Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 26, 2021 | Dec. 27, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | STRATTEC SECURITY CORP | |
Entity Central Index Key | 0000933034 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 26, 2021 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --07-03 | |
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 | 3,953,798 | |
Security Exchange Name | NASDAQ | |
Trading Symbol | STRT | |
Title of 12(b) Security | Common stock, $.01 par value |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive (Loss) Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 26, 2021 | Dec. 27, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 112,908 | $ 127,360 | $ 213,249 | $ 253,594 |
Cost of goods sold | 97,975 | 105,119 | 185,767 | 208,842 |
Gross profit | 14,933 | 22,241 | 27,482 | 44,752 |
Engineering, selling and administrative expenses | 11,301 | 10,302 | 23,422 | 21,616 |
Income from operations | 3,632 | 11,939 | 4,060 | 23,136 |
Equity earnings of joint ventures | 615 | 1,075 | 364 | 1,900 |
Interest expense | (57) | (84) | (105) | (196) |
Other (expense) income, net | (95) | (1,366) | 35 | (1,626) |
Income before provision for income taxes and non-controlling interest | 4,095 | 11,564 | 4,354 | 23,214 |
Provision for income taxes | 255 | 1,991 | 292 | 3,568 |
Net income | 3,840 | 9,573 | 4,062 | 19,646 |
Net income attributable to non-controlling Interest | 446 | 2,460 | 567 | 4,525 |
Net income attributable to STRATTEC SECURITY CORPORATION | 3,394 | 7,113 | 3,495 | 15,121 |
Comprehensive income: | ||||
Net income | 3,840 | 9,573 | 4,062 | 19,646 |
Pension and postretirement plans, net of tax | 78 | 69 | 159 | 139 |
Currency translation adjustments | (544) | 4,417 | (1,256) | 6,116 |
Other comprehensive (loss) income, net of tax | (466) | 4,486 | (1,097) | 6,255 |
Comprehensive income | 3,374 | 14,059 | 2,965 | 25,901 |
Comprehensive income attributable to non-controlling interest | 93 | 3,773 | 64 | 6,159 |
Comprehensive income attributable to STRATTEC SECURITY CORPORATION | $ 3,281 | $ 10,286 | $ 2,901 | $ 19,742 |
Earnings per share attributable to STRATTEC SECURITY CORPORATION: | ||||
Basic | $ 0.88 | $ 1.88 | $ 0.91 | $ 4.01 |
Diluted | $ 0.87 | $ 1.85 | $ 0.90 | $ 3.96 |
Average shares outstanding: | ||||
Basic | 3,866 | 3,786 | 3,848 | 3,775 |
Diluted | 3,908 | 3,842 | 3,901 | 3,815 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Dec. 26, 2021 | Jun. 27, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 14,071 | $ 14,465 |
Receivables, net | 72,472 | 69,902 |
Inventories: | ||
Finished products | 18,883 | 20,633 |
Work in process | 15,269 | 14,707 |
Purchased materials | 44,926 | 40,900 |
Excess and obsolete reserve | (5,835) | (5,380) |
Inventories, net | 73,243 | 70,860 |
Other current assets | 18,129 | 19,677 |
Total current assets | 177,915 | 174,904 |
Investment in joint ventures | 27,394 | 27,224 |
Deferred Income Taxes | 4,852 | 5,052 |
Other long-term assets | 6,867 | 6,982 |
Property, plant and equipment | 269,561 | 270,429 |
Less: accumulated depreciation | (178,276) | (174,028) |
Net property, plant and equipment | 91,285 | 96,401 |
Total assets | 308,313 | 310,563 |
Current Liabilities: | ||
Accounts payable | 31,635 | 36,727 |
Accrued Liabilities: | ||
Payroll and benefits | 15,763 | 22,483 |
Environmental | 1,390 | 1,390 |
Warranty | 8,220 | 8,425 |
Other | 9,829 | 8,547 |
Total current liabilities | 66,837 | 77,572 |
Borrowings under credit facilities | 17,000 | 12,000 |
Accrued pension obligations | 2,384 | 2,334 |
Accrued postretirement obligations | 561 | 599 |
Other long-term liabilities | 4,460 | 4,625 |
Shareholders’ Equity: | ||
Common stock, authorized 18,000,000 shares, $.01 par value, 7,472,327 issued shares at December 26, 2021 and 7,411,717 issued shares at June 27, 2021 | 75 | 74 |
Capital in excess of par value | 100,768 | 99,512 |
Retained earnings | 237,967 | 234,472 |
Accumulated other comprehensive loss | (17,391) | (16,797) |
Less: treasury stock, at cost (3,605,654 shares at December 26, 2021 and 3,606,652 shares at June 27, 2021) | (135,599) | (135,615) |
Total STRATTEC SECURITY CORPORATION shareholders’ equity | 185,820 | 181,646 |
Non-controlling interest | 31,251 | 31,787 |
Total shareholders’ equity | 217,071 | 213,433 |
Total liabilities and shareholders' equity | $ 308,313 | $ 310,563 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Dec. 26, 2021 | Jun. 27, 2021 |
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 | 7,472,327 | 7,411,717 |
Treasury stock, shares | 3,605,654 | 3,606,652 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 26, 2021 | Dec. 27, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 4,062 | $ 19,646 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 9,968 | 9,797 |
Foreign currency transaction (gain) loss | (243) | 2,312 |
Loss on disposal of property, plant and equipment | 93 | 1,426 |
Unrealized loss (gain) on peso forward contracts | 224 | (480) |
Stock based compensation expense | 634 | 582 |
Equity earnings of joint ventures | (364) | (1,900) |
Change in operating assets and liabilities: | ||
Receivables | (2,644) | (43,640) |
Inventories | (2,383) | (1,933) |
Other assets | 1,365 | 3,737 |
Accounts payable and accrued liabilities | (10,934) | 27,274 |
Other, net | 240 | 235 |
Net cash provided by operating activities | 18 | 17,056 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Investment in VAST LLC | (100) | |
Purchase of property, plant and equipment | (5,362) | (4,593) |
Proceeds received on sale of property, plant and equipment | 3 | |
Net cash used in investing activities | (5,362) | (4,690) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings under credit facilities | 8,000 | |
Repayment of borrowings under credit facilities | (3,000) | (13,000) |
Dividends paid to non-controlling interests of subsidiaries | (600) | (490) |
Exercise of stock options and employee stock purchases | 639 | 40 |
Net cash provided by (used in) financing activities | 5,039 | (13,450) |
Foreign currency impact on cash | (89) | (258) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (394) | (1,342) |
CASH AND CASH EQUIVALENTS | ||
Beginning of period | 14,465 | 11,774 |
End of period | 14,071 | 10,432 |
Cash paid (recovered) during the period for: | ||
Income taxes | (2,031) | 2,406 |
Interest | 100 | 208 |
Non-cash investing activities: | ||
Change in capital expenditures in accounts payable | $ 624 | $ (340) |
Basis of Financial Statements
Basis of Financial Statements | 6 Months Ended |
Dec. 26, 2021 | |
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 December 26, 2021 and June 27, 2021, 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 2021 Form 10-K, which was filed with the Securities and Exchange Commission on September 2, 2021. |
Risks and Uncertainties
Risks and Uncertainties | 6 Months Ended |
Dec. 26, 2021 | |
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 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 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 and levels of consumer spending specifically within the automotive industry. 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 current fiscal 2022 first and second quarters resulting in a decrease in our net sales for both the current year quarter and year to date period as compared to the same periods in our prior fiscal year. The extent of the impact of the COVID-19 outbreak on our future operating results will depend on the duration, intensity and continued spread of the outbreak, regulatory and private sector responses, which may be precautionary and may include potential restrictive operating measures imposed by governmental authorities, and the impact to our customers, workforce and suppliers, in particular related to the sourcing of semiconductor chips, transponders and other critical supply chain components needed by us and our customers to meet expected production schedules, all of which 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. 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 Standards
New Accounting Standards | 6 Months Ended |
