0001564590-19-016177 | 10-Q | XBRL Viewer

Dividend Declared – Non- controlling Interests of Subsidiaries

$ 183,757

$ 175,856

$ 183,246

$ 172,714

Net (loss) income

3,037

3,932

(14,132)

11,036

Dividend Declared

(517)

(508)

(1,546)

(1,525)

(400)

(200)

(1,384)

(2,217)

Translation adjustments

1,037

3,487

1,193

Stock Based Compensation

241

250

867

871

Pension and postretirement plans, net of tax

(1)

338

19,992

893

Stock Option Exercises

140

172

139

Employee Stock Purchases

Summary of activity impacting shareholders' equity

187,326

^[1]

183,182

187,326

^[1]

183,182

Common Stock

Capital in Excess of Par Value

Summary of activity impacting shareholders' equity

95,818

94,603

95,140

93,813

Stock Based Compensation

241

250

867

871

Stock Option Exercises

140

172

139

Employee Stock Purchases

Summary of activity impacting shareholders' equity

96,215

94,869

96,215

94,869

Retained Earnings

Reclassification of Stranded Tax Effects

220,483

230,234

236,162

225,913

Net (loss) income

1,730

2,969

(16,967)

8,307

Dividend Declared

(517)

(508)

(1,546)

(1,525)

4,047

Accumulated Other Comprehensive Loss

221,696

232,695

221,696

232,695

Summary of activity impacting shareholders' equity

Pension and postretirement plans, net of tax

(18,648)

(33,676)

(33,439)

(32,888)

Translation adjustments

912

2,556

(243)

1,213

(1)

338

19,992

893

Reclassification of Stranded Tax Effects

(4,047)

Summary of activity impacting shareholders' equity

(17,737)

(30,782)

(17,737)

(30,782)

Treasury Stock

(135,758)

(135,801)

(135,778)

(135,822)

Employee Stock Purchases

Summary of activity impacting shareholders' equity

(135,742)

(135,790)

(135,742)

(135,790)

Non-Controlling Interest

Dividend Declared – Non- controlling Interests of Subsidiaries

21,789

20,424

21,088

21,626

Net (loss) income

1,307

963

2,835

2,729

(400)

(200)

(1,384)

(2,217)

Translation adjustments

125

931

282

(20)

Accumulated Other Comprehensive Income Loss [Line Items]

$ 22,821

$ 22,118

$ 22,821

$ 22,118

[1]

Unaudited

Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Mar. 31, 2019

Apr. 01, 2018

Mar. 31, 2019

Apr. 01, 2018

Other comprehensive loss before reclassifications

$ (183,757)

$ (175,856)

$ (183,246)

$ (172,714)

146

(1,193)

Other comprehensive loss before reclassifications, income tax

(185)

Net other comprehensive loss before Reclassifications

(39)

(1,193)

Pension Termination Settlement

(25,668)

Prior service credits

329

564

Actuarial gains

(1,155)

(1,885)

Total reclassifications before tax

(26,494)

(1,321)

Reclassifications, income tax

6,502

428

Net reclassifications

(19,992)

(893)

Reclassification of stranded tax effects

(1,036)

(3,825)

(20,031)

(2,086)

4,047

Foreign Currency Translation Adjustments

(187,326)

^[1]

(183,182)

(187,326)

^[1]

(183,182)

Accumulated Other Comprehensive Income Loss [Line Items]

Other comprehensive loss before reclassifications

15,291

14,138

146

(1,193)

Other comprehensive loss before reclassifications, income tax

(185)

Net other comprehensive loss before Reclassifications

(39)

(1,193)

Other comprehensive (income) loss attributable to non- controlling interest

(39)

(1,193)

(282)

Reclassification of stranded tax effects

Retirement and Postretirement Benefit Plans

15,617

12,925

15,617

12,925

Accumulated Other Comprehensive Income Loss [Line Items]

18,148

18,750

Pension Termination Settlement

(25,668)

Prior service credits

329

564

Actuarial gains

(1,155)

(1,885)

Total reclassifications before tax

(26,494)

(1,321)

Reclassifications, income tax

6,502

428

Net reclassifications

(19,992)

(893)

Reclassification of stranded tax effects

(19,992)

(893)

3,964

Accumulated Other Comprehensive Loss

2,120

17,857

2,120

17,857

Accumulated Other Comprehensive Income Loss [Line Items]

18,648

33,676

33,439

32,888

AOCI Including Portion Attributable to Noncontrolling Interest

$ 17,737

$ 30,782

17,737

30,782

AOCI Attributable to Noncontrolling Interest

(20,031)

(2,086)

Other comprehensive (income) loss attributable to non- controlling interest

$ (282)

$ 20

[1]

Unaudited

Stock-Based Compensation

9 Months Ended

Mar. 31, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-based Compensation

We maintain an omnibus stock incentive plan. This plan provides for the granting of stock options, shares of restricted stock and stock appreciation rights. As of March 31, 2019, the Board of Directors had designated 1,850,000 shares of common stock available for the grant of awards under the plan. Remaining shares available to be granted under the plan as of March 31, 2019 were 148,239. Awards that expire or are canceled without delivery of shares become available for re-issuance under the plan. We issue new shares of common stock to satisfy stock option exercises.

Nonqualified and incentive stock options and shares of restricted stock have been granted to our officers, outside directors and specified associates under our stock incentive plan. Stock options granted under the plan may not be issued with an exercise price less than the fair market value of the common stock on the date the option is granted. Stock options become exercisable as determined at the date of grant by the Compensation Committee of the Board of Directors. The options expire 10 years after the grant date unless an earlier expiration date is set at the time of grant. The options vest 1 to 4 years after the date of grant as determined by the Compensation Committee of the Board of Directors. Shares of restricted stock granted under the plan are subject to vesting criteria determined by the Compensation Committee of the Board of Directors at the time the shares are granted and have a minimum vesting period of one year from the date of grant. Unvested restricted shares granted have voting rights, regardless of whether the shares are vested or unvested, but only have the right to receive cash dividends after such shares become vested. Restricted stock grants vest 1 to 5 years after the date of grant as determined by the Compensation Committee of the Board of Directors.

The fair value of each stock option grant was estimated as of the date of grant using the Black-Scholes pricing model. The fair value of each restricted stock grant was based on the market price of the underlying common stock as of the date of grant. The resulting compensation cost for fixed awards with graded vesting schedules is amortized on a straight line basis over the vesting period for the entire award.

A summary of stock option activity under our stock incentive plan for the nine months ended March 31, 2019 was as follows:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in thousands)
Outstanding, July 1, 2018		133,074		$	29.37
Exercised		(15,714	)	$	10.92
Outstanding, March 31, 2019		117,360		$	31.80		3.0	$	467
Exercisable, March 31, 2019		117,360		$	31.85		3.0	$	467

The intrinsic value of stock options exercised and the fair value of stock options that vested during the three and nine month periods presented below were as follows (in thousands):

	Three Months Ended				Nine Months Ended
	March 31, 2019		April 1, 2018		March 31, 2019		April 1, 2018
Intrinsic Value of Options Exercised	$	269	$	—	$	324	$	110
Fair Value of Stock Options Vesting	$	—	$	—	$	—	$	315

No options were granted during the nine month periods ended March 31, 2019 or April 1, 2018.

A summary of restricted stock activity under our omnibus stock incentive plan for the nine months ended March 31, 2019 was as follows:

	Shares			Weighted Average Grant Date Fair Value
Nonvested Balance, July 1, 2018		69,125		$	49.02
Granted		34,050		$	37.25
Vested		(37,343	)	$	54.93
Forfeited		(1,325	)	$	47.17
Nonvested Balance, March 31, 2019		64,507		$	39.44

As of March 31, 2019, all compensation cost related to outstanding stock options granted under our omnibus stock incentive plan has been recognized. As of March 31, 2019, there was approximately $1.4 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 one year. Total unrecognized compensation cost will be adjusted for any future changes in estimated and actual forfeitures of awards granted under our omnibus stock incentive plan.

