Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 29, 2020 | Mar. 30, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | STRATTEC SECURITY CORP | |
Entity Central Index Key | 0000933034 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 29, 2020 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
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 | 3,818,520 | |
Security Exchange Name | NASDAQ | |
Trading Symbol | STRT | |
Title of 12(b) Security | Common stock, $.01 par value |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) and Comprehensive (Loss) Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 116,938 | $ 128,230 | $ 343,183 | $ 358,302 |
Cost of goods sold | 99,928 | 112,548 | 299,954 | 314,701 |
Gross profit | 17,010 | 15,682 | 43,229 | 43,601 |
Engineering, selling and administrative expenses | 10,727 | 11,721 | 35,775 | 33,222 |
Income from operations | 6,283 | 3,961 | 7,454 | 10,379 |
Equity (loss) earnings of joint ventures | (921) | 66 | 55 | 2,451 |
Interest expense | (204) | (413) | (792) | (1,224) |
Pension termination settlement charge | (32,434) | |||
Other income (expense), net | 1,049 | 209 | 975 | (298) |
Income (loss) before provision for income taxes and non-controlling interest | 6,207 | 3,823 | 7,692 | (21,126) |
Provision (benefit) for income taxes | 1,294 | 786 | 1,194 | (6,994) |
Net income (loss) | 4,913 | 3,037 | 6,498 | (14,132) |
Net income attributable to non-controlling Interest | 1,919 | 1,307 | 3,601 | 2,835 |
Net income (loss) attributable to STRATTEC SECURITY CORPORATION | 2,994 | 1,730 | 2,897 | (16,967) |
Comprehensive (loss) income: | ||||
Net income (loss) | 4,913 | 3,037 | 6,498 | (14,132) |
Pension and postretirement plans, net of tax | 74 | (1) | 220 | 19,992 |
Currency translation adjustments | (6,245) | 1,037 | (6,059) | 39 |
Other comprehensive (loss) income, net of tax | (6,171) | 1,036 | (5,839) | 20,031 |
Comprehensive (loss) income | (1,258) | 4,073 | 659 | 5,899 |
Comprehensive (loss) income attributable to non-controlling interest | (468) | 1,432 | 1,464 | 3,117 |
Comprehensive (loss) income attributable to STRATTEC SECURITY CORPORATION | $ (790) | $ 2,641 | $ (805) | $ 2,782 |
Earnings (loss) per share attributable to STRATTEC SECURITY CORPORATION: | ||||
Basic | $ 0.80 | $ 0.47 | $ 0.78 | $ (4.62) |
Diluted | $ 0.79 | $ 0.46 | $ 0.77 | $ (4.62) |
Average shares outstanding: | ||||
Basic | 3,748 | 3,684 | 3,733 | 3,670 |
Diluted | 3,768 | 3,728 | 3,752 | 3,670 |
Cash dividends declared per share | $ 0.14 | $ 0.14 | $ 0.42 | $ 0.42 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 29, 2020 | Jun. 30, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 10,173 | $ 7,809 |
Receivables, net | 72,805 | 84,230 |
Inventories: | ||
Finished products | 18,531 | 11,582 |
Work in process | 11,775 | 10,529 |
Purchased materials | 32,357 | 29,376 |
Excess and obsolete reserve | (4,315) | (4,225) |
Inventories, net | 58,348 | 47,262 |
Other current assets | 15,216 | 17,331 |
Total current assets | 156,542 | 156,632 |
Investment in joint ventures | 23,190 | 23,528 |
Deferred Income Taxes | 3,952 | 2,933 |
Other long-term assets | 6,411 | 11,523 |
Property, plant and equipment | 287,071 | 287,421 |
Less: accumulated depreciation | (179,655) | (169,301) |
Net property, plant and equipment | 107,416 | 118,120 |
Total assets | 297,511 | 312,736 |
Current Liabilities: | ||
Accounts payable | 43,104 | 41,889 |
Accrued Liabilities: | ||
Payroll and benefits | 13,549 | 17,339 |
Environmental | 1,263 | 1,278 |
Warranty | 7,850 | 7,900 |
Other | 10,306 | 10,857 |
Total current liabilities | 76,072 | 79,263 |
Borrowings under credit facilities | 27,000 | 42,000 |
Accrued pension obligations | 1,754 | 1,663 |
Accrued postretirement obligations | 649 | 762 |
Other long-term liabilities | 4,781 | 1,232 |
Shareholders’ Equity: | ||
Common stock, authorized 12,000,000 shares, $.01 par value, 7,358,812 issued shares at March 29, 2020 and 7,304,994 issued shares at June 30, 2019 | 74 | 73 |
Capital in excess of par value | 97,773 | 96,491 |
Retained earnings | 222,442 | 221,117 |
Accumulated other comprehensive loss | (22,270) | (18,568) |
Less: treasury stock, at cost (3,610,411 shares at March 29, 2020 and 3,613,439 shares at June 30, 2019) | (135,676) | (135,725) |
Total STRATTEC SECURITY CORPORATION shareholders’ equity | 162,343 | 163,388 |
Non-controlling interest | 24,912 | 24,428 |
Total shareholders’ equity | 187,255 | 187,816 |
Total liabilities and shareholders' equity | $ 297,511 | $ 312,736 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 30, 2020 | 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 | 3,610,411 | 3,613,439 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
Net income (loss) | $ 4,913 | $ 3,037 | $ 6,498 | $ (14,132) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||
Depreciation | 14,349 | 12,543 | |||
Foreign currency transaction (gain) loss | (2,515) | 192 | (2,067) | 261 | |
Unrealized loss (gain) on peso forward contracts | 1,048 | (23) | 1,048 | (116) | |
Stock based compensation expense | 789 | 867 | |||
Equity loss (earnings) of joint ventures | 921 | (66) | (55) | (2,451) | |
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 | 11,014 | (14,411) | |||
Inventories | (11,086) | (168) | |||
Other assets | 1,798 | 7,553 | |||
Accounts payable and accrued liabilities | 3,683 | 10,753 | |||
Other, net | 522 | (281) | |||
Net cash provided by operating activities | 29,934 | 24,721 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
Investment in joint ventures | (200) | ||||
Purchase of property, plant and equipment | (10,307) | (13,550) | |||
Proceeds received on sale of property, plant and equipment | 29 | 12 | |||
Net cash used in investing activities | (10,278) | (13,738) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Borrowings under credit facility | 2,000 | ||||
Repayment of borrowings under credit facility | (15,000) | (9,000) | |||
Dividends paid to non-controlling interests of subsidiaries | (980) | (1,384) | |||
Dividends paid | (1,572) | (1,546) | |||
Exercise of stock options and employee stock purchases | 543 | 244 | |||
Net cash used in financing activities | (17,009) | (9,686) | |||
Foreign currency impact on cash | (283) | (185) | |||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 2,364 | 1,112 | |||
CASH AND CASH EQUIVALENTS | |||||
Beginning of period | 7,809 | 8,090 | 8,090 | ||
End of period | $ 10,173 | $ 9,202 | 10,173 | 9,202 | $ 7,809 |
Cash paid during the period for: | |||||
Income taxes | 768 | 230 | |||
Interest | 838 | 1,229 | |||
Non-cash investing activities: | |||||
Change in capital expenditures in accounts payable | $ (1,318) | $ (405) |
Basis of Financial Statements
Basis of Financial Statements | 9 Months Ended |
Mar. 29, 2020 | |
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 March 29, 2020 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. |
Risks and Uncertainties
Risks and Uncertainties | 9 Months Ended |
Mar. 29, 2020 | |
Risks And Uncertainties [Abstract] | |
Risks and Uncertainties | Risks and Uncertainties In December 2019, a novel strain of coronavirus (COVID-19) was reported in Wuhan, China. The coronavirus has since spread, and infections have been found in multiple countries around the world, including the United States. In March 2020, the World Health Organization recognized the COVID-19 outbreak as a pandemic based on the global spread of the disease, the severity of illnesses it causes and its effects on society. In response to the COVID-19 outbreak, the governments of many countries, states, cities and other geographic regions have taken preventative or protective actions, such as imposing restrictions on travel and business operations and advising or requiring individuals to limit or forego their time outside of their homes. Accordingly, the COVID-19 outbreak has severely restricted the level of economic activity in many countries, and continues to adversely impact global economic activity. STRATTEC’s operating performance is subject to global economic conditions and levels of consumer spending specifically within the automotive industry. During the three months ended March 29, 2020, the impact of the COVID-19 outbreak on our operating results has not been significant. However, the extent of the impact of the COVID-19 outbreak on our future operating results will depend on certain developments, including the duration, intensity and continued spread of the outbreak, regulatory and private sector responses, which may be precautionary, and the impact to our customers, workforce and suppliers, all of which are uncertain and cannot be predicted. These changing conditions may also affect the estimates and assumptions made by