Dec. 26, 2021 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Standards | New Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial instruments – Credit Losses Financial instruments – Credit Losses, Derivatives and Hedging Activities, and Leases 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. The adoption of this pronouncement did not have a material impact on our consolidated financial statements. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Dec. 26, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On January 28, 2022, our VAST LLC joint venture company experienced a fire impacting a paint line at their Taicang, China facility. VAST China is currently working to resource production to its Jingzhou, China facility and to its partners’ facilities. Inability of VAST China to resource production may have a negative impact on their future financial results and on STRATTEC’s future equity earnings of joint ventures. Additionally, insurance coverage and equipment impairment are currently in the process of being evaluated. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Dec. 26, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | D erivative 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 December 26, 2021 (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 January 18, 2022 - June 14, 2022 $ 10,500 20.80 $ (71 ) Buy MXP/Sell USD July 19, 2022 - December 13, 2022 $ 3,000 22.62 $ 90 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): December 26, 2021 June 27, 2021 Not Designated as Hedging Instruments: Other Current Assets: Mexican Peso Forward Contracts $ 90 $ 243 Other Current Liabilities: Mexican Peso Forward Contracts $ (71 ) $ — The pre-tax effects of the Mexican peso forward contracts are included in Other (Expense) Income, net on the accompanying Condensed Consolidated Statements of Income and Comprehensive Income and consisted of the following for the periods indicated below (thousands of dollars): Three Months Ended Six Months Ended December 26, 2021 December 27, 2020 December 26, 2021 December 27, 2020 Not Designated as Hedging Instruments: Realized Gain $ 45 $ 135 $ 184 $ 76 Realized (Loss) $ (49 ) $ — $ (49 ) $ — Unrealized (Loss) Gain $ (126 ) $ 145 $ (224 ) $ 480 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Dec. 26, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of our cash and cash equivalents, accounts receivable, accounts payable and borrowings under our credit facilities approximated book value as of December 26, 2021 and June 27, 2021. Fair value is defined as the exchange price that would be received for an asset or paid for a liability (an exit price) in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of December 26, 2021 (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 $ 177 $ — $ — Mid Cap 363 — — Large Cap 761 — — International 893 — — Fixed Income Funds 1,094 — — Cash and Cash Equivalents — 365 — Mexican Peso Forward Contracts — 90 — Total Assets at Fair Value $ 3,288 $ 455 $ — Liabilities: Mexican Peso Forward Contracts — (71 ) — Total Liabilities at Fair Value $ — $ (71 ) $ — 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. |
Investment in Joint Ventures an
Investment in Joint Ventures and Majority Owned Subsidiaries | 6 Months Ended |
Dec. 26, 2021 | |
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 $364,000 during the six month period ended December 26, 2021 and $1.9 million during the six month period ended December 27, 2020. During the six months ended December 26, 2021, no capital contributions were made to VAST LLC by any of the members. During the six months ended December 27, 2020, capital contributions totaling $300,000 were made to VAST LLC for purposes of funding operations in Brazil. STRATTEC’s portion of the capital contributions totaled $100,000. 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 decreased net income to STRATTEC of approximately $51.9 million and $326,000, respectively, during the six month period ended December 26, 2021 and increased net sales and increased net income to STRATTEC of approximately $68.9 million and $2.7 million, respectively, during the six month period ended December 27, 2020. 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 $2.0 million and $3.6 million in the three and six month periods ended December 26, 2021 and $2.4 million and $4.8 million in the three and six month periods ended December 27, 2020. Additionally, ADAC-STRATTEC LLC sells production parts to ADAC. Sales to ADAC are included in the consolidated results of STRATTEC and totaled $1.9 million and $3.1 million in the three and six month periods ended December 26, 2021 and $3.3 million and $6.4 million in the three and six month periods ended December 27, 2020. STRATTEC POWER ACCESS LLC (“SPA”) was formed in fiscal year 2009 to supply the North American portion of the power sliding door, lift gate and deck lid system access control products which were acquired from Delphi Corporation. SPA was 80 percent owned by STRATTEC and 20 percent owned by WITTE for all periods presented in this report. An additional Mexican entity, STRATTEC POWER ACCESS de Mexico, is wholly owned by SPA. The financial results of SPA are consolidated with the financial results of STRATTEC and resulted in increased net sales and increased net income to STRATTEC of approximately $44.7 million and $2.2 million, respectively, during the six month period ended December 26, 2021 and $45.8 million and $3.2 million, respectively, during the six month period ended December 27, 2020. |
Equity Earnings of Joint Ventur
Equity Earnings of Joint Ventures | 6 Months Ended |
Dec. 26, 2021 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Equity Earnings of Joint Ventures | Equity Earnings 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 Six Months Ended December 26, 2021 December 27, 2020 December 26, 2021 December 27, 2020 Net Sales $ 55,556 $ 58,352 $ 98,173 $ 108,763 Cost of Goods Sold 45,712 46,599 80,604 87,190 Gross Profit 9,844 11,753 17,569 21,573 Engineering, Selling and Administrative Expenses 7,949 8,649 16,500 15,252 Income From Operations 1,895 3,104 1,069 6,321 Other Income, net 304 1,185 393 1,036 Income before Provision for Income Taxes 2,199 4,289 1,462 7,357 Provision for Income Taxes 354 1,071 375 1,663 Net Income $ 1,845 $ 3,218 $ 1,087 $ 5,694 STRATTEC's Share of VAST LLC Net Income 615 1,073 362 1,898 Intercompany Profit Elimination — 2 2 2 STRATTEC’s Equity Earnings of VAST LLC $ 615 $ 1,075 $ 364 $ 1,900 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 Six Months Ended December 26, 2021 December 27, 2020 December 26, 2021 December 27, 2020 Sales to VAST LLC $ 702 $ 998 $ 1,217 $ 2,214 Purchases from VAST LLC $ 19 $ 14 $ 151 $ 201 Expenses Charged to VAST LLC $ 204 $ 589 $ 378 $ 1,096 Expenses Charged from VAST LLC $ 189 $ 359 $ 442 $ 651 |
Leases
Leases | 6 Months Ended |
Dec. 26, 2021 | |
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): December 26, 2021 Right-of Use Asset Under Operating Lease: Other Long-Term Assets $ 3,213 Lease Obligation Under Operating Lease: Current Liabilities: Accrued Liabilities: Other $ 389 Other Long-Term Liabilities 2,824 $ 3,213 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 December 26, 2021 (in thousands): 2022 (for the remaining six months) $ 244 2023 497 2024 509 2025 522 2026 535 Thereafter 1,299 Total Future Minimum Lease Payments 3,606 Less: Imputed Interest (393 ) Total Lease Obligations $ 3,213 Cash flow information related to the operating lease is shown below (in thousands): Six Months Ended December 26, 2021 December 27, 2020 Operating Cash Flows: Cash Paid Related to Operating Lease Obligation $ 241 $ 235 The weighted average lease term and discount rate for the El Paso, Texas operating lease are shown below: December 26, 2021 Weighted Average Remaining Lease Term (in years) 6.8 Weighted Average Discount Rate 3.3 % Operating lease expense for the three and six month periods ended December 26, 2021 totaled $122,000 and $241,000, respectively. Operating lease expense for the three and six month periods ended December 27, 2020 totaled $119,000 and $235,000, respectively. |
Credit Facilities
Credit Facilities | 6 Months Ended |
Dec. 26, 2021 | |
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 the STRATTEC Credit Facility through May 31, 2021 was at varying rates based, at our option, on the London Interbank Offering Rate (“LIBOR”) plus 1.0 percent or the bank’s prime rate. Interest on borrowings under the ADAC-STRATTEC Credit Facility through May 31, 2021 was at varying rates based, at our option, on LIBOR plus 1.25 percent or the bank’s prime rate. Effective June 1, 2021, interest on borrowings under both credit facilities were at varying rates based, at our option, on the London Interbank Offering Rate (“LIBOR”) plus 1.25 percent or the bank’s prime rate. Both credit facilities contain a restrictive financial covenant that requires the applicable borrower to maintain a minimum net worth level. The ADAC-STRATTEC Credit Facility includes an additional restrictive financial covenant that requires the maintenance of a minimum fixed charge coverage ratio. As of December 26, 2021, we were in compliance with all financial covenants required by these credit facilities. Outstanding borrowings under the credit facilities were as follows (in thousands): December 26, 2021 June 27, 2021 STRATTEC Credit Facility $ — $ — ADAC-STRATTEC Credit Facility 17,000 12,000 $ 17,000 $ 12,000 Average outstanding borrowings and the weighted average interest rate under each credit facility referenced above were as follows for each period presented (in thousands): Six Months Ended Average Weighted Average Interest Rate December 26, 2021 December 27, 2020 December 26, 2021 December 27, 2020 STRATTEC Credit Facility $ 170 $ 13,747 3.3 % 1.2 % ADAC-STRATTEC Credit Facility $ 14,846 $ 16,258 1.4 % 1.4 % |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 26, 2021 | |