Revenue from Contracts with Customers (Details Textual)	9 Months Ended
Revenue from Contracts with Customers (Details Textual)	Mar. 31, 2019
Minimum
Revenue From Contracts With Customers [Line Items]
Payment generally occurs after shipment date	45 days
Minimum \| New Vehicle Production \| Long-term Supply Agreements
Revenue From Contracts With Customers [Line Items]
Production period	4 years
Minimum \| Service Parts Production \| Long-term Supply Agreements
Revenue From Contracts With Customers [Line Items]
Production period	10 years
Maximum
Revenue From Contracts With Customers [Line Items]
Payment generally occurs after shipment date	90 days
Maximum \| New Vehicle Production \| Long-term Supply Agreements
Revenue From Contracts With Customers [Line Items]
Production period	6 years
Maximum \| Service Parts Production \| Long-term Supply Agreements
Revenue From Contracts With Customers [Line Items]
Production period	15 years

Shareholders' Equity

9 Months Ended

Mar. 31, 2019

Equity [Abstract]

Shareholders' Equity

Shareholders’ Equity

A summary of activity impacting shareholders’ equity for the three and nine month periods ended March 31, 2019 and April 1, 2018 were as follows (in thousands):

	Three Months Ended March 31, 2019
	Total Shareholders’ Equity			Common Stock		Capital in Excess of Par Value		Retained Earnings			Accumulated Other Comprehensive Loss			Treasury Stock			Non-Controlling Interest
Balance, December 30, 2018	$	183,757		$	73	$	95,818	$	220,483		$	(18,648	)	$	(135,758	)	$	21,789
Net Income		3,037			—		—		1,730			—			—			1,307
Dividend Declared		(517	)		—		—		(517	)		—			—			—
Dividend Declared – Non- controlling Interests of Subsidiaries		(400	)		—		—		—			—			—			(400	)
Translation adjustments		1,037			—		—		—			912			—			125
Stock Based Compensation		241			—		241		—			—			—			—
Pension and Postretirement Adjustment, Net of Tax		(1	)		—		—		—			(1	)		—			—
Stock Option Exercises		140			—		140		—			—			—			—
Employee Stock Purchases		32			—		16		—			—			16			—
Balance, March 31, 2019	$	187,326		$	73	$	96,215	$	221,696		$	(17,737	)	$	(135,742	)	$	22,821

	Three Months Ended April 1, 2018
	Total Shareholders’ Equity			Common Stock		Capital in Excess of Par Value		Retained Earnings			Accumulated Other Comprehensive Loss			Treasury Stock			Non-Controlling Interest
Balance, December 31, 2017	$	175,856		$	72	$	94,603	$	230,234		$	(33,676	)	$	(135,801	)	$	20,424
Net Income		3,932			—		—		2,969			—			—			963
Dividend Declared		(508	)		—		—		(508	)		—			—			—
Dividend Declared – Non- controlling Interests of Subsidiaries		(200	)		—		—		—			—			—			(200	)
Translation adjustments		3,487			—		—		—			2,556			—			931
Stock Based Compensation		250			—		250		—						—			—
Pension and Postretirement Adjustment, Net of Tax		338			—		—		—			338			—			—
Employee Stock Purchases		27			—		16		—						11			—
Balance, April 1, 2018	$	183,182		$	72	$	94,869	$	232,695		$	(30,782	)	$	(135,790	)	$	22,118

	Nine Months Ended March 31, 2019
	Total Shareholders’ Equity			Common Stock		Capital in Excess of Par Value		Retained Earnings			Accumulated Other Comprehensive Loss			Treasury Stock			Non-Controlling Interest
Balance, July 1, 2018	$	183,246		$	73	$	95,140	$	236,162		$	(33,439	)	$	(135,778	)	$	21,088
Net (Loss) Income		(14,132	)		—		—		(16,967	)		—			—			2,835
Dividend Declared		(1,546	)		—		—		(1,546	)		—			—			—
Dividend Declared – Non- controlling Interests of Subsidiaries		(1,384	)		—		—		—			—			—			(1,384	)
Translation adjustments		39			—		—					(243	)		—			282
Stock Based Compensation		867			—		867		—			—			—			—
Pension and Postretirement Adjustment, Net of Tax		19,992			—		—		—			19,992			—			—
Reclassification of Stranded Tax Effects		-			—		—		4,047			(4,047	)		—			—
Stock Option Exercises		172			—		172		—			—			—			—
Employee Stock Purchases		72			—		36		—			—			36			—
Balance, March 31, 2019	$	187,326		$	73	$	96,215	$	221,696		$	(17,737	)	$	(135,742	)	$	22,821

	Nine Months Ended April 1, 2018
	Total Shareholders’ Equity			Common Stock		Capital in Excess of Par Value		Retained Earnings			Accumulated Other Comprehensive Loss			Treasury Stock			Non-Controlling Interest
Balance, July 2, 2017	$	172,714		$	72	$	93,813	$	225,913		$	(32,888	)	$	(135,822	)	$	21,626
Net Income		11,036			—		—		8,307			—			—			2,729
Dividend Declared		(1,525	)		—		—		(1,525	)		—			—			—
Dividend Declared – Non- controlling Interests of Subsidiaries		(2,217	)		—		—		—			—			—			(2,217	)
Translation adjustments		1,193			—		—		—			1,213			—			(20	)
Stock Based Compensation		871			—		871		—			—			—			—
Pension and Postretirement Adjustment, Net of Tax		893			—		—		—			893			—			—
Stock Option Exercises		139			—		139		—			—			—			—
Employee Stock Purchases		78			—		46		—			—			32			—
Balance, April 1, 2018	$	183,182		$	72	$	94,869	$	232,695		$	(30,782	)	$	(135,790	)	$	22,118

Derivative Instruments (Tables)

9 Months Ended

Mar. 31, 2019

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Schedule of Quantification of Outstanding Mexican Peso Forward Contracts

The following table quantifies the outstanding Mexican peso forward contracts as of March 31, 2019 (thousands of dollars, except average forward contractual exchange rates):

		Effective Dates		Notional Amount				Average Forward Contractual Exchange Rate				Fair Value
Buy MXP/Sell USD		April 15, 2019 - June 13, 2019		$	2,250				20.22			$	77

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 was as follows (thousands of dollars):

	March 31, 2019		July 1, 2018
Not Designated as Hedging Instruments:
Other Current Assets (Liabilities):
Mexican Peso Forward Contracts	$	77	$	(39	)

Pre-Tax Effects of the Peso Forward Contracts

	Three Months Ended				Nine Months Ended
	March 31, 2019		April 1, 2018		March 31, 2019		April 1, 2018
Not Designated as Hedging Instruments:
Realized Gain	$	122	$	322	$	344	$	981
Unrealized Gain (Loss)	$	23	$	392	$	116	$	(687	)

Revenue from Contract with Customers

9 Months Ended

Mar. 31, 2019

Revenue From Contract With Customer [Abstract]

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.

Revenue Recognition:

Our contracts with customers under long-term supply agreements do not commit the customer to a specified quantity of parts. However, we are generally required to fulfill our customers’ purchasing requirements for the production life of the vehicle. Contracts do not become a performance obligation until we receive either a purchase order and/or customer release for a specific number of parts at a specified price. While long-term supply agreements may range from four to six years for new vehicle production and ten to fifteen subsequent years for service parts production, contracts may be terminated by customers at any time. Historically, terminations have been minimal. Contracts may also provide for annual price reductions over the production life of the vehicle, and prices are adjusted on an ongoing basis to reflect changes in product content/cost and other commercial factors.

Revenue is recognized at a point in time when control of the parts produced are transferred to the customer according to the terms of the contract, which is usually when the parts are shipped or delivered to the customer’s premises. Customers are generally invoiced upon shipment or delivery and payment generally occurs within 45 to 90 days after the shipment date. The amount of revenue recognized reflects the consideration that we expect to be entitled to receive in exchange for those products based on purchase orders, annual price reductions and ongoing price adjustments, some of which is accounted for as variable consideration. We use the most likely amount method, the single most likely outcome of the contract, to estimate the amount to which we expect to be entitled. There were no significant changes to our estimates of variable consideration during the reporting period and significant changes to our estimates of variable consideration are not expected in future periods.

