Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Oct. 02, 2022 | Oct. 03, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | STRATTEC SECURITY CORP | |
Entity Central Index Key | 0000933034 | |
Document Type | 10-Q | |
Document Period End Date | Oct. 02, 2022 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --07-02 | |
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 | 4,014,846 | |
Security Exchange Name | NASDAQ | |
Trading Symbol | STRT | |
Title of 12(b) Security | Common stock, $.01 par value |
Condensed Consolidated Statemen
Condensed Consolidated Statements of (Loss) Income and Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Oct. 02, 2022 | Sep. 26, 2021 | |
Income Statement [Abstract] | ||
Net sales | $ 120,360 | $ 100,341 |
Cost of goods sold | 107,864 | 87,792 |
Gross profit | 12,496 | 12,549 |
Engineering, selling and administrative expenses | 12,700 | 12,121 |
(Loss) income from operations | (204) | 428 |
Equity earnings (loss) of joint ventures | 527 | (251) |
Interest expense | (129) | (48) |
Other (expense) income, net | (290) | 130 |
(Loss) income before (benefit) provision for income taxes and non-controlling interest | (96) | 259 |
(Benefit) provision for income taxes | (36) | 37 |
Net (loss) income | (60) | 222 |
Net (loss) income attributable to non- controlling interest | (188) | 121 |
Net income attributable to STRATTEC SECURITY CORPORATION | 128 | 101 |
Comprehensive loss: | ||
Net (loss) income | (60) | 222 |
Pension and postretirement plans, net of tax | 75 | 81 |
Currency translation adjustments | (682) | (712) |
Other comprehensive loss, net of tax | (607) | (631) |
Comprehensive loss | (667) | (409) |
Comprehensive loss attributable to non-controlling interest | (132) | (29) |
Comprehensive loss attributable to STRATTEC SECURITY CORPORATION | $ (535) | $ (380) |
Earnings per share attributable to STRATTEC SECURITY CORPORATION: | ||
Basic | $ 0.03 | $ 0.03 |
Diluted | $ 0.03 | $ 0.03 |
Average shares outstanding: | ||
Basic | 3,899 | 3,830 |
Diluted | 3,929 | 3,893 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Oct. 02, 2022 | Jul. 03, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 10,330 | $ 8,774 |
Receivables, net | 76,631 | 75,827 |
Inventories: | ||
Finished products | 15,438 | 19,499 |
Work in process | 17,645 | 18,263 |
Purchased materials | 47,485 | 48,209 |
Excess and obsolete reserve | (5,520) | (5,489) |
Inventories, net | 75,048 | 80,482 |
Other current assets | 29,052 | 23,149 |
Total current assets | 191,061 | 188,232 |
Investment in joint ventures | 26,023 | 26,344 |
Deferred Income Taxes | 6,926 | 6,937 |
Other long-term assets | 4,975 | 5,438 |
Property, plant and equipment | 282,014 | 278,249 |
Less: accumulated depreciation | (190,820) | (186,520) |
Net property, plant and equipment | 91,194 | 91,729 |
Total assets | 320,179 | 318,680 |
Current Liabilities: | ||
Accounts payable | 40,806 | 43,950 |
Accrued Liabilities: | ||
Payroll and benefits | 18,637 | 17,905 |
Environmental | 1,390 | 1,390 |
Warranty | 7,881 | 8,100 |
Other | 12,853 | 10,130 |
Total current liabilities | 81,567 | 81,475 |
Borrowings under credit facilities | 13,000 | 11,000 |
Accrued pension obligations | 1,299 | 1,259 |
Accrued postretirement obligations | 445 | 463 |
Other long-term liabilities | 3,985 | 4,070 |
Shareholders’ Equity: | ||
Common stock, authorized 18,000,000 shares, $.01 par value, 7,527,370 issued shares at October 2, 2022 and 7,481,169 issued shares at July 3, 2022 | 75 | 75 |
Capital in excess of par value | 102,250 | 101,524 |
Retained earnings | 241,632 | 241,504 |
Accumulated other comprehensive loss | (19,320) | (18,657) |
Less: treasury stock, at cost (3,603,749 shares at October 2, 2022 and 3,604,466 shares at July 3, 2022) | (135,569) | (135,580) |
Total STRATTEC SECURITY CORPORATION shareholders’ equity | 189,068 | 188,866 |
Non-controlling interest | 30,815 | 31,547 |
Total shareholders’ equity | 219,883 | 220,413 |
Total liabilities and shareholders' equity | $ 320,179 | $ 318,680 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Oct. 02, 2022 | Jul. 03, 2022 |
Statement Of Financial Position [Abstract] | ||
Common stock, shares authorized | 18,000,000 | 18,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 7,527,370 | 7,481,169 |
Treasury stock, shares | 3,603,749 | 3,604,466 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2022 | Sep. 26, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | $ (60) | $ 222 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation | 4,497 | 5,057 |
Foreign currency transaction loss (gain) | 71 | (139) |
Unrealized loss on peso forward contracts | 35 | 98 |
Stock-based compensation expense | 611 | 396 |
Equity (earnings) loss of joint ventures | (527) | 251 |
Change in operating assets and liabilities: | ||
Receivables | (818) | 3,279 |
Inventories | 5,434 | (6,847) |
Other assets | (5,492) | (4,652) |
Accounts payable and accrued liabilities | 828 | (7,439) |
Other, net | 122 | 127 |
Net cash provided by (used in) operating activities | 4,701 | (9,647) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property, plant and equipment | (4,718) | (2,789) |
Net cash used in investing activities | (4,718) | (2,789) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings under credit facilities | 5,000 | 7,000 |
Repayment of borrowings under credit facilities | (3,000) | (2,000) |
Dividends paid to non-controlling interests of subsidiaries | (600) | (600) |
Exercise of stock options and employee stock purchases | 126 | 619 |
Net cash provided by financing activities | 1,526 | 5,019 |
Foreign currency impact on cash | 47 | (24) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,556 | (7,441) |
CASH AND CASH EQUIVALENTS | ||
Beginning of period | 8,774 | 14,465 |
End of period | 10,330 | 7,024 |
Cash paid during the period for: | ||
Income taxes | 498 | 595 |
Interest | 90 | 44 |
Non-cash investing activities: | ||
Change in capital expenditures in accounts payable | $ (855) | $ 398 |
Basis of Financial Statements
Basis of Financial Statements | 3 Months Ended |
Oct. 02, 2022 | |
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, passive entry passive start systems (PEPS), steering column and instrument panel ignition lock housings, latches, power sliding door systems, power tailgate 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, along with our VAST LLC partners, provide full service and aftermarket support for each VAST Automotive Group partner’s products. 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”), for which we exercise significant influence but do not control and are not variable interest entities of STRATTEC, 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. We have only one reporting segment. In the opinion of management, the accompanying condensed consolidated balance sheets as of October 2, 2022 and July 3, 2022, 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 2022 Form 10-K, which was filed with the Securities and Exchange Commission on September 8, 2022. |
Risks and Uncertainties
Risks and Uncertainties | 3 Months Ended |
Oct. 02, 2022 | |
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 subsequently spread, and infections occurred 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 in certain cases, advising or requiring individuals to limit or forego their time outside of their homes or from participating in large group gatherings. Accordingly, the COVID-19 outbreak, as well as the recent conflict in the Ukraine, has severely restricted the level of economic activity in many countries, and continues to adversely impact global economic activity, including with respect to customer purchasing actions and supply chain continuity and disruption, and in particular the supply of semiconductor chips, transponders and related components to the automotive industry. STRATTEC’s operating performance is subject to global economic conditions, inflationary pressures and levels of consumer spending specifically within the automotive industry and its operating performance has been impacted by the lingering effects of the COVID-19 pandemic and the war in the Ukraine, all as described above. During the period from late March 2020 through mid-June 2020, the majority of our OEM customer assembly plant operations were completely closed including most of the supply chain. Additionally, during most of this same period, STRATTEC’s Mexico facilities were closed as a result of the Mexican government’s shutdown of non-essential businesses. Re-opening of our OEM customer facilities