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 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 environmental reserve of $1.4 million at December 26, 2021 is adequate. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Dec. 26, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity A summary of activity impacting shareholders’ equity for the three and six month periods ended December 26, 2021 and December 27, 2020 were as follows (in thousands): Three Months Ended December 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, September 26, 2021 $ 213,439 $ 75 $ 100,519 $ 234,573 $ (17,278 ) $ (135,608 ) $ 31,158 Net Income 3,840 — — 3,394 — — 446 Translation Adjustments (544 ) — — — (191 ) — (353 ) Stock Based Compensation 238 — 238 — — — — Pension and Postretirement Adjustment, Net of Tax 78 — — — 78 — — Employee Stock Purchases 20 — 11 — — 9 — Balance, December 26, 2021 $ 217,071 $ 75 $ 100,768 $ 237,967 $ (17,391 ) $ (135,599 ) $ 31,251 Three Months Ended December 27, 2020 Total Shareholders’ Equity Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Non-Controlling Interest Balance, September 27, 2020 $ 187,020 $ 74 $ 98,188 $ 219,948 $ (20,665 ) $ (135,640 ) $ 25,115 Net Income 9,573 — — 7,113 — — 2,460 Translation Adjustments 4,417 — — — 3,104 — 1,313 Stock Based Compensation 374 — 374 — — — — Pension and Postretirement Adjustment, Net of Tax 69 — — — 69 — — Employee Stock Purchases 20 — 9 — — 11 — Balance, December 27, 2020 $ 201,473 $ 74 $ 98,571 $ 227,061 $ (17,492 ) $ (135,629 ) $ 28,888 Six Months Ended December 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 4,062 — — 3,495 — — 567 Dividend Declared – Non- controlling Interests of Subsidiaries (600 ) — — — — — (600 ) Translation Adjustments (1,256 ) — — — (753 ) — (503 ) Stock Based Compensation 634 — 634 — — — — Pension and Postretirement Adjustment, Net of Tax 159 — — — 159 — — Stock Option Exercises 600 1 599 — — — — Employee Stock Purchases 39 — 23 — — 16 — Balance, December 26, 2021 $ 217,071 $ 75 $ 100,768 $ 237,967 $ (17,391 ) $ (135,599 ) $ 31,251 Six Months Ended December 27, 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 28, 2020 $ 175,441 $ 74 $ 97,977 $ 211,940 $ (22,113 ) $ (135,656 ) $ 23,219 Net Income 19,646 — — 15,121 — — 4,525 Dividend Declared – Non- controlling Interests of Subsidiaries (490 ) — — — — — (490 ) Translation Adjustments 6,116 — — — 4,482 — 1,634 Stock Based Compensation 582 — 582 — — — — Pension and Postretirement Adjustment, Net of Tax 139 — — — 139 — — Employee Stock Purchases 39 — 12 — — 27 — Balance, December 27, 2020 $ 201,473 $ 74 $ 98,571 $ 227,061 $ (17,492 ) $ (135,629 ) $ 28,888 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Dec. 26, 2021 | |
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 December 26, 2021 or June 27, 2021. Revenue by Product Group and Customer: Revenue by product group for the periods presented was as follows (thousands of dollars): Three Months Ended Six Months Ended December 26, 2021 December 27, 2020 December 26, 2021 December 27, 2020 Door Handles & Exterior Trim $ 28,358 $ 34,813 $ 51,898 $ 68,904 Keys & Locksets 26,654 30,136 49,495 62,872 Power Access 23,529 25,210 44,669 45,830 Latches 11,915 14,343 22,022 28,178 Aftermarket & OE Service 11,414 9,971 23,310 23,108 Driver Controls 8,775 10,535 16,792 20,322 Other 2,263 2,352 5,063 4,380 $ 112,908 $ 127,360 $ 213,249 $ 253,594 Revenue by customer or customer group for the periods presented was as follows (thousands of dollars): Three Months Ended Six Months Ended December 26, 2021 December 27, 2020 December 26, 2021 December 27, 2020 General Motors Company $ 31,129 $ 39,023 $ 56,813 $ 76,779 Stellantis (Formerly Fiat Chrysler Automobiles) 23,050 23,152 39,610 48,234 Ford Motor Company 21,070 16,788 38,765 32,634 Commercial and Other OEM Customers 16,190 19,596 33,602 41,031 Tier 1 Customers 15,607 18,660 27,582 36,155 Hyundai / Kia 5,862 10,141 16,877 18,761 $ 112,908 $ 127,360 $ 213,249 $ 253,594 |
Other (Expense) Income, net
Other (Expense) Income, net | 6 Months Ended |
Dec. 26, 2021 | |
Other Income And Expenses [Abstract] | |
Other (Expense) Income, net | Other (Expense) Income, net Net other (expense) income included in the accompanying Condensed Consolidated Statements of Income and Comprehensive Income 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 December 26, 2021 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 Six Months Ended December 26, 2021 December 27, 2020 December 26, 2021 December 27, 2020 Foreign Currency Transaction Gain (loss) $ 104 $ (1,913 ) $ 243 $ (2,312 ) Unrealized (Loss) Gain on Peso Forward Contracts (126 ) 145 (224 ) 480 Realized (Loss) Gain on Peso Forward Contracts, net (4 ) 135 135 76 Pension and Postretirement Plans Cost (120 ) (103 ) (240 ) (208 ) Rabbi Trust Gain 48 375 70 318 Other 3 (5 ) 51 20 $ (95 ) $ (1,366 ) $ 35 $ (1,626 ) |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 26, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate was 6.2% and 17.2% for the three months ended December 26, 2021 and December 27, 2020, respectively. Our effective tax rate was 6.7% and 15.4% for the six month periods ended December 26, 2021 and December 27, 2020, respectively. The reduction in our effective tax rate in the current three and six months periods as compared to the respective prior year periods is due to an increase in our foreign tax credits between periods. Effective July 20, 2020, the U.S Treasury Department finalized and enacted previously proposed regulations regarding the Global Intangible Low Taxed Income (GILTI) tax provisions of the Tax Cuts and Jobs Act of 2017 (TCJA). Prior to this enactment, GILTI represented a significant U.S. income tax on our foreign earnings during our fiscal 2020. With the enactment of these final regulations, we became eligible for an exclusion from GILTI since we met the provisions for the GILTI High-Tax exception included in the final regulations. In addition, the enactment of the new regulations and our eligibility for the GILTI High-Tax exception was retroactive to the original enactment of the GILTI tax provision, which included our 2020 fiscal year. As a result, we recorded an income tax benefit of $675,000 during the six month period ended December 27, 2020. Our effective tax rate differs from the statutory tax rate due to the GILTI provisions, our available R&D tax credit and the non-controlling interest portion of our pre-tax income. The non-controlling interest impacts the effective tax rate as ADAC-STRATTEC LLC and STRATTEC POWER ACCESS LLC entities are taxed as partnerships for U.S. tax purposes. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Dec. 26, 2021 | |
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 December 26, 2021 December 27, 2020 Net Income Shares Per-Share Amount Net Income Shares Per-Share Amount Basic Earnings Per Share $ 3,394 3,866 $ 0.88 $ 7,113 3,786 $ 1.88 Stock Option and Restricted Stock Awards — 42 — 56 Diluted Earnings Per Share $ 3,394 3,908 $ 0.87 $ 7,113 3,842 $ 1.85 Six Months Ended December 26, 2021 December 27, 2020 Net Income Shares Per-Share Amount Net Income Shares Per-Share Amount Basic Earnings Per Share $ 3,495 3,848 $ 0.91 $ 15,121 3,775 $ 4.01 Stock Option and Restricted Stock Awards — 53 — 40 Diluted Earnings Per Share $ 3,495 3,901 $ 0.90 $ 15,121 3,815 $ 3.96 The calculation of earnings per share excluded 9,010 and 41,200 share-based payment awards as of December 26, 2021 and December 27, 2020, respectively, because their inclusion would have been anti-dilutive. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Dec. 26, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation We maintain an omnibus stock incentive plan. This plan provides for the granting of stock options, shares of restricted stock and stock appreciation rights. As of December 26, 2021, 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 December 26, 2021 were 175,934. Awards that expire or are canceled without delivery of shares become available for re-issuance under the plan. We issue new shares of common stock to satisfy stock option exercises. Nonqualified and incentive stock options and shares of restricted stock have been granted to our officers, outside directors and specified associates under our stock incentive plan. Stock options granted under the plan may not be issued with an exercise price less than the fair market value of the common stock on the date the option is granted. Stock options become exercisable as determined at the date of grant by the Compensation Committee of the Board of Directors. The options expire 10 years after the grant date unless an earlier expiration date is set at the time of grant. The options vest 1 to 4 years after the date of grant as determined by the Compensation Committee of the Board of Directors. Shares of restricted stock granted under the plan are subject to vesting criteria determined by the Compensation Committee of the Board of Directors at the time the shares are granted and have a minimum vesting period of one year from the date of grant. Unvested restricted shares granted have voting rights, regardless of whether the shares are vested or unvested, but only have the right to receive cash dividends after such shares become vested. Restricted stock grants vest 1 to 5 years after the date of grant as determined by the Compensation Committee of the Board of Directors. The fair value of each stock option grant was estimated as of the date of grant using the Black-Scholes pricing model. The fair value of each restricted stock grant was based on the market price of the underlying common stock as of the