We do not have an enforceable right to payment at any time prior to when the parts are shipped or delivered to the customer. Therefore, we recognize revenue at the point in time we satisfy a performance obligation by transferring control of a part to a customer. Amounts billed to customers related to shipping and handling costs are included in Net Sales in the accompanying Condensed Consolidated Statements of Income (Loss) and Comprehensive Income. Shipping and handling costs are accounted for as fulfillment costs and are included in Cost of Goods Sold in the accompanying Condensed Consolidated Statements of Income (Loss) and Comprehensive Income.

Tooling and Pre-Production Engineering Costs Related to Long-Term Supply Arrangements:

We incur pre-production engineering and tooling costs related to the products produced for our customers under long-term supply agreements. Customer reimbursements for tooling and pre-production engineering activities that are part of a long-term supply arrangement are accounted for as a reduction of cost in accordance with ASC 340, Other Assets and Deferred Costs. Pre-production costs related to long-term supply agreements with a contractual guarantee for reimbursement are included in Other Current Assets in the accompanying Condensed Consolidated Balance Sheets. We expense all pre-production engineering costs for which reimbursement is not contractually guaranteed by the customer. All pre-production tooling costs related to customer-owned tools for which reimbursement is not contractually guaranteed by the customer or for which we do not have a non-cancelable right to use the tooling is also expensed when incurred.

Receivables, net:

Receivables, net include amounts billed and currently due from customers. We maintain an allowance for doubtful accounts to provide for estimated amounts of receivables not expected to be collected. We continually assess our receivables for collectability and any allowance is recorded based upon age of the outstanding receivables, historical payment experience, customer creditworthiness and general economic conditions.

Contract Balances:

We have no material contract assets as of March 31, 2019. Contract liability balances primarily include discounts recognized as a reduction in sales at the point of revenue recognition, but which will be applied by the customer agreement after the end of the reporting period. The activity related to contract liability balances during the nine month period ended March 31, 2019 was as follows (thousands of dollars):

Balance, July 2, 2018	$	1,195
Discounts Recorded as a Reduction in Sales		1,368
Payments of Discounts to Customers		(1,654	)
Other		(279	)
Balance, March 31, 2019	$	630

Revenue by Product Group and Customer:

Revenue by product group was as follows (thousands of dollars):

	Three Months Ended				Nine Months Ended
	March 31, 2019		April 1, 2018		March 31, 2019		April 1, 2018
Keys & Locksets	$	34,677	$	32,228	$	101,722	$	84,866
Power Access		25,398		22,278		68,193		64,028
Door Handles & Exterior Trim		32,212		24,032		83,973		63,602
Driver Controls		10,532		14,514		31,370		39,463
Aftermarket & OE Service		10,839		10,648		32,599		32,471
Latches		12,602		11,617		35,366		31,698
Other		1,970		1,506		5,079		6,337
	$	128,230	$	116,823	$	358,302	$	322,465

Revenue by customer or customer group was as follows (thousands of dollars):

	Three Months Ended				Nine Months Ended
	March 31, 2019		April 1, 2018		March 31, 2019		April 1, 2018
Fiat Chrysler Automobiles	$	29,917	$	31,283	$	85,824	$	77,387
General Motors Company		30,969		22,417		80,111		64,151
Ford Motor Company		15,942		18,062		47,579		49,494
Tier 1 Customers		20,078		19,027		56,357		51,284
Commercial and Other OEM Customers		22,794		21,713		65,190		59,341
Hyundai / Kia		8,530		4,321		23,241		20,808
	$	128,230	$	116,823	$	358,302	$	322,465

Earnings (Loss) Per Share (''EPS'') (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Apr. 01, 2018	Mar. 31, 2019	Apr. 01, 2018
Reconciliation of the components of the basic and diluted per share
Net income	$ 1,730	$ 2,969	$ (16,967)	$ 8,307
Net income, Diluted (loss) Earnings Per Share	$ 1,730	$ 2,969	$ (16,967)	$ 8,307
Basic (Loss) Earnings Per Share, Number of shares	3,684	3,634	3,670	3,625
Stock Option and Restricted Stock Awards, Number of shares	44	74		77
Diluted (Loss) Earnings Per Share, Number of shares	3,728	3,708	3,670	3,702
Basic (Loss) Earnings Per Share	$ 0.47	$ 0.82	$ (4.62)	$ 2.29
Diluted (Loss) Earnings Per Share	$ 0.46	$ 0.80	$ (4.62)	$ 2.24

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

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+ Details

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1252-109256

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=114873765&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
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-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109260490&loc=SL5780133-109256

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

+ Details

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Equity Earnings of Joint Ventures (Details Textual) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Mar. 31, 2019	Apr. 01, 2018	Jun. 28, 2015	Mar. 31, 2019	Apr. 01, 2018	Jul. 01, 2018
Schedule Of Equity Method Investments [Line Items]
Equity (loss) earnings of joint ventures	$ 66	$ 619		$ 2,451	$ 3,118
VAST LLC
Schedule Of Equity Method Investments [Line Items]
STRATTEC's percentage ownership in joint venture	33.33%			33.33%
Equity (loss) earnings of joint ventures	$ 25	703		$ 2,427	3,142
SAL LLC
Schedule Of Equity Method Investments [Line Items]
STRATTEC's percentage ownership in joint venture	51.00%			51.00%
Outstanding balance on loan from STRATTEC to equity method investment	$ 2,600			$ 2,600		$ 2,600
Percentage of funding in joint venture through loans			100.00%	100.00%
Percentage of losses of joint venture, up to committed financial support, recognized by STRATTEC			100.00%	100.00%
Equity (loss) earnings of joint ventures	$ 41,000	$ (84,000)		$ 24,000	$ (24,000)

This item represents the entity's proportionate share for the period of the net income (loss) of its investee (such as unconsolidated subsidiaries and joint ventures) to which the equity method of accounting is applied. This item includes income or expense related to stock-based compensation based on the investor's grant of stock to employees of an equity method investee.

Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]

Derivative Instruments - Schedule of Quantification of Outstanding Mexican Peso Forward Contracts (Details) - Currency buy sell under contract one	9 Months Ended
	Mar. 31, 2019 USD ($) $ / $
Derivative [Line Items]
Effective Dates, Beginning	Apr. 15, 2019
Effective Dates, Ending	Jun. 13, 2019
Notional Amount	$ 2,250,000
Average Forward Contractual Exchange Rate \| $ / $	20.22
Fair Value	$ 77,000

Equity Earnings of Joint Ventures (Details 1) - Equity Method Investee - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Apr. 01, 2018	Mar. 31, 2019	Apr. 01, 2018
VAST LLC
Schedule Of Equity Method Investments [Line Items]
Sales to Joint Venture	$ 878	$ 507	$ 2,751	$ 2,090
Purchases from VAST LLC	36	29	164	158
Expenses Charged to VAST LLC	317	232	1,096	615
Expenses Charged from VAST LLC	$ 192	$ 176	$ 628	706
SAL LLC
Schedule Of Equity Method Investments [Line Items]
Sales to Joint Venture				$ 182

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Mar. 31, 2019	Apr. 01, 2019
Document And Entity Information [Abstract]
Entity Registrant Name	STRATTEC SECURITY CORP
Entity Central Index Key	0000933034
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Trading Symbol	STRT
Current Fiscal Year End Date	--06-30
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock Shares Outstanding		3,755,022

Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Mar. 31, 2019

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):

	Nine Months Ended March 31, 2019
	Foreign Currency Translation Adjustments			Retirement and Postretirement Benefit Plans			Total
Balance, July 1, 2018	$	15,291		$	18,148		$	33,439
Other comprehensive loss before reclassifications		146			—			146
Income tax		(185	)		—			(185	)
Net other comprehensive loss before Reclassifications		(39	)		—			(39	)
Reclassifications:
Pension Termination Settlement (A)		—			(25,668	)		(25,668	)
Prior service credits (A)		—			329			329
Actuarial gains (A)		—			(1,155	)		(1,155	)
Total reclassifications before tax		—			(26,494	)		(26,494	)
Income tax		—			6,502			6,502
Net reclassifications		—			(19,992	)		(19,992	)
Other comprehensive income		(39	)		(19,992	)		(20,031	)
Other comprehensive income attributable to non- controlling interest		(282	)		—			(282	)
Reclassification of stranded tax effects		83			3,964			4,047
Balance, March 31, 2019	$	15,617		$	2,120		$	17,737

