFIT OBLIGATION: | |||
Benefit obligation at beginning of year | $ 1,602 | $ 2,179 | |
Service cost | 13 | 12 | 14 |
Interest cost | 55 | 87 | 114 |
Actuarial (gain) loss | (80) | (281) | |
Benefits paid | (322) | (395) | |
Benefit obligation at end of year | 1,268 | 1,602 | 2,179 |
CHANGE IN PLAN ASSETS: | |||
Employer contribution | 322 | 395 | |
Benefits paid | (322) | (395) | |
Funded status – prepaid (accrued) benefit obligations | (1,268) | (1,602) | |
AMOUNTS RECOGNIZED IN CONSOLIDATED BALANCE SHEETS: | |||
Accrued payroll and benefits (current liabilities) | (265) | (340) | |
Accrued benefit obligations (long-term liabilities) | (1,003) | (1,262) | |
Net amount recognized | (1,268) | (1,602) | |
CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE INCOME: | |||
Net periodic benefit cost (credit) | (158) | (49) | $ 57 |
Net actuarial (gain) loss | (80) | (281) | |
Amortization of prior service (cost) credits | 764 | 764 | |
Amortization of unrecognized net loss | (538) | (616) | |
Total recognized in other comprehensive (income) loss, before tax | 146 | (133) | |
Total recognized in net periodic benefit cost and other comprehensive (income) loss, before tax | $ (12) | $ (182) |
Retirement Plans and Postreti82
Retirement Plans and Postretirement Costs (Details 3) - USD ($) $ in Thousands | Jul. 02, 2017 | Jul. 03, 2016 |
Pension | ||
Accumulated Benefit Obligations and Projected Benefit Obligations | ||
Accumulated benefit obligation | $ 99,442 | $ 104,388 |
Projected benefit obligation | 99,442 | 104,388 |
SERP | ||
Accumulated Benefit Obligations and Projected Benefit Obligations | ||
Accumulated benefit obligation | 1,591 | 1,435 |
Projected benefit obligation | $ 1,824 | $ 1,764 |
Retirement Plans and Postreti83
Retirement Plans and Postretirement Costs (Details 4) $ in Thousands | 12 Months Ended |
Jul. 02, 2017USD ($) | |
Significant Effect of Health Care Trend on the Postretirement Benefit | |
Effect on postretirement benefit obligation as of July 2, 2017, 1% Increase | $ 7 |
Effect on postretirement benefit obligation as of July 2, 2017, 1% Decrease | $ (7) |
Retirement Plans and Postreti84
Retirement Plans and Postretirement Costs (Details 5) | 12 Months Ended | |
Jul. 02, 2017 | Jul. 03, 2016 | |
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 | 38.00% | 38.00% |
Fixed-income Investments | ||
Pension plan weighted-average asset allocations by asset category | ||
Target Allocation | 30.00% | |
Plan assets - actual percentage | 56.00% | 27.00% |
Cash | ||
Pension plan weighted-average asset allocations by asset category | ||
Target Allocation | 35.00% | |
Plan assets - actual percentage | 6.00% | 35.00% |
Retirement Plans and Postreti85
Retirement Plans and Postretirement Costs (Details 6) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | $ 112,524 | $ 104,460 |
Cash and Cash Equivalents | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 7,233 | 36,706 |
Level 1 | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 48,042 | 44,702 |
Level 2 | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 64,482 | 59,758 |
Level 2 | Cash and Cash Equivalents | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 7,233 | 36,706 |
Equity investments | Small Cap | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 1,008 | 1,714 |
Equity investments | Small Cap | Level 1 | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 1,008 | 1,714 |
Equity investments | Mid Cap | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 12,414 | 12,341 |
Equity investments | Mid Cap | Level 1 | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 12,414 | 12,341 |
Equity investments | Large Cap | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 19,961 | 18,678 |