date of grant. The resulting compensation cost for fixed awards with graded vesting schedules is amortized on a straight-line basis over the vesting period for the entire award. A summary of stock option activity under our stock incentive plan for the six months ended December 26, 2021 follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding, June 27, 2021 72,624 $ 37.65 Exercised 22,610 $ 26.53 Outstanding, December 26, 2021 50,014 $ 42.68 1.6 $ 153 Exercisable, December 26, 2021 50,014 $ 42.68 1.6 $ 153 The intrinsic value of stock options exercised and the fair value of stock options that vested during the three and six month periods presented below were as follows (in thousands): Three Months Ended Six Months Ended December 26, 2021 December 27, 2020 December 26, 2021 December 27, 2020 Intrinsic Value of Options Exercised $ — $ — $ 331 $ — Fair Value of Stock Options Vesting $ — $ — $ — $ — No options were granted during the six month periods ended December 26, 2021 or December 27, 2020. A summary of restricted stock activity under our stock incentive plan for the six months ended December 26, 2021 follows: Shares Weighted Average Grant Date Fair Value Nonvested Balance, June 27, 2021 81,975 $ 23.31 Granted 43,875 $ 42.50 Vested (38,000 ) $ 25.56 Forfeited (725 ) $ 32.12 Nonvested Balance, December 26, 2021 87,125 $ 31.92 As of December 26, 2021, all compensation cost related to outstanding stock options granted under our omnibus stock incentive plan has been recognized. As of December 26, 2021, 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 1.2 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 | 6 Months Ended |
Dec. 26, 2021 | |
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 $3.7 million at December 26, 2021 and $3.6 million at June 27, 2021 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 (Expense) Income, net in the accompanying Condensed Consolidated Statements of Income and Comprehensive Income. The following tables summarize the net periodic benefit cost recognized for each of the periods indicated under these plans (in thousands): SERP Benefits Postretirement Benefits Three Months Ended Three Months Ended December 26, 2021 December 27, 2020 December 26, 2021 December 27, 2020 Service Cost $ 15 $ 15 $ 3 $ 4 Interest Cost 12 11 3 4 Amortization of Prior Service Credit — — — (2 ) Amortization of Unrecognized Net Loss 21 2 81 89 Net Periodic Benefit Cost $ 48 $ 28 $ 87 $ 95 SERP Benefits Postretirement Benefits Six Months Ended Six Months Ended December 26, 2021 December 27, 2020 December 26, 2021 December 27, 2020 Service Cost $ 31 $ 31 $ 6 $ 7 Interest Cost 25 21 6 8 Amortization of Prior Service Credit — — — (4 ) Amortization of Unrecognized Net Loss 43 5 165 178 Net Periodic Benefit Cost $ 99 $ 57 $ 177 $ 189 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Dec. 26, 2021 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following tables summarize the changes in accumulated other comprehensive loss (“AOCL”) for each period presented (in thousands): Three Months Ended December 26, 2021 Foreign Currency Translation Adjustments Retirement and Postretirement Benefit Plans Total Balance, September 26, 2021 $ 15,247 $ 2,031 $ 17,278 Other Comprehensive Income Before Reclassifications 544 — 544 Net Other Comprehensive Income Before Reclassifications 544 — 544 Reclassifications: Unrecognized Net Loss (A) — (102 ) (102 ) Total Reclassifications Before Tax — (102 ) (102 ) Income Tax — 24 24 Net Reclassifications — (78 ) (78 ) Other Comprehensive Loss 544 (78 ) 466 Other Comprehensive Loss Attributable to Non- Controlling Interest 353 — 353 Balance, December 26, 2021 $ 15,438 $ 1,953 $ 17,391 Three Months Ended December 27, 2020 Foreign Currency Translation Adjustments Retirement and Postretirement Benefit Plans Total Balance, September 27, 2020 $ 18,758 $ 1,907 $ 20,665 Other Comprehensive Loss Before Reclassifications (4,417 ) — (4,417 ) Net Other Comprehensive Loss Before Reclassifications (4,417 ) — (4,417 ) Reclassifications: Prior Service Credits (A) — 2 2 Unrecognized Net Loss (A) — (91 ) (91 ) Total Reclassifications Before Tax — (89 ) (89 ) Income Tax — 20 20 Net Reclassifications — (69 ) (69 ) Other Comprehensive Income (4,417 ) (69 ) (4,486 ) Other Comprehensive Income Attributable to Non- Controlling Interest (1,313 ) — (1,313 ) Balance, December 27, 2020 $ 15,654 $ 1,838 $ 17,492 Six Months Ended December 26, 2021 Foreign Currency Translation Adjustments Retirement and Postretirement Benefit Plans Total Balance, June 27, 2021 $ 14,685 $ 2,112 $ 16,797 Other Comprehensive Income Before Reclassifications 1,256 — 1,256 Net Other Comprehensive Income Before Reclassifications 1,256 — 1,256 Reclassifications: Unrecognized Net Loss (A) — (208 ) (208 ) Total Reclassifications Before Tax — (208 ) (208 ) Income Tax — 49 49 Net Reclassifications — (159 ) (159 ) Other Comprehensive Loss 1,256 (159 ) 1,097 Other Comprehensive Loss Attributable to Non- Controlling Interest 503 — 503 Balance, December 26, 2021 $ 15,438 $ 1,953 $ 17,391 Six Months Ended December 27, 2020 Foreign Currency Translation Adjustments Retirement and Postretirement Benefit Plans Total Balance, June 28, 2020 $ 20,136 $ 1,977 $ 22,113 Other Comprehensive Loss Before Reclassifications (6,116 ) — (6,116 ) Net Other Comprehensive Loss Before Reclassifications (6,116 ) — (6,116 ) Reclassifications: Prior Service Credits (A) — 4 4 Unrecognized Net Loss (A) — (183 ) (183 ) Total Reclassifications Before Tax — (179 ) (179 ) Income Tax — 40 40 Net Reclassifications — (139 ) (139 ) Other Comprehensive Income (6,116 ) (139 ) (6,255 ) Other Comprehensive Income Attributable to Non- Controlling Interest (1,634 ) — (1,634 ) Balance, December 27, 2020 $ 15,654 $ 1,838 $ 17,492 (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 Income and Comprehensive Income. See Pension and Postretirement Benefits note to these Notes to Condensed Consolidated Financial Statements above. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Dec. 26, 2021 | |
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 December 26, 2021 (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 January 18, 2022 - June 14, 2022 $ 10,500 20.80 $ (71 ) Buy MXP/Sell USD July 19, 2022 - December 13, 2022 $ 3,000 22.62 $ 90 |
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): December 26, 2021 June 27, 2021 Not Designated as Hedging Instruments: Other Current Assets: Mexican Peso Forward Contracts $ 90 $ 243 Other Current Liabilities: Mexican Peso Forward Contracts $ (71 ) $ — |
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 Income and Comprehensive Income and consisted of the following for the periods indicated below (thousands of dollars): Three Months Ended Six Months Ended December 26, 2021 December 27, 2020 December 26, 2021 December 27, 2020 Not Designated as Hedging Instruments: Realized Gain $ 45 $ 135 $ 184 $ 76 Realized (Loss) $ (49 ) $ — $ (49 ) $ — Unrealized (Loss) Gain $ (126 ) $ 145 $ (224 ) $ 480 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Dec. 26, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities at Fair Value on Recurring Basis | The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of December 26, 2021 (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 $ 177 $ — $ — Mid Cap 363 — — Large Cap 761 — — International 893 — — Fixed Income Funds 1,094 — — Cash and Cash Equivalents — 365 — Mexican Peso Forward Contracts — 90 — Total Assets at Fair Value $ 3,288 $ 455 $ — Liabilities: Mexican Peso Forward Contracts — (71 ) — Total Liabilities at Fair Value $ — $ (71 ) $ — |
Equity Earnings of Joint Vent_2
Equity Earnings of Joint Ventures (Tables) - VAST LLC | 6 Months Ended |
Dec. 26, 2021 | |
Summarized Statements of Operations | The following are summarized statements of operations for VAST LLC (in thousands): Three Months Ended Six Months Ended December 26, 2021 December 27, 2020 December 26, 2021 December 27, 2020 Net Sales $ 55,556 $ 58,352 $ 98,173 $ 108,763 Cost of Goods Sold 45,712 46,599 80,604 87,190 Gross Profit 9,844 11,753 17,569 21,573 Engineering, Selling and Administrative Expenses 7,949 8,649 16,500 15,252 Income From Operations 1,895 3,104 1,069 6,321 Other Income, net 304 1,185 393 1,036 Income before Provision for Income Taxes 2,199 4,289 1,462 7,357 Provision for Income Taxes 354 1,071 375 1,663 Net Income $ 1,845 $ 3,218 $ 1,087 $ 5,694 STRATTEC's Share of VAST LLC Net Income 615 1,073 362 1,898 Intercompany Profit Elimination — 2 2 2 STRATTEC’s Equity Earnings of VAST LLC $ 615 $ 1,075 $ 364 $ 1,900 |
Summarize of Related Party Transaction | The following table summarizes these related party transactions with VAST LLC for the periods indicated below (in thousands): Three Months Ended Six Months Ended December 26, 2021 December 27, 2020 December 26, 2021 December 27, 2020 Sales to VAST LLC $ 702 $ 998 $ 1,217 $ 2,214 Purchases from VAST LLC $ 19 $ 14 $ 151 $ 201 Expenses Charged to VAST LLC $ 204 $ 589 $ 378 $ 1,096 Expenses Charged from VAST LLC $ 189 $ 359 $ 442 $ 651 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Dec. 26, 2021 | |