	Nine Months Ended April 1, 2018
	Foreign Currency Translation Adjustments			Retirement and Postretirement Benefit Plans			Total
Balance, July 2, 2017	$	14,138		$	18,750		$	32,888
Other comprehensive loss before reclassifications		(1,193	)		—			(1,193	)
Income tax		—			—			—
Net other comprehensive loss before Reclassifications		(1,193	)		—			(1,193	)
Reclassifications:
Prior service credits (A)		—			564			564
Unrecognized net loss (A)		—			(1,885	)		(1,885	)
Total reclassifications before tax		—			(1,321	)		(1,321	)
Income tax		—			428			428
Net reclassifications		—			(893	)		(893	)
Other comprehensive income		(1,193	)		(893	)		(2,086	)
Other comprehensive loss attributable to non- controlling interest		20			—			20
Balance, April 1, 2018	$	12,925		$	17,857		$	30,782

(A)

Amounts reclassified are included in the computation of net periodic benefit cost and the pension termination settlement charge, which is included in Other Income (Expense), net in the accompanying Condensed Consolidated Statements of Income (Loss) and Comprehensive Income. See Pension and Postretirement Benefits note to these Notes to Condensed Consolidated Financial Statements above.

Accumulated Other Comprehensive Loss

9 Months Ended

Mar. 31, 2019

Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]

Accumulated Other Comprehensive Loss

The following tables summarize the changes in accumulated other comprehensive loss (“AOCL”) for each period presented (in thousands):

	Nine Months Ended March 31, 2019
	Foreign Currency Translation Adjustments			Retirement and Postretirement Benefit Plans			Total
Balance, July 1, 2018	$	15,291		$	18,148		$	33,439
Other comprehensive loss before reclassifications		146			—			146
Income tax		(185	)		—			(185	)
Net other comprehensive loss before Reclassifications		(39	)		—			(39	)
Reclassifications:
Pension Termination Settlement (A)		—			(25,668	)		(25,668	)
Prior service credits (A)		—			329			329
Actuarial gains (A)		—			(1,155	)		(1,155	)
Total reclassifications before tax		—			(26,494	)		(26,494	)
Income tax		—			6,502			6,502
Net reclassifications		—			(19,992	)		(19,992	)
Other comprehensive income		(39	)		(19,992	)		(20,031	)
Other comprehensive income attributable to non- controlling interest		(282	)		—			(282	)
Reclassification of stranded tax effects		83			3,964			4,047
Balance, March 31, 2019	$	15,617		$	2,120		$	17,737

	Nine Months Ended April 1, 2018
	Foreign Currency Translation Adjustments			Retirement and Postretirement Benefit Plans			Total
Balance, July 2, 2017	$	14,138		$	18,750		$	32,888
Other comprehensive loss before reclassifications		(1,193	)		—			(1,193	)
Income tax		—			—			—
Net other comprehensive loss before Reclassifications		(1,193	)		—			(1,193	)
Reclassifications:
Prior service credits (A)		—			564			564
Unrecognized net loss (A)		—			(1,885	)		(1,885	)
Total reclassifications before tax		—			(1,321	)		(1,321	)
Income tax		—			428			428
Net reclassifications		—			(893	)		(893	)
Other comprehensive income		(1,193	)		(893	)		(2,086	)
Other comprehensive loss attributable to non- controlling interest		20			—			20
Balance, April 1, 2018	$	12,925		$	17,857		$	30,782

(A)

Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands

Mar. 31, 2019

Jul. 01, 2018

Current Assets:

Cash and cash equivalents

$ 9,202

^[1]

$ 8,090

Receivables, net

87,847

^[1]

73,832

Inventories:

Finished products

12,544

^[1]

13,410

Work in process

11,485

^[1]

10,059

Purchased materials

26,948

^[1]

27,185

Excess and obsolete reserve

(4,155)

^[1]

(4,000)

Inventories, net

46,822

^[1]

46,654

Other current assets

15,609

^[1]

22,527

Total current assets

159,480

^[1]

151,103

Investment in joint ventures

23,876

^[1]

22,192

Deferred Income Taxes

^[1]

1,210

Other long-term assets

10,877

^[1]

17,338

Property, plant and equipment

282,660

^[1]

269,716

Less: accumulated depreciation

(164,819)

^[1]

(153,174)

Net property, plant and equipment

117,841

^[1]

116,542

Total assets

313,284

^[1]

307,175

Current Liabilities:

Accounts payable

46,207

^[1]

38,439

Accrued Liabilities:

Payroll and benefits

12,761

^[1]

13,393

Environmental

1,279

^[1]

1,291

Warranty

7,995

^[1]

7,800

Other

10,563

^[1]

7,870

Total current liabilities

78,805

^[1]

68,793

Borrowings under credit facilities

44,000

^[1]

51,000

Deferred income taxes

961

Accrued pension obligations

1,645

^[1]

1,553

Accrued postretirement obligations

677

^[1]

826

Other long-term liabilities

831

^[1]

796

Shareholders’ Equity:

Common stock, authorized 12,000,000 shares, $.01 par value, 7,304,994 issued shares at March 31, 2019 and 7,251,937 issued shares at July 1, 2018

^[1]

Capital in excess of par value

96,215

^[1]

95,140

Retained earnings

221,696

^[1]

236,162

Accumulated other comprehensive loss

(17,737)

^[1]

(33,439)

Less: treasury stock, at cost (3,614,479 shares at March 31, 2019 and 3,616,734 shares at July 1,2018)

(135,742)

^[1]

(135,778)

Total STRATTEC SECURITY CORPORATION shareholders’ equity

164,505

^[1]

162,158

Non-controlling interest

22,821

^[1]

21,088

Total shareholders’ equity

187,326

^[1]

183,246

Total liabilities and shareholders' equity

$ 313,284

^[1]

$ 307,175

[1]

Unaudited

New Accounting Standards

9 Months Ended

Mar. 31, 2019

Accounting Changes And Error Corrections [Abstract]

New Accounting Standards

In May 2014, the FASB issued an update to the accounting guidance for the recognition of revenue arising from contracts with customers. The update supersedes most current revenue recognition guidance and outlines a single comprehensive model for revenue recognition based on the principle that an entity should recognize revenue in an amount that reflects the expected consideration to be received in the exchange of goods and services. The guidance update also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. We implemented the new standard effective July 2, 2018, the first day of our 2019 fiscal year, using the modified retrospective approach to transition to the new standard. We assessed our revenue stream based upon the provisions of our customer contracts in effect on the July 2, 2018 effective date to determine the cumulative effect of initially applying the guidance. Based on our assessment, the adoption date financial statement impact was limited to a balance sheet reclassification required to establish the contract liability concept provided for in the guidance. As such, comparative financial information for reporting periods prior to July 2, 2018 has not been restated and continues to be reported in accordance with our revenue recognition policies prior to the adoption of the new guidance. Additionally, there was no cumulative effect adjustment required to be recorded to our retained earnings. The effect of the reclassification changes made to our July 2, 2018 Condensed Consolidated Balance Sheet increased Receivables, net by $1.2 million, with a corresponding increase to Accrued Liabilities: Other. Refer to the discussion of Revenue from Contracts with Customers included in these Notes to Condensed Consolidated Financial Statements.

In February 2016, the FASB issued an update to the accounting guidance for leases. The update increases the transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and to disclose key information about leasing arrangements. The guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those years. We do not expect that the adoption of this pronouncement will have a material impact on our consolidated financial statements.

In August 2016, the FASB issued an update to the accounting guidance on the classification of certain cash receipts and cash payments. The update aims to eliminate diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those years. The adoption of this pronouncement did not have a material impact on our consolidated financial statements.

In February 2018, the FASB issued guidance on the reclassification of certain tax effects from accumulated other comprehensive income. The guidance permits entities to reclassify tax effects stranded in accumulated other comprehensive income as a result of U.S. tax reform to retained earnings. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. We elected early adoption beginning effective December 30, 2018. The adoption of the guidance resulted in the reclassification of $4.0 million from accumulated other comprehensive income to retained earnings during the quarter ended December 30, 2018.