and our Mexico facilities began in June 2020, and the automotive industry continued to ramp-up throughout our fiscal year ended June 27, 2021. Nonetheless, during the fourth quarter of our fiscal 2021, our net sales were negatively impacted by a global semiconductor chip shortage (especially as it relates to the automotive industry), which shortage continued into our fiscal 2022. Although semiconductor chip availability improved during the first quarter of our fiscal 2023 relative to our fiscal 2022, negative impacts of the shortage continue to affect STRATTEC. Additionally, inflationary pressures resulted in increased raw material and purchased part costs as well as increased wage rates in Mexico beginning in calendar 2021. Such increases negatively impacted our operating results in our fiscal 2022 and continued in the first quarter of our fiscal 2023 . Each of the COVID-19 outbreak, the Ukraine conflict and the resulting inflationary pressures in the U.S. and global economy continue to adversely impact our operating results due mostly to the supply chain continuity and disruption issues noted above, and in particular related to the supply of semiconductor chips, transponders and related components to our customers in the automotive industry. The extent of such impacts, including related to their duration and intensity, depends upon any continued spread of the COVID-19 outbreak, the length of the Ukraine conflict, and related regulatory or operating restraints, which may be precautionary, imposed by local governments and the private sector and by any continuing inflationary pressures in the U.S. and global economies. All of these events may continue to impact the supply chain and our operations, including impacting our customers, workforce and suppliers, any of which may continue to disrupt and limit sourcing of semiconductor chips, transponders and other critical supply chain components needed by us and our customers to meet expected production schedules. Moreover, these events may continue to create added inflationary pressures on our operations, including related to wages and the prices of raw materials and purchased parts. All of these foregoing matters, including their scope and duration are uncertain and cannot be predicted as to timing and cost impacts. These changing conditions may also affect the estimates and assumptions made by our management in our financial statements. 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. |
New Accounting Standard
New Accounting Standard | 3 Months Ended |
Oct. 02, 2022 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Standard | New Accounting Standard In June 2016, the FASB issued ASU 2016-13, Financial instruments – Credit Losses Financial instruments – Credit Losses, Derivatives and Hedging Activities, and Leases |
Subsequent Event
Subsequent Event | 3 Months Ended |
Oct. 02, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event Subsequent to October 2, 2022, we received notice that a product we shipped failed to perform as the customer expected. While it is probable we will incur warranty costs related to this matter, it is not possible to reasonably estimate those costs based on limited information available, including uncertainty as to STRATTEC’s responsibility in the matter, as of the date of filing of this Form 10-Q. We have a warranty liability recorded related to our known and potential exposure to warranty claims in the event our products fail to perform as expected. As additional information related to this matter becomes available, we may need to record additional warranty provisions. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Oct. 02, 2022 | |
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 from time to time 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 (Expense) Income, net. The following table quantifies the outstanding Mexican peso forward contracts as of October 2, 2022 (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 October 18, 2022 - June 13, 2023 $ 6,750 22.45 $ 591 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): October 2, 2022 July 3, 2022 Not Designated as Hedging Instruments: Other Current Assets: Mexican Peso Forward Contracts $ 591 $ 627 The pre-tax effects of the Mexican peso forward contracts are included in Other (Expense) Income, net on the accompanying Condensed Consolidated Statements of (Loss) Income and Comprehensive Loss and consisted of the following for the periods indicated below (thousands of dollars): Three Months Ended October 2, 2022 September 26, 2021 Not Designated as Hedging Instruments: Realized Gain $ 238 $ 139 Unrealized Loss $ (35 ) $ (98 ) |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Oct. 02, 2022 | |
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 October 2, 2022 and July 3, 2022. 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 October 2, 2022 (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 $ 72 $ — $ — Mid Cap 137 — — Large Cap 215 — — International 432 — — Fixed Income Funds 1,095 — — Cash and Cash Equivalents — 964 — Mexican Peso Forward Contracts — 591 — Total Assets at Fair Value $ 1,951 $ 1,555 $ — The Rabbi Trust assets fund our Amended and Restated Supplemental Executive Retirement Plan. Of the October 2, 2022 $2.9 million Rabbi Trust asset balance, $863,000 was included in Other Current Assets and $2.0 million was included in Other Long-term Assets in the accompanying Condensed Consolidated Balance Sheets. |
Investment in Joint Ventures an
Investment in Joint Ventures and Majority Owned Subsidiaries | 3 Months Ended |
Oct. 02, 2022 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investment in Joint Ventures and Majority Owned Subsidiaries | Investment in Joint Ventures and Majority Owned Subsidiaries We participate in certain Alliance Agreements with WITTE Automotive (“WITTE”) and ADAC Automotive (“ADAC”). WITTE, of Velbert, Germany, is a privately held automotive supplier. WITTE designs, manufactures and markets automotive components, including locks and keys, hood latches, rear compartment latches, seat back latches, door handles and specialty fasteners. WITTE’s primary market for these products has been Europe. ADAC, of Grand Rapids, Michigan, is a privately held automotive supplier and manufactures engineered products, including door handles and other automotive trim parts, utilizing plastic injection molding, automated painting and various assembly processes. The Alliance Agreements include a set of cross-licensing agreements for the manufacture, distribution and sale of WITTE products by STRATTEC and ADAC in North America, and the manufacture, distribution and sale of STRATTEC and ADAC products by WITTE in Europe. Additionally, a joint venture company, Vehicle Access Systems Technology LLC (“VAST LLC”), in which WITTE, STRATTEC and ADAC each hold a one-third VAST LLC has investments in Sistema de Acesso Veicular Ltda, VAST Fuzhou, VAST Great Shanghai, VAST Shanghai Co., VAST Jingzhou Co. Ltd., and Minda-VAST Access Systems. Sistema de Acesso Veicular Ltda is located in Brazil and services customers in South America. VAST Fuzhou, VAST Great Shanghai, VAST Shanghai Co., and VAST Jingzhou Co. Ltd. (collectively known as VAST China), provide a base of operations to service each VAST partner’s automotive customers in the Asian market. Minda-VAST Access Systems is based in Pune, India and is a 50:50 joint venture between VAST LLC and Minda Management Services Limited, an affiliate of both Minda Corporation Limited and Spark Minda, Ashok Minda Group of New Delhi, India (collectively “Minda”). Minda and its affiliates cater to the needs of all major car, motorcycle, commercial vehicle, tractor and off-road vehicle manufacturers in India. They are a leading manufacturer in the Indian marketplace of security & access products, handles, automotive safety, restraint systems, driver information and telematics systems for both OEMs and the aftermarket. VAST LLC also maintains branch offices in South Korea and Japan in support of customer sales and engineering requirements. The VAST LLC investments are accounted for using the equity method of accounting and the results of the VAST LLC foreign subsidiaries and joint venture are reported on a one-month lag basis. The activities related to the VAST LLC foreign subsidiaries and joint venture resulted in equity earnings of joint ventures to STRATTEC of $527,000 during the three month period ended October 2, 2022 and equity loss of joint ventures to STRATTEC of $251,000 during the three month period