management. Such estimates and assumptions affect, among other things, our long-lived asset valuations, equity investment valuation, assessment of our annual effective tax rate, valuation of deferred income taxes, assessment of excess and obsolete inventory reserves, and assessment of collectability of trade receivables. Events and changes in circumstances arising after March 29, 2020, including those resulting from the impacts of COVID-19, will be reflected in management’s estimates for future periods. During April 2020, the majority of our OEM customer assembly plant operations were completely closed including the majority of the supply chain. Additionally, during April 2020, STRATTEC’s Mexico facilities were closed as a result of the Mexico government’s shutdown of non-essential businesses. Initial re-opening of our OEM customer facilities for operations is scheduled to begin in May 2020, but there is no certainty this will occur on that timeline. Timing of the reopening of our Mexico facilities and the potential for designation of our Mexico facilities as essential is also uncertain. Based on information available, our current estimates indicate our net sales for the upcoming fourth fiscal quarter could be down 50 percent or more compared to our quarter ended March 29, 2020 depending on how long the COVID-19 virus will require the industry to remain idle. Fourth fiscal quarter sales could be more severely impacted if the initial re-opening of our customer facilities is delayed past May 2020. We anticipate our fourth fiscal quarter of 2020 will be the worst or trough quarter and that thereafter the automotive industry can restart and ramp back up production again during our fiscal 2021. The impact on our overall cash liquidity will most likely occur at the beginning of our fiscal year 2021 with a reduction in payments from customers resulting from lower fourth quarter fiscal 2020 net sales as previously discussed. The lower cash liquidity will cause us to utilize our credit facilities to fund our increased working capital requirements. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Mar. 29, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event As a result of the impacts of the COVID-19 outbreak, during our fiscal 2020 fourth quarter, we are adjusting the cost structure of our business with temporary and permanent layoffs at our U.S. and Mexico locations, reductions in pay for our officers, reductions in working hours for most salaried associates, and a reduction in our U.S. salaried workforce. We expect the cost structure changes for U.S. salaried associates will save approximately $4.0 million in salary and benefit costs on an annualized pre-tax basis. However, these savings will be partially offset during our fourth fiscal 2020 quarter with a pre-tax charge to earnings of approximately $250,000 for severance and outplacement costs. |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Mar. 29, 2020 | |
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 | 9 Months Ended |
Mar. 29, 2020 | |
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. We have contracts with Bank of Montreal that provide for monthly Mexican peso currency forward contracts for a portion of our estimated peso denominated operating costs. Our objective in entering into currency forward contracts is to minimize our earnings volatility resulting from changes in exchange rates affecting the U.S. dollar cost of our Mexican operations. The Mexican peso forward contracts are not used for speculative purposes and are not designated as hedges. As a result, all currency forward contracts are recognized in our accompanying condensed consolidated financial statements at fair value and changes in the fair value are reported in current earnings as part of Other Income (Expense), net. The following table quantifies the outstanding Mexican peso forward contracts as of March 29, 2020 (thousands of dollars, except with respect to the average forward contractual exchange rate): Effective Dates Notional Amount Average Forward Contractual Exchange Rate Fair Value Buy MXP/Sell USD April 15, 2020 - June 17, 2020 $ 4,500 21.30 $ (414 ) Buy MXP/Sell USD July 15, 2020 - December 16, 2020 $ 6,000 21.40 $ (634 ) The fair market value of all outstanding Mexican peso forward contracts in the accompanying Condensed Consolidated Balance Sheets as of the dates specified was as follows (thousands of dollars): March 29, 2020 June 30, 2019 Not Designated as Hedging Instruments: Other Current Liabilities: Mexican Peso Forward Contracts $ 1,048 $ — The pre-tax effects of the Mexican peso forward contracts are included in Other Income (Expense), net on the accompanying Condensed Consolidated Statements of Income (Loss) and Comprehensive (Loss) Income and consisted of the following for the periods indicated below (thousands of dollars): Three Months Ended Nine Months Ended March 29, 2020 March 31, 2019 March 29, 2020 March 31, 2019 Not Designated as Hedging Instruments: Realized Gain $ — $ 122 $ — $ 344 Unrealized (Loss) Gain $ (1,048 ) $ 23 $ (1,048 ) $ 116 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Mar. 29, 2020 | |
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 March 29, 2020 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 March 29, 2020 (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 $ 204 $ — $ — Mid Cap 234 — — Large Cap 517 — — International 694 — — Fixed Income Funds 920 — — Cash and Cash Equivalents — 4 — Total Assets at Fair Value $ 2,569 $ 4 $ — Liabilities: Mexican Peso Forward Contracts $ — $ (1,048 ) $ — 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. Refer to discussion of Mexican peso forward contracts under Derivative Instruments above. The fair value of the Mexican peso forward contracts considers the remaining term, current exchange rate, and interest rate differentials between the Mexican peso and the U.S. dollar. |
Equity (Loss) Earnings of Joint
Equity (Loss) Earnings of Joint Ventures | 9 Months Ended |
Mar. 29, 2020 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Equity (Loss) Earnings of Joint Ventures | Equity (Loss) Earnings of Joint Ventures We hold a one-third The following are summarized statements of operations for VAST LLC (in thousands): Three Months Ended Nine Months Ended March 29, 2020 March 31, 2019 March 29, 2020 March 31, 2019 Net Sales $ 30,490 $ 35,771 $ 117,537 $ 123,546 Cost of Goods Sold 25,679 29,303 96,131 98,173 Gross Profit 4,811 6,468 21,406 25,373 Engineering, Selling and Administrative Expenses 7,524 7,377 21,528 20,246 (Loss) Income From Operations (2,713 ) (909 ) (122 ) 5,127 Other (Expense) Income, net (424 ) 882 1,079 3,186 (Loss) Income before Provision for Income Taxes (3,137 ) (27 ) 957 8,313 Provision (Benefit) for Income Taxes (294 ) (64 ) 851 1,061 Net (Loss) Income $ (2,843 ) $ 37 $ 106 $ 7,252 STRATTEC’s Share of VAST LLC Net (Loss) Income $ (947 ) $ 12 $ 36 $ 2,417 Intercompany Profit Elimination — 13 — 10 STRATTEC’s Equity (Loss) Earnings of VAST LLC $ (947 ) $ 25 $ 36 $ 2,427 The business of our joint venture company, SAL LLC, has been wound down to sell only commercial biometric locks. STRATTEC’s equity income of SAL LLC totaled $26,000 and $19,000 for the three and nine month periods ended March 29, 2020, respectively. STRATTEC’s equity earnings of SAL LLC totaled $41,000 and $24,000 for the three and nine month periods ended March 31, 2019, respectively. We have sales of component parts 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 Nine Months Ended March 29, 2020 March 31, 2019 March 29, 2020 March 31, 2019 Sales to VAST LLC $ 483 $ 878 $ 3,035 $ 2,751 Purchases from VAST LLC $ 172 $ 36 $ 351 $ 164 Expenses Charged to VAST LLC $ 686 $ 317 $ 2,036 $ 1,096 Expenses Charged from VAST LLC $ 192 $ 192 $ 636 $ 628 |
Leases
Leases | 9 Months Ended |
Mar. 29, 2020 | |
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): March 29, 2020 Right-of Use Asset Under Operating Lease: Other Long-Term Assets $ 3,838 Lease Obligation Under Operating Lease: Current Liabilities: Accrued Liabilities: Other $ 343 Other Long-Term Liabilities 3,495 $ 3,838 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 March 29, 2020 (in thousands): 2020 (for the remaining three months) $ 116 2021 473 2022 484 2023 497 2024 509 Thereafter 2,356 Total Future Minimum Lease Payments 4,435 Less: Imputed Interest (597 ) Total Lease Obligations $ 3,838 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): Nine Months Ended March 29, 2020 Operating Cash Flows: Cash Paid Related to Operating Lease Obligation $ 345 Non-Cash Activity: Right-of-Use Asset Obtained in Exchange for Operating Lease Obligation $ — The weighted average lease term and discount rate for the El Paso, Texas operating lease are shown below: March 29, 2020 Weighted Average Remaining Lease Term (in years) 8.6 Weighted Average Discount Rate 3.3 % Operating lease expense for the three and nine month periods ended March 29, 2020 totaled $116,000 and $345,000, respectively. |
