Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 29, 2019 | Dec. 30, 2019 | |
Cover [Abstract] | ||
Entity Registrant Name | STRATTEC SECURITY CORP | |
Entity Central Index Key | 0000933034 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 29, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --06-28 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 0-25150 | |
Entity Incorporation, State or Country Code | WI | |
Entity Tax Identification Number | 39-1804239 | |
Entity Address, Address Line One | 3333 West Good Hope Road | |
Entity Address, City or Town | Milwaukee | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53209 | |
City Area Code | 414 | |
Local Phone Number | 247-3333 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock Shares Outstanding | 3,820,192 | |
Security Exchange Name | NASDAQ | |
Trading Symbol | STRT | |
Title of 12(b) Security | Common stock, $.01 par value |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Loss and Comprehensive (Loss) Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 106,283 | $ 112,913 | $ 226,245 | $ 230,072 |
Cost of goods sold | 95,950 | 100,177 | 200,026 | 202,153 |
Gross profit | 10,333 | 12,736 | 26,219 | 27,919 |
Engineering, selling and administrative expenses | 12,094 | 10,470 | 25,048 | 21,501 |
(Loss) Income from operations | (1,761) | 2,266 | 1,171 | 6,418 |
Equity earnings of joint ventures | 492 | 1,476 | 976 | 2,385 |
Interest expense | (248) | (404) | (588) | (811) |
Pension termination settlement charge | (32,434) | (32,434) | ||
Other income (expense), net | 23 | (262) | (74) | (507) |
(Loss) income before provision for income taxes and non-controlling interest | (1,494) | (29,358) | 1,485 | (24,949) |
Benefit for income taxes | (399) | (7,760) | (100) | (7,780) |
Net (loss) income | (1,095) | (21,598) | 1,585 | (17,169) |
Net income attributable to non-controlling Interest | 246 | 566 | 1,682 | 1,528 |
Net loss attributable to STRATTEC SECURITY CORPORATION | (1,341) | (22,164) | (97) | (18,697) |
Comprehensive (loss) income: | ||||
Net (loss) income | (1,095) | (21,598) | 1,585 | (17,169) |
Pension and postretirement plans, net of tax | 73 | 19,677 | 146 | 19,993 |
Currency translation adjustments | 1,634 | (1,829) | 186 | (998) |
Other comprehensive income, net of tax | 1,707 | 17,848 | 332 | 18,995 |
Comprehensive income (loss) | 612 | (3,750) | 1,917 | 1,826 |
Comprehensive income attributable to non-controlling interest | 748 | 69 | 1,932 | 1,685 |
Comprehensive (loss) income attributable to STRATTEC SECURITY CORPORATION | $ (136) | $ (3,819) | $ (15) | $ 141 |
Loss per share attributable to STRATTEC SECURITY CORPORATION: | ||||
Basic | $ (0.36) | $ (6.03) | $ (0.03) | $ (5.10) |
Diluted | $ (0.36) | $ (5.96) | $ (0.03) | $ (5.03) |
Average shares outstanding: | ||||
Basic | 3,741 | 3,675 | 3,725 | 3,663 |
Diluted | 3,741 | 3,718 | 3,725 | 3,715 |
Cash dividends declared per share | $ 0.14 | $ 0.14 | $ 0.28 | $ 0.28 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 29, 2019 | Jun. 30, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 9,285 | $ 7,809 |
Receivables, net | 65,893 | 84,230 |
Inventories: | ||
Finished products | 15,350 | 11,582 |
Work in process | 11,756 | 10,529 |
Purchased materials | 29,897 | 29,376 |
Excess and obsolete reserve | (4,492) | (4,225) |
Inventories, net | 52,511 | 47,262 |
Other current assets | 15,789 | 17,331 |
Total current assets | 143,478 | 156,632 |
Investment in joint ventures | 24,058 | 23,528 |
Deferred Income Taxes | 3,958 | 2,933 |
Other long-term assets | 7,045 | 11,523 |
Property, plant and equipment | 293,287 | 287,421 |
Less: accumulated depreciation | (178,247) | (169,301) |
Net property, plant and equipment | 115,040 | 118,120 |
Total assets | 293,579 | 312,736 |
Current Liabilities: | ||
Accounts payable | 31,693 | 41,889 |
Accrued Liabilities: | ||
Payroll and benefits | 15,624 | 17,339 |
Environmental | 1,269 | 1,278 |
Warranty | 7,800 | 7,900 |
Other | 9,047 | 10,857 |
Total current liabilities | 65,433 | 79,263 |
Borrowings under credit facilities | 32,000 | 42,000 |
Accrued pension obligations | 1,723 | 1,663 |
Accrued postretirement obligations | 728 | 762 |
Other long-term liabilities | 4,846 | 1,232 |
Shareholders’ Equity: | ||
Common stock, authorized 12,000,000 shares, $.01 par value, 7,358,812 issued shares at December 29, 2019 and 7,304,994 issued shares at June 30, 2019 | 74 | 73 |
Capital in excess of par value | 97,601 | 96,491 |
Retained earnings | 219,973 | 221,117 |
Accumulated other comprehensive loss | (18,486) | (18,568) |
Less: treasury stock, at cost (3,611,509 shares at December 29, 2019 and 3,613,439 shares at June 30, 2019) | (135,693) | (135,725) |
Total STRATTEC SECURITY CORPORATION shareholders’ equity | 163,469 | 163,388 |
Non-controlling interest | 25,380 | 24,428 |
Total shareholders’ equity | 188,849 | 187,816 |
Total liabilities and shareholders' equity | $ 293,579 | $ 312,736 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 29, 2019 | Jun. 30, 2019 |
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 | 7,358,812 | 7,304,994 |
Treasury stock, shares | 3,611,509 | 3,613,439 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | Jun. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
Net (loss) income | $ (1,095) | $ (21,598) | $ 1,585 | $ (17,169) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||
Depreciation | 9,580 | 8,123 | |||
Foreign currency transaction loss | 363 | (359) | 448 | 69 | |
Unrealized gain on peso forward contracts | 132 | (93) | |||
Stock based compensation expense | 624 | 626 | |||
Equity earnings of joint ventures | (492) | (1,476) | (976) | (2,385) | |
Pension termination settlement charge | 32,434 | ||||
Non-cash compensation expense | 4,473 | $ 4,200 | |||
Deferred income taxes | (1,032) | (8,131) | |||
Change in operating assets and liabilities: | |||||
Receivables | 18,387 | 7,291 | |||
Inventories | (5,249) | (1,334) | |||
Other assets | 1,397 | 3,729 | |||
Accounts payable and accrued liabilities | (9,057) | (3,154) | |||
Other, net | 428 | (284) | |||
Net cash provided by operating activities | 20,608 | 19,722 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
Purchase of property, plant and equipment | (7,384) | (9,402) | |||
Proceeds received on sale of property, plant and equipment | 15 | 12 | |||
Net cash used in investing activities | (7,369) | (9,390) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Borrowings under credit facility | 2,000 | ||||
Repayment of borrowings under credit facility | (10,000) | (7,000) | |||
Dividends paid to non-controlling interests of subsidiaries | (980) | (984) | |||
Dividends paid | (1,047) | (1,029) | |||
Exercise of stock options and employee stock purchases | 519 | 72 | |||
Net cash used in financing activities | (11,508) | (6,941) | |||
Foreign currency impact on cash | (255) | (108) | |||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 1,476 | 3,283 | |||
CASH AND CASH EQUIVALENTS | |||||
Beginning of period | 7,809 | 8,090 | 8,090 | ||
End of period | $ 9,285 | $ 11,373 | 9,285 | 11,373 | $ 7,809 |
Cash paid during the period for: | |||||
Income taxes | 497 | 199 | |||
Interest | 621 | 813 | |||
Non-cash investing activities: | |||||
Change in capital expenditures in accounts payable | $ (1,154) | $ (395) |
Basis of Financial Statements
Basis of Financial Statements | 6 Months Ended |
Dec. 29, 2019 | |
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 (“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 Automotive Group” 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 VAST Automotive Group 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 business of SAL LLC has been wound down to sell only commercial biometric locks. 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 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 four wholly owned subsidiaries in China, one wholly owned subsidiary in Brazil and one joint venture entity in India. The results of the VAST LLC foreign subsidiaries and joint venture are reported on a one-month lag basis. SAL LLC is located in El Paso, Texas. We have only one reporting segment. In the opinion of management, the accompanying condensed consolidated balance sheets as of December 29, 2019 and June 30, 2019, which have 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 the financial statements and notes thereto included in the STRATTEC SECURITY CORPORATION 2019 Form 10-K, which was filed with the Securities and Exchange Commission on September 5, 2019. |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Dec. 29, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Standards | New Accounting Standards 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. We implemented the new guidance effective July 1, 2019, the first day of our 2020 fiscal year, by applying the modified retrospective method without restatement of comparative periods’ financial information, as permitted by the transition guidance. The adoption of the new guidance had an impact on our balance sheet, but did not have an impact on either our consolidated operating results or our cash flows. Adoption of the new guidance resulted in the recognition of a right-of-use asset of $4.1 million and related lease obligation of $4.1 million for an operating lease as of July 1, 2019. We had no finance leases as of July 1, 2019. As noted above, the adoption of the new guidance did not have a significant impact on our operating results or cash flows. See “Leases” below for additional information. In August 2017, the FASB issued an update to the accounting for hedging activities. The new guidance eliminates the requirement to separately measure and report hedge ineffectiveness, due to a difference between economic terms of the hedge instrument and the underlying transaction, and generally requires, for qualifying hedges, the entire change in the fair value of a hedging instrument to be presented in the same line as the hedged item in the consolidated statement of income. The standard also modifies the accounting for components excluded from the assessment of hedge effectiveness and simplifies the application of hedge accounting in certain situations. Our July 1, 2019 adoption of the new guidance had no impact to our financial statements. In June 2018, the FASB issued an update to the accounting for nonemployee share-based payment accounting. The update aligns measurement and classification guidance for share-based payments to nonemployees with the guidance applicable to employees. Under the new guidance, the measurement of equity-classified nonemployee awards is fixed at the date of grant. Our July 1, 2019 adoption of the new guidance had no impact to our financial statements. In December 2019, the FASB issued an update to accounting for income taxes. The update enhances and simplifies various aspects of income tax accounting including hybrid tax regimes, tax basis step-up in goodwill obtained in a transaction that is not a business combination, separate financial statements of entities not subject to tax, the intraperiod tax allocation exception to the incremental approach, investment ownership changes from a subsidiary to an equity method investment and vice versa, interim-period accounting for enacted changes in tax law, and the year-to-date loss limitation in interim-period tax accounting. This accounting update is effective for annual and interim periods beginning after December 15, 2020, with early adoption permitted. We do not expect that the adoption of this pronouncement will have a material impact on our consolidated financial statements. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Dec. 29, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative 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. During the three and six month periods ended December 30, 2018, we had contracts with Bank of Montreal that provided for monthly Mexican peso currency forward contracts for a portion of our estimated peso denominated operating costs. Our objective in entering into these currency forward contracts was to minimize our earnings volatility resulting from changes in exchange rates affecting the U.S. dollar cost of our Mexican operations. The Mexican peso forward contracts were not used for speculative purposes and were not designated as hedges. As a result, all currency forward contracts were recognized in our accompanying condensed consolidated financial statements at fair value and changes in the fair value were reported in current earnings as part of Other Income (Expense), net. No Mexican peso currency forward contracts were in effect during the six month period ended December 29, 2019 and none were outstanding as of December 29, 2019. The pre-tax effects of the Mexican peso forward contracts are included in Other Income (Expense), net on the accompanying Condensed Consolidated Statements of Loss and Comprehensive (Loss) Income and consisted of the following (thousands of dollars): Three Months Ended Six Months Ended December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 Not Designated as Hedging Instruments: Realized Gain $ — $ 50 $ — $ 222 Unrealized (Loss) Gain $ — $ (132 ) $ — $ 93 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Dec. 29, 2019 | |
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 facilities approximated book value as of December 29, 2019 and June 30, 2019. 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 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 December 29, 2019 (in thousands): Fair Value Inputs Level 1 Assets: Quoted Prices In Level 2 Assets: Observable Inputs Other Than Market Prices Level 3 Assets: Unobservable Inputs Assets: Rabbi Trust Assets: Stock Index Funds: Small Cap $ 294 $ — $ — Mid Cap 315 — — Large Cap 656 — — International 929 — — Fixed Income Funds 923 — — Cash and Cash Equivalents — 6 — Total Assets at Fair Value $ 3,117 $ 6 $ — 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. |
Equity Earnings of Joint Ventur
Equity Earnings of Joint Ventures | 6 Months Ended |
Dec. 29, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Equity Earnings of Joint Ventures | Equity Earnings of Joint Ventures We hold a one-third The following are summarized statements of operations for VAST LLC (in thousands): Three Months Ended Six Months Ended December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 Net Sales $ 44,479 $ 47,719 $ 87,047 $ 87,775 Cost of Goods Sold 35,793 37,768 70,452 68,870 Gross Profit 8,686 9,951 16,595 18,905 Engineering, Selling and Administrative Expenses 7,323 6,719 14,004 12,869 Income From Operations 1,363 3,232 2,591 6,036 Other Income, net 643 1,907 1,503 2,304 Income before Provision for Income Taxes 2,006 5,139 4,094 8,340 Provision for Income Taxes 517 658 1,145 1,125 Net Income $ 1,489 $ 4,481 $ 2,949 $ 7,215 STRATTEC’s Share of VAST LLC Net Income $ 496 $ 1,494 $ 983 $ 2,405 Intercompany Profit Elimination — (7 ) — (3 ) STRATTEC’s Equity Earnings of VAST LLC $ 496 $ 1,487 $ 983 $ 2,402 The business of our joint venture company, SAL LLC, has been wound down to sell only commercial biometric locks. STRATTEC’s equity loss of SAL LLC totaled $4,000 and $7,000 for the three and six month periods ended December 29, 2019 and $11,000 and $17,000 for the three and six month periods ended December 30, 2018. We have sales of component pa rts to VAST 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 for the periods indicated below (in thousands): Three Months Ended Six Months Ended December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 Sales to VAST LLC $ 1,661 $ 1,375 $ 2,552 $ 1,873 Purchases from VAST LLC $ 82 $ 86 $ 179 $ 128 Expenses Charged to VAST LLC $ 519 $ 434 $ 1,350 $ 779 Expenses Charged from VAST LLC $ 218 $ 229 $ 444 $ 436 |
Leases
Leases | 6 Months Ended |
Dec. 29, 2019 | |
Leases [Abstract] | |
Leases | Leases We have an operating lease for our El Paso, Texas finished goods and service parts distribution warehouse that has a current lease term through October 2023. This lease includes renewal terms that can extend the lease term for five additional years. For purposes of calculating operating lease obligations, we included the option to extend the lease as it is reasonably certain that we will exercise such option. The lease does not contain material residual value guarantees or restrictive covenants. Operating lease expense is recognized on a straight-line basis over the lease term. As the lease does not provide an implicit rate, we used our incremental borrowing rate at lease commencement to determine the present value of our lease payments. The incremental borrowing rate is an entity-specific rate which represents the rate of interest we would pay to borrow over a similar term with similar payments. The operating lease asset and obligation related to our El Paso warehouse lease included in the accompanying Condensed Consolidated Balance Sheet are presented below (in thousands): December 29, 2019 Right-of Use Asset Under Operating Lease: Other Long-Term Assets $ 3,922 Lease Obligation Under Operating Lease: Current Liabilities: Accrued Liabilities: Other $ 343 Other Long-Term Liabilities 3,579 $ 3,922 Future minimum lease payments, by our fiscal year, including options to extend that are reasonably certain to be exercised, under the non-cancelable lease are as follows as of December 29, 2019 (in thousands): 2020 (for the remaining six months) $ 232 2021 473 2022 484 2023 497 2024 509 Thereafter 2,356 Total Future Minimum Lease Payments 4,551 Less: Imputed Interest (629 ) Total Lease Obligations $ 3,922 Future minimum lease payments, by our fiscal year, excluding options to extend that are reasonably certain to be exercised, prior to the adoption of the new accounting guidance on leases were as follows as of June 30, 2019 (in thousands): 2020 $ 539 2021 504 2022 495 2023 498 2024 168 Thereafter — Total Future Minimum Lease Payments $ 2,204 Cash flow information related to the operating lease is shown below (in thousands): Six Months Ended December 29, 2019 Operating Cash Flows: Cash Paid Related to Operating Lease Obligation $ 229 Non-Cash Activity: Right-of-Use Asset Obtained in Exchange for Operating Lease Obligation $ — The weighted average lease term and discount rate for the operating lease are shown below: December 29, 2019 Weighted Average Remaining Lease Term (in years) 8.8 Weighted Average Discount Rate 3.3 % Operating lease expense for the three and six month periods ended December 29, 2019 totaled $116,000 and $229,000, respectively. |
Credit Facilities
Credit Facilities | 6 Months Ended |
Dec. 29, 2019 | |
Debt Disclosure [Abstract] | |
Credit Facilities | Credit Facilities STRATTEC has a $40 million secured revolving credit facility (the “STRATTEC Credit Facility”) with BMO Harris Bank. 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 August 1, 2022. Borrowings under either credit facility are secured by our U.S. cash balances, accounts receivable, inventory, and fixed assets. Interest on borrowings under the STRATTEC Credit Facility and interest on borrowings under the ADAC-STRATTEC Credit Facility prior to December 31, 2018 were at varying rates based, at our option, on the London Interbank Offering Rate (“LIBOR”) plus 1.0 percent or the bank’s prime rate. Effective December 31, 2018, and thereafter, interest on borrowings under the ADAC-STRATTEC Credit Facility is at varying rates based, at our option, on LIBOR plus 1.25 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 December 29, 2019, we were in compliance with all financial covenants required by these credit facilities. Outstanding borrowings under the credit facilities were as follows (in thousands): December 29, 2019 June 30, 2019 STRATTEC Credit Facility $ 13,000 $ 18,000 ADAC-STRATTEC Credit Facility 19,000 24,000 $ 32,000 $ 42,000 Average outstanding borrowings and the weighted average interest rate under each credit facility referenced above were as follows for each period presented (in thousands): Six Months Ended Average Weighted Average Interest Rate December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 STRATTEC Credit Facility $ 14,604 $ 23,319 3.1 % 3.2 % ADAC-STRATTEC Credit Facility $ 21,473 $ 26,929 3.3 % 3.2 % |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 29, 2019 | |