Equity investments | Large Cap | Level 1 | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 19,961 | 18,678 |
Equity investments | International | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 8,941 | 7,132 |
Equity investments | International | Level 1 | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 8,941 | 7,132 |
Fixed Income Funds | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 62,967 | 27,889 |
Fixed Income Funds | Level 1 | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | 5,718 | 4,837 |
Fixed Income Funds | Level 2 | ||
Summary, by asset category, of the fair value of pension plan assets | ||
Fair value of pension plan assets | $ 57,249 | $ 23,052 |
Retirement Plans and Postreti86
Retirement Plans and Postretirement Costs (Details 8) $ in Thousands | Jul. 02, 2017USD ($) |
Pension and SERP Benefits | |
Expected future benefit payments | |
2,018 | $ 5,308 |
2,019 | 5,304 |
2,020 | 5,668 |
2,021 | 6,239 |
2,022 | 6,257 |
2023-2027 | 29,998 |
Postretirement Benefits | |
Expected future benefit payments | |
2,018 | 265 |
2,019 | 217 |
2,020 | 164 |
2,021 | 146 |
2,022 | 132 |
2023-2027 | $ 315 |
Retirement Plans and Postreti87
Retirement Plans and Postretirement Costs (Details 9) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |||
Employer contribution defined contribution plan | $ 1,805 | $ 1,783 | $ 1,729 |
Shareholders' Equity (Details T
Shareholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Jul. 02, 2017 | Jul. 03, 2016 | |
Equity [Abstract] | ||
Common stock, shares authorized | 12,000,000 | 12,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares outstanding | 3,596,616 | 3,565,857 |
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 | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Reconciliation of the components of the basic and diluted per share | |||
Net income attributable to STRATTEC | $ 7,197 | $ 9,149 | $ 20,654 |
Less: Income attributable to participating securities | 1 | 58 | 258 |
Net income attributable to common shareholders | $ 7,196 | $ 9,091 | $ 20,396 |
Weighted average shares of common stock outstanding | 3,588 | 3,559 | 3,515 |
Incremental shares – stock based compensation | 82 | 62 | 89 |
Diluted weighted average shares of common stock outstanding | 3,670 | 3,621 | 3,604 |
Basic earnings per share | $ 2.01 | $ 2.55 | $ 5.80 |
Diluted earnings per share | $ 1.96 | $ 2.51 | $ 5.66 |
Earnings Per Share (''EPS'') 90
Earnings Per Share (''EPS'') (Details 1) - shares | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Stock Options | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive options excluded from earnings per share computation | 9,010 | 9,010 | 10,000 |
Stock Option and Purchase Pla91
Stock Option and Purchase Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Summary of stock option activity under our stock incentive plan | |||
Shares, Beginning Balance | 144,998 | 163,907 | 185,242 |
Shares, Granted | 0 | 0 | 10,000 |
Shares, Exercised | (6,490) | (16,909) | (22,746) |
Shares, Terminated | (2,000) | (8,589) | |
Shares, Ending Balance | 138,508 | 144,998 | 163,907 |
Shares, Exercisable | 129,498 | 103,798 | 91,103 |
Weighted Average Exercise Price, Beginning Balance | $ 28.86 | $ 27.97 | $ 24.73 |
Weighted Average Exercise Price, Granted | 79.73 | ||
Weighted Average Exercise Price, Exercised | 20.96 | 21.55 | 20.83 |
Weighted Average Exercise Price, Terminated | 17.59 | 37.43 | |
Weighted Average Exercise Price, Ending Balance | 29.23 | 28.86 | 27.97 |
Weighted Average Exercise Price, Exercisable | $ 25.71 | $ 21.39 | $ 19.86 |
Weighted Average Remaining Contractual Term, Outstanding, July 2, 2017 | 4 years 4 months 24 days | ||