Credit Facilities
Credit Facilities | 9 Months Ended |
Mar. 29, 2020 | |
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 March 29, 2020, we were in compliance with all financial covenants required by these credit facilities. Outstanding borrowings under the credit facilities were as follows (in thousands): March 29, 2020 June 30, 2019 STRATTEC Credit Facility $ 12,000 $ 18,000 ADAC-STRATTEC Credit Facility 15,000 24,000 $ 27,000 $ 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): Nine Months Ended Average Weighted Average Interest Rate March 29, 2020 March 31, 2019 March 29, 2020 March 31, 2019 STRATTEC Credit Facility $ 13,799 $ 22,212 2.9 % 3.3 % ADAC-STRATTEC Credit Facility $ 20,062 $ 26,286 3.2 % 3.4 % |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 29, 2020 | |
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 March 29, 2020, costs of approximately $612,000 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 March 29, 2020 is adequate. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Mar. 29, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | S hareholders’ Equity A summary of activity impacting shareholders’ equity for the three and nine month periods ended March 29, 2020 and March 31, 2019 were as follows (in thousands): Three Months Ended March 29, 2020 Total Shareholders’ Equity Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Non-Controlling Interest Balance, December 29, 2019 $ 188,849 $ 74 $ 97,601 $ 219,973 $ (18,486 ) $ (135,693 ) $ 25,380 Net Income 4,913 — — 2,994 — — 1,919 Dividend Declared (525 ) — — (525 ) — — — Dividend Declared – Non- controlling Interests of Subsidiaries - — — — — — — Translation Adjustments (6,245 ) — — — (3,858 ) — (2,387 ) Stock Based Compensation 165 — 165 — — — — Pension and Postretirement Adjustment, Net of Tax 74 — — — 74 — — Stock Option Exercises - — — — — — — Employee Stock Purchases 24 — 7 — — 17 — Balance, March 29, 2020 $ 187,255 $ 74 $ 97,773 $ 222,442 $ (22,270 ) $ (135,676 ) $ 24,912 Three Months Ended March 31, 2019 Total Shareholders’ Equity Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Non-Controlling Interest Balance, December 30, 2018 $ 183,757 $ 73 $ 95,818 $ 220,483 $ (18,648 ) $ (135,758 ) $ 21,789 Net Loss 3,037 — — 1,730 — — 1,307 Dividend Declared (517 ) — — (517 ) — — — Dividend Declared – Non- controlling Interests of Subsidiaries (400 ) — — — — — (400 ) Translation Adjustments 1,037 — — — 912 — 125 Stock Based Compensation 241 — 241 — — — — Pension and Postretirement Adjustment, Net of Tax (1 ) — — — (1 ) — — Stock Option Exercises 140 — 140 — — — — Employee Stock Purchases 32 — 16 — — 16 — Balance, March 31, 2019 $ 187,326 $ 73 $ 96,215 $ 221,696 $ (17,737 ) $ (135,742 ) $ 22,821 Nine Months Ended March 29, 2020 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 6,498 — — 2,897 — — 3,601 Dividend Declared (1,572 ) — — (1,572 ) — — — Dividend Declared – Non- controlling Interests of Subsidiaries (980 ) — — — — — (980 ) Translation Adjustments (6,059 ) — — — (3,922 ) — (2,137 ) Stock Based Compensation 789 — 789 — — — — Pension and Postretirement Adjustment, Net of Tax 220 — — — 220 — — Stock Option Exercises 478 1 477 — — — — Employee Stock Purchases 65 — 16 — — 49 — Balance, March 29, 2020 $ 187,255 $ 74 $ 97,773 $ 222,442 $ (22,270 ) $ (135,676 ) $ 24,912 Nine Months Ended March 31, 2019 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 (14,132 ) — — (16,967 ) — — 2,835 Dividend Declared (1,546 ) — — (1,546 ) — — — Dividend Declared – Non- controlling Interests of Subsidiaries (1,384 ) — — — — — (1,384 ) Translation Adjustments 39 — — — (243 ) — 282 Stock Based Compensation 867 — 867 — — — — Pension and Postretirement Adjustment, Net of Tax 19,992 — — — 19,992 — — Reclassification of Stranded Tax Effects — — — 4,047 (4,047 ) — — Stock Option Exercises 172 — 172 — — — — Employee Stock Purchases 72 — 36 — — 36 — Balance, March 31, 2019 $ 187,326 $ 73 $ 96,215 $ 221,696 $ (17,737 ) $ (135,742 ) $ 22,821 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Mar. 29, 2020 | |
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 March 29, 2020. 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 nine month period ended March 29, 2020 was as follows (thousands of dollars): Balance, June 30, 2019 $ 932 Discounts Recorded as a Reduction in Sales 985 Payments of Discounts to Customers (915 ) Other 29 Balance, March 29, 2020 $ 1,031 Revenue by Product Group and Customer: Revenue by product group for the periods presented was as follows (thousands of dollars): Three Months Ended Nine Months Ended March 29, 2020 March 31, 2019 March 29, 2020 March 31, 2019 Keys & Locksets $ 30,186 $ 34,677 $ 91,832 $ 101,722 Door Handles & Exterior Trim 31,296 32,212 88,818 83,973 Power Access 21,259 25,398 56,979 68,193 Latches 13,685 12,602 40,656 35,366 Aftermarket & OE Service 11,141 10,839 34,189 32,599 Driver Controls 7,549 10,532 25,310 31,370 Other 1,822 1,970 5,399 5,079 $ 116,938 $ 128,230 $ 343,183 $ 358,302 Revenue by customer or customer group for the periods presented was as follows (thousands of dollars): Three Months Ended Nine Months Ended March 29, 2020 March 31, 2019 March 29, 2020 March 31, 2019 Fiat Chrysler Automobiles $ 26,050 $ 29,917 $ 78,686 $ 85,824 General Motors Company 31,656 30,969 90,899 80,111 Ford Motor Company 15,462 15,942 46,527 47,579 Tier 1 Customers 17,495 20,078 50,026 56,357 Commercial and Other OEM Customers 20,184 22,794 62,950 65,190 Hyundai / Kia 6,091 8,530 14,095 23,241 $ 116,938 $ 128,230 $ 343,183 $ 358,302 |
Other Income (Expense), Net
Other Income (Expense), Net | 9 Months Ended |
Mar. 29, 2020 | |
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 Income (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. Unrealized gains and losses on the peso forward contracts recognized as a result of mark-to-market adjustments as of March 29, 2020 may or may not be realized in future periods, depending on the actual Mexican peso to U.S. dollar exchange rates experienced during the balance of the contract period. The Rabbi Trust assets fund our amended and restated supplemental executive retirement plan. The investments held in this Trust are considered trading securities. The impact of these items for each of the periods presented was as follows (in thousands): Three Months Ended Nine Months Ended March 29, 2020 March 31, 2019 March 29, 2020 March 31, 2019 Foreign Currency Transaction Gain (Loss) $ 2,515 $ (192 ) $ 2,067 $ (261 ) Unrealized (Loss) Gain on Peso Forward Contracts (1,048 ) 23 (1,048 ) 116 Realized Gain on Peso Forward Contracts — 122 — 344 Pension and Postretirement Plans Cost (118 ) (27 ) (352 ) (662 ) Rabbi Trust (Loss) Gain (550 ) 257 (365 ) 57 Other 250 26 673 108 $ 1,049 $ 209 $ 975 $ (298 ) |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 29, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate was 20.8% and 20.6% for the three months ended March 29, 2020 and March 31, 2019, respectively. Our effective tax rate was 15.5% and 33.1% for the nine months ended March 29, 2020 and March 31, 2019, respectively. During the nine month period ended March 29, 2020, 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 nine month period ended March 31, 2019, 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 10.7 percent for the nine month period ended March 31, 2019 to 18.3 percent for the nine month period ended March 29, 2020 due to a larger tax benefit in the nine month period ended March 31, 2020 resulting from the carry-back of forecasted losses for our fiscal 2020, which are the result of forecasted losses in our fiscal 2020 fourth quarter resulting from the COVID-19 outbreak, to tax years with a higher statutory rate. Our effective tax rate differs from the statutory tax rate due to the GILTI provisions, our available R&D tax credit, the forecasted carry-back of losses to tax years with a higher statutory rate 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. STRATTEC is currently subject to state income tax examinations in our Wisconsin jurisdiction for fiscal years 2015, 2016, 2017, and 2018. The audit is currently in process and preliminary results are not yet available. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Mar. 29, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (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 March 29, 2020 March 31, 2019 Net Income Shares Per-Share Amount Net Income Shares Per-Share Amount Basic Earnings Per Share $ 2,994 3,748 $ 0.80 $ 1,730 3,684 $ 0.47 Stock Option and Restricted Stock Awards — 20 — 44 Diluted Earnings Per Share $ 2,994 3,768 $ 0.79 $ 1,730 3,728 $ 0.46 Nine Months Ended March 29, 2020 March 31, 2019 Net Loss Shares Per-Share Amount Net Loss Shares Per-Share Amount Basic Earnings (Loss) Per Share $ 2,897 3,733 $ 0.78 $ (16,967 ) 3,670 $ (4.62 ) Stock Option and Restricted Stock Awards — 19 — — Diluted Earnings (Loss) Per Share $ 2,897 3,752 $ 0.77 $ (16,967 ) 3,670 $ (4.62 ) The calculation of loss per share excluded 111,060 and 41,200 share-based payment awards for the quarters ended March 29, 2020 and March 31, 2019, respectively, because their inclusion would have been anti-dilutive. The calculation of earnings (loss) per share excluded 111,060 and 181,867 share-based payment awards for the nine month periods ended March 29, 2020 and March 31, 2019, respectively, because their inclusion would have been anti-dilutive. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Mar. 29, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation We maintain an omnibus stock incentive plan. This plan provides for the granting of stock options, shares of restricted stock and stock appreciation rights. As of March 29, 2020, the Board of Directors had designated 1,850,000 shares of common stock available for the grant of awards under the plan. Remaining shares available to be granted under the plan as of March 29, 2020 were 115,609. 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 nine months ended March 29, 2020 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, March 29, 2020 90,860 $ 35.88 2.7 $ — Exercisable, March 29, 2020 90,860 $ 35.88 2.7 $ — The intrinsic value of stock options exercised and the fair value of stock options that vested during the three and nine month periods presented below were as follows (in thousands): Three Months Ended Nine Months Ended March 29, 2020 March 31, 2019 March 29, 2020 March 31, 2019 Intrinsic Value of Options Exercised $ — $ 269 $ 120 $ 324 Fair Value of Stock Options Vesting $ — $ — $ — $ — No options were granted during the nine month periods ended March 29, 2020 or March 31, 2019. A summary of restricted stock activity under our omnibus stock incentive plan for the nine months ended March 29, 2020 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 (5,470 ) $ 35.13 Nonvested Balance, March 29, 2020 70,119 $ 30.57 As of March 29, 2020, all compensation cost related to outstanding stock options granted under our omnibus stock incentive plan has been recognized. As of March 29, 2020, there was approximately $1.1 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 0.9 years. Total unrecognized compensation cost will be adjusted for any future changes in estimated and actual forfeitures of awards granted under our omnibus stock incentive plan. |
Pension and Postretirement Bene
Pension and Postretirement Benefits | 9 Months Ended |
Mar. 29, 2020 | |
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. 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 TMI Trust Company. 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 $2.6 million at March 29, 2020 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 Income (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 March 29, 2020 March 31, 2019 March 29, 2020 March 31, 2019 Service Cost $ 19 $ 15 $ 3 $ 2 Interest Cost 16 19 6 8 Amortization of Prior Service Credit — — (7 ) (109 ) Amortization of Unrecognized Net Loss 4 — 99 109 Net Periodic Benefit Cost $ 39 $ 34 $ 101 $ 10 Pension Benefits Postretirement Benefits Nine Months Ended Nine Months Ended March 29, 2020 March 31, 2019 March 29, 2020 March 31, 2019 Service Cost $ 56 $ 46 $ 9 $ 8 Interest Cost 46 2,083 19 30 Expected Return on Plan Assets — (2,276 ) — — Plan Settlements — 32,434 — — Amortization of Prior Service Credit — — (22 ) (329 ) Amortization of Unrecognized Net Loss 11 832 298 323 Net Periodic Benefit Cost $ 113 $ 33,119 $ 304 $ 32 Within the tables above, we have revised the plan settlement charge and net periodic benefit cost for the nine months ended March 31, 2019 that was previously disclosed in our March 31, 2019 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 nine month periods ended March 29, 2020 and March 31, 2019. No additional future contributions will be made to the Qualified Pension Plan. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Mar. 29, 2020 | |
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 March 29, 2020 Foreign Currency Translation Adjustments Retirement and Postretirement Benefit Plans Total Balance, December 29, 2019 $ 16,381 $ 2,105 $ 18,486 Other Comprehensive Income Before Reclassifications 6,245 — 6,245 Income Tax — — — Net Other Comprehensive Income Before Reclassifications 6,245 — 6,245 Reclassifications: Prior Service Credits (A) — 7 7 Unrecognized Net Loss (A) — (103 ) (103 ) Total Reclassifications Before Tax — (96 ) (96 ) Income Tax — 22 22 Net Reclassifications — (74 ) (74 ) Other Comprehensive Income 6,245 (74 ) 6,171 Other Comprehensive Income Attributable to Non- Controlling Interest 2,387 — 2,387 Balance, March 29, 2020 $ 20,239 $ 2,031 $ 22,270 Three Months Ended March 31, 2019 Foreign Currency Translation Adjustments Retirement and Postretirement Benefit Plans Total Balance, December 30, 2018 $ 16,529 $ 2,119 $ 18,648 Other Comprehensive Loss Before Reclassifications (1,037 ) — (1,037 ) Net Other Comprehensive Loss Before Reclassifications (1,037 ) — (1,037 ) Reclassifications: Prior Service Credits (A) — 109 109 Unrecognized Net Loss (A) — (109 ) (109 ) Total Reclassifications Before Tax — — — Income Tax — 1 1 Net Reclassifications — 1 1 Other Comprehensive Loss (Income) (1,037 ) 1 (1,036 ) Other Comprehensive Income Attributable to Non- Controlling Interest (125 ) — (125 ) Balance, March 31, 2019 $ 15,617 $ 2,120 $ 17,737 Nine Months Ended March 29, 2020 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 6,059 — 6,059 Income Tax — — — Net Other Comprehensive Income Before Reclassifications 6,059 — 6,059 Reclassifications: Prior Service Credits (A) — 22 22 Unrecognized Net Loss (A) — (309 ) (309 ) Total Reclassifications Before Tax — (287 ) (287 ) Income Tax — 67 67 Net Reclassifications — (220 ) (220 ) Other Comprehensive Income 6,059 (220 ) 5,839 Other Comprehensive Income Attributable to Non- Controlling Interest 2,137 — 2,137 Balance, March 29, 2020 $ 20,239 $ 2,031 $ 22,270 Nine Months Ended March 31, 2019 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 146 — 146 Income Tax (185 ) — (185 ) Net Other Comprehensive Loss Before Reclassifications (39 ) — (39 ) Reclassifications: Pension Termination Settlement (A) — (25,668 ) (25,668 ) Prior Service Credits (A) — 329 329 Unrecognized Net Loss (A) — (1,155 ) (1,155 ) Total Reclassifications Before Tax — (26,494 ) (26,494 ) Income Tax — 6,502 6,502 Net Reclassifications — (19,992 ) (19,992 ) Other Comprehensive Loss (Income) (39 ) (19,992 ) (20,031 ) Other Comprehensive Income Attributable to Non- Controlling Interest (282 ) — (282 ) Reclassification of stranded tax effects 83 3,964 4,047 Balance, March 31, 2019 $ 15,617 $ 2,120 $ 17,737 (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 Income (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) | 9 Months Ended |
Mar. 29, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Quantification of Outstanding Mexican Peso Forward Contracts | The following table quantifies the outstanding Mexican peso forward contracts as of March 29, 2020 (thousands of dollars, except with respect to the average forward contractual exchange rate): Effective Dates Notional Amount Average Forward Contractual Exchange Rate Fair Value Buy MXP/Sell USD April 15, 2020 - June 17, 2020 $ 4,500 21.30 $ (414 ) Buy MXP/Sell USD July 15, 2020 - December 16, 2020 $ 6,000 21.40 $ (634 ) |
Fair Market Value of All Outstanding Peso Forward Contracts | The fair market value of all outstanding Mexican peso forward contracts in the accompanying Condensed Consolidated Balance Sheets as of the dates specified was as follows (thousands of dollars): March 29, 2020 June 30, 2019 Not Designated as Hedging Instruments: Other Current Liabilities: Mexican Peso Forward Contracts $ 1,048 $ — |
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 Income (Loss) and Comprehensive (Loss) Income and consisted of the following for the periods indicated below (thousands of dollars): Three Months Ended Nine Months Ended March 29, 2020 March 31, 2019 March 29, 2020 March 31, 2019 Not Designated as Hedging Instruments: Realized Gain $ — $ 122 $ — $ 344 Unrealized (Loss) Gain $ (1,048 ) $ 23 $ (1,048 ) $ 116 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Mar. 29, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities at Fair Value on Recurring Basis | The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of March 29, 2020 (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 $ 204 $ — $ — Mid Cap 234 — — Large Cap 517 — — International 694 — — Fixed Income Funds 920 — — Cash and Cash Equivalents — 4 — Total Assets at Fair Value $ 2,569 $ 4 $ — Liabilities: Mexican Peso Forward Contracts $ — $ (1,048 ) $ — |