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): December 26, 2021 Right-of Use Asset Under Operating Lease: Other Long-Term Assets $ 3,213 Lease Obligation Under Operating Lease: Current Liabilities: Accrued Liabilities: Other $ 389 Other Long-Term Liabilities 2,824 $ 3,213 |
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 December 26, 2021 (in thousands): 2022 (for the remaining six months) $ 244 2023 497 2024 509 2025 522 2026 535 Thereafter 1,299 Total Future Minimum Lease Payments 3,606 Less: Imputed Interest (393 ) Total Lease Obligations $ 3,213 |
Schedule of Cash Flow Information Related to Operating Lease | Cash flow information related to the operating lease is shown below (in thousands): Six Months Ended December 26, 2021 December 27, 2020 Operating Cash Flows: Cash Paid Related to Operating Lease Obligation $ 241 $ 235 |
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: December 26, 2021 Weighted Average Remaining Lease Term (in years) 6.8 Weighted Average Discount Rate 3.3 % |
Credit Facilities (Tables)
Credit Facilities (Tables) | 6 Months Ended |
Dec. 26, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Borrowings Under the Credit Facilities | Outstanding borrowings under the credit facilities were as follows (in thousands): December 26, 2021 June 27, 2021 STRATTEC Credit Facility $ — $ — ADAC-STRATTEC Credit Facility 17,000 12,000 $ 17,000 $ 12,000 |
Schedule of Average Outstanding Borrowings and the Weighted Average Interest Rate | Average outstanding borrowings and the weighted average interest rate under each credit facility referenced above were as follows for each period presented (in thousands): Six Months Ended Average Weighted Average Interest Rate December 26, 2021 December 27, 2020 December 26, 2021 December 27, 2020 STRATTEC Credit Facility $ 170 $ 13,747 3.3 % 1.2 % ADAC-STRATTEC Credit Facility $ 14,846 $ 16,258 1.4 % 1.4 % |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Dec. 26, 2021 | |
Equity [Abstract] | |
Summary of Activity Impacting Shareholders' Equity | A summary of activity impacting shareholders’ equity for the three and six month periods ended December 26, 2021 and December 27, 2020 were as follows (in thousands): Three Months Ended December 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, September 26, 2021 $ 213,439 $ 75 $ 100,519 $ 234,573 $ (17,278 ) $ (135,608 ) $ 31,158 Net Income 3,840 — — 3,394 — — 446 Translation Adjustments (544 ) — — — (191 ) — (353 ) Stock Based Compensation 238 — 238 — — — — Pension and Postretirement Adjustment, Net of Tax 78 — — — 78 — — Employee Stock Purchases 20 — 11 — — 9 — Balance, December 26, 2021 $ 217,071 $ 75 $ 100,768 $ 237,967 $ (17,391 ) $ (135,599 ) $ 31,251 Three Months Ended December 27, 2020 Total Shareholders’ Equity Common Stock Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Non-Controlling Interest Balance, September 27, 2020 $ 187,020 $ 74 $ 98,188 $ 219,948 $ (20,665 ) $ (135,640 ) $ 25,115 Net Income 9,573 — — 7,113 — — 2,460 Translation Adjustments 4,417 — — — 3,104 — 1,313 Stock Based Compensation 374 — 374 — — — — Pension and Postretirement Adjustment, Net of Tax 69 — — — 69 — — Employee Stock Purchases 20 — 9 — — 11 — Balance, December 27, 2020 $ 201,473 $ 74 $ 98,571 $ 227,061 $ (17,492 ) $ (135,629 ) $ 28,888 Six Months Ended December 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 4,062 — — 3,495 — — 567 Dividend Declared – Non- controlling Interests of Subsidiaries (600 ) — — — — — (600 ) Translation Adjustments (1,256 ) — — — (753 ) — (503 ) Stock Based Compensation 634 — 634 — — — — Pension and Postretirement Adjustment, Net of Tax 159 — — — 159 — — Stock Option Exercises 600 1 599 — — — — Employee Stock Purchases 39 — 23 — — 16 — Balance, December 26, 2021 $ 217,071 $ 75 $ 100,768 $ 237,967 $ (17,391 ) $ (135,599 ) $ 31,251 Six Months Ended December 27, 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 28, 2020 $ 175,441 $ 74 $ 97,977 $ 211,940 $ (22,113 ) $ (135,656 ) $ 23,219 Net Income 19,646 — — 15,121 — — 4,525 Dividend Declared – Non- controlling Interests of Subsidiaries (490 ) — — — — — (490 ) Translation Adjustments 6,116 — — — 4,482 — 1,634 Stock Based Compensation 582 — 582 — — — — Pension and Postretirement Adjustment, Net of Tax 139 — — — 139 — — Employee Stock Purchases 39 — 12 — — 27 — Balance, December 27, 2020 $ 201,473 $ 74 $ 98,571 $ 227,061 $ (17,492 ) $ (135,629 ) $ 28,888 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Dec. 26, 2021 | |
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 Six Months Ended December 26, 2021 December 27, 2020 December 26, 2021 December 27, 2020 Door Handles & Exterior Trim $ 28,358 $ 34,813 $ 51,898 $ 68,904 Keys & Locksets 26,654 30,136 49,495 62,872 Power Access 23,529 25,210 44,669 45,830 Latches 11,915 14,343 22,022 28,178 Aftermarket & OE Service 11,414 9,971 23,310 23,108 Driver Controls 8,775 10,535 16,792 20,322 Other 2,263 2,352 5,063 4,380 $ 112,908 $ 127,360 $ 213,249 $ 253,594 Revenue by customer or customer group for the periods presented was as follows (thousands of dollars): Three Months Ended Six Months Ended December 26, 2021 December 27, 2020 December 26, 2021 December 27, 2020 General Motors Company $ 31,129 $ 39,023 $ 56,813 $ 76,779 Stellantis (Formerly Fiat Chrysler Automobiles) 23,050 23,152 39,610 48,234 Ford Motor Company 21,070 16,788 38,765 32,634 Commercial and Other OEM Customers 16,190 19,596 33,602 41,031 Tier 1 Customers 15,607 18,660 27,582 36,155 Hyundai / Kia 5,862 10,141 16,877 18,761 $ 112,908 $ 127,360 $ 213,249 $ 253,594 |
Other (Expense) Income, net (Ta
Other (Expense) Income, net (Tables) | 6 Months Ended |
Dec. 26, 2021 | |
Other Income And Expenses [Abstract] | |
Summary of Other (Expense) Income, net | The impact of these items for each of the periods presented was as follows (in thousands): Three Months Ended Six Months Ended December 26, 2021 December 27, 2020 December 26, 2021 December 27, 2020 Foreign Currency Transaction Gain (loss) $ 104 $ (1,913 ) $ 243 $ (2,312 ) Unrealized (Loss) Gain on Peso Forward Contracts (126 ) 145 (224 ) 480 Realized (Loss) Gain on Peso Forward Contracts, net (4 ) 135 135 76 Pension and Postretirement Plans Cost (120 ) (103 ) (240 ) (208 ) Rabbi Trust Gain 48 375 70 318 Other 3 (5 ) 51 20 $ (95 ) $ (1,366 ) $ 35 $ (1,626 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Dec. 26, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Components of Basic and Diluted Per Share | A reconciliation of the components of the basic and diluted per-share computations follows (in thousands, except per share amounts): Three Months Ended December 26, 2021 December 27, 2020 Net Income Shares Per-Share Amount Net Income Shares Per-Share Amount Basic Earnings Per Share $ 3,394 3,866 $ 0.88 $ 7,113 3,786 $ 1.88 Stock Option and Restricted Stock Awards — 42 — 56 Diluted Earnings Per Share $ 3,394 3,908 $ 0.87 $ 7,113 3,842 $ 1.85 Six Months Ended December 26, 2021 December 27, 2020 Net Income Shares Per-Share Amount Net Income Shares Per-Share Amount Basic Earnings Per Share $ 3,495 3,848 $ 0.91 $ 15,121 3,775 $ 4.01 Stock Option and Restricted Stock Awards — 53 — 40 Diluted Earnings Per Share $ 3,495 3,901 $ 0.90 $ 15,121 3,815 $ 3.96 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Dec. 26, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity Under Our Stock Incentive Plan | A summary of stock option activity under our stock incentive plan for the six months ended December 26, 2021 follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding, June 27, 2021 72,624 $ 37.65 Exercised 22,610 $ 26.53 Outstanding, December 26, 2021 50,014 $ 42.68 1.6 $ 153 Exercisable, December 26, 2021 50,014 $ 42.68 1.6 $ 153 |
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 six month periods presented below were as follows (in thousands): Three Months Ended Six Months Ended December 26, 2021 December 27, 2020 December 26, 2021 December 27, 2020 Intrinsic Value of Options Exercised $ — $ — $ 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 six months ended December 26, 2021 follows: Shares Weighted Average Grant Date Fair Value Nonvested Balance, June 27, 2021 81,975 $ 23.31 Granted 43,875 $ 42.50 Vested (38,000 ) $ 25.56 Forfeited (725 ) $ 32.12 Nonvested Balance, December 26, 2021 87,125 $ 31.92 |
Pension and Postretirement Be_2
Pension and Postretirement Benefits (Tables) | 6 Months Ended |
Dec. 26, 2021 | |