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 our consolidated financial position, results of operations or cash flows. With respect to warranty matters, although we cannot ensure that future costs of warranty claims by customers will not be material, we believe our established reserves are adequate to cover potential warranty settlements. In 1995, we recorded a provision of $3 million for estimated costs to remediate an environmental contamination site at our Milwaukee facility. The facility 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, 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, we obtained updated third party estimates for adequately covering the cost for active remediation of this contamination. Based upon the updated estimates, no further adjustment to the reserve was required. From 1995 through December 29, 2019, costs of approximately $606,000 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 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 our 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 $1.3 million at December 29, 2019 is adequate. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Dec. 29, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity A summary of activity impacting shareholders’ equity for the three and six month periods ended December 29, 2019 and December 30, 2018 were as follows (in thousands): Three Months Ended December 29, 2019 Total Shareholders’ Equity Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Non-Controlling Interest Balance, September 29, 2019 $ 188,271 $ 74 $ 97,128 $ 221,839 $ (19,691 ) $ (135,711 ) $ 24,632 Net Loss (1,095 ) — — (1,341 ) — — 246 Dividend Declared (525 ) — — (525 ) — — — Dividend Declared – Non- controlling Interests of Subsidiaries - — — — — — — Translation Adjustments 1,634 — — — 1,132 — 502 Stock Based Compensation 211 — 211 — — — — Pension and Postretirement Adjustment, Net of Tax 73 — — — 73 — — Stock Option Exercises 256 — 256 — — — — Employee Stock Purchases 24 — 6 — — 18 — Balance, December 29, 2019 $ 188,849 $ 74 $ 97,601 $ 219,973 $ (18,486 ) $ (135,693 ) $ 25,380 Three Months Ended December 30, 2018 Total Shareholders’ Equity Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Non-Controlling Interest Balance, September 30, 2018 $ 187,932 $ 73 $ 95,537 $ 239,115 $ (32,946 ) $ (135,767 ) $ 21,920 Net Loss (21,598 ) — — (22,164 ) — — 566 Dividend Declared (515 ) — — (515 ) — — — Dividend Declared – Non- controlling Interests of Subsidiaries (200 ) — — — — — (200 ) Translation Adjustments (1,829 ) — — — (1,332 ) — (497 ) Stock Based Compensation 241 — 241 — — — — Pension and Postretirement Adjustment, Net of Tax 19,677 — — — 19,677 — — Reclassification of Stranded Tax Effects — — — 4,047 (4,047 ) — — Stock Option Exercises 32 — 32 — — — — Employee Stock Purchases 17 — 8 — — 9 — Balance, December 30, 2018 $ 183,757 $ 73 $ 95,818 $ 220,483 $ (18,648 ) $ (135,758 ) $ 21,789 Six Months Ended December 29, 2019 Total Shareholders’ Equity Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Non-Controlling Interest Balance, June 30, 2019 $ 187,816 $ 73 $ 96,491 $ 221,117 $ (18,568 ) $ (135,725 ) $ 24,428 Net Income 1,585 — — (97 ) — — 1,682 Dividend Declared (1,047 ) — — (1,047 ) — — — Dividend Declared – Non- controlling Interests of Subsidiaries (980 ) — — — — — (980 ) Translation Adjustments 186 — — — (64 ) — 250 Stock Based Compensation 624 — 624 — — — — Pension and Postretirement Adjustment, Net of Tax 146 — — — 146 — — Stock Option Exercises 478 1 477 — — — — Employee Stock Purchases 41 — 9 — — 32 — Balance, December 29, 2019 $ 188,849 $ 74 $ 97,601 $ 219,973 $ (18,486 ) $ (135,693 ) $ 25,380 Six Months Ended December 30, 2018 Total Shareholders’ Equity Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Non-Controlling Interest Balance, July 1, 2018 $ 183,246 $ 73 $ 95,140 $ 236,162 $ (33,439 ) $ (135,778 ) $ 21,088 Net Loss (17,169 ) — — (18,697 ) — — 1,528 Dividend Declared (1,029 ) — — (1,029 ) — — — Dividend Declared – Non- controlling Interests of Subsidiaries (984 ) — — — — — (984 ) Translation Adjustments (998 ) — — — (1,155 ) — 157 Stock Based Compensation 626 — 626 — — — — Pension and Postretirement Adjustment, Net of Tax 19,993 — — — 19,993 — — Reclassification of Stranded Tax Effects — — — 4,047 (4,047 ) — — Stock Option Exercises 32 — 32 — — — — Employee Stock Purchases 40 — 20 — — 20 — Balance, December 30, 2018 $ 183,757 $ 73 $ 95,818 $ 220,483 $ (18,648 ) $ (135,758 ) $ 21,789 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Dec. 29, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers We generate revenue from the production of parts sold to automotive and light-truck Original Equipment Manufacturers (“OEMs”), or Tier 1 suppliers at the direction of the OEM, under long-term supply agreements supporting new vehicle production. Such agreements also require related production of service parts subsequent to the initial vehicle production periods. Additionally, we generate revenue from the production of parts sold in aftermarket service channels and to non-automotive commercial customers. Contract Balances: We have no material contract assets as of December 29, 2019. Contract liability balances primarily include discounts recognized as a reduction in sales at the point of revenue recognition, but which will be applied by the customer agreement after the end of the reporting period. The activity related to contract liability balances during the six month period ended December 29, 2019 was as follows (thousands of dollars): Balance, June 30, 2019 $ 932 Discounts Recorded as a Reduction in Sales 880 Payments of Discounts to Customers (915 ) Other (13 ) Balance, December 29, 2019 $ 884 Revenue by Product Group and Customer: Revenue by product group for the periods presented was as follows (thousands of dollars): Three Months Ended Six Months Ended December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 Keys & Locksets $ 29,177 $ 32,693 $ 61,646 $ 67,045 Door Handles & Exterior Trim 26,131 25,803 57,522 51,761 Power Access 16,262 20,396 35,720 42,795 Latches 13,074 11,709 26,971 22,764 Aftermarket & OE Service 12,135 10,776 23,048 21,760 Driver Controls 7,976 10,091 17,761 20,838 Other 1,528 1,445 3,577 3,109 $ 106,283 $ 112,913 $ 226,245 $ 230,072 Revenue by customer or customer group for the periods presented was as follows (thousands of dollars): Three Months Ended Six Months Ended December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 Fiat Chrysler Automobiles $ 27,154 $ 25,610 $ 52,636 $ 55,907 General Motors Company 25,405 23,855 59,243 49,142 Ford Motor Company 15,253 16,114 31,065 31,637 Tier 1 Customers 14,784 18,463 32,531 36,279 Commercial and Other OEM Customers 21,420 21,468 42,766 42,396 Hyundai / Kia 2,267 7,403 8,004 14,711 $ 106,283 $ 112,913 $ 226,245 $ 230,072 |
Other Income (Expense), Net
Other Income (Expense), Net | 6 Months Ended |
Dec. 29, 2019 | |
Other Income And Expenses [Abstract] | |
Other Income (Expense), Net | Other Income (Expense), net Net other income (expense) included in the accompanying Condensed Consolidated Statements of Loss and Comprehensive (Loss) Income primarily included foreign currency transaction gains and losses, realized and unrealized losses on our Mexican peso currency forward contracts, net periodic pension and postretirement benefit costs, other than the service cost component, related to our pension and postretirement plans 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. We entered into the Mexican Peso currency forward contracts described above 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 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 Six Months Ended December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 Foreign Currency Transaction (Loss) Gain $ (363 ) $ 359 $ (448 ) $ (69 ) Unrealized (Loss) Gain on Peso Forward Contracts — (132 ) — 93 Realized Gain on Peso Forward Contracts — 50 — 222 Pension and Postretirement Plans Cost (117 ) (317 ) (234 ) (635 ) Rabbi Trust Gain (Loss) 187 (279 ) 185 (200 ) Other 316 57 423 82 $ 23 $ (262 ) $ (74 ) $ (507 ) |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate was 26.7% and 26.4% for the three months ended December 29, 2019 and December 30, 2018, respectively. Our effective tax rate was (6.7)% and 31.2% for the six months ended December 29, 2019 and December 30, 2018, respectively. During the periods ended December 29, 2019, our effective tax rate was impacted by the discrete impact of the non-cash compensation expense, as discussed under Pension and Postretirement Benefits below. During the periods ended December 30, 2018, our effective tax rate was impacted by the discrete impact of the pension termination settlement charge, as discussed under Pension and Postretirement Benefits below, and by a discrete tax benefit of $372,000, which represents measurement period adjustments to the one-time transition tax on non-previously taxed post 1986 accumulated foreign earnings occurring as a result of the enactment of the Tax Cuts and Jobs Act of 2017. Our effective tax rate prior to discrete impacts increased from 5.1 percent for the periods ended December 30, 2018 to 15.6 percent for the periods ended December 29, 2019 due to a larger tax benefit in 2018 related to the impact of the global intangible low-taxed income (“GILTI”) provisions. Our effective tax rate differs from the statutory tax rate due the GILTI provisions each period, our available R&D tax credit and the non-controlling interest portion of our pre-tax income. The non-controlling interest impacts the effective tax rate as ADAC-STRATTEC LLC and STRATTEC POWER ACCESS LLC entities are taxed as partnerships for U.S. tax purposes. |
Loss Per Share
Loss Per Share | 6 Months Ended |
Dec. 29, 2019 | |
Earnings Per Share [Abstract] | |
Loss Per Share | Loss Per Share Basic loss 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 December 29, 2019 December 30, 2018 Net Loss Shares Per-Share Amount Net Loss Shares Per-Share Amount Basic Loss Per Share $ (1,341 ) 3,741 $ (0.36 ) $ (22,164 ) 3,675 $ (6.03 ) Stock Option and Restricted Stock Awards — — — 43 Diluted Loss Per Share $ (1,341 ) 3,741 $ (0.36 ) $ (22,164 ) 3,718 $ (5.96 ) Six Months Ended December 29, 2019 December 30, 2018 Net Loss Shares Per-Share Amount Net Loss Shares Per-Share Amount Basic Loss Per Share $ (97 ) 3,725 $ (0.03 ) $ (18,697 ) 3,663 $ (5.10 ) Stock Option and Restricted Stock Awards — — — 52 Diluted Loss Per Share $ (97 ) 3,725 $ (0.03 ) $ (18,697 ) 3,715 $ (5.03 ) The calculation of loss per share excluded 90,860 and 41,200 share-based payment awards as of December 29, 2019 and December 30, 2018, respectively, because their inclusion would have been anti-dilutive. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Dec. 29, 2019 | |
