Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Mar. 29, 2015 | Mar. 27, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | STRATTEC SECURITY CORP | |
Entity Central Index Key | 933034 | |
Document Type | 10-Q | |
Document Period End Date | 29-Mar-15 | |
Amendment Flag | FALSE | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | STRT | |
Current Fiscal Year End Date | -22 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock Shares Outstanding | 3,587,224 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 |
Income Statement [Abstract] | ||||
Net sales | $88,817 | $85,278 | $313,049 | $246,357 |
Cost of goods sold | 73,066 | 70,386 | 250,789 | 201,007 |
Gross profit | 15,751 | 14,892 | 62,260 | 45,350 |
Engineering, selling and administrative expenses | 9,847 | 9,757 | 33,524 | 28,477 |
Income from operations | 5,904 | 5,135 | 28,736 | 16,873 |
Interest income | 61 | 37 | 126 | 64 |
Equity (loss) earnings of joint ventures | -207 | 267 | -138 | 858 |
Interest expense | -17 | -8 | -39 | -37 |
Other income, net | 698 | 71 | 3,309 | 296 |
Income before provision for income taxes and non-controlling interest | 6,439 | 5,502 | 31,994 | 18,054 |
Provision for income taxes | 1,064 | 1,285 | 9,378 | 5,302 |
Net income | 5,375 | 4,217 | 22,616 | 12,752 |
Net income attributable to non-controlling interest | 999 | 616 | 3,162 | 2,067 |
Net income attributable to STRATTEC SECURITY CORPORATION | 4,376 | 3,601 | 19,454 | 10,685 |
Comprehensive Income: | ||||
Net income | 5,375 | 4,217 | 22,616 | 12,752 |
Pension and postretirement plans, net of tax | 427 | 435 | 1,283 | 1,304 |
Currency translation adjustments | -1,242 | -124 | -4,684 | -263 |
Other comprehensive (loss) income, net of tax | -815 | 311 | -3,401 | 1,041 |
Comprehensive income | 4,560 | 4,528 | 19,215 | 13,793 |
Comprehensive income attributable to non-controlling interest | 935 | 615 | 2,876 | 2,055 |
Comprehensive income attributable to STRATTEC SECURITY CORPORATION | $3,625 | $3,913 | $16,339 | $11,738 |
Earnings per share attributable to STRATTEC SECURITY CORPORATION: | ||||
Basic | $1.23 | $1.03 | $5.47 | $3.07 |
Diluted | $1.20 | $1 | $5.33 | $3 |
Average shares outstanding: | ||||
Basic | 3,520 | 3,443 | 3,511 | 3,413 |
Diluted | 3,603 | 3,534 | 3,603 | 3,494 |
Cash dividends declared per share | $0.12 | $0.11 | $0.36 | $0.33 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 29, 2015 | Jun. 29, 2014 |
In Thousands, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $28,035 | $19,756 |
Receivables, net | 62,224 | 68,822 |
Inventories | ||
Finished products | 10,750 | 9,034 |
Work in process | 8,447 | 7,386 |
Purchased materials | 18,762 | 16,232 |
Excess and obsolete reserve | -2,124 | -2,150 |
Inventories, net | 35,835 | 30,502 |
Other current assets | 14,546 | 16,559 |
Total current assets | 140,640 | 135,639 |
Investment in joint ventures | 10,865 | 9,977 |
Other long-term assets | 13,400 | 11,639 |
Property, plant and equipment | 191,099 | 172,717 |
Less: accumulated depreciation | -121,565 | -116,936 |
Net property, plant and equipment | 69,534 | 55,781 |
Total assets | 234,439 | 213,036 |
Current Liabilities: | ||
Accounts payable | 28,836 | 36,053 |
Accrued Liabilities: | ||
Payroll and benefits | 19,983 | 18,058 |
Environmental | 1,385 | 1,397 |
Warranty | 3,415 | 3,462 |
Other | 6,777 | 6,293 |
Total current liabilities | 60,396 | 65,263 |
Deferred income taxes | 5,644 | 5,127 |
Borrowings under credit facility | 11,000 | 2,500 |
Accrued pension obligations | 1,715 | 1,619 |
Accrued postretirement obligations | 1,772 | 2,223 |
Other long-term liabilities | 207 | 1,401 |
Shareholders’ Equity: | ||
Common stock, authorized 12,000,000 shares, $.01 par value, issued 7,144,978 shares at March 29, 2015 and 7,110,308 shares at June 29, 2014 | 71 | 71 |
Capital in excess of par value | 88,793 | 87,054 |
Retained earnings | 212,670 | 194,498 |
Accumulated other comprehensive loss | -23,313 | -20,198 |
Less: treasury stock, at cost (3,624,754 shares at March 29, 2015 and 3,625,492 shares at June 29, 2014) | -135,907 | -135,919 |
Total STRATTEC SECURITY CORPORATION shareholders’ equity | 142,314 | 125,506 |
Non-controlling interest | 11,391 | 9,397 |
Total shareholders’ equity | 153,705 | 134,903 |
Total liabilities and shareholders' equity | $234,439 | $213,036 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 29, 2015 | Jun. 29, 2014 |
Statement Of Financial Position [Abstract] | ||
Common stock, shares authorized | 12,000,000 | 12,000,000 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares issued | 7,144,978 | 7,110,308 |
Treasury stock, shares | 3,624,754 | 3,625,492 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $22,616 | $12,752 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 6,467 | 6,213 |
Foreign currency transaction gain | -3,004 | -74 |
Stock based compensation expense | 1,013 | 880 |
Equity loss (earnings) of joint ventures | 138 | -858 |
Change in operating assets and liabilities: | ||
Receivables | 5,997 | -6,903 |
Inventories | -5,333 | -4,334 |
Other assets | 1,478 | -4,835 |
Accounts payable and accrued liabilities | -5,949 | 6,357 |
Other, net | 172 | 114 |
Net cash provided by operating activities | 23,595 | 9,312 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Investment in joint ventures | -384 | |
Loan to joint ventures | -215 | -285 |
Purchase of property, plant and equipment | -21,651 | -9,381 |
Proceeds received on sale of property, plant and equipment | 46 | |
Net cash used in investing activities | -22,250 | -9,620 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings under credit facility | 9,000 | 1,250 |
Repayments of borrowings under credit facility | -500 | -1,000 |
Dividends paid to non-controlling interests of subsidiaries | -882 | -984 |
Dividends paid | -1,282 | -1,152 |
Exercise of stock options and employee stock purchases | 734 | 2,428 |
Net cash provided by financing activities | 7,070 | 542 |
Foreign currency impact on cash | -136 | -47 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 8,279 | 187 |
CASH AND CASH EQUIVALENTS | ||
Beginning of period | 19,756 | 20,307 |
End of period | 28,035 | 20,494 |
Cash paid during the period for: | ||
Income taxes | 12,345 | 3,150 |
Interest | 28 | 37 |
Non-cash investing activities: | ||
Change in capital expenditures in accounts payable | 425 | |
Guarantee of joint venture revolving credit facility | $750 |
Basis_of_Financial_Statements
Basis of Financial Statements | 9 Months Ended |
Mar. 29, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Financial Statements | Basis of Financial Statements |
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 door systems, power lift gate systems, power deck lid systems, door handles and related products for primarily North American automotive customers. We also supply global automotive manufacturers through a unique strategic relationship with WITTE Automotive of Velbert, Germany, and ADAC Automotive of Grand Rapids, Michigan. Under this relationship, STRATTEC, WITTE and ADAC market the products of each company to global customers under the “VAST” brand name. STRATTEC products are shipped to customer locations in the United States, Canada, Mexico, Europe, South America, Korea and China, and we provide full service and aftermarket support for our products. | |
During 2013, we acquired a 51 percent ownership interest in NextLock LLC, a newly formed joint venture which will introduce a new generation of biometric security products based upon the designs of Actuator Systems LLC, our partner and the owner of the remaining ownership interest. Effective January 6, 2015, we changed the name of NextLock, LLC to STRATTEC Advanced Logic, LLC. | |
The accompanying condensed consolidated financial statements reflect the consolidated results of STRATTEC SECURITY CORPORATION, its wholly owned Mexican subsidiary, STRATTEC de Mexico, and its majority owned subsidiaries, ADAC-STRATTEC, LLC and STRATTEC POWER ACCESS LLC. STRATTEC SECURITY CORPORATION is located in Milwaukee, Wisconsin. STRATTEC de Mexico is located in Juarez, Mexico. ADAC-STRATTEC, LLC and STRATTEC POWER ACCESS LLC have operations in El Paso, Texas and Juarez, Mexico. Equity investments in Vehicle Access Systems Technology LLC (“VAST LLC”) and STRATTEC Advanced Logic, LLC (formerly known as NextLock, LLC) for which we exercise significant influence but do not control and are not the primary beneficiary, are accounted for using the equity method. VAST LLC consists primarily of three wholly owned subsidiaries in China and one in Brazil. STRATTEC Advanced Logic, LLC (formerly known as NextLock, LLC) is located in El Paso, Texas. We have only one reporting segment. | |
In the opinion of management, the accompanying condensed consolidated balance sheet as of June 29, 2014, which has been derived from our audited financial statements, and the related unaudited interim condensed consolidated financial statements included herein contain all adjustments, consisting only of normal recurring items, necessary for their fair presentation in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and in accordance with Rule 10-01 of Regulation S-X. All significant intercompany transactions have been eliminated. | |
Interim financial results are not necessarily indicative of operating results for an entire year. The information included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis and the financial statements and notes thereto included in the STRATTEC SECURITY CORPORATION 2014 Annual Report, which was filed with the Securities and Exchange Commission as an exhibit to our Form 10-K on September 5, 2014. |
New_Accounting_Standard
New Accounting Standard | 9 Months Ended |
Mar. 29, 2015 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Standard | New Accounting Standard |