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 December 26, 2021 December 27, 2020 December 26, 2021 December 27, 2020 Service Cost $ 15 $ 15 $ 3 $ 4 Interest Cost 12 11 3 4 Amortization of Prior Service Credit — — — (2 ) Amortization of Unrecognized Net Loss 21 2 81 89 Net Periodic Benefit Cost $ 48 $ 28 $ 87 $ 95 SERP Benefits Postretirement Benefits Six Months Ended Six Months Ended December 26, 2021 December 27, 2020 December 26, 2021 December 27, 2020 Service Cost $ 31 $ 31 $ 6 $ 7 Interest Cost 25 21 6 8 Amortization of Prior Service Credit — — — (4 ) Amortization of Unrecognized Net Loss 43 5 165 178 Net Periodic Benefit Cost $ 99 $ 57 $ 177 $ 189 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Dec. 26, 2021 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Loss | The following tables summarize the changes in accumulated other comprehensive loss (“AOCL”) for each period presented (in thousands): Three Months Ended December 26, 2021 Foreign Currency Translation Adjustments Retirement and Postretirement Benefit Plans Total Balance, September 26, 2021 $ 15,247 $ 2,031 $ 17,278 Other Comprehensive Income Before Reclassifications 544 — 544 Net Other Comprehensive Income Before Reclassifications 544 — 544 Reclassifications: Unrecognized Net Loss (A) — (102 ) (102 ) Total Reclassifications Before Tax — (102 ) (102 ) Income Tax — 24 24 Net Reclassifications — (78 ) (78 ) Other Comprehensive Loss 544 (78 ) 466 Other Comprehensive Loss Attributable to Non- Controlling Interest 353 — 353 Balance, December 26, 2021 $ 15,438 $ 1,953 $ 17,391 Three Months Ended December 27, 2020 Foreign Currency Translation Adjustments Retirement and Postretirement Benefit Plans Total Balance, September 27, 2020 $ 18,758 $ 1,907 $ 20,665 Other Comprehensive Loss Before Reclassifications (4,417 ) — (4,417 ) Net Other Comprehensive Loss Before Reclassifications (4,417 ) — (4,417 ) Reclassifications: Prior Service Credits (A) — 2 2 Unrecognized Net Loss (A) — (91 ) (91 ) Total Reclassifications Before Tax — (89 ) (89 ) Income Tax — 20 20 Net Reclassifications — (69 ) (69 ) Other Comprehensive Income (4,417 ) (69 ) (4,486 ) Other Comprehensive Income Attributable to Non- Controlling Interest (1,313 ) — (1,313 ) Balance, December 27, 2020 $ 15,654 $ 1,838 $ 17,492 Six Months Ended December 26, 2021 Foreign Currency Translation Adjustments Retirement and Postretirement Benefit Plans Total Balance, June 27, 2021 $ 14,685 $ 2,112 $ 16,797 Other Comprehensive Income Before Reclassifications 1,256 — 1,256 Net Other Comprehensive Income Before Reclassifications 1,256 — 1,256 Reclassifications: Unrecognized Net Loss (A) — (208 ) (208 ) Total Reclassifications Before Tax — (208 ) (208 ) Income Tax — 49 49 Net Reclassifications — (159 ) (159 ) Other Comprehensive Loss 1,256 (159 ) 1,097 Other Comprehensive Loss Attributable to Non- Controlling Interest 503 — 503 Balance, December 26, 2021 $ 15,438 $ 1,953 $ 17,391 Six Months Ended December 27, 2020 Foreign Currency Translation Adjustments Retirement and Postretirement Benefit Plans Total Balance, June 28, 2020 $ 20,136 $ 1,977 $ 22,113 Other Comprehensive Loss Before Reclassifications (6,116 ) — (6,116 ) Net Other Comprehensive Loss Before Reclassifications (6,116 ) — (6,116 ) Reclassifications: Prior Service Credits (A) — 4 4 Unrecognized Net Loss (A) — (183 ) (183 ) Total Reclassifications Before Tax — (179 ) (179 ) Income Tax — 40 40 Net Reclassifications — (139 ) (139 ) Other Comprehensive Income (6,116 ) (139 ) (6,255 ) Other Comprehensive Income Attributable to Non- Controlling Interest (1,634 ) — (1,634 ) Balance, December 27, 2020 $ 15,654 $ 1,838 $ 17,492 (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 Income and Comprehensive Income. See Pension and Postretirement Benefits note to these Notes to Condensed Consolidated Financial Statements above. |
Basis of Financial Statements (
Basis of Financial Statements (Details Textual) | 6 Months Ended |
Dec. 26, 2021SubsidiaryJoint_VentureSegment | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Number of reporting segments related to STRATTEC Security Corporation | 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) | 6 Months Ended |
Dec. 26, 2021USD ($)$ / $ | |
Currency buy sell under contract one | |
Derivative [Line Items] | |
Derivative, Effective Dates, Inception | Jan. 18, 2022 |
Derivative, Effective Dates, Maturity | Jun. 14, 2022 |
Derivative, Notional Amount | $ 10,500,000 |
Derivative, Average Forward Contractual Exchange Rate | $ / $ | 20.80 |
Derivative, Fair Value | $ (71,000) |
Currency buy sell under contract two | |
Derivative [Line Items] | |
Derivative, Effective Dates, Inception | Jul. 19, 2022 |
Derivative, Effective Dates, Maturity | Dec. 13, 2022 |
Derivative, Notional Amount | $ 3,000,000 |
Derivative, Average Forward Contractual Exchange Rate | $ / $ | 22.62 |
Derivative, Fair Value | $ 90,000 |
Derivative Instruments - Fair M
Derivative Instruments - Fair Market Value of All Outstanding Peso Forward Contracts (Details) - Mexican Peso Forward Contracts - USD ($) $ in Thousands | Dec. 26, 2021 | Jun. 27, 2021 |
Other Current Assets | ||
Not Designated as Hedging Instruments: | ||
Fair market value of derivative instruments | $ 90 | $ 243 |
Other Current Liabilities | ||
Not Designated as Hedging Instruments: | ||
Fair market value of derivative instruments | $ (71) |
Derivative Instruments - Pre-Ta
Derivative Instruments - Pre-Tax Effects of the Peso Forward Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 26, 2021 | Dec. 27, 2020 | |
Pre-tax effects of the Mexican peso forward contracts | ||||
Unrealized (Loss) Gain | $ (126) | $ 145 | $ (224) | $ 480 |
Not Designated as Hedging Instrument | Other Expense, Net | ||||
Pre-tax effects of the Mexican peso forward contracts | ||||
Realized Gain | 45 | 135 | 184 | 76 |
Realized (Loss) | (49) | (49) | ||
Unrealized (Loss) Gain | $ (126) | $ 145 | $ (224) | $ 480 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Financial Assets and Liabilities at Fair Value on Recurring Basis (Details) - Fair Value Measurements Recurring $ in Thousands | Dec. 26, 2021USD ($) |
Level 1 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | $ 3,288 |
Level 1 | Fixed Income Funds | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | 1,094 |
Level 2 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | 455 |
Total Liabilities at Fair Value | (71) |
Level 2 | Mexican Peso Forward Contracts | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | 90 |
Total Liabilities at Fair Value | (71) |
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 | 177 |
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 | 363 |
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 | 761 |
Stock Index Funds | Level 1 | International | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | 893 |
Cash and Cash Equivalents | Level 2 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Total Assets at Fair Value | $ 365 |
Investment in Joint Ventures _2
Investment in Joint Ventures and Majority Owned Subsidiaries (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 26, 2021 | Dec. 27, 2020 | |
Schedule Of Equity Method Investments [Line Items] | ||||
Equity earnings of joint ventures | $ 615,000 | $ 1,075,000 | $ 364,000 | $ 1,900,000 |
Payments to acquire interest in joint venture | 100,000 | |||
VAST LLC | BRAZIL | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Payments to acquire interest in joint venture | $ 300,000 | |||
VAST LLC | MINDA-VAST ACCESS SYSTEMS | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Percentage ownership interest in equity method investment | 50.00% | 50.00% | ||
STRATTEC | ADAC-STRATTEC LLC | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Percentage ownership interest in less than wholly owned consolidated subsidiary | 51.00% | 51.00% | 51.00% | 51.00% |
Majority owned subsidiary, impact on net income | $ (326,000) | $ 2,700,000 | ||
Majority owned subsidiary, impact on net sales | $ 51,900,000 | $ 68,900,000 | ||
STRATTEC | Strattec Power Access Llc | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Percentage ownership interest in less than wholly owned consolidated subsidiary | 80.00% | 80.00% | 80.00% | 80.00% |
Majority owned subsidiary, impact on net income | $ 2,200,000 | $ 3,200,000 | ||
Majority owned subsidiary, impact on net sales | $ 44,700,000 | 45,800,000 | ||
STRATTEC | VAST LLC | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Percentage ownership interest in equity method investment | 33.33% | 33.33% | ||
Equity earnings of joint ventures | $ 364,000 | 1,900,000 | ||
Payments to acquire interest in joint venture | $ 0 | $ 100,000 | ||
ADAC | ADAC-STRATTEC LLC | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Percentage ownership interest in less than wholly owned consolidated subsidiary | 49.00% | 49.00% | 49.00% | 49.00% |
Engineering, research, design and sales fee | $ 2,000,000 | $ 2,400,000 | $ 3,600,000 | $ 4,800,000 |
Sales | $ 1,900,000 | $ 3,300,000 | $ 3,100,000 | $ 6,400,000 |
ADAC | VAST LLC | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Percentage ownership interest in equity method investment | 33.30% | 33.30% | ||
WITTE | Strattec Power Access Llc | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Percentage ownership interest in less than wholly owned consolidated subsidiary | 20.00% | 20.00% | 20.00% | 20.00% |
WITTE | VAST LLC | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Percentage ownership interest in equity method investment | 33.30% | 33.30% | ||
WITTE | STRATTEC | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Purchases | $ 228,000 | $ 237,000 | $ 415,000 | $ 320,000 |
Equity Earnings of Joint Vent_3
Equity Earnings of Joint Ventures (Details Textual) | Dec. 26, 2021 |
VAST LLC | STRATTEC | |
Schedule Of Equity Method Investments [Line Items] | |
Percentage ownership interest in equity method investment | 33.33% |
Equity Earnings of Joint Vent_4
Equity Earnings of Joint Ventures - Summarized Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 26, 2021 | Dec. 27, 2020 | |
Summarized statements of operations | ||||
Net sales | $ 112,908 | $ 127,360 | $ 213,249 | $ 253,594 |