ended September 26, 2021. During the three months ended October 2, 2022 and September 26, 2021, no capital contributions were made to VAST LLC by any of the members. ADAC-STRATTEC LLC, a Delaware limited liability company, was formed in fiscal year 2007 to support injection molding and door handle assembly operations in Mexico. ADAC-STRATTEC LLC was 51 percent owned by STRATTEC and 49 percent owned by ADAC for all periods presented in this report. An additional Mexican entity, ADAC-STRATTEC de Mexico, is wholly owned by ADAC-STRATTEC LLC. ADAC-STRATTEC LLC’s financial results are consolidated with the financial results of STRATTEC and resulted in increased net sales and reduced net income to STRATTEC of approximately $30.1 million and $355,000, respectively, during the three month period ended October 2, 2022 and increased net sales and reduced net income to STRATTEC of approximately $23.5 million and $318,000, respectively, during the three month period ended September 26, 2021. ADAC charges ADAC STRATTEC LLC an engineering, research and design fee as well as a sales fee. Such fees are calculated as a percentage of net sales, are included in the consolidated results of STRATTEC, and totaled $2.1 million in the three month period ended October 2, 2022 and $1.6 million in the three month period ended September 26, 2021. Additionally, ADAC-STRATTEC LLC sells production parts to ADAC. Sales to ADAC are included in the consolidated results of STRATTEC and totaled $2.8 million in the three month period ended October 2, 2022 and $1.2 million in the three month period ended September 26, 2021. STRATTEC POWER ACCESS LLC (“SPA”) was originally formed in fiscal year 2009 to supply the North American portion of the power sliding door, lift gate, tail gate and deck lid system access control products some of which were acquired from Delphi Corporation in 2009. SPA was 80 percent owned by STRATTEC and 20 percent owned by WITTE for all periods presented in this report. An additional Mexican entity, STRATTEC POWER ACCESS de Mexico, is wholly owned by SPA. The financial results of SPA are consolidated with the financial results of STRATTEC and resulted in increased net sales and increased net income to STRATTEC of approximately $24.8 million and $641,000, respectively, during the three month period ended October 2, 2022 and $21.1 million and $1.2 million, respectively, during the three month period ended September 26, 2021. |
Equity Earnings (Loss) of Joint
Equity Earnings (Loss) of Joint Ventures | 3 Months Ended |
Oct. 02, 2022 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Equity Earnings (Loss) of Joint Ventures | Equity Earnings (Loss) of Joint Ventures As discussed above under Investment in Joint Ventures and Majority Owned Subsidiaries, we hold a one-third The following are summarized statements of operations for VAST LLC (in thousands): Three Months Ended October 2, 2022 September 26, 2021 Net Sales $ 66,146 $ 42,617 Cost of Goods Sold 55,782 34,892 Gross Profit 10,364 7,725 Engineering, Selling and Administrative Expenses 8,532 8,551 Income (Loss) From Operations 1,832 (826 ) Other Income, net 72 89 Income (Loss) before Provision for Income Taxes 1,904 (737 ) Provision for Income Taxes 368 21 Net Income (Loss) $ 1,536 $ (758 ) STRATTEC's Share of VAST LLC Net Income (Loss) 512 (253 ) Intercompany Profit Elimination 15 2 STRATTEC’s Equity Earnings (Loss) of VAST LLC $ 527 $ (251 ) 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 October 2, 2022 September 26, 2021 Sales to VAST LLC $ 10 $ 515 Purchases from VAST LLC $ 14 $ 132 Expenses Charged to VAST LLC $ 81 $ 174 Expenses Charged from VAST LLC $ 243 $ 253 |
Leases
Leases | 3 Months Ended |
Oct. 02, 2022 | |
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 Sheets are presented below (in thousands): October 2, 2022 Right-of Use Asset Under Operating Lease: Other Long-Term Assets $ 2,924 Lease Obligation Under Operating Lease: Current Liabilities: Accrued Liabilities: Other $ 403 Other Long-Term Liabilities 2,521 $ 2,924 Future minimum lease payments, by our fiscal year, including options to extend that are reasonably certain to be exercised, under this non-cancelable lease are as follows as of October 2, 2022 (in thousands): 2023 (for the remaining nine months) $ 375 2024 509 2025 522 2026 535 2027 548 Thereafter 751 Total Future Minimum Lease Payments 3,240 Less: Imputed Interest (316 ) Total Lease Obligations $ 2,924 Cash flow information related to the operating lease is shown below (in thousands): Three Months Ended October 2, 2022 September 26, 2021 Operating Cash Flows: Cash Paid Related to Operating Lease Obligation $ 122 $ 119 The weighted average lease term and discount rate for the El Paso, Texas operating lease are shown below: October 2, 2022 Weighted Average Remaining Lease Term (in years) 6.1 Weighted Average Discount Rate 3.3 % Operating lease expense for the three month periods ended October 2, 2022 and September 26, 2021 totaled $122,000 and $119,000, respectively. |
Credit Facilities
Credit Facilities | 3 Months Ended |
Oct. 02, 2022 | |
Debt Disclosure [Abstract] | |
Credit Facilities | Credit Facilities STRATTEC has a $40 million secured revolving credit facility (the “STRATTEC Credit Facility”) with BMO Harris Bank N.A. ADAC-STRATTEC LLC has a $25 million secured revolving credit facility (the “ADAC-STRATTEC Credit Facility”) with BMO Harris Bank N.A., which is guaranteed by STRATTEC. The credit facilities both expire August 1, 2024. Borrowings under either credit facility are secured by our U.S. cash balances, accounts receivable, inventory, and fixed assets. Interest on borrowings under both credit facilities were 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 October 2, 2022, we were in compliance with all financial covenants required by these credit facilities. Outstanding borrowings under the credit facilities were as follows (in thousands): October 2, 2022 July 3, 2022 STRATTEC Credit Facility $ 1,000 $ — ADAC-STRATTEC Credit Facility 12,000 11,000 $ 13,000 $ 11,000 Average outstanding borrowings and the weighted average interest rate under each credit facility referenced above were as follows for each period presented (in thousands): Three Months Ended Average Weighted Average Interest Rate October 2, 2022 September 26, 2021 October 2, 2022 September 26, 2021 STRATTEC Credit Facility $ 3,000 $ 330 3.8 % 2.9 % ADAC-STRATTEC Credit Facility $ 11,352 $ 13,319 3.5 % 1.4 % |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Oct. 02, 2022 | |
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 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 years 2010, 2016, and 2021, we obtained updated third party estimates of projected costs to adequately cover the cost for active remediation of this contamination and adjusted the reserve as needed. We monitor and evaluate the site with the use of 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 environmental reserve of $1.4 million at October 2, 2022 is adequate. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Oct. 02, 2022 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity A summary of activity impacting shareholders’ equity for the three month periods ended October 2, 2022 and September 26, 2021 were as follows (in thousands): Three Months Ended October 2, 2022 Total Shareholders’ Equity Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Non-Controlling Interest Balance, July 3, 2022 $ 220,413 $ 75 $ 101,524 $ 241,504 $ (18,657 ) $ (135,580 ) $ 31,547 Net Income (60 ) — — 128 — — (188 ) Dividend Declared – Non- controlling Interests of Subsidiaries (600 ) — — — — — (600 ) Translation Adjustments (682 ) — — — (738 ) — 56 Stock-based Compensation 611 — 611 — — — — Pension and Postretirement Adjustment, Net of Tax 75 — — — 75 — — Stock Option Exercises 109 — 109 — — — — Employee Stock Purchases 17 — 6 — — 11 — Balance, October 2, 2022 $ 219,883 $ 75 $ 102,250 $ 241,632 $ (19,320 ) $ (135,569 ) $ 30,815 Three Months Ended September 26, 2021 Total Shareholders’ Equity Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Non-Controlling Interest Balance, June 27, 2021 $ 213,433 $ 74 $ 99,512 $ 234,472 $ (16,797 ) $ (135,615 ) $ 31,787 Net Income 222 — — 101 — — 121 Dividend Declared - Non- Controlling Interests of Subsidiaries (600 ) — — — — — (600 ) Translation Adjustments (712 ) — — — (562 ) — (150 ) Stock-based Compensation 396 — 396 — — — — Pension and Postretirement Adjustment, Net of Tax 81 — — — 81 — — Stock Option Exercises 600 1 599 — — — — Employee Stock Purchases 19 — 12 — — 7 — Balance, September 26, 2021 $ 213,439 $ 75 $ 100,519 $ 234,573 $ (17,278 ) $ (135,608 ) $ 31,158 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Oct. 02, 2022 | |