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 December 29, 2019, 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 December 29, 2019 were 112,839. 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 associates 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 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 as determined by the Compensation Committee of the Board of Directors. 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 one year from the date of grant. Unvested restricted shares granted 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. Restricted stock grants vest 1 to 5 years after the date of grant as determined by the Compensation Committee of the Board of Directors. The fair value of each stock option grant was estimated as of the date of grant using the Black-Scholes pricing model. 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 for fixed awards with graded vesting schedules is amortized on a straight line basis over the vesting period for the entire award. A summary of stock option activity under our stock incentive plan for the six months ended December 29, 2019 was as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding, June 30, 2019 117,360 $ 31.85 Exercised (26,500 ) $ 18.00 Outstanding, December 29, 2019 90,860 $ 35.88 2.9 $ — Exercisable, December 29, 2019 90,860 $ 35.88 2.9 $ — The intrinsic value of stock options exercised and the fair value of stock options that vested during the three month periods presented below were as follows (in thousands): Three Months Ended Six Months Ended December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 Intrinsic Value of Options Exercised $ 83 $ 55 $ 120 $ 55 Fair Value of Stock Options Vesting $ — $ — $ — $ — No options were granted during the six month periods ended December 29, 2019 or December 30, 2018. A summary of restricted stock activity under our omnibus stock incentive plan for the six months ended December 29, 2019 was as follows: Shares Weighted Average Grant Date Fair Value Nonvested Balance, June 30, 2019 63,757 $ 39.47 Granted 39,150 $ 21.80 Vested (27,318 ) $ 37.86 Forfeited (2,700 ) $ 30.53 Nonvested Balance, December 29, 2019 72,889 $ 30.91 As of December 29, 2019, all compensation cost related to outstanding stock options granted under our omnibus stock incentive plan has been recognized. As of December 29, 2019, there was approximately $1.3 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 year. 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 Bene
Pension and Postretirement Benefits | 6 Months Ended |
Dec. 29, 2019 | |
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 employed by us prior to January 1, 2010. Effective December 31, 2009, the Board of Directors amended the Qualified Pension Plan to freeze benefit accruals and future eligibility. The Board of Directors subsequently approved to proceed with the termination of the Qualified Pension Plan. During the quarter ended December 30, 2018, we completed a substantial portion of terminating the Qualified Pension Plan. In connection with the termination of the Qualified Pension Plan, distributions from the Qualified Pension Plan trust were made during the three month period ended December 30, 2018 to participants who elected lump-sum distributions. Additionally, during the three months ended December 30, 2018, we entered into an agreement with an insurance company to purchase from us, through a series of annuity contracts, our remaining obligations under the Qualified Pension Plan and, as a result, we settled the remaining obligations under the plan for the remaining participants utilizing funds available in the Qualified Pension Plan trust. No additional cash contributions to the trust were required to settle the pension obligations. As a result of these actions, a non-cash pre-tax settlement charge of $31.9 million was recorded during fiscal 2019. A non-cash compensation expense charge of $4.2 million was also recorded during fiscal 2019 related to the future transfer of the excess assets in the Qualified Pension Plan to a STRATTEC defined contribution plan for subsequent pay-out to eligible STRATTEC employees based on a plan approved by the Board of Directors in June 2019. An additional $4.5 million non-cash compensation expense charge related to the final transfer and pay-out of the excess Qualified Pension Plan assets was recorded during the six month period ended December 29, 2019, of which $2.2 million was recorded during the three month period ended September 29, 2019 and $2.3 million was recorded during the three month period ended December 29, 2019. As of December 29, 2019, the excess Qualified Pension Plan assets were transferred to our defined contribution plan and distributed to eligible STRATTEC employees, which completed the full termination of the Qualified Pension Plan. 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 received, and currently 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 nonqualified 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 $3.1 million at December 29, 2019 and $2.9 million at June 30, 2019 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 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. The service cost component of the net periodic benefit costs under these plans is allocated between Cost of Goods Sold and Engineering, Selling and Administrative Expenses while the remaining components of the net periodic benefit costs are included in Other Income (Expense), net in the accompanying Condensed Consolidated Statements of Loss and Comprehensive (Loss) Income. The following table summarizes 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 December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 Service Cost $ 18 $ 15 $ 3 $ 3 Interest Cost 15 1,032 7 11 Expected Return on Plan Assets — (1,138 ) — — Plan Settlements — 32,434 — — Amortization of Prior Service Cost (Credit) — — (8 ) (110 ) Amortization of Unrecognized Net Loss 3 416 100 107 Net Periodic Benefit Cost $ 36 $ 32,759 $ 102 $ 11 Pension Benefits Postretirement Benefits Six Months Ended Six Months Ended December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 Service Cost $ 37 $ 30 $ 6 $ 6 Interest Cost 30 2,064 13 22 Expected Return on Plan Assets — (2,276 ) — — Plan Settlements — 32,434 — — Amortization of Prior Service Cost (Credit) — — (15 ) (220 ) Amortization of Unrecognized Net Loss 7 832 199 214 Net Periodic Benefit Cost $ 74 $ 33,084 $ 203 $ 22 Within the tables above, we have revised the plan settlement charge and net periodic benefit cost for the three and six months ended December 30, 2018 that was previously disclosed in our December 30, 2018 financial statements. This revision is not material to the financial statements. No voluntary contributions were made to the Qualified Pension Plan during the three or six month periods ended December 29, 2019 and December 30, 2018. No additional future contributions will be made to the Qualified Pension Plan. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Dec. 29, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following tables summarize the changes in accumulated other comprehensive loss (“AOCL”) for each period presented (in thousands): Three Months Ended December 29, 2019 Foreign Currency Translation Adjustments Retirement and Postretirement Benefit Plans Total Balance, September 29, 2019 $ 17,513 $ 2,178 $ 19,691 Other Comprehensive Income Before Reclassifications (1,634 ) — (1,634 ) Income Tax — — — Net Other Comprehensive Income Before Reclassifications (1,634 ) — (1,634 ) Reclassifications: Prior Service Credits (A) — 8 8 Unrecognized Net Loss (A) — (103 ) (103 ) Total Reclassifications Before Tax — (95 ) (95 ) Income Tax — 22 22 Net Reclassifications — (73 ) (73 ) Other Comprehensive Income (1,634 ) (73 ) (1,707 ) Other Comprehensive Income Attributable to Non- Controlling Interest (502 ) — (502 ) Balance, December 29, 2019 $ 16,381 $ 2,105 $ 18,486 Three Months Ended December 30, 2018 Foreign Currency Translation Adjustments Retirement and Postretirement Benefit Plans Total Balance, September 30, 2018 $ 15,114 $ 17,832 $ 32,946 Other Comprehensive Loss Before Reclassifications 2,014 — 2,014 Income Tax (185 ) — (185 ) Net Other Comprehensive Loss Before Reclassifications 1,829 — 1,829 Reclassifications: Pension Termination Settlement (A) — (25,668 ) (25,668 ) Prior Service Credits (A) — 110 110 Unrecognized Net Loss (A) — (523 ) (523 ) Total Reclassifications Before Tax — (26,081 ) (26,081 ) Income Tax — 6,404 6,404 Net Reclassifications — (19,677 ) (19,677 ) Other Comprehensive Loss (Income) 1,829 (19,677 ) (17,848 ) Other Comprehensive Income Attributable to Non- Controlling Interest 497 — 497 Reclassification of stranded tax effects 83 3,964 4,047 Balance, December 30, 2018 $ 16,529 $ 2,119 $ 18,648 Six Months Ended December 29, 2019 Foreign Currency Translation Adjustments Retirement and Postretirement Benefit Plans Total Balance, June 30, 2019 $ 16,317 $ 2,251 $ 18,568 Other Comprehensive Income Before Reclassifications (186 ) — (186 ) Income Tax — — — Net Other Comprehensive Income Before Reclassifications (186 ) — (186 ) Reclassifications: Prior Service Credits (A) — 15 15 Unrecognized Net Loss (A) — (206 ) (206 ) Total Reclassifications Before Tax — (191 ) (191 ) Income Tax — 45 45 Net Reclassifications — (146 ) (146 ) Other Comprehensive Income (186 ) (146 ) (332 ) Other Comprehensive Income Attributable to Non- Controlling Interest (250 ) — (250 ) Balance, December 29, 2019 $ 16,381 $ 2,105 $ 18,486 Six Months Ended December 30, 2018 Foreign Currency Translation Adjustments Retirement and Postretirement Benefit Plans Total Balance, July 1, 2018 $ 15,291 $ 18,148 $ 33,439 Other Comprehensive Loss Before Reclassifications 1,183 — 1,183 Income Tax (185 ) — (185 ) Net Other Comprehensive Loss Before Reclassifications 998 — 998 Reclassifications: Pension Termination Settlement (A) — (25,668 ) (25,668 ) Prior Service Credits (A) — 220 220 Unrecognized Net Loss (A) — (1,046 ) (1,046 ) Total Reclassifications Before Tax — (26,494 ) (26,494 ) Income Tax — 6,501 6,501 Net Reclassifications — (19,993 ) (19,993 ) Other Comprehensive Loss (Income) 998 (19,993 ) (18,995 ) Other Comprehensive Income Attributable to Non- Controlling Interest (157 ) — (157 ) Reclassification of stranded tax effects 83 3,964 4,047 Balance, December 30, 2018 $ 16,529 $ 2,119 $ 18,648 (A) Amounts reclassified are included in the computation of net periodic benefit cost, which is included in Other Income (Expense), net in the accompanying Condensed Consolidated Statements of Loss and Comprehensive (Loss) Income. See Pension and Postretirement Benefits note to these Notes to Condensed Consolidated Financial Statements above. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Dec. 29, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Pre-Tax Effects of the Peso Forward Contracts | The pre-tax effects of the Mexican peso forward contracts are included in Other Income (Expense), net on the accompanying Condensed Consolidated Statements of Loss and Comprehensive (Loss) Income and consisted of the following (thousands of dollars): Three Months Ended Six Months Ended December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 Not Designated as Hedging Instruments: Realized Gain $ — $ 50 $ — $ 222 Unrealized (Loss) Gain $ — $ (132 ) $ — $ 93 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Dec. 29, 2019 | |