Weighted Average Remaining Contractual Term, Exercisable | 4 years 2 months 12 days | 4 years 7 months 6 days | 4 years 1 month 6 days |
Aggregate Intrinsic Value, Outstanding, July 3, 2016 | $ 1,361 | ||
Aggregate Intrinsic Value, Exercisable | $ 1,361 | $ 2,174 | $ 4,592 |
Stock Option and Purchase Pla92
Stock Option and Purchase Plans (Details 1) | 12 Months Ended |
Jun. 28, 2015$ / sharesshares | |
Stock Option and Purchase Plans | |
Shares | shares | 10,000 |
Exercise price | $ / shares | $ 79.73 |
Stock Option and Purchase Pla93
Stock Option and Purchase Plans (Details Textual) - USD ($) | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options, granted | 0 | 0 | 10,000 |
Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
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 | $ 34.88 | $ 55.77 | $ 76.06 |
Shares available for issuance from treasury under the Employee Stock Purchase plan | 64,165 | ||
Employee Stock Purchase Plan | Treasury Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares issued under stock purchase plan | 3,019 | 1,948 | 1,038 |
Stock Option and Purchase Pla94
Stock Option and Purchase Plans (Details 2) - Restricted stock - $ / shares | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Nonvested, Shares Beginning Balance | 71,750 | 66,350 | 63,600 |
Granted, Shares | 27,150 | 28,750 | 25,000 |
Vested, Shares | (21,250) | (20,300) | (18,100) |
Forfeited, Shares | (1,800) | (3,050) | (4,150) |
Nonvested, Shares Ending Balance | 75,850 | 71,750 | 66,350 |
Nonvested, Weighted Average Grant Date Fair Value Beginning Balance | $ 60.05 | $ 45.03 | $ 28.64 |
Granted, Weighted Average Grant Date Fair Value | 43.87 | 69.02 | 70.90 |
Vested, Weighted Average Grant Date Fair Value | 37.53 | 23.69 | 23.02 |
Forfeited, Weighted Average Grant Date Fair Value | 58.24 | 59.92 | 45.71 |
Nonvested, Weighted Average Grant Date Fair Value Ending Balance | $ 60.61 | $ 60.05 | $ 45.03 |
Export Sales (Details)
Export Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Concentration Risk [Line Items] | |||
Net Sales | $ 417,325 | $ 401,419 | $ 411,475 |
Export Sales | |||
Concentration Risk [Line Items] | |||
Net Sales | $ 160,275 | $ 152,728 | $ 141,584 |
Export Sales | Sales Revenue Net | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Percentage of Export Sales | 38.00% | 38.00% | 34.00% |
Canada | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Net Sales | $ 73,481 | $ 74,310 | $ 60,987 |
Canada | Sales Revenue Net | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Percentage of Export Sales | 18.00% | 19.00% | 15.00% |
Product Sales (Details)
Product Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Product Information [Line Items] | |||
Net Sales | $ 417,325 | $ 401,419 | $ 411,475 |
Sales | Product Concentration Risk | |||
Product Information [Line Items] | |||
Percentage of Net Sales | 100.00% | 100.00% | 100.00% |
Keys & Locksets | |||
Product Information [Line Items] | |||
Net Sales | $ 114,938 | $ 113,765 | $ 114,287 |
Keys & Locksets | Sales | Product Concentration Risk | |||
Product Information [Line Items] | |||
Percentage of Net Sales | 28.00% | 28.00% | 28.00% |
Power Access | |||
Product Information [Line Items] | |||
Net Sales | $ 84,457 | $ 83,747 | $ 68,078 |
Power Access | Sales | Product Concentration Risk | |||
Product Information [Line Items] | |||
Percentage of Net Sales | 20.00% | 21.00% | 16.00% |
Door Handles & Exterior Trim | |||
Product Information [Line Items] | |||
Net Sales | $ 67,722 | $ 61,376 | $ 60,864 |
Door Handles & Exterior Trim | Sales | Product Concentration Risk | |||
Product Information [Line Items] | |||
Percentage of Net Sales | 16.00% | 15.00% | 15.00% |
Driver Controls | |||
Product Information [Line Items] | |||