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 required additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. The guidance update is effective for annual reporting periods beginning after December 15, 2016 and becomes effective for us at the beginning of our 2018 fiscal year. Early adoption is not permitted. We are currently assessing the impact that this guidance will have on our consolidated financial statements. |
Subsequent_Event
Subsequent Event | 9 Months Ended |
Mar. 29, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event |
Effective April 30, 2015, the VAST LLC joint venture, which includes STRATTEC, WITTE Automotive (“WITTE”) of Velbert Germany and ADAC Automotive (“ADAC”) of Grand Rapids, Michigan, executed an agreement to become a 50:50 Joint Venture partner with Minda Management Services Limited an affiliate of both Minda Corporation Limited and Spark Minda, Ashok Minda Group of New Delhi, India (collectively “Minda”). VAST acquired a fifty percent equity interest in the former Minda-Valeo Security Systems joint venture entity, based in Pune, India for approximately $12 million. This joint venture entity will be renamed, Minda-VAST Access Systems (“Minda-VAST”). The portion of the purchase price paid by each VAST LLC partner, STRATTEC, WITTE and ADAC, totaled $4 million. Minda-VAST will have operations in Pune and Delhi and is expected to have annual sales in excess of approximately $40 million. Minda and its affiliates cater to the needs of all major car, motorcycle, commercial vehicle, tractor and off-road vehicle manufacturers in India. They are a leading manufacturer in the Indian marketplace of security & access products, handles, automotive safety, restraint systems, driver information and telematics systems for both OEMs and the aftermarket. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | |||||||||||
Mar. 29, 2015 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
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 facility approximated book value as of March 29, 2015 and June 29, 2014. Fair value is defined as the exchange price that would be received for an asset or paid for a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. | ||||||||||||
The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of March 29, 2015 (in thousands): | ||||||||||||
Fair Value Inputs | ||||||||||||
Level 1 Assets: | Level 2 Assets: | Level 3 Assets: | ||||||||||
Quoted Prices | Observable | Unobservable | ||||||||||
In Active Markets | Inputs Other | Inputs | ||||||||||
Than Market Prices | ||||||||||||
Assets: | ||||||||||||
Rabbi Trust Assets: | ||||||||||||
Stock Index Funds: | ||||||||||||
Small Cap | $ | 363 | $ | - | $ | - | ||||||
Mid Cap | 361 | - | - | |||||||||
Large Cap | 478 | - | - | |||||||||
International | 424 | - | - | |||||||||
Fixed Income Funds | 683 | - | - | |||||||||
Cash and Cash Equivalents | - | 1 | - | |||||||||
Total Assets at Fair Value | $ | 2,309 | $ | 1 | $ | - | ||||||
The Rabbi Trust assets fund our amended and restated supplemental executive retirement plan and are included in Other Long-term Assets in the accompanying Condensed Consolidated Balance Sheets. There were no transfers between Level 1 and Level 2 assets during the three or nine month periods ended March 29, 2015. |
Equity_Earnings_of_Joint_Ventu
Equity Earnings of Joint Ventures | 9 Months Ended | ||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||
Equity Method Investments And Joint Ventures [Abstract] | |||||||||||||||||
Equity Earnings of Joint Ventures | Equity Earnings of Joint Ventures | ||||||||||||||||
We hold a one-third interest in a joint venture company, Vehicle Access Systems Technology LLC (“VAST LLC”), with WITTE Automotive of Velbert, Germany (“WITTE”), and ADAC Automotive of Grand Rapids, Michigan (“ADAC”). VAST LLC exists to seek opportunities to manufacture and sell all three companies’ products in areas of the world outside of North America and Europe. VAST LLC consists primarily of three wholly owned subsidiaries in China and one in Brazil. Our investment in VAST 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 following are summarized statements of operations for VAST LLC (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Net Sales | $ | 30,025 | $ | 28,590 | $ | 96,686 | $ | 80,254 | |||||||||
Cost of Goods Sold | 25,498 | 24,771 | 82,050 | 68,129 | |||||||||||||
Gross Profit | 4,527 | 3,819 | 14,636 | 12,125 | |||||||||||||
Engineering, Selling and Administrative Expenses | 3,686 | 3,671 | 12,474 | 9,952 | |||||||||||||
Income From Operations | 841 | 148 | 2,162 | 2,173 | |||||||||||||
Other Income (Expense), net | 170 | 1,683 | 826 | 1,662 | |||||||||||||
Income before Provision for Income taxes | 1,011 | 1,831 | 2,988 | 3,835 | |||||||||||||
Provision for Income Taxes | 94 | 758 | 529 | 523 | |||||||||||||
Net Income | $ | 917 | $ | 1,073 | $ | 2,459 | $ | 3,312 | |||||||||
STRATTEC’s Share of VAST LLC Net Income | $ | 306 | $ | 358 | 820 | $ | 1,104 | ||||||||||
Intercompany Profit Elimination | (5 | ) | 7 | (1 | ) | 3 | |||||||||||
STRATTEC’s Equity Earnings of VAST LLC | $ | 301 | $ | 365 | $ | 819 | $ | 1,107 | |||||||||
During 2013, we acquired a 51% ownership interest in a newly formed joint venture company, STRATTEC Advanced Logic, LLC (formerly known as NextLock, LLC), which will introduce a new generation of biometric security products based upon designs of Actuator Systems LLC, our partner. | |||||||||||||||||
Effective February 16, 2015, STRATTEC Advanced Logic, LLC entered into a $1.5 million revolving credit facility (the “STRATTEC Advanced Logic Credit Facility’) with BMO Harris Bank N.A., which is fully guaranteed by STRATTEC. Interest on borrowings under the STRATTEC Advanced Logic Credit Facility is at varying rates based, at STRATTEC Advanced Logic, LLC’s option, on LIBOR plus 1.0 percent or the bank’s prime rate. The STRATTEC Advanced Logic Credit Facility currently has a maturity date of February 16, 2016. Outstanding borrowings under the STRATTEC Advanced Logic Credit Facility as of March 29, 2015 totaled $750,000. STRATTEC Advanced Logic, LLC is considered a variable interest entity based on the STRATTEC guarantee. STRATTEC is not the primary beneficiary and does not control the entity. Accordingly, our investment in STRATTEC Advanced Logic, LLC is accounted for using the equity method. As of March 29, 2015, STRATTEC has a recorded a liability related to the guarantee of $750,000, which amount is equal to the outstanding borrowings on the STRATTEC Advanced Logic Credit Facility as of March 29, 2015, and which amount is also equal to the estimated fair value of the guarantee as of the March 29, 2015 balance sheet date. The liability is included in Other Current Liabilities in the accompanying Condensed Consolidated Balance Sheets. STRATTEC’s proportionate share of the guarantee based on our ownership percentage in STRATTEC Advanced Logic, LLC totals $383,000, and accordingly, we have increased our investment in STRATTEC Advanced Logic, LLC as of March 29, 2015 by this amount. Our joint venture partner did not guarantee their proportionate share of the STRATTEC Advanced Logic Credit Facility. As a result, STRATTEC recorded a loss of $367,000 which is equal to our partner’s proportionate share, based upon their ownership interest in the joint venture, of the fair value of the STRATTEC guarantee. This loss is included in Equity Loss (Earnings) of Joint Ventures for the three and nine month periods ended March 29, 2015 in the accompanying Condensed Consolidated Statements of Income and Comprehensive Income. | |||||||||||||||||
The following are summarized statements of operations for STRATTEC Advanced Logic, LLC (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Engineering, Selling and Administrative Expenses | $ | 277 | $ | 189 | $ | 1,157 | $ | 486 | |||||||||
Loss From Operations | (277 | ) | (189 | ) | (1,157 | ) | (486 | ) | |||||||||
Other Income (Expense), net | (1 | ) | - | (1 | ) | - | |||||||||||
Net Loss | $ | (278 | ) | $ | (189 | ) | $ | (1,158 | ) | $ | (486 | ) | |||||
STRATTEC’s Proportionate Share of Equity Loss of STRATTEC Advanced Logic, LLC | $ | (141 | ) | $ | (98 | ) | $ | (590 | ) | $ | (249 | ) | |||||
Loss on STRATTEC Advanced Logic, LLC Credit Facility Guarantee | (367 | ) | - | (367 | ) | - | |||||||||||
STRATTEC’s Equity Loss of STRATTEC Advanced Logic, LLC | $ | (508 | ) | $ | (98 | ) | $ | (957 | ) | $ | (249 | ) | |||||
We have sales of component parts to VAST LLC and STRATTEC Advanced Logic, LLC, purchases of component parts from VAST LLC, expenses charged to VAST LLC for engineering and accounting services and expenses charged to us from VAST LLC for general headquarters expenses. The following table summarizes these related party transactions with VAST LLC and STRATTEC Advanced Logic, LLC for the periods indicated below (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Sales to VAST LLC | $ | 879 | $ | 59 | $ | 1,650 | $ | 154 | |||||||||
Sales to STRATTEC Advanced Logic, LLC | $ | 30 | $ | - | $ | 52 | $ | - | |||||||||
Purchases from VAST LLC | $ | 41 | $ | 22 | $ | 121 | $ | 180 | |||||||||
Expenses Charged to VAST LLC | $ | 286 | $ | 221 | $ | 690 | $ | 620 | |||||||||
Expenses Charged from VAST LLC | $ | 406 | $ | 287 | $ | 1,346 | $ | 872 | |||||||||
Credit_Facilities_and_Guarante
Credit Facilities and Guarantees | 9 Months Ended | |||||||||||||||
Mar. 29, 2015 | ||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||
Credit Facilities and Guarantees | Credit Facilities and Guarantees | |||||||||||||||