Fair Value of Financial Instruments (Details Textual)	Mar. 31, 2019 USD ($)
Fair Value Disclosures [Abstract]
Fair value, assets, level 1 to level 2 transfers, amount	$ 0

Shareholders' Equity (Tables)

9 Months Ended

Mar. 31, 2019

Equity [Abstract]

Summary of Activity Impacting Shareholders' Equity

A summary of activity impacting shareholders’ equity for the three and nine month periods ended March 31, 2019 and April 1, 2018 were as follows (in thousands):

	Three Months Ended March 31, 2019
	Total Shareholders’ Equity			Common Stock		Capital in Excess of Par Value		Retained Earnings			Accumulated Other Comprehensive Loss			Treasury Stock			Non-Controlling Interest
Balance, December 30, 2018	$	183,757		$	73	$	95,818	$	220,483		$	(18,648	)	$	(135,758	)	$	21,789
Net Income		3,037			—		—		1,730			—			—			1,307
Dividend Declared		(517	)		—		—		(517	)		—			—			—
Dividend Declared – Non- controlling Interests of Subsidiaries		(400	)		—		—		—			—			—			(400	)
Translation adjustments		1,037			—		—		—			912			—			125
Stock Based Compensation		241			—		241		—			—			—			—
Pension and Postretirement Adjustment, Net of Tax		(1	)		—		—		—			(1	)		—			—
Stock Option Exercises		140			—		140		—			—			—			—
Employee Stock Purchases		32			—		16		—			—			16			—
Balance, March 31, 2019	$	187,326		$	73	$	96,215	$	221,696		$	(17,737	)	$	(135,742	)	$	22,821

	Three Months Ended April 1, 2018
	Total Shareholders’ Equity			Common Stock		Capital in Excess of Par Value		Retained Earnings			Accumulated Other Comprehensive Loss			Treasury Stock			Non-Controlling Interest
Balance, December 31, 2017	$	175,856		$	72	$	94,603	$	230,234		$	(33,676	)	$	(135,801	)	$	20,424
Net Income		3,932			—		—		2,969			—			—			963
Dividend Declared		(508	)		—		—		(508	)		—			—			—
Dividend Declared – Non- controlling Interests of Subsidiaries		(200	)		—		—		—			—			—			(200	)
Translation adjustments		3,487			—		—		—			2,556			—			931
Stock Based Compensation		250			—		250		—						—			—
Pension and Postretirement Adjustment, Net of Tax		338			—		—		—			338			—			—
Employee Stock Purchases		27			—		16		—						11			—
Balance, April 1, 2018	$	183,182		$	72	$	94,869	$	232,695		$	(30,782	)	$	(135,790	)	$	22,118

	Nine Months Ended March 31, 2019
	Total Shareholders’ Equity			Common Stock		Capital in Excess of Par Value		Retained Earnings			Accumulated Other Comprehensive Loss			Treasury Stock			Non-Controlling Interest
Balance, July 1, 2018	$	183,246		$	73	$	95,140	$	236,162		$	(33,439	)	$	(135,778	)	$	21,088
Net (Loss) Income		(14,132	)		—		—		(16,967	)		—			—			2,835
Dividend Declared		(1,546	)		—		—		(1,546	)		—			—			—
Dividend Declared – Non- controlling Interests of Subsidiaries		(1,384	)		—		—		—			—			—			(1,384	)
Translation adjustments		39			—		—					(243	)		—			282
Stock Based Compensation		867			—		867		—			—			—			—
Pension and Postretirement Adjustment, Net of Tax		19,992			—		—		—			19,992			—			—
Reclassification of Stranded Tax Effects		-			—		—		4,047			(4,047	)		—			—
Stock Option Exercises		172			—		172		—			—			—			—
Employee Stock Purchases		72			—		36		—			—			36			—
Balance, March 31, 2019	$	187,326		$	73	$	96,215	$	221,696		$	(17,737	)	$	(135,742	)	$	22,821

	Nine Months Ended April 1, 2018
	Total Shareholders’ Equity			Common Stock		Capital in Excess of Par Value		Retained Earnings			Accumulated Other Comprehensive Loss			Treasury Stock			Non-Controlling Interest
Balance, July 2, 2017	$	172,714		$	72	$	93,813	$	225,913		$	(32,888	)	$	(135,822	)	$	21,626
Net Income		11,036			—		—		8,307			—			—			2,729
Dividend Declared		(1,525	)		—		—		(1,525	)		—			—			—
Dividend Declared – Non- controlling Interests of Subsidiaries		(2,217	)		—		—		—			—			—			(2,217	)
Translation adjustments		1,193			—		—		—			1,213			—			(20	)
Stock Based Compensation		871			—		871		—			—			—			—
Pension and Postretirement Adjustment, Net of Tax		893			—		—		—			893			—			—
Stock Option Exercises		139			—		139		—			—			—			—
Employee Stock Purchases		78			—		46		—			—			32			—
Balance, April 1, 2018	$	183,182		$	72	$	94,869	$	232,695		$	(30,782	)	$	(135,790	)	$	22,118

New Accounting Standards (Details Textual) - USD ($)

3 Months Ended

Dec. 30, 2018

Sep. 30, 2018

Mar. 31, 2019

^[1]

Jul. 02, 2018

Jul. 01, 2018

New Accounting Pronouncements Or Change In Accounting Principle [Line Items]

Receivables, net

$ 87,847,000

$ 73,832,000

Accrued liabilities: Other

$ 10,563,000

$ 7,870,000

ASU 2014-09

New Accounting Pronouncements Or Change In Accounting Principle [Line Items]

Cumulative effect adjustment to retained earnings

$ 0

ASU 2014-09 | Effect of Reclassification Changes

New Accounting Pronouncements Or Change In Accounting Principle [Line Items]

Receivables, net

$ 1,200,000

Accrued liabilities: Other

$ 1,200,000

ASU 2018-02 | Reclassification from Accumulated Other Comprehensive Income to Retained Earnings

New Accounting Pronouncements Or Change In Accounting Principle [Line Items]

Effect of adoption of new accounting guidance

$ 4,000,000.0

[1]

Unaudited

Earnings (Loss) Per Share (''EPS'')

9 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Earnings (Loss) Per Share (''EPS'')

Earnings (Loss) Per Share (EPS)

Basic earnings (loss) per share is computed on the basis of the weighted average number of shares of common stock outstanding during the applicable period. Diluted earnings per share is computed on the basis of the weighted average number of shares of common stock plus the potential dilutive common shares outstanding during the applicable period using the treasury stock method. Potential dilutive common shares include outstanding stock options and unvested restricted stock awards.

A reconciliation of the components of the basic and diluted per-share computations follows (in thousands, except per share amounts):

	Three Months Ended
	March 31, 2019						April 1, 2018
	Net income		Shares		Per-Share Amount		Net income		Shares		Per-Share Amount
Basic Earnings Per Share	$	1,730		3,684	$	0.47	$	2,969		3,634	$	0.82
Stock Option and Restricted Stock Awards		—		44				—		74
Diluted Earnings Per Share	$	1,730		3,728	$	0.46	$	2,969		3,708	$	0.80

	Nine Months Ended
	March 31, 2019								April 1, 2018
	Net income			Shares		Per-Share Amount			Net income		Shares		Per-Share Amount
Basic (Loss) Earnings Per Share	$	(16,967	)		3,670	$	(4.62	)	$	8,307		3,625	$	2.29
Stock Option and Restricted Stock Awards		—			—					—		77
Diluted (Loss) Earnings Per Share	$	(16,967	)		3,670	$	(4.62	)	$	8,307		3,702	$	2.24

The calculation of earnings per share excluded 41,200 share-based payment awards for the quarters ended March 31, 2019 and April 1, 2018 because their inclusion would have been anti-dilutive. The calculation of earnings (loss) per share excluded 181,867 and 41,200 shares-based payment awards for the nine month periods ended March 31, 2019 and April 1, 2018, respectively, because their inclusion would have been anti-dilutive.