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 or contract liabilities as of October 2, 2022 or July 3, 2022. Revenue by Product Group and Customer: Revenue by product group for the periods presented was as follows (thousands of dollars): Three Months Ended October 2, 2022 September 26, 2021 Door Handles & Exterior Trim $ 30,125 $ 23,540 Keys & Locksets 28,665 22,841 Power Access 24,841 21,140 Latches 14,762 10,107 Aftermarket & OE Service 10,648 11,896 User Interface Controls (formerly Driver Controls) 9,118 8,017 Other 2,201 2,800 $ 120,360 $ 100,341 Revenue by customer or customer group for the periods presented was as follows (thousands of dollars): Three Months Ended October 2, 2022 September 26, 2021 General Motors Company $ 38,150 $ 25,684 Ford Motor Company 24,616 17,695 Stellantis 17,155 16,560 Tier 1 Customers 17,309 11,975 Commercial and Other OEM Customers 14,826 17,412 Hyundai / Kia 8,304 11,015 $ 120,360 $ 100,341 |
Other Income (Expense), net
Other Income (Expense), net | 3 Months Ended |
Oct. 02, 2022 | |
Other Income And Expenses [Abstract] | |
Other Income (Expense), net | Other (Expense) Income, net Net other (expense) income included in the accompanying Condensed Consolidated Statements of (Loss) Income and Comprehensive Loss primarily included foreign currency transaction gains and losses, realized and unrealized gains or losses on our Mexican peso currency forward contracts, net periodic pension and postretirement benefit costs, other than the service cost component, related to our Supplemental Executive Retirement Plan (“SERP”) 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 October 2, 2022 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 October 2, 2022 September 26, 2021 Foreign Currency Transaction (Loss) Gain $ (71 ) $ 139 Unrealized loss on Peso Forward Contracts (35 ) (98 ) Realized Gain on Peso Forward Contracts, net 238 139 Pension and Postretirement Plans Cost (126 ) (120 ) Rabbi Trust (Loss) Gain (366 ) 22 Other 70 48 $ (290 ) $ 130 |
Income Taxes
Income Taxes | 3 Months Ended |
Oct. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate was 37.5% and 14.3% for the three months ended October 2, 2022 and September 26, 2021, respectively. The current year effective tax rate prior to a favorable discrete benefit related to stock-based compensation was 14.8%. Our effective tax rate differs from the statutory tax rate due to the application of the Global Intangible Low Taxed Income (GILTI) tax provisions, our available R&D tax credit and the non-controlling interest portion of our pre-tax income. The non-controlling interest portion impacts the effective tax rate as ADAC-STRATTEC LLC and STRATTEC POWER ACCESS LLC entities are taxed as partnerships for U.S. tax purposes. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Oct. 02, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed on the basis of the weighted average number of shares of common stock outstanding during the applicable period. Diluted earnings per share is computed on the basis of the weighted average number of shares of common stock plus the potential dilutive common shares outstanding during the applicable period using the treasury stock method. Potential dilutive common shares include outstanding stock options and unvested restricted stock awards. A reconciliation of the components of the basic and diluted per-share computations follows (in thousands, except per share amounts): Three Months Ended October 2, 2022 September 26, 2021 Net Income Shares Per-Share Amount Net Income Shares Per-Share Amount Basic Earnings Per Share $ 128 3,899 $ 0.03 $ 101 3,830 $ 0.03 Stock Option and Restricted Stock Awards — 30 — 63 Diluted Earnings Per Share $ 128 3,929 $ 0.03 $ 101 3,893 $ 0.03 The calculation of earnings per share excluded 36,921 share-based payment awards as of October 2, 2022 and 9,010 share-based payment awards as of September 26, 2021 because their inclusion would have been anti-dilutive. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Oct. 02, 2022 | |
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 October 2, 2022, the Board of Directors had designated 2 million shares of common stock available for the grant of awards under the plan. Remaining shares available to be granted under the plan as of October 2, 2022 were 129,884. 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 3 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 three months ended October 2, 2022 follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding, July 3, 2022 41,172 $ 46.34 Exercised (4,251 ) $ 25.64 Outstanding, October 2, 2022 36,921 $ 48.72 1.1 — Exercisable, October 2, 2022 36,921 $ 48.72 1.1 — The intrinsic value of stock options exercised and the fair value of stock options that vested during the three month periods presented below were as follows (in thousands): Three Months Ended October 2, 2022 September 26, 2021 Intrinsic Value of Options Exercised $ 31 $ 331 Fair Value of Stock Options Vesting $ — $ — No options were granted during the three month periods ended October 2, 2022 or September 26, 2021. A summary of restricted stock activity under our stock incentive plan for the three months ended October 2, 2022 follows: Shares Weighted Average Grant Date Fair Value Nonvested Balance, July 3, 2022 85,100 $ 31.89 Granted 48,525 $ 29.94 Vested (41,950 ) $ 29.52 Forfeited (450 ) $ 30.34 Nonvested Balance, October 2, 2022 91,225 $ 31.79 As of October 2, 2022, all compensation cost related to outstanding stock options granted under our omnibus stock incentive plan has been recognized. As of October 2, 2022, there was approximately $1.9 million of total unrecognized compensation cost related to unvested restricted stock grants outstanding under the plan. This cost is expected to be recognized over a remaining weighted average period of 1.1 years. Total unrecognized compensation cost will be adjusted for any future changes in estimated and actual forfeitures of awards granted under our omnibus stock incentive plan. |
Pension and Postretirement Bene
Pension and Postretirement Benefits | 3 Months Ended |
Oct. 02, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension and Postretirement Benefits | Pension and Postretirement Benefits We have a noncontributory Supplemental Executive Retirement Plan (“SERP”), which is a nonqualified defined benefit plan. The SERP is funded through a Rabbi Trust with TMI Trust Company. Under the SERP, as amended December 31, 2013, participants received an accrued lump-sum benefit as of December 31, 2013, which was credited to each participant’s account. Subsequent to December 31, 2013, each eligible participant receives a supplemental retirement benefit equal to the foregoing lump sum benefit, plus an annual benefit accrual equal to 8 percent of the participant’s base salary and cash bonus, plus annual credited interest on the participant’s account balance. All then current participants as of December 31, 2013 are fully vested in their account balances with any new individuals participating in the SERP effective on or after January 1, 2014 being subject to a five year vesting period. The SERP, which is considered a 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 $2.9 million at October 2, 2022 and $3.3 million at July 3, 2022. At both October 2, 2022 and July 3, 2022, $863,000 of the Rabbi Trust asset balance was included in Other Current Assets and the remaining balance was 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 (Expense) Income, net in the accompanying Condensed Consolidated Statements of (Loss) Income and Comprehensive Loss. The following tables summarize the net periodic benefit cost recognized for each of the periods indicated under these plans (in thousands): SERP Benefits Postretirement Benefits Three Months Ended Three Months Ended October 2, 2022 September 26, 2021 October 2, 2022 September 26, 2021 Service Cost $ 20 $ 16 $ 3 $ 3 Interest Cost 23 13 5 3 Amortization of Unrecognized Net Loss 31 22 67 84 Net Periodic Benefit Cost $ 74 $ 51 $ 75 $ 90 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Oct. 02, 2022 | |