STRATTEC has a $25 million secured revolving credit facility (the “STRATTEC Credit Facility”) with BMO Harris Bank N.A. ADAC-STRATTEC LLC has a $5 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 August 1, 2016. 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 the ADAC-STRATTEC Credit Facility for periods prior to January 22, 2014 was at varying rates based, at our option, on LIBOR plus 1.75 percent or the bank’s prime rate. Interest on borrowings under the STRATTEC credit facility and effective on or after January 22, 2014 under the ADAC-STRATTEC Credit Facility is at varying rates based, at our option, on LIBOR plus 1.0 percent or the bank’s prime rate. Both credit facilities contain a restrictive financial covenant that requires the applicable borrower to maintain a minimum net worth level. The ADAC-STRATTEC Credit Facility includes an additional restrictive financial covenant that requires the maintenance of a minimum fixed charge coverage ratio. As of March 29, 2015, we were in compliance with all financial covenants. | ||||||||||||||||
Outstanding borrowings under the credit facilities were as follows (in thousands): | ||||||||||||||||
March 29, | June 29, | |||||||||||||||
2015 | 2014 | |||||||||||||||
STRATTEC Credit Facility | $ | 7,000 | $ | - | ||||||||||||
ADAC-STRATTEC Credit Facility | $ | 4,000 | $ | 2,500 | ||||||||||||
Average outstanding borrowings and the weighted average interest rate under each credit facility were as follows for each period presented (in thousands): | ||||||||||||||||
Nine Months Ended | ||||||||||||||||
Average Outstanding Borrowings | Weighted Average Interest Rate | |||||||||||||||
March 29, | March 30, | March 29, | March 30, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
STRATTEC Credit Facility | $ | 718 | $ | - | 1.2 | % | - | % | ||||||||
ADAC-STRATTEC Credit Facility | $ | 3,700 | $ | 2,700 | 1.2 | % | 1.8 | % | ||||||||
Effective February 16, 2015, STRATTEC Advanced Logic, LLC entered into a $1.5 million revolving credit facility (the “STRATTEC Advanced Logic Credit Facility’) with BMO Harris Bank N.A., which is fully guaranteed by STRATTEC. Interest on borrowings under the STRATTEC Advanced Logic Credit Facility is at varying rates based, at STRATTEC Advanced Logic, LLC’s option, on LIBOR plus 1.0 percent or the bank’s prime rate. The STRATTEC Advanced Logic Credit Facility currently has a maturity date of February 16, 2016. Outstanding borrowings under the STRATTEC Advanced Logic Credit Facility as of March 29, 2015 totaled $750,000. As of March 29, 2015, STRATTEC has recorded a liability related to the guarantee of $750,000, which amount is equal to the outstanding borrowings on the STRATTEC Advanced Logic Credit Facility as of March 29, 2015, and which amount is also equal to the estimated fair value of the guarantee as of the March 29, 2015 balance sheet date. See further discussion under Equity Earnings of Joint Ventures included herein. |
Environmental_Reserve
Environmental Reserve | 9 Months Ended |
Mar. 29, 2015 | |
Environmental Remediation Obligations [Abstract] | |
Environmental Reserve | Environmental Reserve |
In 1995, we recorded a provision of $3 million 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 originally established based on third party estimates to adequately cover the cost for active remediation of the contamination. Due to changing technology and related costs associated with active remediation of the contamination, an updated analysis and estimate was obtained during fiscal 2010. As a result of this analysis, the reserve was reduced by approximately $1.1 million, to $1.5 million in 2010, to reflect the revised monitoring and remediation cost estimate. From 1995 through March 29, 2015, costs of approximately $490,000 have been incurred related to the installation of monitoring wells on the property and ongoing monitoring costs. We continue to monitor and evaluate the site with the use of these groundwater monitoring wells. 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 at the site, 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 remaining environmental reserve of $1.4 million at March 29, 2015 is adequate. |
Shareholders_Equity
Shareholders' Equity | 9 Months Ended | |||||||||||
Mar. 29, 2015 | ||||||||||||
Equity [Abstract] | ||||||||||||
Shareholders' Equity | Shareholders’ Equity | |||||||||||
A summary of activity impacting shareholders’ equity for the nine month period ended March 29, 2015 was as follows (in thousands): | ||||||||||||
Total | Equity | Equity | ||||||||||
Shareholders’ | Attributable to | Attributable to Non- | ||||||||||
Equity | STRATTEC | Controlling | ||||||||||
Interest | ||||||||||||
Balance, June 29, 2014 | $ | 134,903 | $ | 125,506 | $ | 9,397 | ||||||
Net Income | 22,616 | 19,454 | 3,162 | |||||||||
Dividend Declared | (1,282 | ) | (1,282 | ) | - | |||||||
Dividend Declared – Non-controlling Interests of Subsidiaries | (882 | ) | - | (882 | ) | |||||||
Translation adjustments | (4,684 | ) | (4,398 | ) | (286 | ) | ||||||
Stock Based Compensation | 1,013 | 1,013 | - | |||||||||
Tax Benefit – Dividend Paid on Restricted Shares | 4 | 4 | - | |||||||||
Pension and Postretirement Adjustment, Net of tax | 1,283 | 1,283 | - | |||||||||
Employee Stock Purchases and Stock Option Exercises | 734 | 734 | - | |||||||||
Balance, March 29, 2015 | $ | 153,705 | $ | 142,314 | $ | 11,391 | ||||||
Other_Income_Net
Other Income, Net | 9 Months Ended | ||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||
Other Income And Expenses [Abstract] | |||||||||||||||||
Other Income, Net | Other Income, net | ||||||||||||||||
Net other income included in the accompanying Condensed Consolidated Statements of Income and Comprehensive Income primarily included foreign currency transaction gains and losses and Rabbi Trust gains and losses. Foreign currency transaction gains and losses resulted from activity associated with foreign denominated assets held by our Mexican subsidiaries. The Rabbi Trust assets fund our amended and restated supplemental executive retirement plan. The investments held in this Trust are considered trading securities. | |||||||||||||||||
The impact of these items for each of the periods presented was as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Foreign Currency Transaction Gain | $ | 583 | $ | 36 | $ | 3,004 | $ | 74 | |||||||||
Rabbi Trust Gain | 44 | 27 | 62 | 132 | |||||||||||||
Other | 71 | 8 | 243 | 90 | |||||||||||||
$ | 698 | $ | 71 | $ | 3,309 | $ | 296 | ||||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Mar. 29, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
The income tax provisions for the three and nine month periods ended March 29, 2015 and March 30, 2014 were affected by the non-controlling interest portion of our pre-tax income and a lower statutory tax rate for income subject to tax in Mexico as compared to the statutory tax rate for income subject to tax in the U.S. Moreover, our income tax provision included a reduction in our liability for unrecognized tax benefits and related interest of approximately $936,000 for the three and nine month periods ended March 29, 2015 and $307,000 for the three and nine month periods ended March 30, 2014 due to tax years that closed during such periods. |
Earnings_Per_Share_EPS
Earnings Per Share (''EPS'') | 9 Months Ended | ||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Earnings Per Share (''EPS'') | Earnings Per Share (EPS) | ||||||||||||||||
Basic earnings per share is computed on the basis of the weighted average number of shares of common stock outstanding during the 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): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Net Income Attributable to STRATTEC SECURITY CORPORATION | $ | 4,376 | $ | 3,601 | $ | 19,454 | $ | 10,685 | |||||||||
Less: Income Attributable to Participating Securities | 53 | 65 | 244 | 193 | |||||||||||||
Net Income Attributable to Common Shareholders | $ | 4,323 | $ | 3,536 | $ | 19,210 | $ | 10,492 | |||||||||
3,520 | 3,443 | 3,511 | 3,413 | ||||||||||||||
Basic Weighted Average Shares of Common Stock Outstanding | |||||||||||||||||
Incremental Shares – Stock based Compensation | 83 | 91 | 92 | 81 | |||||||||||||
Diluted Weighted Average Shares of Common Stock Outstanding | 3,603 | 3,534 | 3,603 | 3,494 | |||||||||||||
$ | 1.23 | $ | 1.03 | $ | 5.47 | $ | 3.07 | ||||||||||
Basic Earnings Per Share | |||||||||||||||||
Diluted Earnings Per Share | $ | 1.2 | $ | 1 | $ | 5.33 | $ | 3 | |||||||||
We consider unvested restricted stock that provides the holder with a non-forfeitable right to receive dividends to be a participating security. | |||||||||||||||||
As of March 29, 2015, options to purchase 9,010 shares of common stock were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. As of March 30, 2014, options to purchase 49,340 shares of common stock were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | |||||||||||||||
Mar. 29, 2015 | ||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||||||||||||
Stock-based Compensation | 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. As of March 29, 2015, the Board of Directors had 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 March 29, 2015 were 253,339. Awards that expire or are canceled 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 employees under our 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 the Board of Directors. The options expire 5 to 10 years after the grant date unless an earlier expiration date is set at the time of grant. The options vest 1 to 4 years after the date of grant. Shares of restricted stock granted under the plan are subject to vesting criteria determined by the Compensation Committee of the Board of Directors at the time the shares are granted and have a minimum vesting period of three years from the date of grant. Restricted shares granted have voting rights, regardless if the shares are vested or unvested. Restricted shares granted prior to August 2014 have dividend rights, regardless if the shares are vested or unvested. Commencing in August 2014 and thereafter, shares of restricted stock awarded to participants are not entitled to receive any cash dividends if they are unvested as of the record date. The restricted stock grants issued to date vest 3 years after the date of grant. | ||||||||||||||||