Net Sales | $ 56,983 | $ 55,955 | $ 57,894 |
Driver Controls | Sales | Product Concentration Risk | |||
Product Information [Line Items] | |||
Percentage of Net Sales | 14.00% | 14.00% | 14.00% |
Aftermarket & OE Service | |||
Product Information [Line Items] | |||
Net Sales | $ 47,216 | $ 48,200 | $ 78,717 |
Aftermarket & OE Service | Sales | Product Concentration Risk | |||
Product Information [Line Items] | |||
Percentage of Net Sales | 11.00% | 12.00% | 19.00% |
Latches | |||
Product Information [Line Items] | |||
Net Sales | $ 35,307 | $ 28,023 | $ 24,320 |
Latches | Sales | Product Concentration Risk | |||
Product Information [Line Items] | |||
Percentage of Net Sales | 8.00% | 7.00% | 6.00% |
Other | |||
Product Information [Line Items] | |||
Net Sales | $ 10,702 | $ 10,353 | $ 7,315 |
Other | Sales | Product Concentration Risk | |||
Product Information [Line Items] | |||
Percentage of Net Sales | 3.00% | 3.00% | 2.00% |
Sales and Receivable Concentr97
Sales and Receivable Concentration (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2017 | Jul. 03, 2016 | Jun. 28, 2015 | |
Sales to largest customers | |||
Net Sales | $ 417,325 | $ 401,419 | $ 411,475 |
Customer Concentration Risk | |||
Sales to largest customers | |||
Net Sales | $ 251,513 | $ 253,068 | $ 268,138 |
Customer Concentration Risk | Sales Revenue Net | |||
Sales to largest customers | |||
Percentage of Net Sales | 60.00% | 63.00% | 65.00% |
Fiat Chrysler Automobiles | Customer Concentration Risk | |||
Sales to largest customers | |||
Net Sales | $ 100,575 | $ 115,858 | $ 116,914 |
Fiat Chrysler Automobiles | Customer Concentration Risk | Sales Revenue Net | |||
Sales to largest customers | |||
Percentage of Net Sales | 24.00% | 29.00% | 28.00% |
General Motors Company | Customer Concentration Risk | |||
Sales to largest customers | |||
Net Sales | $ 88,624 | $ 79,893 | $ 105,809 |
General Motors Company | Customer Concentration Risk | Sales Revenue Net | |||
Sales to largest customers | |||
Percentage of Net Sales | 21.00% | 20.00% | 26.00% |
Ford Motor Company | Customer Concentration Risk | |||
Sales to largest customers | |||
Net Sales | $ 62,314 | $ 57,317 | $ 45,415 |
Ford Motor Company | Customer Concentration Risk | Sales Revenue Net | |||
Sales to largest customers | |||
Percentage of Net Sales | 15.00% | 14.00% | 11.00% |
Sales and Receivable Concentr98
Sales and Receivable Concentration (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 02, 2017 | Jul. 03, 2016 | |
Receivables from largest customers | ||
Receivables | $ 64,933 | $ 63,726 |
Customer Concentration Risk | ||
Receivables from largest customers | ||
Receivables | $ 39,146 | $ 38,056 |
Customer Concentration Risk | Accounts Receivable | ||
Receivables from largest customers | ||
Percentage of Gross Receivables | 60.00% | 60.00% |
Fiat Chrysler Automobiles | Customer Concentration Risk | ||
Receivables from largest customers | ||
Receivables | $ 17,107 | $ 18,103 |
Fiat Chrysler Automobiles | Customer Concentration Risk | Accounts Receivable | ||
Receivables from largest customers | ||
Percentage of Gross Receivables | 26.00% | 28.00% |
General Motors Company | Customer Concentration Risk | ||
Receivables from largest customers | ||
Receivables | $ 13,395 | $ 13,090 |
General Motors Company | Customer Concentration Risk | Accounts Receivable | ||
Receivables from largest customers | ||
Percentage of Gross Receivables | 21.00% | 21.00% |
Ford Motor Company | Customer Concentration Risk | ||
Receivables from largest customers | ||
Receivables | $ 8,644 | $ 6,863 |
Ford Motor Company | Customer Concentration Risk | Accounts Receivable | ||
Receivables from largest customers | ||
Percentage of Gross Receivables | 13.00% | 11.00% |