Equity (Loss) Earnings of Joi_2
Equity (Loss) Earnings of Joint Ventures (Tables) - VAST LLC | 9 Months Ended |
Mar. 29, 2020 | |
Summarized Statements of Operations | The following are summarized statements of operations for VAST LLC (in thousands): Three Months Ended Nine Months Ended March 29, 2020 March 31, 2019 March 29, 2020 March 31, 2019 Net Sales $ 30,490 $ 35,771 $ 117,537 $ 123,546 Cost of Goods Sold 25,679 29,303 96,131 98,173 Gross Profit 4,811 6,468 21,406 25,373 Engineering, Selling and Administrative Expenses 7,524 7,377 21,528 20,246 (Loss) Income From Operations (2,713 ) (909 ) (122 ) 5,127 Other (Expense) Income, net (424 ) 882 1,079 3,186 (Loss) Income before Provision for Income Taxes (3,137 ) (27 ) 957 8,313 Provision (Benefit) for Income Taxes (294 ) (64 ) 851 1,061 Net (Loss) Income $ (2,843 ) $ 37 $ 106 $ 7,252 STRATTEC’s Share of VAST LLC Net (Loss) Income $ (947 ) $ 12 $ 36 $ 2,417 Intercompany Profit Elimination — 13 — 10 STRATTEC’s Equity (Loss) Earnings of VAST LLC $ (947 ) $ 25 $ 36 $ 2,427 |
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 Nine Months Ended March 29, 2020 March 31, 2019 March 29, 2020 March 31, 2019 Sales to VAST LLC $ 483 $ 878 $ 3,035 $ 2,751 Purchases from VAST LLC $ 172 $ 36 $ 351 $ 164 Expenses Charged to VAST LLC $ 686 $ 317 $ 2,036 $ 1,096 Expenses Charged from VAST LLC $ 192 $ 192 $ 636 $ 628 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Mar. 29, 2020 | |
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): March 29, 2020 Right-of Use Asset Under Operating Lease: Other Long-Term Assets $ 3,838 Lease Obligation Under Operating Lease: Current Liabilities: Accrued Liabilities: Other $ 343 Other Long-Term Liabilities 3,495 $ 3,838 |
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 March 29, 2020 (in thousands): 2020 (for the remaining three months) $ 116 2021 473 2022 484 2023 497 2024 509 Thereafter 2,356 Total Future Minimum Lease Payments 4,435 Less: Imputed Interest (597 ) Total Lease Obligations $ 3,838 |
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): Nine Months Ended March 29, 2020 Operating Cash Flows: Cash Paid Related to Operating Lease Obligation $ 345 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 El Paso, Texas operating lease are shown below: March 29, 2020 Weighted Average Remaining Lease Term (in years) 8.6 Weighted Average Discount Rate 3.3 % |
Credit Facilities (Tables)
Credit Facilities (Tables) | 9 Months Ended |
Mar. 29, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Borrowings Under the Credit Facilities | Outstanding borrowings under the credit facilities were as follows (in thousands): March 29, 2020 June 30, 2019 STRATTEC Credit Facility $ 12,000 $ 18,000 ADAC-STRATTEC Credit Facility 15,000 24,000 $ 27,000 $ 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): Nine Months Ended Average Weighted Average Interest Rate March 29, 2020 March 31, 2019 March 29, 2020 March 31, 2019 STRATTEC Credit Facility $ 13,799 $ 22,212 2.9 % 3.3 % ADAC-STRATTEC Credit Facility $ 20,062 $ 26,286 3.2 % 3.4 % |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Mar. 29, 2020 | |
Equity [Abstract] | |
Summary of Activity Impacting Shareholders' Equity | A summary of activity impacting shareholders’ equity for the three and nine month periods ended March 29, 2020 and March 31, 2019 were as follows (in thousands): Three Months Ended March 29, 2020 Total Shareholders’ Equity Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Non-Controlling Interest Balance, December 29, 2019 $ 188,849 $ 74 $ 97,601 $ 219,973 $ (18,486 ) $ (135,693 ) $ 25,380 Net Income 4,913 — — 2,994 — — 1,919 Dividend Declared (525 ) — — (525 ) — — — Dividend Declared – Non- controlling Interests of Subsidiaries - — — — — — — Translation Adjustments (6,245 ) — — — (3,858 ) — (2,387 ) Stock Based Compensation 165 — 165 — — — — Pension and Postretirement Adjustment, Net of Tax 74 — — — 74 — — Stock Option Exercises - — — — — — — Employee Stock Purchases 24 — 7 — — 17 — Balance, March 29, 2020 $ 187,255 $ 74 $ 97,773 $ 222,442 $ (22,270 ) $ (135,676 ) $ 24,912 Three Months Ended March 31, 2019 Total Shareholders’ Equity Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Non-Controlling Interest Balance, December 30, 2018 $ 183,757 $ 73 $ 95,818 $ 220,483 $ (18,648 ) $ (135,758 ) $ 21,789 Net Loss 3,037 — — 1,730 — — 1,307 Dividend Declared (517 ) — — (517 ) — — — Dividend Declared – Non- controlling Interests of Subsidiaries (400 ) — — — — — (400 ) Translation Adjustments 1,037 — — — 912 — 125 Stock Based Compensation 241 — 241 — — — — Pension and Postretirement Adjustment, Net of Tax (1 ) — — — (1 ) — — Stock Option Exercises 140 — 140 — — — — Employee Stock Purchases 32 — 16 — — 16 — Balance, March 31, 2019 $ 187,326 $ 73 $ 96,215 $ 221,696 $ (17,737 ) $ (135,742 ) $ 22,821 Nine Months Ended March 29, 2020 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 6,498 — — 2,897 — — 3,601 Dividend Declared (1,572 ) — — (1,572 ) — — — Dividend Declared – Non- controlling Interests of Subsidiaries (980 ) — — — — — (980 ) Translation Adjustments (6,059 ) — — — (3,922 ) — (2,137 ) Stock Based Compensation 789 — 789 — — — — Pension and Postretirement Adjustment, Net of Tax 220 — — — 220 — — Stock Option Exercises 478 1 477 — — — — Employee Stock Purchases 65 — 16 — — 49 — Balance, March 29, 2020 $ 187,255 $ 74 $ 97,773 $ 222,442 $ (22,270 ) $ (135,676 ) $ 24,912 Nine Months Ended March 31, 2019 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 (14,132 ) — — (16,967 ) — — 2,835 Dividend Declared (1,546 ) — — (1,546 ) — — — Dividend Declared – Non- controlling Interests of Subsidiaries (1,384 ) — — — — — (1,384 ) Translation Adjustments 39 — — — (243 ) — 282 Stock Based Compensation 867 — 867 — — — — Pension and Postretirement Adjustment, Net of Tax 19,992 — — — 19,992 — — Reclassification of Stranded Tax Effects — — — 4,047 (4,047 ) — — Stock Option Exercises 172 — 172 — — — — Employee Stock Purchases 72 — 36 — — 36 — Balance, March 31, 2019 $ 187,326 $ 73 $ 96,215 $ 221,696 $ (17,737 ) $ (135,742 ) $ 22,821 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Mar. 29, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Contract Liability Balances | The activity related to contract liability balances during the nine month period ended March 29, 2020 was as follows (thousands of dollars): Balance, June 30, 2019 $ 932 Discounts Recorded as a Reduction in Sales 985 Payments of Discounts to Customers (915 ) Other 29 Balance, March 29, 2020 $ 1,031 |
Revenue by Product Group and Customer | Revenue by product group for the periods presented was as follows (thousands of dollars): Three Months Ended Nine Months Ended March 29, 2020 March 31, 2019 March 29, 2020 March 31, 2019 Keys & Locksets $ 30,186 $ 34,677 $ 91,832 $ 101,722 Door Handles & Exterior Trim 31,296 32,212 88,818 83,973 Power Access 21,259 25,398 56,979 68,193 Latches 13,685 12,602 40,656 35,366 Aftermarket & OE Service 11,141 10,839 34,189 32,599 Driver Controls 7,549 10,532 25,310 31,370 Other 1,822 1,970 5,399 5,079 $ 116,938 $ 128,230 $ 343,183 $ 358,302 Revenue by customer or customer group for the periods presented was as follows (thousands of dollars): Three Months Ended Nine Months Ended March 29, 2020 March 31, 2019 March 29, 2020 March 31, 2019 Fiat Chrysler Automobiles $ 26,050 $ 29,917 $ 78,686 $ 85,824 General Motors Company 31,656 30,969 90,899 80,111 Ford Motor Company 15,462 15,942 46,527 47,579 Tier 1 Customers 17,495 20,078 50,026 56,357 Commercial and Other OEM Customers 20,184 22,794 62,950 65,190 Hyundai / Kia 6,091 8,530 14,095 23,241 $ 116,938 $ 128,230 $ 343,183 $ 358,302 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 9 Months Ended |
Mar. 29, 2020 | |
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 Nine Months Ended March 29, 2020 March 31, 2019 March 29, 2020 March 31, 2019 Foreign Currency Transaction Gain (Loss) $ 2,515 $ (192 ) $ 2,067 $ (261 ) Unrealized (Loss) Gain on Peso Forward Contracts (1,048 ) 23 (1,048 ) 116 Realized Gain on Peso Forward Contracts — 122 — 344 Pension and Postretirement Plans Cost (118 ) (27 ) (352 ) (662 ) Rabbi Trust (Loss) Gain (550 ) 257 (365 ) 57 Other 250 26 673 108 $ 1,049 $ 209 $ 975 $ (298 ) |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Mar. 29, 2020 | |