Revenue from Contracts with Customers (Tables)

9 Months Ended

Mar. 31, 2019

Revenue From Contract With Customer [Abstract]

Contract Liability Balances

The activity related to contract liability balances during the nine month period ended March 31, 2019 was as follows (thousands of dollars):

Balance, July 2, 2018	$	1,195
Discounts Recorded as a Reduction in Sales		1,368
Payments of Discounts to Customers		(1,654	)
Other		(279	)
Balance, March 31, 2019	$	630

Revenue by Product Group and Customer

Revenue by product group was as follows (thousands of dollars):

	Three Months Ended				Nine Months Ended
	March 31, 2019		April 1, 2018		March 31, 2019		April 1, 2018
Keys & Locksets	$	34,677	$	32,228	$	101,722	$	84,866
Power Access		25,398		22,278		68,193		64,028
Door Handles & Exterior Trim		32,212		24,032		83,973		63,602
Driver Controls		10,532		14,514		31,370		39,463
Aftermarket & OE Service		10,839		10,648		32,599		32,471
Latches		12,602		11,617		35,366		31,698
Other		1,970		1,506		5,079		6,337
	$	128,230	$	116,823	$	358,302	$	322,465

Revenue by customer or customer group was as follows (thousands of dollars):

	Three Months Ended				Nine Months Ended
	March 31, 2019		April 1, 2018		March 31, 2019		April 1, 2018
Fiat Chrysler Automobiles	$	29,917	$	31,283	$	85,824	$	77,387
General Motors Company		30,969		22,417		80,111		64,151
Ford Motor Company		15,942		18,062		47,579		49,494
Tier 1 Customers		20,078		19,027		56,357		51,284
Commercial and Other OEM Customers		22,794		21,713		65,190		59,341
Hyundai / Kia		8,530		4,321		23,241		20,808
	$	128,230	$	116,823	$	358,302	$	322,465

Income Taxes

9 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Our income tax provision for the three and nine month periods ended April 1, 2018 were impacted by the Tax Cuts and Jobs Act of 2017 (“the Act”), which was signed into law on December 22, 2017 with an effective date of January 1, 2018. The Act made broad and complex changes to the U.S. tax code that affected our tax provision beginning January 1, 2018, including but not limited to (1) a reduction in the U.S. statutory tax rate to 21 percent following its effective date and a change in the measurement of our deferred tax assets and deferred tax liabilities resulting from the reduction in the statutory rate, (2) requiring a one-time transition tax on certain deemed repatriated earnings of foreign subsidiaries that is payable over eight years, and (3) bonus depreciation that will allow for full expensing of qualified property. Section 15 of the Internal Revenue Code stipulates that for our fiscal year ended July 1, 2018, a blended statutory corporate tax rate of 28% was applicable, which was based on the applicable statutory rates before and after the effective date of the Act and the number of days in our fiscal year.

The SEC staff issued SAB 118, which provides guidance on accounting for the tax effects of the Act. SAB 118 provides a measurement period that should not extend beyond one year from the Act’s enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Act is incomplete but the company is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provision of the tax laws that were in effect immediately before the enactment of the Act.

In connection with our analysis of the impact of the Act, we recorded a discrete net tax benefit of $309,000 and $854,000 for the three and nine month periods ended April 1, 2018. This net tax benefit primarily consisted of (1) the impact of the change in measurement of our deferred tax assets and liabilities, (2) the one-time transition tax on non-previously taxed post 1986 accumulated foreign earnings, and (3) the impact of changing our annualized effective tax rate. For various reasons that are discussed more fully below, we did not complete our accounting for the income tax effects for certain elements of the Act as of December 31, 2017. However, we were able to make reasonable estimates of certain effects and, therefore, recorded provisional adjustments of these elements during the three month period ended December 31, 2017. We identified these items as provisional since our analysis of the items was not complete.

The Act reduced the corporate tax rate to 21 percent, effective January 1, 2018. For certain of our net deferred tax assets, we recorded a provisional adjustment to reflect the reduction in the corporate tax rate. While we are able to make a reasonable estimate of the impact of the reduction in the corporate rate, it may be affected by other analyses related to the Act, including, but not limited to, the impact of our calculation of deemed repatriation of deferred foreign income and the impact of full expensing for certain assets.

The Deemed Repatriation Transition Tax (“Transition Tax”) is a tax on previously untaxed accumulated and current earnings and profits (E&P) of certain of our foreign subsidiaries. To determine the amount of the Transition Tax, in addition to other factors, the amount of post-1986 E&P of the relevant subsidiaries must be determined, as well as the amount of non-U.S. income taxes paid on such earnings. We were able to make a reasonable estimate of the Transition Tax and recorded a provisional Transition Tax obligation in the accompanying condensed financial statements for the nine months ended April 1, 2018. However, as of April 1, 2018, additional information needed to be gathered to more precisely compute the amount of the Transition Tax.

We were required to assess whether our valuation allowance analyses was affected by various aspects of the Act (e.g., deemed repatriation of deferred foreign income, Global Intangible Low-Taxed Income (“GILTI”) inclusions, and new categories of Foreign Tax Credits). Since, as discussed herein, we recorded provisional amounts related to certain portions of the Act, any corresponding determination of the need for, or change in, a valuation allowance was also provisional.

As of December 30, 2018, we had completed our accounting for all income tax elements of the Act. Measurement period adjustments related to the Act recorded in the nine month period ended March 31, 2019 totaled $372,000.

Our income tax provision for the three and nine month periods ended March 31, 2019 were impacted by a $7.9 million tax benefit resulting from the termination of our qualified, noncontributory defined benefit pension plan as discussed under Pension and Postretirement Benefits below and a reduction in the expected effective tax rate as compared to the prior year period. Our income tax provision for the nine month period ended March 31, 2019 was also impacted by a discrete benefit of $372,000, which represents measurement period adjustments to the one-time transition tax on non-previously taxed post 1986 accumulated foreign earnings. The expected annual effective tax rate between our fiscal 2019 and 2018 years decreased from approximately 20.6 percent as April 1, 2018 to approximately 10.7 percent as of March 31, 2019 due to the reduction in the U.S. statutory rate between years and changes in the U.S. taxation of non-U.S. earnings.

Additionally, our income tax provisions for the three and nine months ended March 31, 2019 and April 1, 2018 were affected by 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.

Fair Value of Financial Instruments (Tables)

9 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Summary of Financial Assets and Liabilities at Fair Value on Recurring Basis

The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2019 (in thousands):

	Fair Value Inputs
	Level 1 Assets: Quoted Prices In Active Markets		Level 2 Assets: Observable Inputs Other Than Market Prices		Level 3 Assets: Unobservable Inputs
Assets:
Rabbi Trust Assets:
Stock Index Funds:
Small Cap	$	268	$	—	$	—
Mid Cap		281		—		—
Large Cap		565		—		—
International		841		—		—
Fixed Income Funds		889		—		—
Cash and Cash Equivalents		—		4		—
Mexican Peso Forward Contracts		—		77		—
Total Assets at Fair Value	$	2,844	$	81	$	—

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares

Mar. 31, 2019

^[1]

Jul. 01, 2018

Statement Of Financial Position [Abstract]

Common stock, shares authorized

12,000,000

Common stock, par value

$ 0.01

Common stock, shares issued

7,304,994

7,251,937

Treasury stock, shares

3,614,479

3,616,734

[1]

Unaudited

Stock-Based Compensation (Details 1) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2019	Mar. 31, 2019	Apr. 01, 2018
Intrinsic value of stock options exercised and the fair value of stock options vested
Intrinsic Value of Options Exercised	$ 269	$ 324	$ 110
Fair Value of Stock Options Vesting			$ 315

Pension and Postretirement Benefits

9 Months Ended

Mar. 31, 2019

Compensation And Retirement Disclosure [Abstract]

Pension and Postretirement Benefits

We have a qualified, noncontributory defined benefit pension plan (“Qualified Pension Plan”) covering substantially all U.S. associates employed by us prior to January 1, 2010. Effective December 31, 2009, the Board of Directors amended the Qualified Pension Plan to freeze benefit accruals and future eligibility. The Board of Directors has subsequently approved to proceed with the termination of the Qualified Pension Plan. During the quarter ended December 30, 2018, we completed a substantial portion of terminating the Qualified Pension Plan. In connection with the termination of the Qualified Pension Plan, distributions from the Qualified Pension Plan trust were made during the three month period ended December 30, 2018 to participants who elected lump-sum distributions. Additionally, during the three months ended December 30, 2018, we entered into an agreement with an insurance company to purchase from us, through a series of annuity contracts, our remaining obligations under the Qualified Pension Plan and, as a result, we settled the remaining obligations under the plan for the remaining participants utilizing funds available in the Qualified Pension Plan trust. No additional cash contributions to the trust were required to settle the pension obligations. As a result of these actions, a non-cash pre-tax settlement charge of $32.4 million was recorded during the quarter ended December 30, 2018. A remaining non-cash compensation expense charge of approximately $8 million is expected to be recorded in future periods when the Qualified Pension Plan is fully terminated and the excess Plan assets are transferred to a STRATTEC defined contribution plan and subsequently paid out.