Cost of goods sold | 97,975 | 105,119 | 185,767 | 208,842 |
Gross profit | 14,933 | 22,241 | 27,482 | 44,752 |
Engineering, selling and administrative expenses | 11,301 | 10,302 | 23,422 | 21,616 |
Income from operations | 3,632 | 11,939 | 4,060 | 23,136 |
Other (expense) income, net | (95) | (1,366) | 35 | (1,626) |
Income before provision for income taxes and non-controlling interest | 4,095 | 11,564 | 4,354 | 23,214 |
Provision for Income Taxes | 255 | 1,991 | 292 | 3,568 |
Net income | 3,840 | 9,573 | 4,062 | 19,646 |
STRATTEC’s Equity Earnings of VAST LLC | 615 | 1,075 | 364 | 1,900 |
VAST LLC | Equity Method Investment Summarized Financial Information | ||||
Summarized statements of operations | ||||
Net sales | 55,556 | 58,352 | 98,173 | 108,763 |
Cost of goods sold | 45,712 | 46,599 | 80,604 | 87,190 |
Gross profit | 9,844 | 11,753 | 17,569 | 21,573 |
Engineering, selling and administrative expenses | 7,949 | 8,649 | 16,500 | 15,252 |
Income from operations | 1,895 | 3,104 | 1,069 | 6,321 |
Other (expense) income, net | 304 | 1,185 | 393 | 1,036 |
Income before provision for income taxes and non-controlling interest | 2,199 | 4,289 | 1,462 | 7,357 |
Provision for Income Taxes | 354 | 1,071 | 375 | 1,663 |
Net income | 1,845 | 3,218 | 1,087 | 5,694 |
STRATTEC's Share of VAST LLC Net Income | 615 | 1,073 | 362 | 1,898 |
Intercompany Profit Elimination | 2 | 2 | 2 | |
STRATTEC’s Equity Earnings of VAST LLC | $ 615 | $ 1,075 | $ 364 | $ 1,900 |
Equity Earnings of Joint Vent_5
Equity Earnings of Joint Ventures- Summarize of Related Party Transaction (Details) - VAST LLC - Equity Method Investee - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 26, 2021 | Dec. 27, 2020 | |
Schedule Of Equity Method Investments [Line Items] | ||||
Sales to VAST LLC | $ 702 | $ 998 | $ 1,217 | $ 2,214 |
Purchases from VAST LLC | 19 | 14 | 151 | 201 |
Expenses Charged to VAST LLC | 204 | 589 | 378 | 1,096 |
Expenses Charged from VAST LLC | $ 189 | $ 359 | $ 442 | $ 651 |
Leases (Details Textual)
Leases (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 26, 2021 | Dec. 27, 2020 | |
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 | $ 122,000 | $ 119,000 | $ 241,000 | $ 235,000 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Asset and Obligation Included in Condensed Consolidated Balance Sheets (Details) $ in Thousands | Dec. 26, 2021USD ($) |
Right-of Use Asset Under Operating Lease: | |
Operating lease right-of-use asset | $ 3,213 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | us-gaap:OtherAssets |
Lease Obligation Under Operating Lease: | |
Current Liabilities: Accrued Liabilities: Other | $ 389 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent, us-gaap:OtherLiabilitiesCurrent |
Other Long-Term Liabilities | $ 2,824 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities |
Operating Lease, Liability | $ 3,213 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Under Non-Cancelable Lease Including Options to Extend (Details) $ in Thousands | Dec. 26, 2021USD ($) |
Leases [Abstract] | |
2022 (for the remaining six months) | $ 244 |
2023 | 497 |
2024 | 509 |
2025 | 522 |
2026 | 535 |
Thereafter | 1,299 |
Total Future Minimum Lease Payments | 3,606 |
Less: Imputed Interest | (393) |
Total Lease Obligations | $ 3,213 |
Leases - Schedule of Cash Flow
Leases - Schedule of Cash Flow Information Related to Operating Lease (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 26, 2021 | Dec. 27, 2020 | |
Operating Cash Flows: | ||
Cash Paid Related to Operating Lease Obligation | $ 241 | $ 235 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Lease Term and Discount Rate for Operating Lease (Details) | Dec. 26, 2021 |
Leases [Abstract] | |
Weighted Average Remaining Lease Term (in years) | 6 years 9 months 18 days |
Weighted Average Discount Rate | 3.30% |
Credit Facilities (Details Text
Credit Facilities (Details Textual) - USD ($) | 6 Months Ended | 7 Months Ended | 11 Months Ended |
Dec. 26, 2021 | Dec. 26, 2021 | May 31, 2021 | |
Line Of Credit Facility [Line Items] | |||
Interest rate on borrowings under the credit facility | the London Interbank Offering Rate (“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 | $ 40,000,000 | |
Credit facility maturity date | Aug. 1, 2024 | ||
Interest rate on borrowings under the credit facility | the London Interbank Offering Rate (“LIBOR”) plus 1.25 percent or the bank’s prime rate. | 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 | 1.25% | 1.00% | |
ADAC-STRATTEC Credit Facility | |||
Line Of Credit Facility [Line Items] | |||
Secured revolving credit facility | $ 25,000,000 | $ 25,000,000 | |
Credit facility maturity date | Aug. 1, 2024 | ||
Interest rate on borrowings under the credit facility | LIBOR plus 1.25 percent or the bank’s prime rate. | ||
Interest rate - percentage points added to LIBOR - on borrowings under credit facility | 1.25% |
Credit Facilities - Schedule of
Credit Facilities - Schedule of Outstanding Borrowings Under the Credit Facilities (Details) - USD ($) $ in Thousands | Dec. 26, 2021 | Jun. 27, 2021 |
Line Of Credit Facility [Line Items] | ||
Outstanding Borrowing | $ 17,000 | $ 12,000 |
ADAC-STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Outstanding Borrowing | $ 17,000 | $ 12,000 |
Credit Facilities - Schedule _2
Credit Facilities - Schedule of Average Outstanding Borrowings and the Weighted Average Interest Rate (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 26, 2021 | Dec. 27, 2020 | |
STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Average Outstanding Borrowings | $ 170 | $ 13,747 |
Weighted Average Interest Rate | 3.30% | 1.20% |
ADAC-STRATTEC Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Average Outstanding Borrowings | $ 14,846 | $ 16,258 |
Weighted Average Interest Rate | 1.40% | 1.40% |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | Dec. 26, 2021 | Jun. 27, 2021 |
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 | 6 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 26, 2021 | Dec. 27, 2020 | |
Summary of activity impacting shareholders' equity | ||||
Beginning Balance | $ 213,439 | $ 187,020 | $ 213,433 | $ 175,441 |
Net income | 3,840 | 9,573 | 4,062 | 19,646 |
Dividend Declared – Non-controlling Interests of Subsidiaries | (600) | (490) | ||
Translation Adjustments | (544) | 4,417 | (1,256) | 6,116 |
Stock Based Compensation | 238 | 374 | 634 | 582 |
Pension and Postretirement Adjustment, Net of Tax | 78 | 69 | 159 | 139 |
Stock Option Exercises | 600 | |||
Employee Stock Purchases | 20 | 20 | 39 | 39 |
Ending Balance | 217,071 | 201,473 | 217,071 | 201,473 |
Common Stock | ||||
Summary of activity impacting shareholders' equity | ||||
Beginning Balance | 75 | 74 | 74 | 74 |
Stock Option Exercises | 1 | |||
Ending Balance | 75 | 74 | 75 | 74 |
Capital in Excess of Par Value | ||||
Summary of activity impacting shareholders' equity | ||||
Beginning Balance | 100,519 | 98,188 | 99,512 | 97,977 |
Stock Based Compensation | 238 | 374 | 634 | 582 |
Stock Option Exercises | 599 | |||
Employee Stock Purchases | 11 | 9 | 23 | 12 |
Ending Balance | 100,768 | 98,571 | 100,768 | 98,571 |
Retained Earnings | ||||
Summary of activity impacting shareholders' equity | ||||
Beginning Balance | 234,573 | 219,948 | 234,472 | 211,940 |
Net income | 3,394 | 7,113 | 3,495 | 15,121 |
Ending Balance | 237,967 | 227,061 | 237,967 | 227,061 |
Accumulated Other Comprehensive Loss | ||||
Summary of activity impacting shareholders' equity | ||||
Beginning Balance | (17,278) | (20,665) | (16,797) | (22,113) |
Translation Adjustments | (191) | 3,104 | (753) | 4,482 |
Pension and Postretirement Adjustment, Net of Tax | 78 | 69 | 159 | 139 |
Ending Balance | (17,391) | (17,492) | (17,391) | (17,492) |
Treasury Stock | ||||
Summary of activity impacting shareholders' equity | ||||
Beginning Balance | (135,608) | (135,640) | (135,615) | (135,656) |
Employee Stock Purchases | 9 | 11 | 16 | 27 |
Ending Balance | (135,599) | (135,629) | (135,599) | (135,629) |
Non-Controlling Interest | ||||
Summary of activity impacting shareholders' equity | ||||
Beginning Balance | 31,158 | 25,115 | 31,787 | 23,219 |
Net income | 446 | 2,460 | 567 | 4,525 |
Dividend Declared – Non-controlling Interests of Subsidiaries | (600) | (490) | ||
Translation Adjustments | (353) | 1,313 | (503) | 1,634 |
Ending Balance | $ 31,251 | $ 28,888 | $ 31,251 | $ 28,888 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Revenue by Product Group (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 26, 2021 | Dec. 27, 2020 | |
Product Information [Line Items] | ||||
Revenue | $ 112,908 | $ 127,360 | $ 213,249 | $ 253,594 |
Door Handles & Exterior Trim | ||||
Product Information [Line Items] | ||||
Revenue | 28,358 | 34,813 | 51,898 | 68,904 |
Keys & Locksets | ||||
Product Information [Line Items] | ||||
Revenue | 26,654 | 30,136 | 49,495 | 62,872 |
Power Access | ||||
Product Information [Line Items] | ||||
Revenue | 23,529 | 25,210 | 44,669 | 45,830 |
Latches | ||||
Product Information [Line Items] | ||||
Revenue | 11,915 | 14,343 | 22,022 | 28,178 |
Aftermarket & OE Service | ||||
Product Information [Line Items] | ||||
Revenue | 11,414 | 9,971 | 23,310 | 23,108 |
Driver Controls | ||||
Product Information [Line Items] | ||||