The fair value of each stock option grant was estimated as of the date of grant using the Black-Scholes pricing model. The resulting compensation cost for fixed awards with graded vesting schedules is amortized on a straight line basis over the vesting period for the entire award. The 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. | ||||||||||||||||
A summary of stock option activity under our stock incentive plan for the nine months ended March 29, 2015 was as follows: | ||||||||||||||||
Shares | Weighted | Weighted | Aggregate | |||||||||||||
Average | Average | Intrinsic | ||||||||||||||
Exercise Price | Remaining | Value | ||||||||||||||
Contractual | (in thousands) | |||||||||||||||
Term (years) | ||||||||||||||||
Outstanding, June 29, 2014 | 185,242 | $ | 24.73 | |||||||||||||
Granted | 10,000 | $ | 79.73 | |||||||||||||
Exercised | (16,570 | ) | $ | 21.84 | ||||||||||||
Forfeited | (8,589 | ) | $ | 37.43 | ||||||||||||
Outstanding, March 29, 2015 | 170,083 | $ | 27.61 | 5.9 | $ | 7,733 | ||||||||||
Exercisable, March 29, 2015 | 97,279 | $ | 19.75 | 4.3 | $ | 5,151 | ||||||||||
The intrinsic value of stock options exercised and the fair value of stock options vesting during the three and nine month periods presented below was as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
March 29, | March 30, | March 29, | March 30, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Intrinsic Value of Options Exercised | $ | - | $ | 1,129 | $ | 990 | $ | 1,807 | ||||||||
Fair Value of Stock Options Vesting | $ | - | $ | 29 | $ | 382 | $ | 444 | ||||||||
The grant date fair value and assumptions used to determine compensation expense for the options granted during each period presented below were as follows: | ||||||||||||||||
Nine Months Ended | ||||||||||||||||
March 29, | March 30, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Weighted Average Grant Date Fair Value: | ||||||||||||||||
Options Issued at Grant Date Market Value | n/a | n/a | ||||||||||||||
Options Issued Above Grant Date Market Value | $ | 34.93 | $ | 17.58 | ||||||||||||
Assumptions: | ||||||||||||||||
Risk Free Interest Rate | 1.9 | % | 2.06 | % | ||||||||||||
Expected Volatility | 57.83 | % | 58.75 | % | ||||||||||||
Expected Dividend Yield | 0.62 | % | 1.11 | % | ||||||||||||
Expected Term (in years) | 6 | 6 | ||||||||||||||
A summary of restricted stock activity under our omnibus stock incentive plan for the nine months ended March 29, 2015 was as follows: | ||||||||||||||||
Shares | Weighted | |||||||||||||||
Average | ||||||||||||||||
Grant Date | ||||||||||||||||
Fair Value | ||||||||||||||||
Nonvested Balance, June 29, 2014 | 63,600 | $ | 28.64 | |||||||||||||
Granted | 25,000 | $ | 70.9 | |||||||||||||
Vested | (18,100 | ) | $ | 23.02 | ||||||||||||
Forfeited | (3,500 | ) | $ | 46.41 | ||||||||||||
Nonvested Balance, March 29, 2015 | 67,000 | $ | 45 | |||||||||||||
As of March 29, 2015, there was $558,000 of total unrecognized compensation cost related to outstanding stock options granted under our omnibus stock incentive plan. This cost is expected to be recognized over a remaining weighted average period of 0.9 years. As of March 29, 2015, there was approximately $1.5 million of total unrecognized compensation cost related to unvested restricted stock grants outstanding under the plan. This cost is expected to be recognized over a remaining weighted average period of 1.1 years. Total unrecognized compensation cost will be adjusted for any future changes in estimated and actual forfeitures of awards granted under our omnibus stock incentive plan. |
Pension_and_Postretirement_Ben
Pension and Postretirement Benefits | 9 Months Ended | |||||||||||||||
Mar. 29, 2015 | ||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ||||||||||||||||
Pension and Postretirement Benefits | Pension and Postretirement Benefits | |||||||||||||||
We have a qualified, noncontributory defined benefit pension plan (“Qualified Pension Plan”) covering substantially all U.S. associates. Benefits are based on years of service and final average compensation. Our policy is to fund at least the minimum actuarially computed annual contribution required under the Employee Retirement Income Security Act of 1974 (ERISA). Plan assets consist primarily of listed equity and fixed income securities. Effective December 31, 2009, an amendment to the Qualified Pension Plan discontinued the benefit accruals for salary increases and credited service rendered after that date. On April 2, 2014, our Board of Directors approved a resolution to terminate the Qualified Pension Plan. The termination of the Qualified Pension Plan is subject to the Internal Revenue Service’s (“IRS”) determination that the Qualified Pension Plan is qualified on termination. We believe it will take 18 to 24 months to finalize the complete termination of the Qualified Pension Plan after obtaining IRS approval. We have not yet received IRS approval that the qualified plan is qualified on termination. Additionally, we have amended the Qualified Pension Plan to provide that participants are 100 percent vested in their accrued benefits as of the effective date of the plan termination, to adopt a new standard for disability benefits that will apply when the plan’s assets are distributed due to the termination, to add a lump sum distribution for employees and terminated vested participants who are not in payment status when Qualified Pension Plan assets are distributed due to the termination and to make certain other conforming amendments to the Qualified Pension Plan to comply with applicable laws that may be required by the IRS or may be deemed necessary or advisable to improve the administration of the Qualified Pension Plan or facilitate its termination and liquidation. We also intend to make contributions to the Trust Fund for the Qualified Pension Plan to ensure that there are sufficient assets to provide all Qualified Pension Plan benefits as of the anticipated distribution date. The financial impact of the plan termination will be recognized as a settlement of the Qualified Pension Plan liabilities. The settlement date and related financial impact have not yet been determined. | ||||||||||||||||
We have historically had in place a noncontributory supplemental executive retirement plan (“SERP”), which 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. We froze our Qualified Pension Plan effective as of December 31, 2009 and the SERP provided benefits to participants as if the Qualified Pension Plan had not been frozen. Because the Qualified Pension Plan was frozen and because new employees were not eligible to participate in the Qualified Pension Plan, our Board of Directors adopted amendments to the SERP on October 8, 2013 that were effective as of December 31, 2013 to simplify the SERP calculation. The SERP is funded through a Rabbi Trust with BMO Harris Bank N.A. Under the amended SERP, participants received an accrued lump-sum benefit as of December 31, 2013 which was credited to each participant’s account. Going forward, each eligible participant will receive a supplemental retirement benefit equal to the foregoing lump-sum benefit, plus an annual benefit accrual equal to 8 percent of the participant’s base salary and cash bonus, plus annual credited interest on the participant’s account balance. All current participants are fully vested in their account balances with any new individuals participating in the SERP effective on or after January 1, 2014 being subject to a five year vesting schedule. The SERP, which is considered a defined benefit plan under applicable rules and regulations, will continue to be funded through the use of a Rabbi Trust to hold investment assets to be used in part to fund any future required lump sum benefit payments to participants. The foregoing amendments to the SERP did not have a material effect on our financial statements. The Rabbi Trust assets had a value of $2.3 million at March 29, 2015 and $2.2 million at June 29, 2014, respectively, and are included in Other Long-Term Assets in the accompanying Condensed Consolidated Balance Sheets. | ||||||||||||||||
We also sponsor a postretirement health care plan for all of our U.S. associates hired prior to June 2, 2001. The expected cost of retiree health care benefits is recognized during the years that 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 is subject to a maximum five year coverage period based on the associate’s retirement date and age. The postretirement health care plan is unfunded. | ||||||||||||||||
Net periodic benefit costs under these plans are allocated between Cost of Goods Sold and Engineering, Selling and Administrative Expenses in the accompanying Condensed Consolidated Statements of Income and Comprehensive Income. | ||||||||||||||||
The following tables summarize the net periodic benefit cost recognized for each of the periods indicated under these plans (in thousands): | ||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
March 29, | March 30, | March 29, | March 30, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Service cost | $ | 16 | $ | 54 | $ | 4 | $ | 4 | ||||||||
Interest cost | 1,043 | 1,102 | 28 | 39 | ||||||||||||
Expected return on plan assets | (1,543 | ) | (1,610 | ) | - | - | ||||||||||
Amortization of prior service cost (credit) | 2 | 2 | (191 | ) | (191 | ) | ||||||||||
Amortization of unrecognized net loss | 694 | 666 | 173 | 212 | ||||||||||||
Net periodic benefit cost | $ | 212 | $ | 214 | $ | 14 | $ | 64 | ||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||