We have historically had in place a noncontributory supplemental executive retirement plan (“SERP”), which prior to January 1, 2014 was a nonqualified defined benefit plan that essentially mirrored the Qualified Pension Plan, but provided benefits in excess of certain limits placed on our Qualified Pension Plan by the Internal Revenue Code. As noted above, we froze our Qualified Pension Plan effective as of December 31, 2009 and the SERP provided benefits to participants as if the Qualified Pension Plan had not been frozen. Because the Qualified Pension Plan was frozen and because new employees were not eligible to participate in the Qualified Pension Plan, our Board of Directors adopted amendments to the SERP on October 8, 2013 that were effective as of December 31, 2013 to simplify the SERP calculation. The SERP is funded through a Rabbi Trust with BMO Harris Bank N.A. Under the amended SERP, participants received an accrued lump-sum benefit as of December 31, 2013, which was credited to each participant’s account. Subsequent to December 31, 2013, each eligible participant received, and currently receives, a supplemental retirement benefit equal to the foregoing lump sum benefit, plus an annual benefit accrual equal to 8 percent of the participant’s base salary and cash bonus, plus annual credited interest on the participant’s account balance. All then current participants as of December 31, 2013 are fully vested in their account balances with any new individuals participating in the SERP effective on or after January 1, 2014 being subject to a five year vesting period. The SERP, which is considered a nonqualified defined benefit plan under applicable rules and regulations of the Internal Revenue Code, will continue to be funded through use of a Rabbi Trust to hold investment assets to be used in part to fund any future required lump sum benefit payments to participants. The Rabbi Trust assets had a value of $2.8 million at March 31, 2019 and at July 1, 2018 and are included in Other Long-Term Assets in the accompanying Condensed Consolidated Balance Sheets.

We also sponsor a postretirement health care plan for all U.S. associates hired prior to June 1, 2001. The expected cost of retiree health care benefits is recognized during the years the associates who are covered under the plan render service. Effective January 1, 2010, an amendment to the postretirement health care plan limited the benefit for future eligible retirees to $4,000 per plan year and the benefit is further subject to a maximum five year coverage period based on the associate’s retirement date and age. The postretirement health care plan is unfunded.

The service cost component of the net periodic benefit costs under these plans is allocated between Cost of Goods Sold and Engineering, Selling and Administrative Expenses while the remaining components of the net periodic benefit costs are included in Other Income (Expense), net in the accompanying Condensed Consolidated Statements of Income (Loss) and Comprehensive Income.

The following table summarizes the net periodic benefit cost recognized for each of the periods indicated under these plans (in thousands):

	Pension Benefits					Postretirement Benefits
	Three Months Ended					Three Months Ended
	March 31, 2019		April 1, 2018			March 31, 2019			April 1, 2018
Service cost	$	15	$	17		$	2		$	3
Interest cost		19		965		8				11
Expected return on plan assets		—		(1,528	)		—			—
Amortization of prior service cost (credit)		—		3			(109	)		(191	)
Amortization of unrecognized net loss		—		509		109				119
Net periodic benefit cost (credit)	$	34	$	(34	)	$	10		$	(58	)

	Pension Benefits						Postretirement Benefits
	Nine Months Ended						Nine Months Ended
	March 31, 2019			April 1, 2018			March 31, 2019			April 1, 2018
Service cost	$	46		$	50		$	8		$	10
Interest cost		2,083			2,893		30				33
Expected return on plan assets		(2,276	)		(4,583	)		—			—
Plan Settlements		(32,434	)		—			—			—
Amortization of prior service cost (credit)		—			9			(329	)		(573	)
Amortization of unrecognized net loss	832				1,526		323				359
Net periodic benefit (credit) cost	$	(31,749	)	$	(105	)	$	32		$	(171	)

No voluntary contributions were made to the Qualified Pension Plan during the nine month periods ended March 31, 2019 and April 1, 2018. No additional contributions will be made in conjunction with the termination of the Qualified Pension Plan.

Pension and Postretirement Benefits (Details Textual) - USD ($)	3 Months Ended	9 Months Ended
	Dec. 30, 2018	Mar. 31, 2019	Apr. 01, 2018	Jul. 01, 2018
Defined Benefit Plan Disclosure [Line Items]
Date the Board of Directors freeze benefit accruals and future eligibility under the Qualified Pension Plan		Dec. 31, 2009
Termination of Qualified Pension Plan, description		The Board of Directors has subsequently approved to proceed with the termination of the Qualified Pension Plan. During the quarter ended December 30, 2018, we completed a substantial portion of terminating the Qualified Pension Plan. In connection with the termination of the Qualified Pension Plan, distributions from the Qualified Pension Plan trust were made during the three month period ended December 30, 2018 to participants who elected lump-sum distributions. Additionally, during the three months ended December 30, 2018, we entered into an agreement with an insurance company to purchase from us, through a series of annuity contracts, our remaining obligations under the Qualified Pension Plan and, as a result, we settled the remaining obligations under the plan for the remaining participants utilizing funds available in the Qualified Pension Plan trust.
Additional contributions for termination of Qualified Pension Plan		$ 0
Non-cash pre-tax settlement charge	$ 32,400,000	32,434,000
Remaining non-cash compensation expense		8,000,000
Rabbi Trust Assets - SERP		2,800,000		$ 2,800,000
Postretirement plan annual benefit limit for future eligible retirees		$ 4,000
Other postretirement benefits maximum benefit period		5 years
Contributions to the qualified pension plan		$ 0	$ 0
Supplemental Employee Retirement Plan, Defined Benefit
Defined Benefit Plan Disclosure [Line Items]
Percentage of participant's base salary received as Supplemental Retirement Benefits		8.00%
Vesting period, SERP		5 years

Earnings (Loss) Per Share (''EPS'') (Tables)

9 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Reconciliation of the Components of Basic and Diluted Per Share

A reconciliation of the components of the basic and diluted per-share computations follows (in thousands, except per share amounts):

	Three Months Ended
	March 31, 2019						April 1, 2018
	Net income		Shares		Per-Share Amount		Net income		Shares		Per-Share Amount
Basic Earnings Per Share	$	1,730		3,684	$	0.47	$	2,969		3,634	$	0.82
Stock Option and Restricted Stock Awards		—		44				—		74
Diluted Earnings Per Share	$	1,730		3,728	$	0.46	$	2,969		3,708	$	0.80

	Nine Months Ended
	March 31, 2019								April 1, 2018
	Net income			Shares		Per-Share Amount			Net income		Shares		Per-Share Amount
Basic (Loss) Earnings Per Share	$	(16,967	)		3,670	$	(4.62	)	$	8,307		3,625	$	2.29
Stock Option and Restricted Stock Awards		—			—					—		77
Diluted (Loss) Earnings Per Share	$	(16,967	)		3,670	$	(4.62	)	$	8,307		3,702	$	2.24

Fair Value of Financial Instruments

9 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

The fair value of our cash and cash equivalents, accounts receivable, accounts payable and borrowings under our credit facility approximated book value as of March 31, 2019 and July 1, 2018. Fair value is defined as the exchange price that would be received for an asset or paid for a liability (an exit price) in the principal or most advantageous market in an orderly transaction between market participants on the measurement date.