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 October 2, 2022 Foreign Currency Translation Adjustments Retirement and Postretirement Benefit Plans Total Balance, July 3, 2022 $ 16,723 $ 1,934 $ 18,657 Other Comprehensive Loss Before Reclassifications 682 — 682 Net Other Comprehensive Loss Before Reclassifications 682 — 682 Reclassifications: Unrecognized Net Loss (A) — (98 ) (98 ) Income Tax — 23 23 Net Reclassifications — (75 ) (75 ) Other Comprehensive Loss 682 (75 ) 607 Other Comprehensive Income Attributable to Non- Controlling Interest (56 ) — (56 ) Balance, October 2, 2022 $ 17,461 $ 1,859 $ 19,320 Three Months Ended September 26, 2021 Foreign Currency Translation Adjustments Retirement and Postretirement Benefit Plans Total Balance, June 27, 2021 $ 14,685 $ 2,112 $ 16,797 Other Comprehensive Loss Before Reclassifications 712 — 712 Net Other Comprehensive Loss Before Reclassifications 712 — 712 Reclassifications: Unrecognized Net Loss (A) — (106 ) (106 ) Income Tax — 25 25 Net Reclassifications — (81 ) (81 ) Other Comprehensive Loss 712 (81 ) 631 Other Comprehensive Loss Attributable to Non- Controlling Interest 150 — 150 Balance, September 26, 2021 $ 15,247 $ 2,031 $ 17,278 (A) Amounts reclassified are included in the computation of net periodic benefit cost, which is included in Other (Expense) Income, net in the accompanying Condensed Consolidated Statements of (Loss) Income and Comprehensive Loss. See Pension and Postretirement Benefits note to these Notes to Condensed Consolidated Financial Statements above. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Oct. 02, 2022 | |
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 October 2, 2022 (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 October 18, 2022 - June 13, 2023 $ 6,750 22.45 $ 591 |
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): October 2, 2022 July 3, 2022 Not Designated as Hedging Instruments: Other Current Assets: Mexican Peso Forward Contracts $ 591 $ 627 |
Pre-Tax Effects of the Peso Forward Contracts | The pre-tax effects of the Mexican peso forward contracts are included in Other (Expense) Income, net on the accompanying Condensed Consolidated Statements of (Loss) Income and Comprehensive Loss and consisted of the following for the periods indicated below (thousands of dollars): Three Months Ended October 2, 2022 September 26, 2021 Not Designated as Hedging Instruments: Realized Gain $ 238 $ 139 Unrealized Loss $ (35 ) $ (98 ) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Oct. 02, 2022 | |
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 October 2, 2022 (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 $ 72 $ — $ — Mid Cap 137 — — Large Cap 215 — — International 432 — — Fixed Income Funds 1,095 — — Cash and Cash Equivalents — 964 — Mexican Peso Forward Contracts — 591 — Total Assets at Fair Value $ 1,951 $ 1,555 $ — |
Equity Earnings (Loss) of Joi_2
Equity Earnings (Loss) of Joint Ventures (Tables) - VAST LLC | 3 Months Ended |
Oct. 02, 2022 | |
Summarized Statements of Operations | The following are summarized statements of operations for VAST LLC (in thousands): Three Months Ended October 2, 2022 September 26, 2021 Net Sales $ 66,146 $ 42,617 Cost of Goods Sold 55,782 34,892 Gross Profit 10,364 7,725 Engineering, Selling and Administrative Expenses 8,532 8,551 Income (Loss) From Operations 1,832 (826 ) Other Income, net 72 89 Income (Loss) before Provision for Income Taxes 1,904 (737 ) Provision for Income Taxes 368 21 Net Income (Loss) $ 1,536 $ (758 ) STRATTEC's Share of VAST LLC Net Income (Loss) 512 (253 ) Intercompany Profit Elimination 15 2 STRATTEC’s Equity Earnings (Loss) of VAST LLC $ 527 $ (251 ) |
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 October 2, 2022 September 26, 2021 Sales to VAST LLC $ 10 $ 515 Purchases from VAST LLC $ 14 $ 132 Expenses Charged to VAST LLC $ 81 $ 174 Expenses Charged from VAST LLC $ 243 $ 253 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Oct. 02, 2022 | |
Leases [Abstract] | |
Schedule of Operating Lease Asset and Obligation Included in Condensed Consolidated Balance Sheets | The operating lease asset and obligation related to our El Paso warehouse lease included in the accompanying Condensed Consolidated Balance Sheets are presented below (in thousands): October 2, 2022 Right-of Use Asset Under Operating Lease: Other Long-Term Assets $ 2,924 Lease Obligation Under Operating Lease: Current Liabilities: Accrued Liabilities: Other $ 403 Other Long-Term Liabilities 2,521 $ 2,924 |
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 this non-cancelable lease are as follows as of October 2, 2022 (in thousands): 2023 (for the remaining nine months) $ 375 2024 509 2025 522 2026 535 2027 548 Thereafter 751 Total Future Minimum Lease Payments 3,240 Less: Imputed Interest (316 ) Total Lease Obligations $ 2,924 |
Schedule of Cash Flow Information Related to Operating Lease | Cash flow information related to the operating lease is shown below (in thousands): Three Months Ended October 2, 2022 September 26, 2021 Operating Cash Flows: Cash Paid Related to Operating Lease Obligation $ 122 $ 119 |
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: October 2, 2022 Weighted Average Remaining Lease Term (in years) 6.1 Weighted Average Discount Rate 3.3 % |
Credit Facilities (Tables)
Credit Facilities (Tables) | 3 Months Ended |
Oct. 02, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Borrowings Under the Credit Facilities | Outstanding borrowings under the credit facilities were as follows (in thousands): October 2, 2022 July 3, 2022 STRATTEC Credit Facility $ 1,000 $ — ADAC-STRATTEC Credit Facility 12,000 11,000 $ 13,000 $ 11,000 |
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): Three Months Ended Average Weighted Average Interest Rate October 2, 2022 September 26, 2021 October 2, 2022 September 26, 2021 STRATTEC Credit Facility $ 3,000 $ 330 3.8 % 2.9 % ADAC-STRATTEC Credit Facility $ 11,352 $ 13,319 3.5 % 1.4 % |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Oct. 02, 2022 | |
Equity [Abstract] | |
Summary of Activity Impacting Shareholders' Equity | A summary of activity impacting shareholders’ equity for the three month periods ended October 2, 2022 and September 26, 2021 were as follows (in thousands): Three Months Ended October 2, 2022 Total Shareholders’ Equity Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Non-Controlling Interest Balance, July 3, 2022 $ 220,413 $ 75 $ 101,524 $ 241,504 $ (18,657 ) $ (135,580 ) $ 31,547 Net Income (60 ) — — 128 — — (188 ) Dividend Declared – Non- controlling Interests of Subsidiaries (600 ) — — — — — (600 ) Translation Adjustments (682 ) — — — (738 ) — 56 Stock-based Compensation 611 — 611 — — — — Pension and Postretirement Adjustment, Net of Tax 75 — — — 75 — — Stock Option Exercises 109 — 109 — — — — Employee Stock Purchases 17 — 6 — — 11 — Balance, October 2, 2022 $ 219,883 $ 75 $ 102,250 $ 241,632 $ (19,320 ) $ (135,569 ) $ 30,815 Three Months Ended September 26, 2021 Total Shareholders’ Equity Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Non-Controlling Interest Balance, June 27, 2021 $ 213,433 $ 74 $ 99,512 $ 234,472 $ (16,797 ) $ (135,615 ) $ 31,787 Net Income 222 — — 101 — — 121 Dividend Declared - Non- Controlling Interests of Subsidiaries (600 ) — — — — — (600 ) Translation Adjustments (712 ) — — — (562 ) — (150 ) Stock-based Compensation 396 — 396 — — — — Pension and Postretirement Adjustment, Net of Tax 81 — — — 81 — — Stock Option Exercises 600 1 599 — — — — Employee Stock Purchases 19 — 12 — — 7 — Balance, September 26, 2021 $ 213,439 $ 75 $ 100,519 $ 234,573 $ (17,278 ) $ (135,608 ) $ 31,158 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Oct. 02, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenue by Product Group and Customer | Revenue by product group for the periods presented was as follows (thousands of dollars): Three Months Ended October 2, 2022 September 26, 2021 Door Handles & Exterior Trim $ 30,125 $ 23,540 Keys & Locksets 28,665 22,841 Power Access 24,841 21,140 Latches 14,762 10,107 Aftermarket & OE Service 10,648 11,896 User Interface Controls (formerly Driver Controls) 9,118 8,017 Other 2,201 2,800 $ 120,360 $ 100,341 Revenue by customer or customer group for the periods presented was as follows (thousands of dollars): Three Months Ended October 2, 2022 September 26, 2021 General Motors Company $ 38,150 $ 25,684 Ford Motor Company 24,616 17,695 Stellantis 17,155 16,560 Tier 1 Customers 17,309 11,975 Commercial and Other OEM Customers 14,826 17,412 Hyundai / Kia 8,304 11,015 $ 120,360 $ 100,341 |
Other Income (Expense), net (Ta
Other Income (Expense), net (Tables) | 3 Months Ended |
Oct. 02, 2022 | |