March 29, | March 30, | March 29, | March 30, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Service cost | $ | 48 | $ | 163 | $ | 11 | $ | 11 | ||||||||
Interest cost | 3,129 | 3,305 | 85 | 118 | ||||||||||||
Expected return on plan assets | (4,630 | ) | (4,831 | ) | - | - | ||||||||||
Amortization of prior service cost (credit) | 8 | 8 | (573 | ) | (573 | ) | ||||||||||
Amortization of unrecognized net loss | 2,081 | 1,999 | 520 | 635 | ||||||||||||
Net periodic benefit cost | $ | 636 | $ | 644 | $ | 43 | $ | 191 | ||||||||
No contributions were made to the Qualified Pension Plan during the nine month period ended March 29, 2015. Contributions of $1.5 million were made to the Qualified Pension Plan during the nine month period ended March 30, 2014. Voluntary contributions of $3.0 million are anticipated to be made during the remainder of fiscal 2015. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 9 Months Ended | |||||||||||
Mar. 29, 2015 | ||||||||||||
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | |||||||||||
The following table summarizes the changes in accumulated other comprehensive loss (“AOCL”) for each period presented (in thousands): | ||||||||||||
Nine Months Ended March 29, 2015 | ||||||||||||
Foreign | Retirement | Total | ||||||||||
Currency | and | |||||||||||
Translation | Postretirement | |||||||||||
Adjustments | Benefit Plans | |||||||||||
Balance, June 29, 2014 | $ | 3,411 | $ | 16,787 | $ | 20,198 | ||||||
Other comprehensive loss before reclassifications | 4,684 | - | 4,684 | |||||||||
Income tax | - | - | - | |||||||||
Net other comprehensive loss before reclassifications | 4,684 | - | 4,684 | |||||||||
Reclassifications: | ||||||||||||
Prior service credits (A) | - | 564 | 564 | |||||||||
Actuarial gains (A) | - | (2,601 | ) | (2,601 | ) | |||||||
Total reclassifications before tax | - | (2,037 | ) | (2,037 | ) | |||||||
Income tax | - | 754 | 754 | |||||||||
Net reclassifications | - | (1,283 | ) | (1,283 | ) | |||||||
Other comprehensive loss (income) | 4,684 | (1,283 | ) | 3,401 | ||||||||
Other comprehensive loss attributable to non-controlling interest | 286 | - | 286 | |||||||||
Balance, March 29, 2015 | $ | 7,809 | $ | 15,504 | $ | 23,313 | ||||||
Nine Months Ended March 30, 2014 | ||||||||||||
Foreign | Retirement | Total | ||||||||||
Currency | and | |||||||||||
Translation | Postretirement | |||||||||||
Adjustments | Benefit Plans | |||||||||||
Balance, June 30, 2013 | $ | 3,268 | $ | 18,944 | $ | 22,212 | ||||||
Other comprehensive loss before reclassifications | 263 | - | 263 | |||||||||
Income tax | - | - | - | |||||||||
Net other comprehensive loss before reclassifications | 263 | - | 263 | |||||||||
Reclassifications: | ||||||||||||
Prior service credits (A) | - | 564 | 564 | |||||||||
Unrecognized net loss (A) | - | (2,634 | ) | (2,634 | ) | |||||||
Total reclassifications before tax | - | (2,070 | ) | (2,070 | ) | |||||||
Income tax | - | 766 | 766 | |||||||||
Net reclassifications | - | (1,304 | ) | (1,304 | ) | |||||||
Other comprehensive loss (income) | 263 | (1,304 | ) | (1,041 | ) | |||||||
Other comprehensive loss attributable to non-controlling interest | 12 | - | 12 | |||||||||
Balance, March 30, 2014 | $ | 3,519 | $ | 17,640 | $ | 21,159 | ||||||
(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 Condensed Consolidated Statements of Income and Comprehensive Income. See Pension and Postretirement Benefits note to these condensed consolidated financial statements above. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | |||||||||||
Mar. 29, 2015 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
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 March 29, 2015 (in thousands): | |||||||||||
Fair Value Inputs | ||||||||||||
Level 1 Assets: | Level 2 Assets: | Level 3 Assets: | ||||||||||
Quoted Prices | Observable | Unobservable | ||||||||||
In Active Markets | Inputs Other | Inputs | ||||||||||
Than Market Prices | ||||||||||||
Assets: | ||||||||||||
Rabbi Trust Assets: | ||||||||||||
Stock Index Funds: | ||||||||||||
Small Cap | $ | 363 | $ | - | $ | - | ||||||
Mid Cap | 361 | - | - | |||||||||
Large Cap | 478 | - | - | |||||||||
International | 424 | - | - | |||||||||
Fixed Income Funds | 683 | - | - | |||||||||
Cash and Cash Equivalents | - | 1 | - | |||||||||
Total Assets at Fair Value | $ | 2,309 | $ | 1 | $ | - | ||||||
Equity_Earnings_of_Joint_Ventu1
Equity Earnings of Joint Ventures (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||
VAST LLC | |||||||||||||||||
Summarized Statements of Operations | The following are summarized statements of operations for VAST LLC (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Net Sales | $ | 30,025 | $ | 28,590 | $ | 96,686 | $ | 80,254 | |||||||||
Cost of Goods Sold | 25,498 | 24,771 | 82,050 | 68,129 | |||||||||||||
Gross Profit | 4,527 | 3,819 | 14,636 | 12,125 | |||||||||||||
Engineering, Selling and Administrative Expenses | 3,686 | 3,671 | 12,474 | 9,952 | |||||||||||||
Income From Operations | 841 | 148 | 2,162 | 2,173 | |||||||||||||
Other Income (Expense), net | 170 | 1,683 | 826 | 1,662 | |||||||||||||
Income before Provision for Income taxes | 1,011 | 1,831 | 2,988 | 3,835 | |||||||||||||
Provision for Income Taxes | 94 | 758 | 529 | 523 | |||||||||||||
Net Income | $ | 917 | $ | 1,073 | $ | 2,459 | $ | 3,312 | |||||||||
STRATTEC’s Share of VAST LLC Net Income | $ | 306 | $ | 358 | 820 | $ | 1,104 | ||||||||||
Intercompany Profit Elimination | (5 | ) | 7 | (1 | ) | 3 | |||||||||||
STRATTEC’s Equity Earnings of VAST LLC | $ | 301 | $ | 365 | $ | 819 | $ | 1,107 | |||||||||
NextLock LLC | |||||||||||||||||
Summarized Statements of Operations | The following are summarized statements of operations for STRATTEC Advanced Logic, LLC (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Engineering, Selling and Administrative Expenses | $ | 277 | $ | 189 | $ | 1,157 | $ | 486 | |||||||||
Loss From Operations | (277 | ) | (189 | ) | (1,157 | ) | (486 | ) | |||||||||
Other Income (Expense), net | (1 | ) | - | (1 | ) | - | |||||||||||
Net Loss | $ | (278 | ) | $ | (189 | ) | $ | (1,158 | ) | $ | (486 | ) | |||||
STRATTEC’s Proportionate Share of Equity Loss of STRATTEC Advanced Logic, LLC | $ | (141 | ) | $ | (98 | ) | $ | (590 | ) | $ | (249 | ) | |||||
Loss on STRATTEC Advanced Logic, LLC Credit Facility Guarantee | (367 | ) | - | (367 | ) | - | |||||||||||
STRATTEC’s Equity Loss of STRATTEC Advanced Logic, LLC | $ | (508 | ) | $ | (98 | ) | $ | (957 | ) | $ | (249 | ) | |||||
VAST LLC and NextLock LLC | |||||||||||||||||
Summarize of Related Party Transaction | We have sales of component parts to VAST LLC and STRATTEC Advanced Logic, LLC, purchases of component parts from VAST LLC, expenses charged to VAST LLC for engineering and accounting services and expenses charged to us from VAST LLC for general headquarters expenses. The following table summarizes these related party transactions with VAST LLC and STRATTEC Advanced Logic, LLC for the periods indicated below (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Sales to VAST LLC | $ | 879 | $ | 59 | $ | 1,650 | $ | 154 | |||||||||
Sales to STRATTEC Advanced Logic, LLC | $ | 30 | $ | - | $ | 52 | $ | - | |||||||||
Purchases from VAST LLC | $ | 41 | $ | 22 | $ | 121 | $ | 180 | |||||||||
Expenses Charged to VAST LLC | $ | 286 | $ | 221 | $ | 690 | $ | 620 | |||||||||
Expenses Charged from VAST LLC | $ | 406 | $ | 287 | $ | 1,346 | $ | 872 | |||||||||
Credit_Facilities_and_Guarante1
Credit Facilities and Guarantees (Tables) | 9 Months Ended | |||||||||||||||
Mar. 29, 2015 | ||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||
Schedule of Outstanding Borrowings Under the Credit Facilities | Outstanding borrowings under the credit facilities were as follows (in thousands): | |||||||||||||||
March 29, | June 29, | |||||||||||||||
2015 | 2014 | |||||||||||||||
STRATTEC Credit Facility | $ | 7,000 | $ | - | ||||||||||||
ADAC-STRATTEC Credit Facility | $ | 4,000 | $ | 2,500 | ||||||||||||
Schedule of Average Outstanding Borrowings and the Weighted Average Interest Rate | Average outstanding borrowings and the weighted average interest rate under each credit facility were as follows for each period presented (in thousands): | |||||||||||||||
Nine Months Ended | ||||||||||||||||
Average Outstanding Borrowings | Weighted Average Interest Rate | |||||||||||||||
March 29, | March 30, | March 29, | March 30, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
STRATTEC Credit Facility | $ | 718 | $ | - | 1.2 | % | - | % | ||||||||
ADAC-STRATTEC Credit Facility | $ | 3,700 | $ | 2,700 | 1.2 | % | 1.8 | % | ||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 9 Months Ended | |||||||||||
Mar. 29, 2015 | ||||||||||||
Equity [Abstract] | ||||||||||||
Summary of Activity Impacting Shareholders' Equity | A summary of activity impacting shareholders’ equity for the nine month period ended March 29, 2015 was as follows (in thousands): | |||||||||||
Total | Equity | Equity | ||||||||||
Shareholders’ | Attributable to | Attributable to Non- | ||||||||||
Equity | STRATTEC | Controlling | ||||||||||
Interest | ||||||||||||
Balance, June 29, 2014 | $ | 134,903 | $ | 125,506 | $ | 9,397 | ||||||
Net Income | 22,616 | 19,454 | 3,162 | |||||||||
Dividend Declared | (1,282 | ) | (1,282 | ) | - | |||||||
Dividend Declared – Non-controlling Interests of Subsidiaries | (882 | ) | - | (882 | ) | |||||||
Translation adjustments | (4,684 | ) | (4,398 | ) | (286 | ) | ||||||
Stock Based Compensation | 1,013 | 1,013 | - | |||||||||
Tax Benefit – Dividend Paid on Restricted Shares | 4 | 4 | - | |||||||||
Pension and Postretirement Adjustment, Net of tax | 1,283 | 1,283 | - | |||||||||
Employee Stock Purchases and Stock Option Exercises | 734 | 734 | - | |||||||||
Balance, March 29, 2015 | $ | 153,705 | $ | 142,314 | $ | 11,391 | ||||||
Other_Income_Net_Tables
Other Income, Net (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||