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 March 29, 2020 March 31, 2019 Net Income Shares Per-Share Amount Net Income Shares Per-Share Amount Basic Earnings Per Share $ 2,994 3,748 $ 0.80 $ 1,730 3,684 $ 0.47 Stock Option and Restricted Stock Awards — 20 — 44 Diluted Earnings Per Share $ 2,994 3,768 $ 0.79 $ 1,730 3,728 $ 0.46 Nine Months Ended March 29, 2020 March 31, 2019 Net Loss Shares Per-Share Amount Net Loss Shares Per-Share Amount Basic Earnings (Loss) Per Share $ 2,897 3,733 $ 0.78 $ (16,967 ) 3,670 $ (4.62 ) Stock Option and Restricted Stock Awards — 19 — — Diluted Earnings (Loss) Per Share $ 2,897 3,752 $ 0.77 $ (16,967 ) 3,670 $ (4.62 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Mar. 29, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity Under Our Stock Incentive Plan | A summary of stock option activity under our stock incentive plan for the nine months ended March 29, 2020 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, March 29, 2020 90,860 $ 35.88 2.7 $ — Exercisable, March 29, 2020 90,860 $ 35.88 2.7 $ — |
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 and nine month periods presented below were as follows (in thousands): Three Months Ended Nine Months Ended March 29, 2020 March 31, 2019 March 29, 2020 March 31, 2019 Intrinsic Value of Options Exercised $ — $ 269 $ 120 $ 324 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 nine months ended March 29, 2020 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 (5,470 ) $ 35.13 Nonvested Balance, March 29, 2020 70,119 $ 30.57 |
Pension and Postretirement Be_2
Pension and Postretirement Benefits (Tables) | 9 Months Ended |
Mar. 29, 2020 | |
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 March 29, 2020 March 31, 2019 March 29, 2020 March 31, 2019 Service Cost $ 19 $ 15 $ 3 $ 2 Interest Cost 16 19 6 8 Amortization of Prior Service Credit — — (7 ) (109 ) Amortization of Unrecognized Net Loss 4 — 99 109 Net Periodic Benefit Cost $ 39 $ 34 $ 101 $ 10 Pension Benefits Postretirement Benefits Nine Months Ended Nine Months Ended March 29, 2020 March 31, 2019 March 29, 2020 March 31, 2019 Service Cost $ 56 $ 46 $ 9 $ 8 Interest Cost 46 2,083 19 30 Expected Return on Plan Assets — (2,276 ) — — Plan Settlements — 32,434 — — Amortization of Prior Service Credit — — (22 ) (329 ) Amortization of Unrecognized Net Loss 11 832 298 323 Net Periodic Benefit Cost $ 113 $ 33,119 $ 304 $ 32 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Mar. 29, 2020 | |
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 March 29, 2020 Foreign Currency Translation Adjustments Retirement and Postretirement Benefit Plans Total Balance, December 29, 2019 $ 16,381 $ 2,105 $ 18,486 Other Comprehensive Income Before Reclassifications 6,245 — 6,245 Income Tax — — — Net Other Comprehensive Income Before Reclassifications 6,245 — 6,245 Reclassifications: Prior Service Credits (A) — 7 7 Unrecognized Net Loss (A) — (103 ) (103 ) Total Reclassifications Before Tax — (96 ) (96 ) Income Tax — 22 22 Net Reclassifications — (74 ) (74 ) Other Comprehensive Income 6,245 (74 ) 6,171 Other Comprehensive Income Attributable to Non- Controlling Interest 2,387 — 2,387 Balance, March 29, 2020 $ 20,239 $ 2,031 $ 22,270 Three Months Ended March 31, 2019 Foreign Currency Translation Adjustments Retirement and Postretirement Benefit Plans Total Balance, December 30, 2018 $ 16,529 $ 2,119 $ 18,648 Other Comprehensive Loss Before Reclassifications (1,037 ) — (1,037 ) Net Other Comprehensive Loss Before Reclassifications (1,037 ) — (1,037 ) Reclassifications: Prior Service Credits (A) — 109 109 Unrecognized Net Loss (A) — (109 ) (109 ) Total Reclassifications Before Tax — — — Income Tax — 1 1 Net Reclassifications — 1 1 Other Comprehensive Loss (Income) (1,037 ) 1 (1,036 ) Other Comprehensive Income Attributable to Non- Controlling Interest (125 ) — (125 ) Balance, March 31, 2019 $ 15,617 $ 2,120 $ 17,737 Nine Months Ended March 29, 2020 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 6,059 — 6,059 Income Tax — — — Net Other Comprehensive Income Before Reclassifications 6,059 — 6,059 Reclassifications: Prior Service Credits (A) — 22 22 Unrecognized Net Loss (A) — (309 ) (309 ) Total Reclassifications Before Tax — (287 ) (287 ) Income Tax — 67 67 Net Reclassifications — (220 ) (220 ) Other Comprehensive Income 6,059 (220 ) 5,839 Other Comprehensive Income Attributable to Non- Controlling Interest 2,137 — 2,137 Balance, March 29, 2020 $ 20,239 $ 2,031 $ 22,270 Nine Months Ended March 31, 2019 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 146 — 146 Income Tax (185 ) — (185 ) Net Other Comprehensive Loss Before Reclassifications (39 ) — (39 ) Reclassifications: Pension Termination Settlement (A) — (25,668 ) (25,668 ) Prior Service Credits (A) — 329 329 Unrecognized Net Loss (A) — (1,155 ) (1,155 ) Total Reclassifications Before Tax — (26,494 ) (26,494 ) Income Tax — 6,502 6,502 Net Reclassifications — (19,992 ) (19,992 ) Other Comprehensive Loss (Income) (39 ) (19,992 ) (20,031 ) Other Comprehensive Income Attributable to Non- Controlling Interest (282 ) — (282 ) Reclassification of stranded tax effects 83 3,964 4,047 Balance, March 31, 2019 $ 15,617 $ 2,120 $ 17,737 (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 Income (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) | 9 Months Ended |
Mar. 29, 2020SubsidiaryJoint_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 |
Risks and Uncertainties (Detail
Risks and Uncertainties (Details Textual) | 3 Months Ended |
Jun. 28, 2020 | |
Forecast | |
Concentration Risk [Line Items] | |
Percentage of estimated decline in fiscal 2020 quarter 4 sales compared to the quarter ended March 29, 2020 | 50.00% |
Subsequent Event (Details Textu
Subsequent Event (Details Textual) - Forecast | 3 Months Ended |
Jun. 28, 2020USD ($) | |
Subsequent Event [Line Items] | |
Severance and outplacement costs | $ 250,000 |
Cost Structure Changes For Salaried Associates | U.S. | |
Subsequent Event [Line Items] | |
Estimated annualized benefit from reduction in salary and benefit costs before tax | $ 4,000,000 |
New Accounting Standards (Detai
New Accounting Standards (Details Textual) - USD ($) | Mar. 29, 2020 | Jul. 01, 2019 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Operating lease right-of-use asset | $ 3,838,000 | |
Operating lease obligation | $ 3,838,000 | |
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 - Schedu
Derivative Instruments - Schedule of Quantification of Outstanding Mexican Peso Forward Contracts (Details) | 9 Months Ended |
Mar. 29, 2020USD ($)$ / $ | |
Currency buy sell under contract one | |
Derivative [Line Items] | |
Effective Dates, Inception | Apr. 15, 2020 |
Effective Dates, Maturity | Jun. 17, 2020 |
Notional Amount | $ 4,500,000 |
Average Forward Contractual Exchange Rate | $ / $ | 21.30 |
Fair Value | $ (414,000) |
Currency buy sell under contract two | |
Derivative [Line Items] | |
Effective Dates, Inception | Jul. 15, 2020 |
Effective Dates, Maturity | Dec. 16, 2020 |
Notional Amount | $ 6,000,000 |
Average Forward Contractual Exchange Rate | $ / $ | 21.40 |
Fair Value | $ (634,000) |
Derivative Instruments - Fair M
Derivative Instruments - Fair Market Value of All Outstanding Peso Forward Contracts (Details) $ in Thousands | Mar. 29, 2020USD ($) |
Other Current Liabilities | Mexican Peso Forward Contracts | |
Not designated as hedging instruments: | |
Fair market value of derivative instruments | $ 1,048 |
Derivative Instruments - Pre-Ta
Derivative Instruments - Pre-Tax Effects of the Peso Forward Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | |
Pre-tax effects of the Mexican peso forward contracts | ||||
Realized Gain | $ 122 | $ 344 | ||
Unrealized (Loss) Gain | $ (1,048) | 23 | $ (1,048) | 116 |
Not Designated as Hedging Instrument | Other Expense, Net | ||||
Pre-tax effects of the Mexican peso forward contracts | ||||
Realized Gain | 122 | 344 | ||
Unrealized (Loss) Gain | $ (1,048) | $ 23 | $ (1,048) | $ 116 |
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 | Mar. 29, 2020USD ($) |
Level 1 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | $ 2,569 |
Level 1 | Fixed Income Funds | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | 920 |
Level 1 | Stock Index Funds | Small Cap | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | 204 |
Level 1 | Stock Index Funds | Mid Cap | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | 234 |
Level 1 | Stock Index Funds | Large Cap | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | 517 |
Level 1 | Stock Index Funds | International | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | 694 |
Level 2 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | 4 |