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 October 2, 2022 September 26, 2021 Foreign Currency Transaction (Loss) Gain $ (71 ) $ 139 Unrealized loss on Peso Forward Contracts (35 ) (98 ) Realized Gain on Peso Forward Contracts, net 238 139 Pension and Postretirement Plans Cost (126 ) (120 ) Rabbi Trust (Loss) Gain (366 ) 22 Other 70 48 $ (290 ) $ 130 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Oct. 02, 2022 | |
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 October 2, 2022 September 26, 2021 Net Income Shares Per-Share Amount Net Income Shares Per-Share Amount Basic Earnings Per Share $ 128 3,899 $ 0.03 $ 101 3,830 $ 0.03 Stock Option and Restricted Stock Awards — 30 — 63 Diluted Earnings Per Share $ 128 3,929 $ 0.03 $ 101 3,893 $ 0.03 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Oct. 02, 2022 | |
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 three months ended October 2, 2022 follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding, July 3, 2022 41,172 $ 46.34 Exercised (4,251 ) $ 25.64 Outstanding, October 2, 2022 36,921 $ 48.72 1.1 — Exercisable, October 2, 2022 36,921 $ 48.72 1.1 — |
Intrinsic Value of Stock Options Exercised and the Fair Value of Stock Options Vested | The intrinsic value of stock options exercised and the fair value of stock options that vested during the three month periods presented below were as follows (in thousands): Three Months Ended October 2, 2022 September 26, 2021 Intrinsic Value of Options Exercised $ 31 $ 331 Fair Value of Stock Options Vesting $ — $ — |
Summary of Restricted Stock Activity Under Our Stock Incentive Plan | A summary of restricted stock activity under our stock incentive plan for the three months ended October 2, 2022 follows: Shares Weighted Average Grant Date Fair Value Nonvested Balance, July 3, 2022 85,100 $ 31.89 Granted 48,525 $ 29.94 Vested (41,950 ) $ 29.52 Forfeited (450 ) $ 30.34 Nonvested Balance, October 2, 2022 91,225 $ 31.79 |
Pension and Postretirement Be_2
Pension and Postretirement Benefits (Tables) | 3 Months Ended |
Oct. 02, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
Summary of Net Periodic Benefit Cost Recognized | The following tables summarize the net periodic benefit cost recognized for each of the periods indicated under these plans (in thousands): SERP Benefits Postretirement Benefits Three Months Ended Three Months Ended October 2, 2022 September 26, 2021 October 2, 2022 September 26, 2021 Service Cost $ 20 $ 16 $ 3 $ 3 Interest Cost 23 13 5 3 Amortization of Unrecognized Net Loss 31 22 67 84 Net Periodic Benefit Cost $ 74 $ 51 $ 75 $ 90 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Oct. 02, 2022 | |
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 October 2, 2022 Foreign Currency Translation Adjustments Retirement and Postretirement Benefit Plans Total Balance, July 3, 2022 $ 16,723 $ 1,934 $ 18,657 Other Comprehensive Loss Before Reclassifications 682 — 682 Net Other Comprehensive Loss Before Reclassifications 682 — 682 Reclassifications: Unrecognized Net Loss (A) — (98 ) (98 ) Income Tax — 23 23 Net Reclassifications — (75 ) (75 ) Other Comprehensive Loss 682 (75 ) 607 Other Comprehensive Income Attributable to Non- Controlling Interest (56 ) — (56 ) Balance, October 2, 2022 $ 17,461 $ 1,859 $ 19,320 Three Months Ended September 26, 2021 Foreign Currency Translation Adjustments Retirement and Postretirement Benefit Plans Total Balance, June 27, 2021 $ 14,685 $ 2,112 $ 16,797 Other Comprehensive Loss Before Reclassifications 712 — 712 Net Other Comprehensive Loss Before Reclassifications 712 — 712 Reclassifications: Unrecognized Net Loss (A) — (106 ) (106 ) Income Tax — 25 25 Net Reclassifications — (81 ) (81 ) Other Comprehensive Loss 712 (81 ) 631 Other Comprehensive Loss Attributable to Non- Controlling Interest 150 — 150 Balance, September 26, 2021 $ 15,247 $ 2,031 $ 17,278 (A) Amounts reclassified are included in the computation of net periodic benefit cost, which is included in Other (Expense) Income, net in the accompanying Condensed Consolidated Statements of (Loss) Income and Comprehensive Loss. 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) | 3 Months Ended |
Oct. 02, 2022 Subsidiary Joint_Venture Segment | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Number of reporting segment | Segment | 1 |
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 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Quantification of Outstanding Mexican Peso Forward Contracts (Details) - Currency buy sell under contract one | 3 Months Ended |
Oct. 02, 2022 USD ($) $ / $ | |
Derivative [Line Items] | |
Derivative, Effective Dates, Inception | Oct. 18, 2022 |
Derivative, Effective Dates, Maturity | Jun. 13, 2023 |
Derivative, Notional Amount | $ 6,750,000 |
Derivative, Average Forward Contractual Exchange Rate | $ / $ | 22.45 |
Derivative, Fair Value | $ 591,000 |
Derivative Instruments - Fair M
Derivative Instruments - Fair Market Value of All Outstanding Peso Forward Contracts (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Jul. 03, 2022 |
Mexican Peso Forward Contracts | Other Current Assets | ||
Not Designated as Hedging Instruments: | ||
Fair market value of derivative instruments | $ 591 | $ 627 |
Derivative Instruments - Pre-Ta
Derivative Instruments - Pre-Tax Effects of the Peso Forward Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2022 | Sep. 26, 2021 | |
Pre-tax effects of the Mexican peso forward contracts | ||
Unrealized Loss | $ (35) | $ (98) |
Not Designated as Hedging Instrument | Other Expense, Net | ||
Pre-tax effects of the Mexican peso forward contracts | ||
Realized Gain | 238 | 139 |
Unrealized Loss | $ (35) | $ (98) |
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 | Oct. 02, 2022 USD ($) |
Level 1 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | $ 1,951 |
Level 1 | Fixed Income Funds | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | 1,095 |
Level 2 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | 1,555 |
Level 2 | Mexican Peso Forward Contracts | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | 591 |
Stock Index Funds | Level 1 | Small Cap | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | 72 |
Stock Index Funds | Level 1 | Mid Cap | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | 137 |
Stock Index Funds | Level 1 | Large Cap | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | 215 |
Stock Index Funds | Level 1 | International | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | 432 |
Cash and Cash Equivalents | Level 2 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | $ 964 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Details Textual) - USD ($) | Oct. 02, 2022 | Jul. 03, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Rabbi Trust Assets | $ 2,900,000 | $ 3,300,000 |
Other Current Assets | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Rabbi Trust Assets | 863,000 | $ 863,000 |
Other Noncurrent Assets | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Rabbi Trust Assets | $ 2,000,000 |
Investment in Joint Ventures _2
Investment in Joint Ventures and Majority Owned Subsidiaries (Details Textual) - USD ($) | 3 Months Ended | |
Oct. 02, 2022 | Sep. 26, 2021 | |
Schedule Of Equity Method Investments [Line Items] | ||
Equity earnings (loss) of joint ventures | $ 527,000 | $ (251,000) |
VAST LLC | MINDA-VAST ACCESS SYSTEMS | ||
Schedule Of Equity Method Investments [Line Items] | ||
Percentage ownership interest in equity method investment | 50% | |
STRATTEC | ADAC-STRATTEC LLC | ||
Schedule Of Equity Method Investments [Line Items] | ||
Percentage ownership interest in less than wholly owned consolidated subsidiary | 51% | 51% |
Majority owned subsidiary, impact on net income | $ (355,000) | $ (318,000) |
Majority owned subsidiary, impact on net sales | $ 30,100,000 | $ 23,500,000 |
STRATTEC | Strattec Power Access Llc | ||
Schedule Of Equity Method Investments [Line Items] | ||
Percentage ownership interest in less than wholly owned consolidated subsidiary | 80% | 80% |
Majority owned subsidiary, impact on net income | $ 641,000 | $ 1,200,000 |
Majority owned subsidiary, impact on net sales | $ 24,800,000 | 21,100,000 |
STRATTEC | VAST LLC | ||
Schedule Of Equity Method Investments [Line Items] | ||
Percentage ownership interest in equity method investment | 33.33% | |
Equity earnings (loss) of joint ventures | $ 527,000 | (251,000) |
Payments to acquire interest in joint venture | $ 0 | $ 0 |
ADAC | ADAC-STRATTEC LLC | ||
Schedule Of Equity Method Investments [Line Items] | ||
Percentage ownership interest in less than wholly owned consolidated subsidiary | 49% | 49% |