Other Income And Expenses [Abstract] | |||||||||||||||||
Summary of Other Income Net | The impact of these items for each of the periods presented was as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Foreign Currency Transaction Gain | $ | 583 | $ | 36 | $ | 3,004 | $ | 74 | |||||||||
Rabbi Trust Gain | 44 | 27 | 62 | 132 | |||||||||||||
Other | 71 | 8 | 243 | 90 | |||||||||||||
$ | 698 | $ | 71 | $ | 3,309 | $ | 296 | ||||||||||
Earnings_Per_Share_EPS_Tables
Earnings Per Share (''EPS'') (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Reconciliation of the Components of the Basic and Diluted Per Share | A reconciliation of the components of the basic and diluted per-share computations follows (in thousands, except per share amounts): | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Net Income Attributable to STRATTEC SECURITY CORPORATION | $ | 4,376 | $ | 3,601 | $ | 19,454 | $ | 10,685 | |||||||||
Less: Income Attributable to Participating Securities | 53 | 65 | 244 | 193 | |||||||||||||
Net Income Attributable to Common Shareholders | $ | 4,323 | $ | 3,536 | $ | 19,210 | $ | 10,492 | |||||||||
3,520 | 3,443 | 3,511 | 3,413 | ||||||||||||||
Basic Weighted Average Shares of Common Stock Outstanding | |||||||||||||||||
Incremental Shares – Stock based Compensation | 83 | 91 | 92 | 81 | |||||||||||||
Diluted Weighted Average Shares of Common Stock Outstanding | 3,603 | 3,534 | 3,603 | 3,494 | |||||||||||||
$ | 1.23 | $ | 1.03 | $ | 5.47 | $ | 3.07 | ||||||||||
Basic Earnings Per Share | |||||||||||||||||
Diluted Earnings Per Share | $ | 1.2 | $ | 1 | $ | 5.33 | $ | 3 | |||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||||||
Mar. 29, 2015 | ||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||||||||||||
Summary of Stock Option Activity Under Our Stock Incentive Plan | A summary of stock option activity under our stock incentive plan for the nine months ended March 29, 2015 was as follows: | |||||||||||||||
Shares | Weighted | Weighted | Aggregate | |||||||||||||
Average | Average | Intrinsic | ||||||||||||||
Exercise Price | Remaining | Value | ||||||||||||||
Contractual | (in thousands) | |||||||||||||||
Term (years) | ||||||||||||||||
Outstanding, June 29, 2014 | 185,242 | $ | 24.73 | |||||||||||||
Granted | 10,000 | $ | 79.73 | |||||||||||||
Exercised | (16,570 | ) | $ | 21.84 | ||||||||||||
Forfeited | (8,589 | ) | $ | 37.43 | ||||||||||||
Outstanding, March 29, 2015 | 170,083 | $ | 27.61 | 5.9 | $ | 7,733 | ||||||||||
Exercisable, March 29, 2015 | 97,279 | $ | 19.75 | 4.3 | $ | 5,151 | ||||||||||
Intrinsic Value of Stock Options Exercised and the Fair Value of Stock Options Vested | The intrinsic value of stock options exercised and the fair value of stock options vesting during the three and nine month periods presented below was as follows (in thousands): | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
March 29, | March 30, | March 29, | March 30, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Intrinsic Value of Options Exercised | $ | - | $ | 1,129 | $ | 990 | $ | 1,807 | ||||||||
Fair Value of Stock Options Vesting | $ | - | $ | 29 | $ | 382 | $ | 444 | ||||||||
Grant Date Fair Value and Assumptions Used to Determine Compensation Expense | The grant date fair value and assumptions used to determine compensation expense for the options granted during each period presented below were as follows: | |||||||||||||||
Nine Months Ended | ||||||||||||||||
March 29, | March 30, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Weighted Average Grant Date Fair Value: | ||||||||||||||||
Options Issued at Grant Date Market Value | n/a | n/a | ||||||||||||||
Options Issued Above Grant Date Market Value | $ | 34.93 | $ | 17.58 | ||||||||||||
Assumptions: | ||||||||||||||||
Risk Free Interest Rate | 1.9 | % | 2.06 | % | ||||||||||||
Expected Volatility | 57.83 | % | 58.75 | % | ||||||||||||
Expected Dividend Yield | 0.62 | % | 1.11 | % | ||||||||||||
Expected Term (in years) | 6 | 6 | ||||||||||||||
Summary of Restricted Stock Activity Under Our Stock Incentive Plan | A summary of restricted stock activity under our omnibus stock incentive plan for the nine months ended March 29, 2015 was as follows: | |||||||||||||||
Shares | Weighted | |||||||||||||||
Average | ||||||||||||||||
Grant Date | ||||||||||||||||
Fair Value | ||||||||||||||||
Nonvested Balance, June 29, 2014 | 63,600 | $ | 28.64 | |||||||||||||
Granted | 25,000 | $ | 70.9 | |||||||||||||
Vested | (18,100 | ) | $ | 23.02 | ||||||||||||
Forfeited | (3,500 | ) | $ | 46.41 | ||||||||||||
Nonvested Balance, March 29, 2015 | 67,000 | $ | 45 | |||||||||||||
Pension_and_Postretirement_Ben1
Pension and Postretirement Benefits (Tables) | 9 Months Ended | |||||||||||||||
Mar. 29, 2015 | ||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ||||||||||||||||
Summarize the Net Periodic Benefit Cost | The following tables summarize the net periodic benefit cost recognized for each of the periods indicated under these plans (in thousands): | |||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
March 29, | March 30, | March 29, | March 30, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Service cost | $ | 16 | $ | 54 | $ | 4 | $ | 4 | ||||||||
Interest cost | 1,043 | 1,102 | 28 | 39 | ||||||||||||
Expected return on plan assets | (1,543 | ) | (1,610 | ) | - | - | ||||||||||
Amortization of prior service cost (credit) | 2 | 2 | (191 | ) | (191 | ) | ||||||||||
Amortization of unrecognized net loss | 694 | 666 | 173 | 212 | ||||||||||||
Net periodic benefit cost | $ | 212 | $ | 214 | $ | 14 | $ | 64 | ||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||
March 29, | March 30, | March 29, | March 30, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Service cost | $ | 48 | $ | 163 | $ | 11 | $ | 11 | ||||||||
Interest cost | 3,129 | 3,305 | 85 | 118 | ||||||||||||
Expected return on plan assets | (4,630 | ) | (4,831 | ) | - | - | ||||||||||
Amortization of prior service cost (credit) | 8 | 8 | (573 | ) | (573 | ) | ||||||||||
Amortization of unrecognized net loss | 2,081 | 1,999 | 520 | 635 | ||||||||||||
Net periodic benefit cost | $ | 636 | $ | 644 | $ | 43 | $ | 191 | ||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended | |||||||||||
Mar. 29, 2015 | ||||||||||||
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ||||||||||||
Summary of Changes in Accumulated Other Comprehensive Loss | The following table summarizes the changes in accumulated other comprehensive loss (“AOCL”) for each period presented (in thousands): | |||||||||||
Nine Months Ended March 29, 2015 | ||||||||||||
Foreign | Retirement | Total | ||||||||||
Currency | and | |||||||||||
Translation | Postretirement | |||||||||||
Adjustments | Benefit Plans | |||||||||||
Balance, June 29, 2014 | $ | 3,411 | $ | 16,787 | $ | 20,198 | ||||||
Other comprehensive loss before reclassifications | 4,684 | - | 4,684 | |||||||||
Income tax | - | - | - | |||||||||
Net other comprehensive loss before reclassifications | 4,684 | - | 4,684 | |||||||||
Reclassifications: | ||||||||||||
Prior service credits (A) | - | 564 | 564 | |||||||||
Actuarial gains (A) | - | (2,601 | ) | (2,601 | ) | |||||||
Total reclassifications before tax | - | (2,037 | ) | (2,037 | ) | |||||||
Income tax | - | 754 | 754 | |||||||||
Net reclassifications | - | (1,283 | ) | (1,283 | ) | |||||||
Other comprehensive loss (income) | 4,684 | (1,283 | ) | 3,401 | ||||||||
Other comprehensive loss attributable to non-controlling interest | 286 | - | 286 | |||||||||
Balance, March 29, 2015 | $ | 7,809 | $ | 15,504 | $ | 23,313 | ||||||
Nine Months Ended March 30, 2014 | ||||||||||||
Foreign | Retirement | Total | ||||||||||
Currency | and | |||||||||||
Translation | Postretirement | |||||||||||
Adjustments | Benefit Plans | |||||||||||
Balance, June 30, 2013 | $ | 3,268 | $ | 18,944 | $ | 22,212 | ||||||
Other comprehensive loss before reclassifications | 263 | - | 263 | |||||||||
Income tax | - | - | - | |||||||||
Net other comprehensive loss before reclassifications | 263 | - | 263 | |||||||||
Reclassifications: | ||||||||||||
Prior service credits (A) | - | 564 | 564 | |||||||||
Unrecognized net loss (A) | - | (2,634 | ) | (2,634 | ) | |||||||
Total reclassifications before tax | - | (2,070 | ) | (2,070 | ) | |||||||
Income tax | - | 766 | 766 | |||||||||
Net reclassifications | - | (1,304 | ) | (1,304 | ) | |||||||
Other comprehensive loss (income) | 263 | (1,304 | ) | (1,041 | ) | |||||||
Other comprehensive loss attributable to non-controlling interest | 12 | - | 12 | |||||||||
Balance, March 30, 2014 | $ | 3,519 | $ | 17,640 | $ | 21,159 | ||||||
(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 Condensed Consolidated Statements of Income and Comprehensive Income. See Pension and Postretirement Benefits note to these condensed consolidated financial statements above. |
Basis_of_Financial_Statements_
Basis of Financial Statements (Details Textual) | 9 Months Ended | |
Mar. 29, 2015 | Jun. 30, 2013 | |
Segment | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Number of reporting segments related to STRATTEC Security Corporation | 1 | |
STRATTEC Advanced Logic, LLC (formerly known as NextLock LLC) | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
STRATTEC's percentage ownership in joint venture | 51.00% | |
VAST LLC | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Number of wholly owned and majority owned consolidated subsidiaries | 3 | |
Number of equity method joint ventures | 1 |
Subsequent_Event_Details_Textu
Subsequent Event (Details Textual) (USD $) | 9 Months Ended | 0 Months Ended |
Mar. 29, 2015 | Apr. 30, 2015 | |
Subsequent Event [Line Items] | ||
Payments to acquire interest in joint venture | $384,000 | |
Subsequent Event | VAST LLC | ||
Subsequent Event [Line Items] | ||
Percentage ownership in joint venture | 50.00% | |