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 December 29, 2019 (in thousands): Fair Value Inputs Level 1 Assets: Quoted Prices In Level 2 Assets: Observable Inputs Other Than Market Prices Level 3 Assets: Unobservable Inputs Assets: Rabbi Trust Assets: Stock Index Funds: Small Cap $ 294 $ — $ — Mid Cap 315 — — Large Cap 656 — — International 929 — — Fixed Income Funds 923 — — Cash and Cash Equivalents — 6 — Total Assets at Fair Value $ 3,117 $ 6 $ — |
Equity Earnings of Joint Vent_2
Equity Earnings of Joint Ventures (Tables) - VAST LLC | 6 Months Ended |
Dec. 29, 2019 | |
Summarized Statements of Operations | The following are summarized statements of operations for VAST LLC (in thousands): Three Months Ended Six Months Ended December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 Net Sales $ 44,479 $ 47,719 $ 87,047 $ 87,775 Cost of Goods Sold 35,793 37,768 70,452 68,870 Gross Profit 8,686 9,951 16,595 18,905 Engineering, Selling and Administrative Expenses 7,323 6,719 14,004 12,869 Income From Operations 1,363 3,232 2,591 6,036 Other Income, net 643 1,907 1,503 2,304 Income before Provision for Income Taxes 2,006 5,139 4,094 8,340 Provision for Income Taxes 517 658 1,145 1,125 Net Income $ 1,489 $ 4,481 $ 2,949 $ 7,215 STRATTEC’s Share of VAST LLC Net Income $ 496 $ 1,494 $ 983 $ 2,405 Intercompany Profit Elimination — (7 ) — (3 ) STRATTEC’s Equity Earnings of VAST LLC $ 496 $ 1,487 $ 983 $ 2,402 |
Summarize of Related Party Transaction | The following table summarizes these related party transactions with VAST LLC for the periods indicated below (in thousands): Three Months Ended Six Months Ended December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 Sales to VAST LLC $ 1,661 $ 1,375 $ 2,552 $ 1,873 Purchases from VAST LLC $ 82 $ 86 $ 179 $ 128 Expenses Charged to VAST LLC $ 519 $ 434 $ 1,350 $ 779 Expenses Charged from VAST LLC $ 218 $ 229 $ 444 $ 436 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Dec. 29, 2019 | |
Leases [Abstract] | |
Schedule of Operating Lease Asset and Obligation Included in Condensed Consolidated Balance Sheet | The operating lease asset and obligation related to our El Paso warehouse lease included in the accompanying Condensed Consolidated Balance Sheet are presented below (in thousands): December 29, 2019 Right-of Use Asset Under Operating Lease: Other Long-Term Assets $ 3,922 Lease Obligation Under Operating Lease: Current Liabilities: Accrued Liabilities: Other $ 343 Other Long-Term Liabilities 3,579 $ 3,922 |
Schedule of Future Minimum Lease Payments Under Non-Cancelable Lease Including Options to Extend | Future minimum lease payments, by our fiscal year, including options to extend that are reasonably certain to be exercised, under the non-cancelable lease are as follows as of December 29, 2019 (in thousands): 2020 (for the remaining six months) $ 232 2021 473 2022 484 2023 497 2024 509 Thereafter 2,356 Total Future Minimum Lease Payments 4,551 Less: Imputed Interest (629 ) Total Lease Obligations $ 3,922 |
Schedule of Future Minimum Lease Payments Under Non-Cancelable Lease Excluding Options to Extend Prior to Adoption | Future minimum lease payments, by our fiscal year, excluding options to extend that are reasonably certain to be exercised, prior to the adoption of the new accounting guidance on leases were as follows as of June 30, 2019 (in thousands): 2020 $ 539 2021 504 2022 495 2023 498 2024 168 Thereafter — Total Future Minimum Lease Payments $ 2,204 |
Schedule of Cash Flow Information Related to Operating Lease | Cash flow information related to the operating lease is shown below (in thousands): Six Months Ended December 29, 2019 Operating Cash Flows: Cash Paid Related to Operating Lease Obligation $ 229 Non-Cash Activity: Right-of-Use Asset Obtained in Exchange for Operating Lease Obligation $ — |
Schedule of Weighted Average Lease Term and Discount Rate for Operating Lease | The weighted average lease term and discount rate for the operating lease are shown below: December 29, 2019 Weighted Average Remaining Lease Term (in years) 8.8 Weighted Average Discount Rate 3.3 % |
Credit Facilities (Tables)
Credit Facilities (Tables) | 6 Months Ended |
Dec. 29, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Borrowings Under the Credit Facilities | Outstanding borrowings under the credit facilities were as follows (in thousands): December 29, 2019 June 30, 2019 STRATTEC Credit Facility $ 13,000 $ 18,000 ADAC-STRATTEC Credit Facility 19,000 24,000 $ 32,000 $ 42,000 |
Schedule of Average Outstanding Borrowings and the Weighted Average Interest Rate | Average outstanding borrowings and the weighted average interest rate under each credit facility referenced above were as follows for each period presented (in thousands): Six Months Ended Average Weighted Average Interest Rate December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 STRATTEC Credit Facility $ 14,604 $ 23,319 3.1 % 3.2 % ADAC-STRATTEC Credit Facility $ 21,473 $ 26,929 3.3 % 3.2 % |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Dec. 29, 2019 | |
Equity [Abstract] | |
Summary of Activity Impacting Shareholders' Equity | A summary of activity impacting shareholders’ equity for the three and six month periods ended December 29, 2019 and December 30, 2018 were as follows (in thousands): Three Months Ended December 29, 2019 Total Shareholders’ Equity Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Non-Controlling Interest Balance, September 29, 2019 $ 188,271 $ 74 $ 97,128 $ 221,839 $ (19,691 ) $ (135,711 ) $ 24,632 Net Loss (1,095 ) — — (1,341 ) — — 246 Dividend Declared (525 ) — — (525 ) — — — Dividend Declared – Non- controlling Interests of Subsidiaries - — — — — — — Translation Adjustments 1,634 — — — 1,132 — 502 Stock Based Compensation 211 — 211 — — — — Pension and Postretirement Adjustment, Net of Tax 73 — — — 73 — — Stock Option Exercises 256 — 256 — — — — Employee Stock Purchases 24 — 6 — — 18 — Balance, December 29, 2019 $ 188,849 $ 74 $ 97,601 $ 219,973 $ (18,486 ) $ (135,693 ) $ 25,380 Three Months Ended December 30, 2018 Total Shareholders’ Equity Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Non-Controlling Interest Balance, September 30, 2018 $ 187,932 $ 73 $ 95,537 $ 239,115 $ (32,946 ) $ (135,767 ) $ 21,920 Net Loss (21,598 ) — — (22,164 ) — — 566 Dividend Declared (515 ) — — (515 ) — — — Dividend Declared – Non- controlling Interests of Subsidiaries (200 ) — — — — — (200 ) Translation Adjustments (1,829 ) — — — (1,332 ) — (497 ) Stock Based Compensation 241 — 241 — — — — Pension and Postretirement Adjustment, Net of Tax 19,677 — — — 19,677 — — Reclassification of Stranded Tax Effects — — — 4,047 (4,047 ) — — Stock Option Exercises 32 — 32 — — — — Employee Stock Purchases 17 — 8 — — 9 — Balance, December 30, 2018 $ 183,757 $ 73 $ 95,818 $ 220,483 $ (18,648 ) $ (135,758 ) $ 21,789 Six Months Ended December 29, 2019 Total Shareholders’ Equity Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Non-Controlling Interest Balance, June 30, 2019 $ 187,816 $ 73 $ 96,491 $ 221,117 $ (18,568 ) $ (135,725 ) $ 24,428 Net Income 1,585 — — (97 ) — — 1,682 Dividend Declared (1,047 ) — — (1,047 ) — — — Dividend Declared – Non- controlling Interests of Subsidiaries (980 ) — — — — — (980 ) Translation Adjustments 186 — — — (64 ) — 250 Stock Based Compensation 624 — 624 — — — — Pension and Postretirement Adjustment, Net of Tax 146 — — — 146 — — Stock Option Exercises 478 1 477 — — — — Employee Stock Purchases 41 — 9 — — 32 — Balance, December 29, 2019 $ 188,849 $ 74 $ 97,601 $ 219,973 $ (18,486 ) $ (135,693 ) $ 25,380 Six Months Ended December 30, 2018 Total Shareholders’ Equity Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Non-Controlling Interest Balance, July 1, 2018 $ 183,246 $ 73 $ 95,140 $ 236,162 $ (33,439 ) $ (135,778 ) $ 21,088 Net Loss (17,169 ) — — (18,697 ) — — 1,528 Dividend Declared (1,029 ) — — (1,029 ) — — — Dividend Declared – Non- controlling Interests of Subsidiaries (984 ) — — — — — (984 ) Translation Adjustments (998 ) — — — (1,155 ) — 157 Stock Based Compensation 626 — 626 — — — — Pension and Postretirement Adjustment, Net of Tax 19,993 — — — 19,993 — — Reclassification of Stranded Tax Effects — — — 4,047 (4,047 ) — — Stock Option Exercises 32 — 32 — — — — Employee Stock Purchases 40 — 20 — — 20 — Balance, December 30, 2018 $ 183,757 $ 73 $ 95,818 $ 220,483 $ (18,648 ) $ (135,758 ) $ 21,789 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Dec. 29, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Contract Liability Balances | The activity related to contract liability balances during the six month period ended December 29, 2019 was as follows (thousands of dollars): Balance, June 30, 2019 $ 932 Discounts Recorded as a Reduction in Sales 880 Payments of Discounts to Customers (915 ) Other (13 ) Balance, December 29, 2019 $ 884 |
Revenue by Product Group and Customer | Revenue by product group for the periods presented was as follows (thousands of dollars): Three Months Ended Six Months Ended December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 Keys & Locksets $ 29,177 $ 32,693 $ 61,646 $ 67,045 Door Handles & Exterior Trim 26,131 25,803 57,522 51,761 Power Access 16,262 20,396 35,720 42,795 Latches 13,074 11,709 26,971 22,764 Aftermarket & OE Service 12,135 10,776 23,048 21,760 Driver Controls 7,976 10,091 17,761 20,838 Other 1,528 1,445 3,577 3,109 $ 106,283 $ 112,913 $ 226,245 $ 230,072 Revenue by customer or customer group for the periods presented was as follows (thousands of dollars): Three Months Ended Six Months Ended December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 Fiat Chrysler Automobiles $ 27,154 $ 25,610 $ 52,636 $ 55,907 General Motors Company 25,405 23,855 59,243 49,142 Ford Motor Company 15,253 16,114 31,065 31,637 Tier 1 Customers 14,784 18,463 32,531 36,279 Commercial and Other OEM Customers 21,420 21,468 42,766 42,396 Hyundai / Kia 2,267 7,403 8,004 14,711 $ 106,283 $ 112,913 $ 226,245 $ 230,072 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 6 Months Ended |
Dec. 29, 2019 | |
Other Income And Expenses [Abstract] | |
Summary of Other Income (Expense), Net | The impact of these items for each of the periods presented was as follows (in thousands): Three Months Ended Six Months Ended December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 Foreign Currency Transaction (Loss) Gain $ (363 ) $ 359 $ (448 ) $ (69 ) Unrealized (Loss) Gain on Peso Forward Contracts — (132 ) — 93 Realized Gain on Peso Forward Contracts — 50 — 222 Pension and Postretirement Plans Cost (117 ) (317 ) (234 ) (635 ) Rabbi Trust Gain (Loss) 187 (279 ) 185 (200 ) Other 316 57 423 82 $ 23 $ (262 ) $ (74 ) $ (507 ) |
Loss Per Share (Tables)
Loss Per Share (Tables) | 6 Months Ended |
Dec. 29, 2019 | |