Engineering, research, design and sales fee | $ 2,100,000 | $ 1,600,000 |
Sales | $ 2,800,000 | $ 1,200,000 |
ADAC | VAST LLC | ||
Schedule Of Equity Method Investments [Line Items] | ||
Percentage ownership interest in equity method investment | 33.30% | |
WITTE | Strattec Power Access Llc | ||
Schedule Of Equity Method Investments [Line Items] | ||
Percentage ownership interest in less than wholly owned consolidated subsidiary | 20% | 20% |
WITTE | VAST LLC | ||
Schedule Of Equity Method Investments [Line Items] | ||
Percentage ownership interest in equity method investment | 33.30% | |
WITTE | STRATTEC | ||
Schedule Of Equity Method Investments [Line Items] | ||
Purchases | $ 135,000 | $ 187,000 |
Equity Earnings (Loss) of Joi_3
Equity Earnings (Loss) of Joint Ventures (Details Textual) | Oct. 02, 2022 |
VAST LLC | STRATTEC | |
Schedule Of Equity Method Investments [Line Items] | |
Percentage ownership interest in equity method investment | 33.33% |
Equity Earnings (Loss) of Joi_4
Equity Earnings (Loss) of Joint Ventures - Summarized Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 02, 2022 | Oct. 02, 2022 | Sep. 26, 2021 | |
Summarized statements of operations | |||
Net sales | $ 120,360 | $ 100,341 | |
Cost of goods sold | 107,864 | 87,792 | |
Gross profit | 12,496 | 12,549 | |
Engineering, selling and administrative expenses | 12,700 | 12,121 | |
(Loss) income from operations | (204) | 428 | |
Other (expense) income, net | (290) | 130 | |
(Loss) income before (benefit) provision for income taxes and non-controlling interest | (96) | 259 | |
(Benefit) provision for income taxes | (36) | 37 | |
Net (loss) income | $ (60) | 222 | |
VAST LLC | Equity Method Investment Summarized Financial Information | |||
Summarized statements of operations | |||
Net sales | $ 66,146 | 42,617 | |
Cost of goods sold | 55,782 | 34,892 | |
Gross profit | 10,364 | 7,725 | |
Engineering, selling and administrative expenses | 8,532 | 8,551 | |
(Loss) income from operations | 1,832 | (826) | |
Other (expense) income, net | 72 | 89 | |
(Loss) income before (benefit) provision for income taxes and non-controlling interest | 1,904 | (737) | |
(Benefit) provision for income taxes | 368 | 21 | |
Net (loss) income | 1,536 | (758) | |
STRATTEC's Share of VAST LLC Net Income (Loss) | 512 | (253) | |
Intercompany Profit Elimination | 15 | 2 | |
STRATTEC’s Equity Earnings (Loss) of VAST LLC | $ 527 | $ (251) |
Equity Earnings (Loss) of Joi_5
Equity Earnings (Loss) of Joint Ventures - Summarize of Related Party Transaction (Details) - VAST LLC - Equity Method Investee - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2022 | Sep. 26, 2021 | |
Schedule Of Equity Method Investments [Line Items] | ||
Sales to VAST LLC | $ 10 | $ 515 |
Purchases from VAST LLC | 14 | 132 |
Expenses Charged to VAST LLC | 81 | 174 |
Expenses Charged from VAST LLC | $ 243 | $ 253 |
Leases (Details Textual)
Leases (Details Textual) - USD ($) | 3 Months Ended | |
Oct. 02, 2022 | Sep. 26, 2021 | |
Leases [Abstract] | ||
Operating lease, existence of option to extend | true | |
Operating lease, renewal Term | 5 years | |
Operating lease, expiration term | 2023-10 | |
Operating lease expense | $ 122,000 | $ 119,000 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Asset and Obligation Included in Condensed Consolidated Balance Sheets (Details) $ in Thousands | Oct. 02, 2022 USD ($) |
Right-of Use Asset Under Operating Lease: | |
Operating lease right-of-use asset | $ 2,924 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other long-term assets |
Lease Obligation Under Operating Lease: | |
Current Liabilities: Accrued Liabilities: Other | $ 403 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other |
Other Long-Term Liabilities | $ 2,521 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities |
Operating Lease, Liability | $ 2,924 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Under Non-Cancelable Lease Including Options to Extend (Details) $ in Thousands | Oct. 02, 2022 USD ($) |
Leases [Abstract] | |
2023 (for the remaining nine months) | $ 375 |
2024 | 509 |
2025 | 522 |
2026 | 535 |
2027 | 548 |
Thereafter | 751 |
Total Future Minimum Lease Payments | 3,240 |
Less: Imputed Interest | (316) |
Total Lease Obligations | $ 2,924 |
Leases - Schedule of Cash Flow
Leases - Schedule of Cash Flow Information Related to Operating Lease (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2022 | Sep. 26, 2021 | |
Operating Cash Flows: | ||
Cash Paid Related to Operating Lease Obligation | $ 122 | $ 119 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Lease Term and Discount Rate for Operating Lease (Details) | Oct. 02, 2022 |
Leases [Abstract] | |
Weighted Average Remaining Lease Term (in years) | 6 years 1 month 6 days |
Weighted Average Discount Rate | 3.30% |
Credit Facilities (Details Text
Credit Facilities (Details Textual) | 3 Months Ended |
Oct. 02, 2022 USD ($) | |
Line Of Credit Facility [Line Items] | |
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% |
STRATTEC Credit Facility | |
Line Of Credit Facility [Line Items] | |
Secured revolving credit facility | $ 40,000,000 |
Credit facility maturity date | Aug. 01, 2024 |
ADAC-STRATTEC Credit Facility | |
Line Of Credit Facility [Line Items] | |
Secured revolving credit facility | $ 25,000,000 |
Credit facility maturity date | Aug. 01, 2024 |
Credit Facilities - Schedule of
Credit Facilities - Schedule of Outstanding Borrowings Under the Credit Facilities (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Jul. 03, 2022 |
Line Of Credit Facility [Line Items] | ||
Outstanding Borrowing | $ 13,000 | $ 11,000 |
STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Outstanding Borrowing | 1,000 | |
ADAC-STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Outstanding Borrowing | $ 12,000 | $ 11,000 |
Credit Facilities - Schedule _2
Credit Facilities - Schedule of Average Outstanding Borrowings and the Weighted Average Interest Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2022 | Sep. 26, 2021 | |
STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Average Outstanding Borrowings | $ 3,000 | $ 330 |
Weighted Average Interest Rate | 3.80% | 2.90% |
ADAC-STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Average Outstanding Borrowings | $ 11,352 | $ 13,319 |
Weighted Average Interest Rate | 3.50% | 1.40% |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | Oct. 02, 2022 | Jul. 03, 2022 |
Commitments And Contingencies Disclosure [Abstract] | ||
Environmental | $ 1,390 | $ 1,390 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Activity Impacting Shareholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2022 | Sep. 26, 2021 | |
Summary of activity impacting shareholders' equity | ||
Beginning Balance | $ 220,413 | $ 213,433 |
Net (loss) income | (60) | 222 |
Dividend Declared – Non- controlling Interests of Subsidiaries | (600) | (600) |
Translation Adjustments | (682) | (712) |
Stock-based Compensation | 611 | 396 |
Pension and Postretirement Adjustment, Net of Tax | 75 | 81 |
Stock Option Exercises | 109 | 600 |
Employee Stock Purchases | 17 | 19 |
Ending Balance | 219,883 | 213,439 |
Common Stock | ||
Summary of activity impacting shareholders' equity | ||
Beginning Balance | 75 | 74 |
Stock Option Exercises | 1 | |
Ending Balance | 75 | 75 |
Capital in Excess of Par Value | ||
Summary of activity impacting shareholders' equity | ||
Beginning Balance | 101,524 | 99,512 |
Stock-based Compensation | 611 | 396 |
Stock Option Exercises | 109 | 599 |
Employee Stock Purchases | 6 | 12 |
Ending Balance | 102,250 | 100,519 |
Retained Earnings | ||
Summary of activity impacting shareholders' equity | ||
Beginning Balance | 241,504 | 234,472 |
Net (loss) income | 128 | 101 |
Ending Balance | 241,632 | 234,573 |
Accumulated Other Comprehensive Loss | ||
Summary of activity impacting shareholders' equity | ||
Beginning Balance | (18,657) | (16,797) |
Translation Adjustments | (738) | (562) |
Pension and Postretirement Adjustment, Net of Tax | 75 | 81 |
Ending Balance | (19,320) | (17,278) |
Treasury Stock | ||
Summary of activity impacting shareholders' equity | ||
Beginning Balance | (135,580) | (135,615) |
Employee Stock Purchases | 11 | 7 |
Ending Balance | (135,569) | (135,608) |
Non-Controlling Interest | ||
Summary of activity impacting shareholders' equity | ||
Beginning Balance | 31,547 | 31,787 |
Net (loss) income | (188) | 121 |
Dividend Declared – Non- controlling Interests of Subsidiaries | (600) | (600) |
Translation Adjustments | 56 | (150) |