Payments to acquire interest in joint venture | 12,000,000 | |
Expected annual sales from acquired joint venture entity | 40,000,000 | |
Subsequent Event | VAST LLC | STRATTEC | ||
Subsequent Event [Line Items] | ||
Payments to acquire interest in joint venture | 4,000,000 | |
Subsequent Event | VAST LLC | ADAC | ||
Subsequent Event [Line Items] | ||
Payments to acquire interest in joint venture | 4,000,000 | |
Subsequent Event | VAST LLC | WITTE | ||
Subsequent Event [Line Items] | ||
Payments to acquire interest in joint venture | $4,000,000 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Mar. 29, 2015 |
In Thousands, unless otherwise specified | |
Level 1 | |
Assets: | |
Total Assets at Fair Value | $2,309 |
Level 1 | Fixed Income Funds | |
Assets: | |
Total Assets at Fair Value | 683 |
Level 1 | Stock Index Funds | Small Cap | |
Assets: | |
Total Assets at Fair Value | 363 |
Level 1 | Stock Index Funds | Mid Cap | |
Assets: | |
Total Assets at Fair Value | 361 |
Level 1 | Stock Index Funds | Large Cap | |
Assets: | |
Total Assets at Fair Value | 478 |
Level 1 | Stock Index Funds | International | |
Assets: | |
Total Assets at Fair Value | 424 |
Level 2 | |
Assets: | |
Total Assets at Fair Value | 1 |
Level 2 | Cash and Cash Equivalents | |
Assets: | |
Total Assets at Fair Value | $1 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details Textual) (USD $) | Mar. 29, 2015 |
Fair Value Of Financial Instruments (Textual) [Abstract] | |
Fair value, assets, level 1 to level 2 transfers, amount | $0 |
Equity_Earnings_of_Joint_Ventu2
Equity Earnings of Joint Ventures (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 |
Summarized statements of operations | ||||
Equity earnings (loss) of joint ventures | ($207) | $267 | ($138) | $858 |
VAST LLC | ||||
Summarized statements of operations | ||||
Net Sales | 30,025 | 28,590 | 96,686 | 80,254 |
Cost of Goods Sold | 25,498 | 24,771 | 82,050 | 68,129 |
Gross Profit | 4,527 | 3,819 | 14,636 | 12,125 |
Engineering, Selling and Administrative Expenses | 3,686 | 3,671 | 12,474 | 9,952 |
Income (Loss) From Operations | 841 | 148 | 2,162 | 2,173 |
Other Income (Expense), net | 170 | 1,683 | 826 | 1,662 |
Income before Provision for Income taxes | 1,011 | 1,831 | 2,988 | 3,835 |
Provision for Income Taxes | 94 | 758 | 529 | 523 |
Net Income (Loss) | 917 | 1,073 | 2,459 | 3,312 |
STRATTEC’s Share of VAST LLC Net Income | 306 | 358 | 820 | 1,104 |
Intercompany Profit Elimination | -5 | 7 | -1 | 3 |
Equity earnings (loss) of joint ventures | 301 | 365 | 819 | 1,107 |
STRATTEC Advanced Logic, LLC (formerly known as NextLock LLC) | ||||
Summarized statements of operations | ||||
Engineering, Selling and Administrative Expenses | 277 | 189 | 1,157 | 486 |
Income (Loss) From Operations | -277 | -189 | -1,157 | -486 |
Other Income (Expense), net | -1 | -1 | ||
Net Income (Loss) | -278 | -189 | -1,158 | -486 |
STRATTEC’s Proportionate Share of Equity Loss of STRATTEC Advanced Logic, LLC | -141 | -98 | -590 | -249 |
Loss on STRATTEC Advanced Logic, LLC Credit Facility Guarantee | -367 | -367 | ||
Equity earnings (loss) of joint ventures | ($508) | ($98) | ($957) | ($249) |
Equity_Earnings_of_Joint_Ventu3
Equity Earnings of Joint Ventures (Details Textual) (STRATTEC Advanced Logic, LLC (formerly known as NextLock LLC), USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | |
Mar. 29, 2015 | Mar. 29, 2015 | Feb. 16, 2015 | Jun. 30, 2013 | |
Schedule Of Equity Method Investments [Line Items] | ||||
STRATTEC's percentage ownership in joint venture | 51.00% | |||
STRATTEC's loss on our joint venture partner's proportionate share of guarantor obligations | $367,000 | $367,000 | ||
STRATTEC Advanced Logic Credit Facility | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Secured revolving credit facility, initiation date | 16-Feb-15 | |||
Secured revolving credit facility | 1,500,000 | |||
Interest rate on borrowings under the credit facility | LIBOR plus 1.0 percent or the bank’s prime rate | |||
Interest rate - percentage points added to LIBOR - on borrowings under credit facility | 1.00% | |||
Expiry date of credit facility | 16-Feb-16 | |||
Outstanding borrowings under the credit facility | 750,000 | 750,000 | ||
Liability related to guarantee of outstanding borrowings | 750,000 | 750,000 | ||
STRATTEC's proportionate share of guarantor obligations | 383,000 | 383,000 | ||
STRATTEC's loss on our joint venture partner's proportionate share of guarantor obligations | $367,000 | $367,000 |
Equity_Earnings_of_Joint_Ventu4
Equity Earnings of Joint Ventures (Details 1) (Equity Method Investee, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 |
VAST LLC | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Sales | $879 | $59 | $1,650 | $154 |
Purchases from VAST LLC | 41 | 22 | 121 | 180 |
Expenses Charged to VAST LLC | 286 | 221 | 690 | 620 |
Expenses Charged from VAST LLC | 406 | 287 | 1,346 | 872 |
STRATTEC Advanced Logic, LLC (formerly known as NextLock LLC) | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Sales | $30 | $52 |
Credit_Facilities_and_Guarante2
Credit Facilities and Guarantees (Details Textual) (USD $) | 9 Months Ended | 0 Months Ended | |
Mar. 29, 2015 | Jan. 22, 2014 | Feb. 16, 2015 | |
STRATTEC Credit Facility | |||
Line Of Credit Facility [Line Items] | |||
Secured revolving credit facility | $25,000,000 | ||
Expiry date of credit facility | 1-Aug-16 | ||
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 | 5,000,000 | ||
Expiry date of credit facility | 1-Aug-16 | ||
Interest rate on borrowings under the credit facility | LIBOR plus 1.0 percent or the bank’s prime rate | LIBOR plus 1.75 percent or the bank’s prime rate. | |
Interest rate - percentage points added to LIBOR - on borrowings under credit facility | 1.00% | 1.75% | |
STRATTEC Advanced Logic Credit Facility | STRATTEC Advanced Logic, LLC (formerly known as NextLock LLC) | |||
Line Of Credit Facility [Line Items] | |||
Secured revolving credit facility | 1,500,000 | ||
Expiry date of credit facility | 16-Feb-16 | ||
Interest rate on borrowings under the credit facility | LIBOR plus 1.0 percent or the bank’s prime rate | ||
Interest rate - percentage points added to LIBOR - on borrowings under credit facility | 1.00% | ||
Secured revolving credit facility, initiation date | 16-Feb-15 | ||
Outstanding borrowings under the credit facility | 750,000 | ||
Liability related to guarantee of outstanding borrowings | $750,000 |
Credit_Facilities_and_Guarante3
Credit Facilities and Guarantees (Details) (USD $) | Mar. 29, 2015 | Jun. 29, 2014 |
In Thousands, unless otherwise specified | ||
Line Of Credit Facility [Line Items] | ||
Outstanding borrowing | $11,000 | $2,500 |
STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Outstanding borrowing | 7,000 | 0 |
ADAC-STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Outstanding borrowing | $4,000 | $2,500 |
Credit_Facilities_and_Guarante4
Credit Facilities and Guarantees (Details 1) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Average borrowings under the credit facility during the period | $718 | |
Weighted average interest rate | 1.20% | |
ADAC-STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Average borrowings under the credit facility during the period | $3,700 | $2,700 |
Weighted average interest rate | 1.20% | 1.80% |
Environmental_Reserve_Details_
Environmental Reserve (Details Textual) (USD $) | 9 Months Ended | 12 Months Ended | |
Mar. 29, 2015 | Jun. 27, 2010 | Jun. 29, 2014 | |
Environmental Remediation Obligations [Abstract] | |||
Environmental reserve originally established in 1995 | $3,000,000 | ||
Reserve reduced | -1,100,000 | ||
Environmental reserve | 1,385,000 | 1,500,000 | 1,397,000 |
Costs incurred to date to install and monitor wells | $490,000 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 |
Summary of activity impacting shareholders' equity | ||||
Beginning Balance | $134,903 | |||
Net income | 5,375 | 4,217 | 22,616 | 12,752 |
Dividend Declared | -1,282 | |||
Dividend Declared – Non-controlling Interests of Subsidiaries | -882 | |||
Translation adjustments | -1,242 | -124 | -4,684 | -263 |
Stock Based Compensation | 1,013 | 880 | ||
Tax Benefit – Dividend Paid on Restricted Shares | 4 | |||
Pension and postretirement plans, net of tax | 427 | 435 | 1,283 | 1,304 |
Employee Stock Purchases and Stock Option Exercises | 734 | |||
Ending Balance | 153,705 | 153,705 | ||
Equity Attributable to STRATTEC | ||||
Summary of activity impacting shareholders' equity | ||||
Beginning Balance | 125,506 | |||
Net income | 19,454 | |||
Dividend Declared | -1,282 | |||
Translation adjustments | -4,398 | |||
Stock Based Compensation | 1,013 | |||
Tax Benefit – Dividend Paid on Restricted Shares | 4 | |||
Pension and postretirement plans, net of tax | 1,283 | |||
Employee Stock Purchases and Stock Option Exercises | 734 | |||
Ending Balance | 142,314 | 142,314 | ||
Equity Attributable to Non-Controlling Interest | ||||
Summary of activity impacting shareholders' equity | ||||
Beginning Balance | 9,397 | |||
Net income | 3,162 | |||
Dividend Declared – Non-controlling Interests of Subsidiaries | -882 | |||
Translation adjustments | -286 | |||
Ending Balance | $11,391 | $11,391 |
Other_Income_Net_Details
Other Income, Net (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 |
Other Income And Expenses [Abstract] | ||||
Foreign Currency Transaction Gain | $583 | $36 | $3,004 | $74 |
Rabbi Trust Gain | 44 | 27 | 62 | 132 |
Other | 71 | 8 | 243 | 90 |
Total | $698 | $71 | $3,309 | $296 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Amount of change in unrecognized tax benefit liability and related interest impacting the tax provision | ($936,000) | ($307,000) | ($936,000) | ($307,000) |
Earnings_Per_Share_EPS_Details
Earnings Per Share (''EPS'') (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 |