Revenue | 8,775 | 10,535 | 16,792 | 20,322 |
Other | ||||
Product Information [Line Items] | ||||
Revenue | $ 2,263 | $ 2,352 | $ 5,063 | $ 4,380 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Revenue by Customer or Customer Group (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 26, 2021 | Dec. 27, 2020 | |
Entity Wide Revenue Major Customer [Line Items] | ||||
Revenue | $ 112,908 | $ 127,360 | $ 213,249 | $ 253,594 |
General Motors Company | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Revenue | 31,129 | 39,023 | 56,813 | 76,779 |
Ford Motor Company | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Revenue | 21,070 | 16,788 | 38,765 | 32,634 |
Stellantis (Formerly Fiat Chrysler Automobiles) | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Revenue | 23,050 | 23,152 | 39,610 | 48,234 |
Commercial and Other OEM Customers | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Revenue | 16,190 | 19,596 | 33,602 | 41,031 |
Tier 1 Customers | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Revenue | 15,607 | 18,660 | 27,582 | 36,155 |
Hyundai / Kia | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Revenue | $ 5,862 | $ 10,141 | $ 16,877 | $ 18,761 |
Other (Expense) Income, Net - S
Other (Expense) Income, Net - Summary of Other (Expense) Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 26, 2021 | Dec. 27, 2020 | |
Other Income and Expenses [Abstract] | ||||
Foreign Currency Transaction Gain (loss) | $ 104 | $ (1,913) | $ 243 | $ (2,312) |
Unrealized (Loss) Gain on Peso Forward Contracts | (126) | 145 | (224) | 480 |
Realized (Loss) Gain on Peso Forward Contracts, net | (4) | 135 | 135 | 76 |
Pension and Postretirement Plans Cost | (120) | (103) | (240) | (208) |
Rabbi Trust Gain | 48 | 375 | 70 | 318 |
Other | 3 | (5) | 51 | 20 |
Other Income (Expense), net | $ (95) | $ (1,366) | $ 35 | $ (1,626) |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 26, 2021 | Dec. 27, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 6.20% | 17.20% | 6.70% | 15.40% |
Income tax benefit from global intangible low-taxed income | $ 675,000 |
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 | 6 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 26, 2021 | Dec. 27, 2020 | |
Reconciliation of the components of the basic and diluted per share | ||||
Net Income, Basic Earnings Per Share | $ 3,394 | $ 7,113 | $ 3,495 | $ 15,121 |
Net Income, Diluted Earnings Per Share | $ 3,394 | $ 7,113 | $ 3,495 | $ 15,121 |
Basic Earnings Per Share, Number of Shares | 3,866 | 3,786 | 3,848 | 3,775 |
Stock Option and Restricted Stock Awards, Number of Shares | 42 | 56 | 53 | 40 |
Diluted Earnings Per Share, Number of Shares | 3,908 | 3,842 | 3,901 | 3,815 |
Basic Earnings Per Share | $ 0.88 | $ 1.88 | $ 0.91 | $ 4.01 |
Diluted Earnings Per Share | $ 0.87 | $ 1.85 | $ 0.90 | $ 3.96 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) - shares | 6 Months Ended | |
Dec. 26, 2021 | Dec. 27, 2020 | |
Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from earnings per share computation | 9,010 | 41,200 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Textual) - USD ($) $ in Millions | 6 Months Ended | |
Dec. 26, 2021 | Dec. 27, 2020 | |
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 | 175,934 | |
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 2 months 12 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 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity Under Our Stock Incentive Plan (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Dec. 26, 2021USD ($)$ / sharesshares | |
Share Based Compensation [Abstract] | |
Shares, Beginning Balance | shares | 72,624 |
Shares, Exercised | shares | 22,610 |
Shares, Ending Balance | shares | 50,014 |
Shares, Exercisable | shares | 50,014 |
Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 37.65 |
Weighted Average Exercise Price, Exercised | $ / shares | 26.53 |
Weighted Average Exercise Price, Ending Balance | $ / shares | 42.68 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 42.68 |
Weighted Average Remaining Contractual Term, Outstanding | 1 year 7 months 6 days |
Weighted Average Remaining Contractual Term, Exercisable, Outstanding | 1 year 7 months 6 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 153 |
Aggregate Intrinsic Value, Exercisable | $ | $ 153 |
Stock-Based Compensation - Intr
Stock-Based Compensation - Intrinsic Value of Stock Options Exercised and the Fair Value of Stock Options Vested (Details) $ in Thousands | 6 Months Ended |
Dec. 26, 2021USD ($) | |
Intrinsic value of stock options exercised and the fair value of stock options vested | |
Intrinsic Value of Options Exercised | $ 331 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Activity Under Our Stock Incentive Plan (Details) - Restricted stock | 6 Months Ended |
Dec. 26, 2021$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Nonvested, Shares Beginning Balance | shares | 81,975 |
Granted, Shares | shares | 43,875 |
Vested, Shares | shares | (38,000) |
Forfeited, Shares | shares | (725) |
Nonvested, Shares Ending Balance | shares | 87,125 |
Nonvested, Weighted Average Grant Date Fair Value Beginning Balance | $ / shares | $ 23.31 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 42.50 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 25.56 |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | 32.12 |
Nonvested, Weighted Average Grant Date Fair Value Ending Balance | $ / shares | $ 31.92 |
Pension and Postretirement Be_3
Pension and Postretirement Benefits (Details Textual) - USD ($) | 6 Months Ended | |
Dec. 26, 2021 | Jun. 27, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Rabbi Trust Assets - SERP | $ 3,700,000 | $ 3,600,000 |
Postretirement plan annual benefit limit for future eligible retirees | $ 4,000 | |
Other postretirement benefits maximum benefit period | 5 years | |
Supplemental Employee Retirement Plan, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of participant's base salary received as Supplemental Retirement Benefits | 8.00% | |
Vesting period, SERP | 5 years |
Pension and Postretirement Be_4
Pension and Postretirement Benefits - Summary of Net Periodic Benefit Cost Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 26, 2021 | Dec. 27, 2020 | |
SERP Benefits | ||||
COMPONENTS OF NET PERIODIC BENEFIT COST: | ||||
Service Cost | $ 15 | $ 15 | $ 31 | $ 31 |
Interest Cost | 12 | 11 | 25 | 21 |
Amortization of Unrecognized Net Loss | 21 | 2 | 43 | 5 |
Net Periodic Benefit Cost | 48 | 28 | 99 | 57 |
Postretirement Benefits | ||||
COMPONENTS OF NET PERIODIC BENEFIT COST: | ||||
Service Cost | 3 | 4 | 6 | 7 |
Interest Cost | 3 | 4 | 6 | 8 |
Amortization of Prior Service Credit | (2) | (4) | ||
Amortization of Unrecognized Net Loss | 81 | 89 | 165 | 178 |
Net Periodic Benefit Cost | $ 87 | $ 95 | $ 177 | $ 189 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2021 | Dec. 27, 2020 | Dec. 26, 2021 | Dec. 27, 2020 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | $ (213,439) | $ (187,020) | $ (213,433) | $ (175,441) |
Other Comprehensive Income (Loss) Before Reclassifications | 544 | (4,417) | 1,256 | (6,116) |
Net Other Comprehensive Income (Loss) Before Reclassifications | 544 | (4,417) | 1,256 | (6,116) |
Reclassifications: | ||||
Prior Service Credits | 2 | 4 | ||
Unrecognized Net Loss | (102) | (91) | (208) | (183) |
Total Reclassifications Before Tax | (102) | (89) | (208) | (179) |
Reclassifications, Income Tax | 24 | 20 | 49 | 40 |
Net Reclassifications | (78) | (69) | (159) | (139) |
Other Comprehensive Loss (Income) | 466 | (4,486) | 1,097 | (6,255) |
Ending balance | (217,071) | (201,473) | (217,071) | (201,473) |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | 15,247 | 18,758 | 14,685 | 20,136 |
Other Comprehensive Income (Loss) Before Reclassifications | 544 | (4,417) | 1,256 | (6,116) |
Net Other Comprehensive Income (Loss) Before Reclassifications | 544 | (4,417) | 1,256 | (6,116) |
Reclassifications: | ||||
Other Comprehensive Loss (Income) | 544 | (4,417) | 1,256 | (6,116) |
Other Comprehensive Loss (Income) Attributable to Non- Controlling Interest | 353 | (1,313) | 503 | (1,634) |
Ending balance | 15,438 | 15,654 | 15,438 | 15,654 |
Retirement and Postretirement Benefit Plans | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | 2,031 | 1,907 | 2,112 | 1,977 |
Reclassifications: | ||||
Prior Service Credits | 2 | 4 | ||
Unrecognized Net Loss | (102) | (91) | (208) | (183) |
Total Reclassifications Before Tax | (102) | (89) | (208) | (179) |
Reclassifications, Income Tax | 24 | 20 | 49 | 40 |
Net Reclassifications | (78) | (69) | (159) | (139) |
Other Comprehensive Loss (Income) | (78) | (69) | (159) | (139) |
Ending balance | 1,953 | 1,838 | 1,953 | 1,838 |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | 17,278 | 20,665 | 16,797 | 22,113 |
Reclassifications: | ||||
Ending balance | 17,391 | 17,492 | 17,391 | 17,492 |
AOCI Including Portion Attributable to Noncontrolling Interest | ||||
Reclassifications: | ||||
Other Comprehensive Loss (Income) | 466 | 4,486 | 1,097 | (6,255) |
AOCI Attributable to Noncontrolling Interest | ||||
Reclassifications: | ||||
Other Comprehensive Loss (Income) Attributable to Non- Controlling Interest | $ 353 | $ (1,313) | $ 503 | $ (1,634) |