Level 2 | Cash and Cash Equivalents | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | 4 |
Level 2 | Mexican Peso Forward Contracts | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Liabilities at Fair Value | $ (1,048) |
Equity (Loss) Earnings of Joi_3
Equity (Loss) Earnings of Joint Ventures (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | |
Schedule Of Equity Method Investments [Line Items] | ||||
Equity (loss) earnings of joint ventures | $ (921,000) | $ 66,000 | $ 55,000 | $ 2,451,000 |
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 | $ (947,000) | 25,000 | $ 36,000 | 2,427,000 |
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 | $ 26,000 | $ 41,000 | $ 19,000 | $ 24,000 |
Equity (Loss) Earnings of Joi_4
Equity (Loss) Earnings of Joint Ventures - Summarized Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | |
Summarized statements of operations | ||||
STRATTEC’s Equity (Loss) Earnings of VAST LLC | $ (921) | $ 66 | $ 55 | $ 2,451 |
VAST LLC | ||||
Summarized statements of operations | ||||
Net Sales | 30,490 | 35,771 | 117,537 | 123,546 |
Cost of Goods Sold | 25,679 | 29,303 | 96,131 | 98,173 |
Gross Profit | 4,811 | 6,468 | 21,406 | 25,373 |
Engineering, Selling and Administrative Expenses | 7,524 | 7,377 | 21,528 | 20,246 |
(Loss) Income From Operations | (2,713) | (909) | (122) | 5,127 |
Other (Expense) Income, net | (424) | 882 | 1,079 | 3,186 |
(Loss) Income before Provision for Income Taxes | (3,137) | (27) | 957 | 8,313 |
Provision (Benefit) for Income Taxes | (294) | (64) | 851 | 1,061 |
Net (Loss) Income | (2,843) | 37 | 106 | 7,252 |
STRATTEC’s Share of VAST LLC Net (Loss) Income | (947) | 12 | 36 | 2,417 |
Intercompany Profit Elimination | 13 | 10 | ||
STRATTEC’s Equity (Loss) Earnings of VAST LLC | $ (947) | $ 25 | $ 36 | $ 2,427 |
Equity (Loss) Earnings of Joi_5
Equity (Loss) Earnings of Joint Ventures - Summarize of Related Party Transaction (Details) - VAST LLC - Equity Method Investee - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | |
Schedule Of Equity Method Investments [Line Items] | ||||
Sales to VAST LLC | $ 483 | $ 878 | $ 3,035 | $ 2,751 |
Purchases from VAST LLC | 172 | 36 | 351 | 164 |
Expenses Charged to VAST LLC | 686 | 317 | 2,036 | 1,096 |
Expenses Charged from VAST LLC | $ 192 | $ 192 | $ 636 | $ 628 |
Leases (Details Textual)
Leases (Details Textual) | 3 Months Ended | 9 Months Ended |
Mar. 29, 2020USD ($) | Mar. 29, 2020USD ($) | |
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 | $ 345,000 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Asset and Obligation Included in Condensed Consolidated Balance Sheet (Details) $ in Thousands | Mar. 29, 2020USD ($) |
Right-of Use Asset Under Operating Lease: | |
Operating lease right-of-use asset | $ 3,838 |
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 | $ 3,495 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent |
Operating Lease, Liability | $ 3,838 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Under Non-Cancelable Lease Including Options to Extend (Details) $ in Thousands | Mar. 29, 2020USD ($) |
Leases [Abstract] | |
2020 (for the remaining three months) | $ 116 |
2021 | 473 |
2022 | 484 |
2023 | 497 |
2024 | 509 |
Thereafter | 2,356 |
Total Future Minimum Lease Payments | 4,435 |
Less: Imputed Interest | (597) |
Total Lease Obligations | $ 3,838 |
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 | 9 Months Ended |
Mar. 29, 2020USD ($) | |
Operating Cash Flows: | |
Cash Paid Related to Operating Lease Obligation | $ 345 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Lease Term and Discount Rate for Operating Lease (Details) | Mar. 29, 2020 |
Leases [Abstract] | |
Weighted Average Remaining Lease Term (in years) | 8 years 7 months 6 days |
Weighted Average Discount Rate | 3.30% |
Credit Facilities (Details Text
Credit Facilities (Details Textual) | 9 Months Ended |
Mar. 29, 2020USD ($) | |
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 | Mar. 29, 2020 | Jun. 30, 2019 |
Line Of Credit Facility [Line Items] | ||
Outstanding Borrowing | $ 27,000 | $ 42,000 |
STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Outstanding Borrowing | 12,000 | 18,000 |
ADAC-STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Outstanding Borrowing | $ 15,000 | $ 24,000 |
Credit Facilities - Schedule _2
Credit Facilities - Schedule of Average Outstanding Borrowings and the Weighted Average Interest Rate (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 29, 2020 | Mar. 31, 2019 | |
STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Average Outstanding Borrowings | $ 13,799 | $ 22,212 |
Weighted Average Interest Rate | 2.90% | 3.30% |
ADAC-STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Average Outstanding Borrowings | $ 20,062 | $ 26,286 |
Weighted Average Interest Rate | 3.20% | 3.40% |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) - USD ($) | 9 Months Ended | |
Mar. 29, 2020 | Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Environmental reserve originally established in 1995 | $ 3,000,000 | |
Environmental | 1,263,000 | $ 1,278,000 |
Cost incurred inception to date on installation and on-going monitoring of wells | $ 612,000 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Activity Impacting Shareholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | |
Summary of activity impacting shareholders' equity | ||||
Beginning Balance | $ 188,849 | $ 183,757 | $ 187,816 | $ 183,246 |
Net Income (Loss) | 4,913 | 3,037 | 6,498 | (14,132) |
Dividend Declared | (525) | (517) | (1,572) | (1,546) |
Dividend Declared – Non- controlling Interests of Subsidiaries | (400) | (980) | (1,384) | |
Translation Adjustments | (6,245) | 1,037 | (6,059) | 39 |
Stock Based Compensation | 165 | 241 | 789 | 867 |
Pension and Postretirement Adjustment, Net of Tax | 74 | (1) | 220 | 19,992 |
Stock Option Exercises | 140 | 478 | 172 | |
Employee Stock Purchases | 24 | 32 | 65 | 72 |
Ending Balance | 187,255 | 187,326 | 187,255 | 187,326 |
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 | 97,601 | 95,818 | 96,491 | 95,140 |
Stock Based Compensation | 165 | 241 | 789 | 867 |
Stock Option Exercises | 140 | 477 | 172 | |
Employee Stock Purchases | 7 | 16 | 16 | 36 |
Ending Balance | 97,773 | 96,215 | 97,773 | 96,215 |
Retained Earnings | ||||
Summary of activity impacting shareholders' equity | ||||
Beginning Balance | 219,973 | 220,483 | 221,117 | 236,162 |
Net Income (Loss) | 2,994 | 1,730 | 2,897 | (16,967) |
Dividend Declared | (525) | (517) | (1,572) | (1,546) |
Reclassification of Stranded Tax Effects | 4,047 | |||
Ending Balance | 222,442 | 221,696 | 222,442 | 221,696 |
Accumulated Other Comprehensive Loss | ||||
Summary of activity impacting shareholders' equity | ||||
Beginning Balance | (18,486) | (18,648) | (18,568) | (33,439) |
Translation Adjustments | (3,858) | 912 | (3,922) | (243) |
Pension and Postretirement Adjustment, Net of Tax | 74 | (1) | 220 | 19,992 |
Reclassification of Stranded Tax Effects | (4,047) | |||
Ending Balance | (22,270) | (17,737) | (22,270) | (17,737) |
Treasury Stock | ||||
Summary of activity impacting shareholders' equity | ||||
Beginning Balance | (135,693) | (135,758) | (135,725) | (135,778) |
Employee Stock Purchases | 17 | 16 | 49 | 36 |
Ending Balance | (135,676) | (135,742) | (135,676) | (135,742) |
Non-Controlling Interest | ||||
Summary of activity impacting shareholders' equity | ||||
Beginning Balance | 25,380 | 21,789 | 24,428 | 21,088 |
Net Income (Loss) | 1,919 | 1,307 | 3,601 | 2,835 |
Dividend Declared – Non- controlling Interests of Subsidiaries | (400) | (980) | (1,384) | |
Translation Adjustments | (2,387) | 125 | (2,137) | 282 |
Ending Balance | $ 24,912 | $ 22,821 | $ 24,912 | $ 22,821 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Contract Liability Balances (Details) $ in Thousands | 9 Months Ended |
Mar. 29, 2020USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Balance, June 30, 2019 | $ 932 |
Discounts Recorded as a Reduction in Sales | 985 |
Payments of Discounts to Customers | (915) |
Other | 29 |
Balance, March 29, 2020 | $ 1,031 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Revenue by Product Group (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | |
Product Information [Line Items] | ||||
Revenue | $ 116,938 | $ 128,230 | $ 343,183 | $ 358,302 |
Keys & Locksets | ||||
Product Information [Line Items] | ||||
Revenue | 30,186 | 34,677 | 91,832 | 101,722 |
Power Access | ||||
Product Information [Line Items] | ||||
Revenue | 21,259 | 25,398 | 56,979 | 68,193 |
Door Handles & Exterior Trim | ||||
Product Information [Line Items] | ||||
Revenue | 31,296 | 32,212 | 88,818 | 83,973 |
Driver Controls | ||||
Product Information [Line Items] | ||||
Revenue | 7,549 | 10,532 | 25,310 | 31,370 |