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): Three Months Ended December 29, 2019 December 30, 2018 Net Loss Shares Per-Share Amount Net Loss Shares Per-Share Amount Basic Loss Per Share $ (1,341 ) 3,741 $ (0.36 ) $ (22,164 ) 3,675 $ (6.03 ) Stock Option and Restricted Stock Awards — — — 43 Diluted Loss Per Share $ (1,341 ) 3,741 $ (0.36 ) $ (22,164 ) 3,718 $ (5.96 ) Six Months Ended December 29, 2019 December 30, 2018 Net Loss Shares Per-Share Amount Net Loss Shares Per-Share Amount Basic Loss Per Share $ (97 ) 3,725 $ (0.03 ) $ (18,697 ) 3,663 $ (5.10 ) Stock Option and Restricted Stock Awards — — — 52 Diluted Loss Per Share $ (97 ) 3,725 $ (0.03 ) $ (18,697 ) 3,715 $ (5.03 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Dec. 29, 2019 | |
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 six months ended December 29, 2019 was as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding, June 30, 2019 117,360 $ 31.85 Exercised (26,500 ) $ 18.00 Outstanding, December 29, 2019 90,860 $ 35.88 2.9 $ — Exercisable, December 29, 2019 90,860 $ 35.88 2.9 $ — |
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 that vested during the three month periods presented below were as follows (in thousands): Three Months Ended Six Months Ended December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 Intrinsic Value of Options Exercised $ 83 $ 55 $ 120 $ 55 Fair Value of Stock Options Vesting $ — $ — $ — $ — |
Summary of Restricted Stock Activity Under Our Stock Incentive Plan | A summary of restricted stock activity under our omnibus stock incentive plan for the six months ended December 29, 2019 was as follows: Shares Weighted Average Grant Date Fair Value Nonvested Balance, June 30, 2019 63,757 $ 39.47 Granted 39,150 $ 21.80 Vested (27,318 ) $ 37.86 Forfeited (2,700 ) $ 30.53 Nonvested Balance, December 29, 2019 72,889 $ 30.91 |
Pension and Postretirement Be_2
Pension and Postretirement Benefits (Tables) | 6 Months Ended |
Dec. 29, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Summary of Net Periodic Benefit Cost Recognized | The following table summarizes 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 December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 Service Cost $ 18 $ 15 $ 3 $ 3 Interest Cost 15 1,032 7 11 Expected Return on Plan Assets — (1,138 ) — — Plan Settlements — 32,434 — — Amortization of Prior Service Cost (Credit) — — (8 ) (110 ) Amortization of Unrecognized Net Loss 3 416 100 107 Net Periodic Benefit Cost $ 36 $ 32,759 $ 102 $ 11 Pension Benefits Postretirement Benefits Six Months Ended Six Months Ended December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 Service Cost $ 37 $ 30 $ 6 $ 6 Interest Cost 30 2,064 13 22 Expected Return on Plan Assets — (2,276 ) — — Plan Settlements — 32,434 — — Amortization of Prior Service Cost (Credit) — — (15 ) (220 ) Amortization of Unrecognized Net Loss 7 832 199 214 Net Periodic Benefit Cost $ 74 $ 33,084 $ 203 $ 22 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Dec. 29, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Loss | The following tables summarize the changes in accumulated other comprehensive loss (“AOCL”) for each period presented (in thousands): Three Months Ended December 29, 2019 Foreign Currency Translation Adjustments Retirement and Postretirement Benefit Plans Total Balance, September 29, 2019 $ 17,513 $ 2,178 $ 19,691 Other Comprehensive Income Before Reclassifications (1,634 ) — (1,634 ) Income Tax — — — Net Other Comprehensive Income Before Reclassifications (1,634 ) — (1,634 ) Reclassifications: Prior Service Credits (A) — 8 8 Unrecognized Net Loss (A) — (103 ) (103 ) Total Reclassifications Before Tax — (95 ) (95 ) Income Tax — 22 22 Net Reclassifications — (73 ) (73 ) Other Comprehensive Income (1,634 ) (73 ) (1,707 ) Other Comprehensive Income Attributable to Non- Controlling Interest (502 ) — (502 ) Balance, December 29, 2019 $ 16,381 $ 2,105 $ 18,486 Three Months Ended December 30, 2018 Foreign Currency Translation Adjustments Retirement and Postretirement Benefit Plans Total Balance, September 30, 2018 $ 15,114 $ 17,832 $ 32,946 Other Comprehensive Loss Before Reclassifications 2,014 — 2,014 Income Tax (185 ) — (185 ) Net Other Comprehensive Loss Before Reclassifications 1,829 — 1,829 Reclassifications: Pension Termination Settlement (A) — (25,668 ) (25,668 ) Prior Service Credits (A) — 110 110 Unrecognized Net Loss (A) — (523 ) (523 ) Total Reclassifications Before Tax — (26,081 ) (26,081 ) Income Tax — 6,404 6,404 Net Reclassifications — (19,677 ) (19,677 ) Other Comprehensive Loss (Income) 1,829 (19,677 ) (17,848 ) Other Comprehensive Income Attributable to Non- Controlling Interest 497 — 497 Reclassification of stranded tax effects 83 3,964 4,047 Balance, December 30, 2018 $ 16,529 $ 2,119 $ 18,648 Six Months Ended December 29, 2019 Foreign Currency Translation Adjustments Retirement and Postretirement Benefit Plans Total Balance, June 30, 2019 $ 16,317 $ 2,251 $ 18,568 Other Comprehensive Income Before Reclassifications (186 ) — (186 ) Income Tax — — — Net Other Comprehensive Income Before Reclassifications (186 ) — (186 ) Reclassifications: Prior Service Credits (A) — 15 15 Unrecognized Net Loss (A) — (206 ) (206 ) Total Reclassifications Before Tax — (191 ) (191 ) Income Tax — 45 45 Net Reclassifications — (146 ) (146 ) Other Comprehensive Income (186 ) (146 ) (332 ) Other Comprehensive Income Attributable to Non- Controlling Interest (250 ) — (250 ) Balance, December 29, 2019 $ 16,381 $ 2,105 $ 18,486 Six Months Ended December 30, 2018 Foreign Currency Translation Adjustments Retirement and Postretirement Benefit Plans Total Balance, July 1, 2018 $ 15,291 $ 18,148 $ 33,439 Other Comprehensive Loss Before Reclassifications 1,183 — 1,183 Income Tax (185 ) — (185 ) Net Other Comprehensive Loss Before Reclassifications 998 — 998 Reclassifications: Pension Termination Settlement (A) — (25,668 ) (25,668 ) Prior Service Credits (A) — 220 220 Unrecognized Net Loss (A) — (1,046 ) (1,046 ) Total Reclassifications Before Tax — (26,494 ) (26,494 ) Income Tax — 6,501 6,501 Net Reclassifications — (19,993 ) (19,993 ) Other Comprehensive Loss (Income) 998 (19,993 ) (18,995 ) Other Comprehensive Income Attributable to Non- Controlling Interest (157 ) — (157 ) Reclassification of stranded tax effects 83 3,964 4,047 Balance, December 30, 2018 $ 16,529 $ 2,119 $ 18,648 (A) Amounts reclassified are included in the computation of net periodic benefit cost, which is included in Other Income (Expense), net in the accompanying Condensed Consolidated Statements of Loss and Comprehensive (Loss) Income. See Pension and Postretirement Benefits note to these Notes to Condensed Consolidated Financial Statements above. |
Basis of Financial Statements (
Basis of Financial Statements (Details Textual) | 6 Months Ended |
Dec. 29, 2019SubsidiaryJoint_VentureSegment | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Number of reporting segments related to STRATTEC Security Corporation | Segment | 1 |
SAL, 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] | |
STRATTEC's percentage ownership in joint venture | 33.33% |
VAST LLC | CHINA | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Number of wholly owned subsidiaries | 4 |
VAST LLC | BRAZIL | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Number of wholly owned subsidiaries | 1 |
VAST LLC | INDIA | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Number of joint venture entities | Joint_Venture | 1 |
New Accounting Standards (Detai
New Accounting Standards (Details Textual) - USD ($) | Dec. 29, 2019 | Jul. 01, 2019 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Operating lease right-of-use asset | $ 3,922,000 | |
Operating lease obligation | $ 3,922,000 | |
ASU 2016-02 | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Operating lease right-of-use asset | $ 4,100,000 | |
Operating lease obligation | 4,100,000 | |
Finance lease obligation | $ 0 |
Derivative Instruments - Pre-Ta
Derivative Instruments - Pre-Tax Effects of the Peso Forward Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Dec. 30, 2018 | Dec. 30, 2018 | |
Pre-tax effects of the Mexican peso forward contracts | ||
Realized Gain | $ 50 | $ 222 |
Unrealized (Loss) Gain | (132) | 93 |
Not Designated as Hedging Instrument | Other Expense, Net | ||
Pre-tax effects of the Mexican peso forward contracts | ||
Realized Gain | 50 | 222 |
Unrealized (Loss) Gain | $ (132) | $ 93 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Financial Assets and Liabilities at Fair Value on Recurring Basis (Details) - Fair Value Measurements Recurring $ in Thousands | Dec. 29, 2019USD ($) |
Level 1 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | $ 3,117 |
Level 1 | Fixed Income Funds | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | 923 |
Level 2 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | 6 |
Stock Index Funds | Level 1 | Small Cap | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | 294 |
Stock Index Funds | Level 1 | Mid Cap | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | 315 |
Stock Index Funds | Level 1 | Large Cap | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | 656 |
Stock Index Funds | Level 1 | International | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | 929 |
Cash and Cash Equivalents | Level 2 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | $ 6 |
Equity Earnings of Joint Vent_3
Equity Earnings of Joint Ventures (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | |
Schedule Of Equity Method Investments [Line Items] | ||||
Equity (loss) earnings of joint ventures | $ 492,000 | $ 1,476,000 | $ 976,000 | $ 2,385,000 |
VAST LLC | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
STRATTEC's percentage ownership in joint venture | 33.33% | 33.33% | ||
Equity (loss) earnings of joint ventures | $ 496,000 | 1,487,000 | $ 983,000 | 2,402,000 |
SAL LLC | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
STRATTEC's percentage ownership in joint venture | 51.00% | 51.00% | ||
Equity (loss) earnings of joint ventures | $ (4,000) | $ (11,000) | $ (7,000) | $ (17,000) |
Equity Earnings of Joint Vent_4
Equity Earnings of Joint Ventures - Summarized Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | |
Summarized statements of operations | ||||
STRATTEC’s Equity Earnings of VAST LLC | $ 492 | $ 1,476 | $ 976 | $ 2,385 |
VAST LLC | ||||
Summarized statements of operations | ||||
Net Sales | 44,479 | 47,719 | 87,047 | 87,775 |
Cost of Goods Sold | 35,793 | 37,768 | 70,452 | 68,870 |
Gross Profit | 8,686 | 9,951 | 16,595 | 18,905 |
Engineering, Selling and Administrative Expenses | 7,323 | 6,719 | 14,004 | 12,869 |
Income From Operations | 1,363 | 3,232 | 2,591 | 6,036 |
Other Income, net | 643 | 1,907 | 1,503 | 2,304 |
Income before Provision for Income Taxes | 2,006 | 5,139 | 4,094 | 8,340 |