Ending Balance | $ 30,815 | $ 31,158 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Revenue by Product Group (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2022 | Sep. 26, 2021 | |
Product Information [Line Items] | ||
Revenue | $ 120,360 | $ 100,341 |
Door Handles & Exterior Trim | ||
Product Information [Line Items] | ||
Revenue | 30,125 | 23,540 |
Keys & Locksets | ||
Product Information [Line Items] | ||
Revenue | 28,665 | 22,841 |
Power Access | ||
Product Information [Line Items] | ||
Revenue | 24,841 | 21,140 |
Latches | ||
Product Information [Line Items] | ||
Revenue | 14,762 | 10,107 |
Aftermarket & OE Service | ||
Product Information [Line Items] | ||
Revenue | 10,648 | 11,896 |
User Interface Controls Formerly Driver Controls | ||
Product Information [Line Items] | ||
Revenue | 9,118 | 8,017 |
Other | ||
Product Information [Line Items] | ||
Revenue | $ 2,201 | $ 2,800 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Revenue by Customer or Customer Group (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2022 | Sep. 26, 2021 | |
Entity Wide Revenue Major Customer [Line Items] | ||
Revenue | $ 120,360 | $ 100,341 |
General Motors Company | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Revenue | 38,150 | 25,684 |
Ford Motor Company | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Revenue | 24,616 | 17,695 |
Stellantis | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Revenue | 17,155 | 16,560 |
Tier 1 Customers | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Revenue | 17,309 | 11,975 |
Commercial and Other OEM Customers | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Revenue | 14,826 | 17,412 |
Hyundai / Kia | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Revenue | $ 8,304 | $ 11,015 |
Other Income (Expense), Net - S
Other Income (Expense), Net - Summary of Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2022 | Sep. 26, 2021 | |
Other Income and Expenses [Abstract] | ||
Foreign Currency Transaction (Loss) Gain | $ (71) | $ 139 |
Unrealized loss on Peso Forward Contracts | (35) | (98) |
Realized Gain on Peso Forward Contracts, net | 238 | 139 |
Pension and Postretirement Plans Cost | (126) | (120) |
Rabbi Trust (Loss) Gain | (366) | 22 |
Other | 70 | 48 |
Other Income (Expense), net | $ (290) | $ 130 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) | 3 Months Ended | |
Oct. 02, 2022 | Sep. 26, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 37.50% | 14.30% |
Effective tax rate prior to favorable discrete benefit related to stock based compensation | 14.80% |
Earnings Per Share - Reconcilia
Earnings 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 | |
Oct. 02, 2022 | Sep. 26, 2021 | |
Reconciliation of the components of the basic and diluted per share | ||
Net Income, Basic Earnings Per Share | $ 128 | $ 101 |
Net Income, Diluted Earnings Per Share | $ 128 | $ 101 |
Basic Earnings Per Share, Number of Shares | 3,899 | 3,830 |
Stock Option and Restricted Stock Awards, Number of Shares | 30 | 63 |
Diluted Earnings Per Share, Number of Shares | 3,929 | 3,893 |
Basic Earnings Per Share | $ 0.03 | $ 0.03 |
Diluted Earnings Per Share | $ 0.03 | $ 0.03 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) - shares | 3 Months Ended | |
Oct. 02, 2022 | Sep. 26, 2021 | |
Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from earnings per share computation | 36,921 | 9,010 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Oct. 02, 2022 | Sep. 26, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share based compensation arrangement by share based payment award number of shares authorized | 2,000,000 | |
Shares of common stock available for grant | 129,884 | |
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 | $ 1.9 | |
Weighted average period over which unrecognized compensation is expected to be recognized | 1 year 1 month 6 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 | 3 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity Under Our Stock Incentive Plan (Details) | 3 Months Ended |
Oct. 02, 2022 $ / shares shares | |
Share Based Compensation [Abstract] | |
Shares, Beginning Balance | shares | 41,172 |
Shares, Exercised | shares | (4,251) |
Shares, Ending Balance | shares | 36,921 |
Shares, Exercisable | shares | 36,921 |
Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 46.34 |
Weighted Average Exercise Price, Exercised | $ / shares | 25.64 |
Weighted Average Exercise Price, Ending Balance | $ / shares | 48.72 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 48.72 |
Weighted Average Remaining Contractual Term, Outstanding | 1 year 1 month 6 days |
Weighted Average Remaining Contractual Term, Exercisable, Outstanding | 1 year 1 month 6 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 | |
Oct. 02, 2022 | Sep. 26, 2021 | |
Intrinsic value of stock options exercised and the fair value of stock options vested | ||
Intrinsic Value of Options Exercised | $ 31 | $ 331 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Activity Under Our Stock Incentive Plan (Details) - Restricted stock | 3 Months Ended |
Oct. 02, 2022 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Nonvested, Shares Beginning Balance | shares | 85,100 |
Granted, Shares | shares | 48,525 |
Vested, Shares | shares | (41,950) |
Forfeited, Shares | shares | (450) |
Nonvested, Shares Ending Balance | shares | 91,225 |
Nonvested, Weighted Average Grant Date Fair Value Beginning Balance | $ / shares | $ 31.89 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 29.94 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 29.52 |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | 30.34 |
Nonvested, Weighted Average Grant Date Fair Value Ending Balance | $ / shares | $ 31.79 |
Pension and Postretirement Be_3
Pension and Postretirement Benefits (Details Textual) - USD ($) | 3 Months Ended | |
Oct. 02, 2022 | Jul. 03, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Rabbi Trust Assets - SERP | $ 2,900,000 | $ 3,300,000 |
Postretirement plan annual benefit limit for future eligible retirees | $ 4,000 | |
Other postretirement benefits maximum benefit period | 5 years | |
Other Current Assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rabbi Trust Assets - SERP | $ 863,000 | $ 863,000 |
Supplemental Employee Retirement Plan, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of participant's base salary received as Supplemental Retirement Benefits | 8% | |
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 | |
Oct. 02, 2022 | Sep. 26, 2021 | |
SERP Benefits | ||
COMPONENTS OF NET PERIODIC BENEFIT COST: | ||
Service Cost | $ 20 | $ 16 |
Interest Cost | 23 | 13 |
Amortization of Unrecognized Net Loss | 31 | 22 |
Net Periodic Benefit Cost | 74 | 51 |
Postretirement Benefits | ||
COMPONENTS OF NET PERIODIC BENEFIT COST: | ||
Service Cost | 3 | 3 |
Interest Cost | 5 | 3 |
Amortization of Unrecognized Net Loss | 67 | 84 |
Net Periodic Benefit Cost | $ 75 | $ 90 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2022 | Sep. 26, 2021 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | $ (220,413) | $ (213,433) |
Other Comprehensive Loss Before Reclassifications | 682 | 712 |
Net Other Comprehensive Loss Before Reclassifications | 682 | 712 |
Reclassifications: | ||
Unrecognized Net Loss | (98) | (106) |
Reclassifications, Income Tax | 23 | 25 |
Net Reclassifications | (75) | (81) |
Other Comprehensive Loss | 607 | 631 |
Ending balance | (219,883) | (213,439) |
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | 16,723 | 14,685 |
Other Comprehensive Loss Before Reclassifications | 682 | 712 |
Net Other Comprehensive Loss Before Reclassifications | 682 | 712 |
Reclassifications: | ||
Other Comprehensive Loss | 682 | 712 |
Other Comprehensive Income Attributable to Non- Controlling Interest | (56) | 150 |
Ending balance | 17,461 | 15,247 |
Retirement and Postretirement Benefit Plans | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | 1,934 | 2,112 |
Reclassifications: | ||
Unrecognized Net Loss | (98) | (106) |
Reclassifications, Income Tax | 23 | 25 |
Net Reclassifications | (75) | (81) |
Other Comprehensive Loss | (75) | (81) |
Ending balance | 1,859 | 2,031 |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | 18,657 | 16,797 |
Reclassifications: | ||
Ending balance | 19,320 | 17,278 |
AOCI Including Portion Attributable to Noncontrolling Interest | ||
Reclassifications: | ||
Other Comprehensive Loss | (607) | 631 |
AOCI Attributable to Noncontrolling Interest | ||
Reclassifications: | ||
Other Comprehensive Income Attributable to Non- Controlling Interest | $ (56) | $ 150 |