Aftermarket & OE Service | ||||
Product Information [Line Items] | ||||
Revenue | 11,141 | 10,839 | 34,189 | 32,599 |
Latches | ||||
Product Information [Line Items] | ||||
Revenue | 13,685 | 12,602 | 40,656 | 35,366 |
Other | ||||
Product Information [Line Items] | ||||
Revenue | $ 1,822 | $ 1,970 | $ 5,399 | $ 5,079 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Revenue by Customer or Customer Group (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | |
Entity Wide Revenue Major Customer [Line Items] | ||||
Revenue | $ 116,938 | $ 128,230 | $ 343,183 | $ 358,302 |
Fiat Chrysler Automobiles | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Revenue | 26,050 | 29,917 | 78,686 | 85,824 |
General Motors Company | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Revenue | 31,656 | 30,969 | 90,899 | 80,111 |
Ford Motor Company | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Revenue | 15,462 | 15,942 | 46,527 | 47,579 |
Tier 1 Customers | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Revenue | 17,495 | 20,078 | 50,026 | 56,357 |
Commercial and Other OEM Customers | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Revenue | 20,184 | 22,794 | 62,950 | 65,190 |
Hyundai / Kia | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Revenue | $ 6,091 | $ 8,530 | $ 14,095 | $ 23,241 |
Other Income (Expense), Net - S
Other Income (Expense), Net - Summary of Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | ||||
Foreign Currency Transaction Gain (Loss) | $ 2,515 | $ (192) | $ 2,067 | $ (261) |
Unrealized (Loss) Gain on Peso Forward Contracts | (1,048) | 23 | (1,048) | 116 |
Realized Gain on Peso Forward Contracts | 122 | 344 | ||
Pension and Postretirement Plans Cost | (118) | (27) | (352) | (662) |
Rabbi Trust (Loss) Gain | (550) | 257 | (365) | 57 |
Other | 250 | 26 | 673 | 108 |
Other Income (Expense), net | $ 1,049 | $ 209 | $ 975 | $ (298) |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 20.80% | 20.60% | 15.50% | 33.10% |
Measurement period adjustments | $ 372,000 | |||
Effective income tax rate prior to discrete impacts | 18.30% | 10.70% |
Earnings (Loss) Per Share - Rec
Earnings (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 | 9 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | |
Reconciliation of the components of the basic and diluted per share | ||||
Net Income (Loss), Basic Earnings (Loss) Per Share | $ 2,994 | $ 1,730 | $ 2,897 | $ (16,967) |
Net Income (Loss), Diluted Earnings (Loss) Per Share | $ 2,994 | $ 1,730 | $ 2,897 | $ (16,967) |
Basic Earnings (Loss) Per Share, Number of Shares | 3,748 | 3,684 | 3,733 | 3,670 |
Stock Option and Restricted Stock Awards, Number of shares | 20 | 44 | 19 | |
Diluted Earnings (Loss) Per Share, Number of Shares | 3,768 | 3,728 | 3,752 | 3,670 |
Basic Earnings (Loss) Per Share | $ 0.80 | $ 0.47 | $ 0.78 | $ (4.62) |
Diluted Earnings (Loss) Per Share | $ 0.79 | $ 0.46 | $ 0.77 | $ (4.62) |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | |
Stock Options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from earnings (loss) per share computation | 111,060 | 41,200 | 111,060 | 181,867 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Textual) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 29, 2020 | Mar. 31, 2019 | |
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 | $ 1.1 | |
Weighted average period over which unrecognized compensation is expected to be recognized | 10 months 24 days | |
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 | 115,609 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity Under Our Stock Incentive Plan (Details) | 9 Months Ended |
Mar. 29, 2020$ / 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 8 months 12 days |
Weighted Average Remaining Contractual Term, Exercisable, Outstanding | 2 years 8 months 12 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 | 9 Months Ended | |
Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | |
Intrinsic value of stock options exercised and the fair value of stock options vested | |||
Intrinsic Value of Options Exercised | $ 269 | $ 120 | $ 324 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Activity Under Our Stock Incentive Plan (Details) - Restricted stock | 9 Months Ended |
Mar. 29, 2020$ / 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 | (5,470) |
Nonvested, Shares Ending Balance | shares | 70,119 |
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 | 35.13 |
Nonvested, Weighted Average Grant Date Fair Value Ending Balance | $ / shares | $ 30.57 |
Pension and Postretirement Be_3
Pension and Postretirement Benefits (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Dec. 29, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | 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 | $ 31,900,000 | ||||
Non-cash compensation expense | 4,473,000 | 4,200,000 | ||||
Additional non-cash compensation expense | $ 4,500,000 | |||||
Rabbi Trust Assets - SERP | $ 2,600,000 | 2,600,000 | $ 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 | 9 Months Ended | 12 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | |
COMPONENTS OF NET PERIODIC BENEFIT COST: | |||||
Plan Settlements | $ 32,434 | $ 31,900 | |||
Pension Benefits | |||||
COMPONENTS OF NET PERIODIC BENEFIT COST: | |||||
Service Cost | $ 19 | $ 15 | $ 56 | 46 | |
Interest Cost | 16 | 19 | 46 | 2,083 | |
Expected Return on Plan Assets | (2,276) | ||||
Plan Settlements | 32,434 | ||||
Amortization of Unrecognized Net Loss | 4 | 11 | 832 | ||
Net Periodic Benefit Cost | 39 | 34 | 113 | 33,119 | |
Postretirement Benefits | |||||
COMPONENTS OF NET PERIODIC BENEFIT COST: | |||||
Service Cost | 3 | 2 | 9 | 8 | |
Interest Cost | 6 | 8 | 19 | 30 | |
Amortization of Prior Service Credit | (7) | (109) | (22) | (329) | |
Amortization of Unrecognized Net Loss | 99 | 109 | 298 | 323 | |
Net Periodic Benefit Cost | $ 101 | $ 10 | $ 304 | $ 32 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2020 | Mar. 31, 2019 | Mar. 29, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | $ (188,849) | $ (183,757) | $ (187,816) | $ (183,246) |
Other Comprehensive (Income) Loss Before Reclassifications | 6,245 | (1,037) | 6,059 | 146 |
Other Comprehensive (Income) Loss Before Reclassifications, Income Tax | (185) | |||
Net Other Comprehensive (Income) Loss Before Reclassifications | 6,245 | (1,037) | 6,059 | (39) |
Reclassifications: | ||||
Pension Termination Settlement | (25,668) | |||
Prior Service Credits | 7 | 109 | 22 | 329 |
Unrecognized Net Loss | (103) | (109) | (309) | (1,155) |
Total Reclassifications Before Tax | (96) | (287) | (26,494) | |
Reclassifications, Income Tax | 22 | 1 | 67 | 6,502 |
Net Reclassifications | (74) | 1 | (220) | (19,992) |
Other Comprehensive (Income) Loss | 6,171 | (1,036) | 5,839 | (20,031) |
Reclassification of stranded tax effects | 4,047 | |||
Ending balance | (187,255) | (187,326) | (187,255) | (187,326) |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | 16,381 | 16,529 | 16,317 | 15,291 |
Other Comprehensive (Income) Loss Before Reclassifications | 6,245 | (1,037) | 6,059 | 146 |
Other Comprehensive (Income) Loss Before Reclassifications, Income Tax | (185) | |||
Net Other Comprehensive (Income) Loss Before Reclassifications | 6,245 | (1,037) | 6,059 | (39) |
Reclassifications: | ||||
Other Comprehensive (Income) Loss | 6,245 | (1,037) | 6,059 | (39) |
Other Comprehensive Income Attributable to Non- Controlling Interest | 2,387 | (125) | 2,137 | (282) |
Reclassification of stranded tax effects | 83 | |||
Ending balance | 20,239 | 15,617 | 20,239 | 15,617 |
Retirement and Postretirement Benefit Plans | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | 2,105 | 2,119 | 2,251 | 18,148 |
Reclassifications: | ||||
Pension Termination Settlement | (25,668) | |||
Prior Service Credits | 7 | 109 | 22 | 329 |
Unrecognized Net Loss | (103) | (109) | (309) | (1,155) |
Total Reclassifications Before Tax | (96) | (287) | (26,494) | |
Reclassifications, Income Tax | 22 | 1 | 67 | 6,502 |
Net Reclassifications | (74) | 1 | (220) | (19,992) |
Other Comprehensive (Income) Loss | (74) | 1 | (220) | (19,992) |
Reclassification of stranded tax effects | 3,964 | |||
Ending balance | 2,031 | 2,120 | 2,031 | 2,120 |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | 18,486 | 18,648 | 18,568 | 33,439 |
Reclassifications: | ||||
Ending balance | 22,270 | 17,737 | 22,270 | 17,737 |
AOCI Including Portion Attributable to Noncontrolling Interest | ||||
Reclassifications: | ||||
Other Comprehensive (Income) Loss | 6,171 | (1,036) | 5,839 | (20,031) |
AOCI Attributable to Noncontrolling Interest | ||||
Reclassifications: | ||||
Other Comprehensive Income Attributable to Non- Controlling Interest | $ 2,387 | $ (125) | $ 2,137 | $ (282) |