Provision for Income Taxes | 517 | 658 | 1,145 | 1,125 |
Net Income | 1,489 | 4,481 | 2,949 | 7,215 |
STRATTEC’s Share of VAST LLC Net Income | 496 | 1,494 | 983 | 2,405 |
Intercompany Profit Elimination | (7) | (3) | ||
STRATTEC’s Equity Earnings of VAST LLC | $ 496 | $ 1,487 | $ 983 | $ 2,402 |
Equity Earnings of Joint Vent_5
Equity Earnings of Joint Ventures - Summarize of Related Party Transaction (Details) - VAST LLC - Equity Method Investee - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | |
Schedule Of Equity Method Investments [Line Items] | ||||
Sales to VAST LLC | $ 1,661 | $ 1,375 | $ 2,552 | $ 1,873 |
Purchases from VAST LLC | 82 | 86 | 179 | 128 |
Expenses Charged to VAST LLC | 519 | 434 | 1,350 | 779 |
Expenses Charged from VAST LLC | $ 218 | $ 229 | $ 444 | $ 436 |
Leases (Details Textual)
Leases (Details Textual) | 3 Months Ended | 6 Months Ended |
Dec. 29, 2019USD ($) | Dec. 29, 2019USD ($) | |
Leases [Abstract] | ||
Operating lease, existence of option to extend | true | |
Operating lease, renewal Term | 5 years | 5 years |
Operating lease, expiration term | 2023-10 | |
Operating lease expense | $ 116,000 | $ 229,000 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Asset and Obligation Included in Condensed Consolidated Balance Sheet (Details) $ in Thousands | Dec. 29, 2019USD ($) |
Right-of Use Asset Under Operating Lease: | |
Operating lease right-of-use asset | $ 3,922 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent |
Lease Obligation Under Operating Lease: | |
Current Liabilities: Accrued Liabilities: Other | $ 343 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherAccruedLiabilitiesCurrent |
Other Long-Term Liabilities | $ 3,579 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent |
Operating Lease, Liability | $ 3,922 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Under Non-Cancelable Lease Including Options to Extend (Details) $ in Thousands | Dec. 29, 2019USD ($) |
Leases [Abstract] | |
2020 (for the remaining six months) | $ 232 |
2021 | 473 |
2022 | 484 |
2023 | 497 |
2024 | 509 |
Thereafter | 2,356 |
Total Future Minimum Lease Payments | 4,551 |
Less: Imputed Interest | (629) |
Total Lease Obligations | $ 3,922 |
Leases - Schedule of Future M_2
Leases - Schedule of Future Minimum Lease Payments Under Non-Cancelable Lease Excluding Options to Extend Prior to Adoption (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 539 |
2021 | 504 |
2022 | 495 |
2023 | 498 |
2024 | 168 |
Total Future Minimum Lease Payments | $ 2,204 |
Leases - Schedule of Cash Flow
Leases - Schedule of Cash Flow Information Related to Operating Lease (Details) $ in Thousands | 6 Months Ended |
Dec. 29, 2019USD ($) | |
Operating Cash Flows: | |
Cash Paid Related to Operating Lease Obligation | $ 229 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Lease Term and Discount Rate for Operating Lease (Details) | Dec. 29, 2019 |
Leases [Abstract] | |
Weighted Average Remaining Lease Term (in years) | 8 years 9 months 18 days |
Weighted Average Discount Rate | 3.30% |
Credit Facilities (Details Text
Credit Facilities (Details Textual) | 6 Months Ended |
Dec. 29, 2019USD ($) | |
STRATTEC Credit Facility | |
Line Of Credit Facility [Line Items] | |
Secured revolving credit facility | $ 40,000,000 |
Credit facility maturity date | Aug. 1, 2022 |
Interest rate on borrowings under the credit facility | the London Interbank Offering Rate (“LIBOR”) plus 1.0 percent or the bank’s prime rate. |
Interest rate - percentage points added to LIBOR - on borrowings under credit facility | 1.00% |
ADAC-STRATTEC Credit Facility | |
Line Of Credit Facility [Line Items] | |
Secured revolving credit facility | $ 25,000,000 |
Credit facility maturity date | Aug. 1, 2022 |
Interest rate on borrowings under the credit facility | LIBOR plus 1.25 percent or the bank’s prime rate. |
Interest rate - percentage points added to LIBOR - on borrowings under credit facility | 1.25% |
Credit Facilities - Schedule of
Credit Facilities - Schedule of Outstanding Borrowings Under the Credit Facilities (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Jun. 30, 2019 |
Line Of Credit Facility [Line Items] | ||
Outstanding Borrowing | $ 32,000 | $ 42,000 |
STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Outstanding Borrowing | 13,000 | 18,000 |
ADAC-STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Outstanding Borrowing | $ 19,000 | $ 24,000 |
Credit Facilities - Schedule _2
Credit Facilities - Schedule of Average Outstanding Borrowings and the Weighted Average Interest Rate (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 29, 2019 | Dec. 30, 2018 | |
STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Average Outstanding Borrowings | $ 14,604 | $ 23,319 |
Weighted Average Interest Rate | 3.10% | 3.20% |
ADAC-STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Average Outstanding Borrowings | $ 21,473 | $ 26,929 |
Weighted Average Interest Rate | 3.30% | 3.20% |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) - USD ($) | 6 Months Ended | |
Dec. 29, 2019 | Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Environmental reserve originally established in 1995 | $ 3,000,000 | |
Environmental | 1,269,000 | $ 1,278,000 |
Cost incurred inception to date on installation and on-going monitoring of wells | $ 606,000 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Activity Impacting Shareholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | |
Summary of activity impacting shareholders' equity | ||||
Beginning Balance | $ 188,271 | $ 187,932 | $ 187,816 | $ 183,246 |
Net (Loss) Income | (1,095) | (21,598) | 1,585 | (17,169) |
Dividend Declared | (525) | (515) | (1,047) | (1,029) |
Dividend Declared – Non- controlling Interests of Subsidiaries | (200) | (980) | (984) | |
Translation Adjustments | 1,634 | (1,829) | 186 | (998) |
Stock Based Compensation | 211 | 241 | 624 | 626 |
Pension and Postretirement Adjustment, Net of Tax | 73 | 19,677 | 146 | 19,993 |
Stock Option Exercises | 256 | 32 | 478 | 32 |
Employee Stock Purchases | 24 | 17 | 41 | 40 |
Ending Balance | 188,849 | 183,757 | 188,849 | 183,757 |
Common Stock | ||||
Summary of activity impacting shareholders' equity | ||||
Beginning Balance | 74 | 73 | 73 | 73 |
Stock Option Exercises | 1 | |||
Ending Balance | 74 | 73 | 74 | 73 |
Capital in Excess of Par Value | ||||
Summary of activity impacting shareholders' equity | ||||
Beginning Balance | 97,128 | 95,537 | 96,491 | 95,140 |
Stock Based Compensation | 211 | 241 | 624 | 626 |
Stock Option Exercises | 256 | 32 | 477 | 32 |
Employee Stock Purchases | 6 | 8 | 9 | 20 |
Ending Balance | 97,601 | 95,818 | 97,601 | 95,818 |
Retained Earnings | ||||
Summary of activity impacting shareholders' equity | ||||
Beginning Balance | 221,839 | 239,115 | 221,117 | 236,162 |
Net (Loss) Income | (1,341) | (22,164) | (97) | (18,697) |
Dividend Declared | (525) | (515) | (1,047) | (1,029) |
Reclassification of Stranded Tax Effects | 4,047 | 4,047 | ||
Ending Balance | 219,973 | 220,483 | 219,973 | 220,483 |
Accumulated Other Comprehensive Loss | ||||
Summary of activity impacting shareholders' equity | ||||
Beginning Balance | (19,691) | (32,946) | (18,568) | (33,439) |
Translation Adjustments | 1,132 | (1,332) | (64) | (1,155) |
Pension and Postretirement Adjustment, Net of Tax | 73 | 19,677 | 146 | 19,993 |
Reclassification of Stranded Tax Effects | (4,047) | (4,047) | ||
Ending Balance | (18,486) | (18,648) | (18,486) | (18,648) |
Treasury Stock | ||||
Summary of activity impacting shareholders' equity | ||||
Beginning Balance | (135,711) | (135,767) | (135,725) | (135,778) |
Employee Stock Purchases | 18 | 9 | 32 | 20 |
Ending Balance | (135,693) | (135,758) | (135,693) | (135,758) |
Non-Controlling Interest | ||||
Summary of activity impacting shareholders' equity | ||||
Beginning Balance | 24,632 | 21,920 | 24,428 | 21,088 |
Net (Loss) Income | 246 | 566 | 1,682 | 1,528 |
Dividend Declared – Non- controlling Interests of Subsidiaries | (200) | (980) | (984) | |
Translation Adjustments | 502 | (497) | 250 | 157 |
Ending Balance | $ 25,380 | $ 21,789 | $ 25,380 | $ 21,789 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Contract Liability Balances (Details) $ in Thousands | 6 Months Ended |
Dec. 29, 2019USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Balance, June 30, 2019 | $ 932 |
Discounts Recorded as a Reduction in Sales | 880 |
Payments of Discounts to Customers | (915) |
Other | (13) |
Balance, December 29, 2019 | $ 884 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Revenue by Product Group (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | |
Product Information [Line Items] | ||||
Revenue | $ 106,283 | $ 112,913 | $ 226,245 | $ 230,072 |
Keys & Locksets | ||||
Product Information [Line Items] | ||||
Revenue | 29,177 | 32,693 | 61,646 | 67,045 |
Power Access | ||||
Product Information [Line Items] | ||||
Revenue | 16,262 | 20,396 | 35,720 | 42,795 |
Door Handles & Exterior Trim | ||||
Product Information [Line Items] | ||||
Revenue | 26,131 | 25,803 | 57,522 | 51,761 |
Driver Controls | ||||
Product Information [Line Items] | ||||
Revenue | 7,976 | 10,091 | 17,761 | 20,838 |
Aftermarket & OE Service | ||||
Product Information [Line Items] | ||||
Revenue | 12,135 | 10,776 | 23,048 | 21,760 |
Latches | ||||
Product Information [Line Items] | ||||
Revenue | 13,074 | 11,709 | 26,971 | 22,764 |
Other | ||||
Product Information [Line Items] | ||||
Revenue | $ 1,528 | $ 1,445 | $ 3,577 | $ 3,109 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Revenue by Customer or Customer Group (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | |
Entity Wide Revenue Major Customer [Line Items] | ||||
Revenue | $ 106,283 | $ 112,913 | $ 226,245 | $ 230,072 |
Fiat Chrysler Automobiles | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Revenue | 27,154 | 25,610 | 52,636 | 55,907 |
General Motors Company | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Revenue | 25,405 | 23,855 | 59,243 | 49,142 |
Ford Motor Company | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Revenue | 15,253 | 16,114 | 31,065 | 31,637 |
Tier 1 Customers | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Revenue | 14,784 | 18,463 | 32,531 | 36,279 |
Commercial and Other OEM Customers | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Revenue | 21,420 | 21,468 | 42,766 | 42,396 |
Hyundai / Kia | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Revenue | $ 2,267 | $ 7,403 | $ 8,004 | $ 14,711 |
Other Income (Expense), Net - S
Other Income (Expense), Net - Summary of Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | |
Other Income and Expenses [Abstract] | ||||
Foreign Currency Transaction (Loss) Gain | $ (363) | $ 359 | $ (448) | $ (69) |