Reconciliation of the components of the basic and diluted per share | ||||
Net Income Attributable to STRATTEC SECURITY CORPORATION | $4,376 | $3,601 | $19,454 | $10,685 |
Less: Income Attributable to Participating Securities | 53 | 65 | 244 | 193 |
Net Income Attributable to Common Shareholders | $4,323 | $3,536 | $19,210 | $10,492 |
Basic Weighted Average Shares of Common Stock Outstanding | 3,520 | 3,443 | 3,511 | 3,413 |
Incremental Shares – Stock based Compensation | 83 | 91 | 92 | 81 |
Diluted Weighted Average Shares of Common Stock Outstanding | 3,603 | 3,534 | 3,603 | 3,494 |
Basic Earnings Per Share | $1.23 | $1.03 | $5.47 | $3.07 |
Diluted Earnings Per Share | $1.20 | $1 | $5.33 | $3 |
Earnings_Per_Share_EPS_Details1
Earnings Per Share (''EPS'') (Details 1) (Stock Options) | 9 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive options excluded from earnings per share computation | 9,010 | 49,340 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details Textual) (USD $) | 9 Months Ended |
Mar. 29, 2015 | |
Stock Options | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation cost related to stock options | $558,000 |
Weighted average period over which unrecognized compensation is expected to be recognized | 10 months 24 days |
Stock Options | Minimum | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options expires after date of grant | 5 years |
Vesting period after the date of grant | 1 year |
Stock Options | Maximum | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options expires after date of grant | 10 years |
Vesting period after the date of grant | 4 years |
Restricted Stock | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting period after the date of grant | 3 years |
Weighted average period over which unrecognized compensation is expected to be recognized | 1 year 1 month 6 days |
Unrecognized compensation cost related to unvested restricted stock grants | $1,500,000 |
Omnibus Stock Incentive Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Designated shares of common stock available for the grant of awards | 1,850,000 |
Shares of common stock available for grant | 253,339 |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details) (USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 29, 2015 |
Summary of stock option activity under our stock incentive plan | |
Shares, Beginning Balance | 185,242 |
Shares, Granted | 10,000 |
Shares, Exercised | -16,570 |
Shares, Forfeited | -8,589 |
Shares, Ending Balance | 170,083 |
Shares, Exercisable | 97,279 |
Weighted Average Exercise Price, Beginning Balance | $24.73 |
Weighted Average Exercise Price, Granted | $79.73 |
Weighted Average Exercise Price, Exercised | $21.84 |
Weighted Average Exercise Price, Forfeited | $37.43 |
Weighted Average Exercise Price, Ending Balance | $27.61 |
Weighted Average Exercise Price, Exercisable | $19.75 |
Weighted Average Remaining Contractual Term, Outstanding, March 29, 2015 | 5 years 10 months 24 days |
Weighted Average Remaining Contractual Term, Exercisable, March 29, 2015 | 4 years 3 months 18 days |
Aggregate Intrinsic Value, Outstanding, March 29, 2015 | $7,733 |
Aggregate Intrinsic Value, Exercisable, March 29, 2015 | $5,151 |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 |
Intrinsic value of stock options exercised and the fair value of stock options vested | |||
Intrinsic Value of Options Exercised | $1,129 | $990 | $1,807 |
Fair Value of Stock Options Vesting | $29 | $382 | $444 |
StockBased_Compensation_Detail3
Stock-Based Compensation (Details 2) (USD $) | 9 Months Ended | |
Mar. 29, 2015 | Mar. 30, 2014 | |
Assumptions: | ||
Risk Free Interest Rate | 1.90% | 2.06% |
Expected Volatility | 57.83% | 58.75% |
Expected Dividend Yield | 0.62% | 1.11% |
Expected Term (in years) | 6 years | 6 years |
Options Issued At Grant Date Market Value | ||
Weighted Average Grant Date Fair Value: | ||
Weighted average grant date fair value | 0 | 0 |
Options Issued Above Grant Date Market Value | ||
Weighted Average Grant Date Fair Value: | ||
Weighted average grant date fair value | 34.93 | 17.58 |
StockBased_Compensation_Detail4
Stock-Based Compensation (Details 3) (Restricted Stock, USD $) | 9 Months Ended |
Mar. 29, 2015 | |
Restricted Stock | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Nonvested, Shares Beginning Balance | 63,600 |
Granted, Shares | 25,000 |
Vested, Shares | -18,100 |
Forfeited, Shares | -3,500 |
Nonvested, Shares Ending Balance | 67,000 |
Nonvested, Weighted Average Grant Date Fair Value Beginning Balance | $28.64 |
Granted, Weighted Average Grant Date Fair Value | $70.90 |
Vested, Weighted Average Grant Date Fair Value | $23.02 |
Forfeited, Weighted Average Grant Date Fair Value | $46.41 |
Nonvested, Weighted Average Grant Date Fair Value Ending Balance | $45 |
Pension_and_Postretirement_Ben2
Pension and Postretirement Benefits (Details Textual) (USD $) | 9 Months Ended | ||
Mar. 29, 2015 | Mar. 30, 2014 | Jun. 29, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Date the Board of Directors approved a resolution to terminate the qualified retirement plan | 2-Apr-14 | ||
Qualified Retirement Plan participants' vesting percentage as of the final termination date of the plan | 100.00% | ||
Termination of Qualified Pension Plan, description | On April 2, 2014, our Board of Directors approved a resolution to terminate the Qualified Pension Plan. The termination of the Qualified Pension Plan is subject to the Internal Revenue Service’s (“IRSâ€) determination that the Qualified Pension Plan is qualified on termination. We believe it will take 18 to 24 months to finalize the complete termination of the Qualified Pension Plan after obtaining IRS approval. We have not yet received IRS approval that the qualified plan is qualified on termination. Additionally, we have amended the Qualified Pension Plan to provide that participants are 100 percent vested in their accrued benefits as of the effective date of the plan termination, to adopt a new standard for disability benefits that will apply when the plan’s assets are distributed due to the termination, to add a lump sum distribution for employees and terminated vested participants who are not in payment status when Qualified Pension Plan assets are distributed due to the termination and to make certain other conforming amendments to the Qualified Pension Plan to comply with applicable laws that may be required by the IRS or may be deemed necessary or advisable to improve the administration of the Qualified Pension Plan or facilitate its termination and liquidation. | ||
Rabbi Trust Assets - SERP | $2,300,000 | $2,200,000 | |
Postretirement plan annual benefit limit for future eligible retires | 4,000 | ||
Other postretirement benefits maximum benefit period | 5 years | ||
Contributions to the qualified pension plan | 0 | 1,500,000 | |
Expected additional employer contributions during remainder of fiscal 2015 | $3,000,000 | ||
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% |
Pension_and_Postretirement_Ben3
Pension and Postretirement Benefits (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 |
Pension Benefits | ||||
COMPONENTS OF NET PERIODIC BENEFIT COST: | ||||
Service cost | $16 | $54 | $48 | $163 |
Interest cost | 1,043 | 1,102 | 3,129 | 3,305 |
Expected return on plan assets | -1,543 | -1,610 | -4,630 | -4,831 |
Amortization of prior service cost (credit) | 2 | 2 | 8 | 8 |
Amortization of unrecognized net loss | 694 | 666 | 2,081 | 1,999 |
Net periodic benefit cost | 212 | 214 | 636 | 644 |
Postretirement Benefits | ||||
COMPONENTS OF NET PERIODIC BENEFIT COST: | ||||
Service cost | 4 | 4 | 11 | 11 |
Interest cost | 28 | 39 | 85 | 118 |
Amortization of prior service cost (credit) | -191 | -191 | -573 | -573 |
Amortization of unrecognized net loss | 173 | 212 | 520 | 635 |
Net periodic benefit cost | $14 | $64 | $43 | $191 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | $20,198 | $22,212 | ||
Other comprehensive loss before reclassifications | 4,684 | 263 | ||
Retirement and Postretirement Plan Reclassification Adjustment, Income Tax Amount | 0 | 0 | ||
Net other comprehensive loss before reclassifications | 4,684 | 263 | ||
Reclassifications: | ||||
Prior service credits | 564 | 564 | ||
Actuarial gains/Unrecognized net loss | -2,601 | -2,634 | ||
Total reclassifications before tax | -2,037 | -2,070 | ||
Retirement and Postretirement Plans Reclassifications, Income Tax | 754 | 766 | ||
Net reclassifications | -1,283 | -1,304 | ||
Other comprehensive loss (income) | 815 | -311 | 3,401 | -1,041 |
Other comprehensive loss attributable to non-controlling interest | 286 | 12 | ||
Ending balance | 23,313 | 21,159 | 23,313 | 21,159 |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | 3,411 | 3,268 | ||
Other comprehensive loss before reclassifications | 4,684 | 263 | ||
Retirement and Postretirement Plan Reclassification Adjustment, Income Tax Amount | 0 | 0 | ||
Net other comprehensive loss before reclassifications | 4,684 | 263 | ||
Reclassifications: | ||||
Other comprehensive loss (income) | 4,684 | 263 | ||
Other comprehensive loss attributable to non-controlling interest | 286 | 12 | ||
Ending balance | 7,809 | 3,519 | 7,809 | 3,519 |
Retirement and Postretirement Benefit Plans | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | 16,787 | 18,944 | ||
Retirement and Postretirement Plan Reclassification Adjustment, Income Tax Amount | 0 | 0 | ||
Reclassifications: | ||||
Prior service credits | 564 | 564 | ||
Actuarial gains/Unrecognized net loss | -2,601 | -2,634 | ||
Total reclassifications before tax | -2,037 | -2,070 | ||
Retirement and Postretirement Plans Reclassifications, Income Tax | 754 | 766 | ||
Net reclassifications | -1,283 | -1,304 | ||
Other comprehensive loss (income) | -1,283 | -1,304 | ||
Ending balance | $15,504 | $17,640 | $15,504 | $17,640 |