Unrealized (Loss) Gain on Peso Forward Contracts | (132) | 93 | ||
Realized Gain on Peso Forward Contracts | 50 | 222 | ||
Pension and Postretirement Plans Cost | (117) | (317) | (234) | (635) |
Rabbi Trust Gain (Loss) | 187 | (279) | 185 | (200) |
Other | 316 | 57 | 423 | 82 |
Other Income (Expense), net | $ 23 | $ (262) | $ (74) | $ (507) |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 26.70% | 26.40% | (6.70%) | 31.20% |
Measurement period adjustments | $ 372,000 | $ 372,000 | ||
Effective income tax rate prior to discrete impacts | 15.60% | 5.10% | 15.60% | 5.10% |
Loss Per Share - Reconciliation
Loss Per Share - Reconciliation of the Components of Basic and Diluted Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | |
Reconciliation of the components of the basic and diluted per share | ||||
Net Loss, Basic Loss Per Share | $ (1,341) | $ (22,164) | $ (97) | $ (18,697) |
Net Loss, Diluted Loss Per Share | $ (1,341) | $ (22,164) | $ (97) | $ (18,697) |
Basic Loss Per Share, Number of shares | 3,741 | 3,675 | 3,725 | 3,663 |
Stock Option and Restricted Stock Awards, Number of shares | 43 | 52 | ||
Diluted Loss Per Share, Number of shares | 3,741 | 3,718 | 3,725 | 3,715 |
Basic Loss Per Share | $ (0.36) | $ (6.03) | $ (0.03) | $ (5.10) |
Diluted Loss Per Share | $ (0.36) | $ (5.96) | $ (0.03) | $ (5.03) |
Loss Per Share (Details Textual
Loss Per Share (Details Textual) - shares | 6 Months Ended | |
Dec. 29, 2019 | Dec. 30, 2018 | |
Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from earnings (loss) per share computation | 90,860 | 41,200 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Textual) - USD ($) $ in Millions | 6 Months Ended | |
Dec. 29, 2019 | Dec. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options, granted | 0 | 0 |
Employee Stock Option | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options expires after date of grant | 10 years | |
Employee Stock Option | Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period after the date of grant | 1 year | |
Employee Stock Option | Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period after the date of grant | 4 years | |
Restricted stock | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized compensation cost related to unvested restricted stock grants | $ 1.3 | |
Weighted average period over which unrecognized compensation is expected to be recognized | 1 year | |
Restricted stock | Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period after the date of grant | 1 year | |
Restricted stock | Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period after the date of grant | 5 years | |
Omnibus Stock Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share based compensation arrangement by share based payment award number of shares authorized | 1,850,000 | |
Shares of common stock available for grant | 112,839 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity Under Our Stock Incentive Plan (Details) | 6 Months Ended |
Dec. 29, 2019$ / sharesshares | |
Share Based Compensation [Abstract] | |
Shares, Beginning Balance | shares | 117,360 |
Shares, Exercised | shares | (26,500) |
Shares, Ending Balance | shares | 90,860 |
Shares, Exercisable | shares | 90,860 |
Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 31.85 |
Weighted Average Exercise Price, Exercised | $ / shares | 18 |
Weighted Average Exercise Price, Ending Balance | $ / shares | 35.88 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 35.88 |
Weighted Average Remaining Contractual Term, Outstanding | 2 years 10 months 24 days |
Weighted Average Remaining Contractual Term, Exercisable, Outstanding | 2 years 10 months 24 days |
Stock-Based Compensation - Intr
Stock-Based Compensation - Intrinsic Value of Stock Options Exercised and the Fair Value of Stock Options Vested (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | |
Intrinsic value of stock options exercised and the fair value of stock options vested | ||||
Intrinsic Value of Options Exercised | $ 83 | $ 55 | $ 120 | $ 55 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Activity Under Our Stock Incentive Plan (Details) - Restricted stock | 6 Months Ended |
Dec. 29, 2019$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Nonvested, Shares Beginning Balance | shares | 63,757 |
Granted, Shares | shares | 39,150 |
Vested, Shares | shares | (27,318) |
Forfeited, Shares | shares | (2,700) |
Nonvested, Shares Ending Balance | shares | 72,889 |
Nonvested, Weighted Average Grant Date Fair Value Beginning Balance | $ / shares | $ 39.47 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 21.80 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 37.86 |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | 30.53 |
Nonvested, Weighted Average Grant Date Fair Value Ending Balance | $ / shares | $ 30.91 |
Pension and Postretirement Be_3
Pension and Postretirement Benefits (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 29, 2019 | Sep. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | Jun. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Date the Board of Directors freeze benefit accruals and future eligibility under the Qualified Pension Plan | Dec. 31, 2009 | |||||
Termination of Qualified Pension Plan, description | The Board of Directors subsequently approved to proceed with the termination of the Qualified Pension Plan. During the quarter ended December 30, 2018, we completed a substantial portion of terminating the Qualified Pension Plan. In connection with the termination of the Qualified Pension Plan, distributions from the Qualified Pension Plan trust were made during the three month period ended December 30, 2018 to participants who elected lump-sum distributions. Additionally, during the three months ended December 30, 2018, we entered into an agreement with an insurance company to purchase from us, through a series of annuity contracts, our remaining obligations under the Qualified Pension Plan and, as a result, we settled the remaining obligations under the plan for the remaining participants utilizing funds available in the Qualified Pension Plan trust. | |||||
Additional contributions for termination of Qualified Pension Plan | $ 0 | |||||
Non-cash pre-tax settlement charge | $ 32,434,000 | $ 32,434,000 | $ 31,900,000 | |||
Non-cash compensation expense | 4,473,000 | 4,200,000 | ||||
Additional non-cash compensation expense | $ 2,300,000 | $ 2,200,000 | 4,500,000 | |||
Rabbi Trust Assets - SERP | 3,100,000 | 3,100,000 | $ 2,900,000 | |||
Postretirement plan annual benefit limit for future eligible retirees | 4,000 | $ 4,000 | ||||
Other postretirement benefits maximum benefit period | 5 years | |||||
Contributions to the qualified pension plan | $ 0 | $ 0 | $ 0 | $ 0 | ||
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 |
Pension and Postretirement Be_4
Pension and Postretirement Benefits - Summary of Net Periodic Benefit Cost Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | Jun. 30, 2019 | |
COMPONENTS OF NET PERIODIC BENEFIT COST: | |||||
Plan Settlements | $ 32,434 | $ 32,434 | $ 31,900 | ||
Pension Benefits | |||||
COMPONENTS OF NET PERIODIC BENEFIT COST: | |||||
Service Cost | $ 18 | 15 | $ 37 | 30 | |
Interest Cost | 15 | 1,032 | 30 | 2,064 | |
Expected Return on Plan Assets | (1,138) | (2,276) | |||
Plan Settlements | 32,434 | 32,434 | |||
Amortization of Unrecognized Net Loss | 3 | 416 | 7 | 832 | |
Net Periodic Benefit Cost | 36 | 32,759 | 74 | 33,084 | |
Postretirement Benefits | |||||
COMPONENTS OF NET PERIODIC BENEFIT COST: | |||||
Service Cost | 3 | 3 | 6 | 6 | |
Interest Cost | 7 | 11 | 13 | 22 | |
Amortization of Prior Service Cost (Credit) | (8) | (110) | (15) | (220) | |
Amortization of Unrecognized Net Loss | 100 | 107 | 199 | 214 | |
Net Periodic Benefit Cost | $ 102 | $ 11 | $ 203 | $ 22 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | $ (188,271) | $ (187,932) | $ (187,816) | $ (183,246) |
Other Comprehensive (Income) Loss Before Reclassifications | (1,634) | 2,014 | (186) | 1,183 |
Other Comprehensive (Income) Loss Before Reclassifications, Income Tax | (185) | (185) | ||
Net Other Comprehensive (Income) Loss Before Reclassifications | (1,634) | 1,829 | (186) | 998 |
Reclassifications: | ||||
Pension Termination Settlement | (25,668) | (25,668) | ||
Prior Service Credits | 8 | 110 | 15 | 220 |
Unrecognized Net Loss | (103) | (523) | (206) | (1,046) |
Total Reclassifications Before Tax | (95) | (26,081) | (191) | (26,494) |
Reclassifications, Income Tax | 22 | 6,404 | 45 | 6,501 |
Net Reclassifications | (73) | (19,677) | (146) | (19,993) |
Other Comprehensive (Income) Loss | (1,707) | (17,848) | (332) | (18,995) |
Reclassification of stranded tax effects | 4,047 | 4,047 | ||
Ending balance | (188,849) | (183,757) | (188,849) | (183,757) |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | 17,513 | 15,114 | 16,317 | 15,291 |
Other Comprehensive (Income) Loss Before Reclassifications | (1,634) | 2,014 | (186) | 1,183 |
Other Comprehensive (Income) Loss Before Reclassifications, Income Tax | (185) | (185) | ||
Net Other Comprehensive (Income) Loss Before Reclassifications | (1,634) | 1,829 | (186) | 998 |
Reclassifications: | ||||
Other Comprehensive (Income) Loss | (1,634) | 1,829 | (186) | 998 |
Other Comprehensive Income Attributable to Non- Controlling Interest | (502) | 497 | (250) | (157) |
Reclassification of stranded tax effects | 83 | 83 | ||
Ending balance | 16,381 | 16,529 | 16,381 | 16,529 |
Retirement and Postretirement Benefit Plans | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | 2,178 | 17,832 | 2,251 | 18,148 |
Reclassifications: | ||||
Pension Termination Settlement | (25,668) | (25,668) | ||
Prior Service Credits | 8 | 110 | 15 | 220 |
Unrecognized Net Loss | (103) | (523) | (206) | (1,046) |
Total Reclassifications Before Tax | (95) | (26,081) | (191) | (26,494) |
Reclassifications, Income Tax | 22 | 6,404 | 45 | 6,501 |
Net Reclassifications | (73) | (19,677) | (146) | (19,993) |
Other Comprehensive (Income) Loss | (73) | (19,677) | (146) | (19,993) |
Reclassification of stranded tax effects | 3,964 | 3,964 | ||
Ending balance | 2,105 | 2,119 | 2,105 | 2,119 |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | 19,691 | 32,946 | 18,568 | 33,439 |
Reclassifications: | ||||
Ending balance | 18,486 | 18,648 | 18,486 | 18,648 |
AOCI Including Portion Attributable to Noncontrolling Interest | ||||
Reclassifications: | ||||
Other Comprehensive (Income) Loss | (1,707) | (17,848) | (332) | (18,995) |
AOCI Attributable to Noncontrolling Interest | ||||
Reclassifications: | ||||
Other Comprehensive Income Attributable to Non- Controlling Interest | $ (502) | $ 497 | $ (250) | $ (157) |