The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2019 (in thousands):

	Fair Value Inputs
	Level 1 Assets: Quoted Prices In Active Markets		Level 2 Assets: Observable Inputs Other Than Market Prices		Level 3 Assets: Unobservable Inputs
Assets:
Rabbi Trust Assets:
Stock Index Funds:
Small Cap	$	268	$	—	$	—
Mid Cap		281		—		—
Large Cap		565		—		—
International		841		—		—
Fixed Income Funds		889		—		—
Cash and Cash Equivalents		—		4		—
Mexican Peso Forward Contracts		—		77		—
Total Assets at Fair Value	$	2,844	$	81	$	—

The Rabbi Trust assets fund our amended and restated supplemental executive retirement plan and are included in Other Long-term Assets in the accompanying Condensed Consolidated Balance Sheets. Refer to discussion of Mexican peso forward contracts under Derivative Instruments above. The fair value of the Mexican peso forward contracts considers the remaining term, current exchange rate, and interest rate differentials between the U.S. dollar and Mexican peso. There were no transfers between Level 1 and Level 2 assets during the nine month period ended March 31, 2019.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Commitments And Contingencies Disclosure [Abstract]

Credit Facilities

9 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Credit Facilities

STRATTEC has a $40 million secured revolving credit facility (the “STRATTEC Credit Facility”) with BMO Harris Bank. ADAC-STRATTEC LLC has a $30 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, 2021. The ADAC-STRATTEC Credit Facility borrowing limit decreases to $25 million effective July 1, 2019. Borrowings under either credit facility are secured by our U.S. cash balances, accounts receivable, inventory, and fixed assets. Interest on borrowings under the STRATTEC Credit Facility and interest on borrowings under the ADAC-STRATTEC Credit Facility prior to December 31, 2018 were at varying rates based, at our option, on the London Interbank Offering Rate (“LIBOR”) plus 1.0 percent or the bank’s prime rate. Effective December 31 2018, and thereafter, interest on borrowings under the ADAC-STRATTEC Credit Facility is at varying rates based, at our option, on LIBOR plus 1.25 percent or the bank’s prime rate. Both credit facilities contain a restrictive financial covenant that requires the applicable borrower to maintain a minimum net worth level. The ADAC-STRATTEC Credit Facility includes an additional restrictive financial covenant that requires the maintenance of a minimum fixed charge coverage ratio. As of March 31, 2019, we were in compliance with all financial covenants required by these credit facilities.

Outstanding borrowings under the credit facilities were as follows (in thousands):

	March 31, 2019		July 1, 2018
STRATTEC Credit Facility	$	19,000	$	23,000
ADAC-STRATTEC Credit Facility		25,000		28,000
	$	44,000	$	51,000

Average outstanding borrowings and the weighted average interest rate under each credit facility referenced above were as follows for each period presented (in thousands):

	Nine Months Ended
	Average Outstanding Borrowings				Weighted Average Interest Rate
	March 31, 2019		April 1, 2018		March 31, 2019			April 1, 2018
STRATTEC Credit Facility	$	22,212	$	21,223		3.3	%		2.4	%
ADAC-STRATTEC Credit Facility	$	26,286	$	23,989		3.4	%		2.5	%

Stock-Based Compensation (Details 2) - Restricted stock	9 Months Ended
Stock-Based Compensation (Details 2) - Restricted stock	Mar. 31, 2019 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Nonvested, Shares Beginning Balance \| shares	69,125
Granted, Shares \| shares	34,050
Vested, Shares \| shares	(37,343)
Forfeited, Shares \| shares	(1,325)
Nonvested, Shares Ending Balance \| shares	64,507
Nonvested, Weighted Average Grant Date Fair Value Beginning Balance \| $ / shares	$ 49.02
Granted, Weighted Average Grant Date Fair Value \| $ / shares	37.25
Vested, Weighted Average Grant Date Fair Value \| $ / shares	54.93
Forfeited, Weighted Average Grant Date Fair Value \| $ / shares	47.17
Nonvested, Weighted Average Grant Date Fair Value Ending Balance \| $ / shares	$ 39.44

Commitments and Contingencies (Details Textual) - USD ($)

9 Months Ended

Mar. 31, 2019

Jul. 01, 2018

Environmental reserve originally established in 1995

$ 3,000,000

Environmental

1,279,000

^[1]

$ 1,291,000

Cost incurred inception to date on installation and on-going monitoring of wells

$ 596,000

[1]

Unaudited

Stock-Based Compensation (Tables)

9 Months Ended

Mar. 31, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Stock Option Activity Under Our Stock Incentive Plan

A summary of stock option activity under our stock incentive plan for the nine months ended March 31, 2019 was as follows:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in thousands)
Outstanding, July 1, 2018		133,074		$	29.37
Exercised		(15,714	)	$	10.92
Outstanding, March 31, 2019		117,360		$	31.80		3.0	$	467
Exercisable, March 31, 2019		117,360		$	31.85		3.0	$	467

Intrinsic Value of Stock Options Exercised and the Fair Value of Stock Options Vested

The intrinsic value of stock options exercised and the fair value of stock options that vested during the three and nine month periods presented below were as follows (in thousands):

	Three Months Ended				Nine Months Ended
	March 31, 2019		April 1, 2018		March 31, 2019		April 1, 2018
Intrinsic Value of Options Exercised	$	269	$	—	$	324	$	110
Fair Value of Stock Options Vesting	$	—	$	—	$	—	$	315

Summary of Restricted Stock Activity Under Our Stock Incentive Plan

A summary of restricted stock activity under our omnibus stock incentive plan for the nine months ended March 31, 2019 was as follows:

	Shares			Weighted Average Grant Date Fair Value
Nonvested Balance, July 1, 2018		69,125		$	49.02
Granted		34,050		$	37.25
Vested		(37,343	)	$	54.93
Forfeited		(1,325	)	$	47.17
Nonvested Balance, March 31, 2019		64,507		$	39.44

Stock-Based Compensation (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Mar. 31, 2019 USD ($) $ / shares shares
Share Based Compensation [Abstract]
Shares, Beginning Balance \| shares	133,074
Shares, Exercised \| shares	(15,714)
Shares, Ending Balance \| shares	117,360
Shares, Exercisable \| shares	117,360
Weighted Average Exercise Price, Beginning Balance \| $ / shares	$ 29.37
Weighted Average Exercise Price, Exercised \| $ / shares	10.92
Weighted Average Exercise Price, Ending Balance \| $ / shares	31.80
Weighted Average Exercise Price, Exercisable \| $ / shares	$ 31.85
Weighted Average Remaining Contractual Term, Outstanding	3 years
Weighted Average Remaining Contractual Term, Exercisable, Outstanding	3 years
Aggregate Intrinsic Value, Outstanding \| $	$ 467
Aggregate Intrinsic Value, Exercisable \| $	$ 467

Other Income (Expense), Net (Tables)

9 Months Ended

Mar. 31, 2019

Other Income And Expenses [Abstract]

Summary of Other Income (Expense), Net

The impact of these items for each of the periods presented was as follows (in thousands):

	Three Months Ended						Nine Months Ended
	March 31, 2019			April 1, 2018			March 31, 2019			April 1, 2018
Foreign Currency Transaction Loss	$	(192	)	$	(592	)	$	(261	)	$	(173	)
Unrealized Gain (Loss) on Peso Forward Contracts		23			392			116			(687	)
Realized Gain on Peso Forward Contracts		122			322			344			981
Pension and Postretirement Plans (Cost) Credit		(27	)		111			(662	)		335
Rabbi Trust Gain (Loss)		257			(14	)		57			178
Other		26			(61	)		108			(280	)
	$	209		$	158		$	(298	)	$	354

Basis of Financial Statements

9 Months Ended

Mar. 31, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of Financial Statements

STRATTEC SECURITY CORPORATION designs, develops, manufactures and markets automotive access control products including mechanical locks and keys, electronically enhanced locks and keys, steering column and instrument panel ignition lock housings, latches, power sliding door systems, power lift gate systems, power deck lid systems, door handles and related products for primarily North American automotive customers. We also supply global automotive manufacturers through a unique strategic relationship with WITTE Automotive (“WITTE”) of Velbert, Germany, and ADAC Automotive (“ADAC”) of Grand Rapids, Michigan. Under this relationship, STRATTEC, WITTE and ADAC market the products of each company to global customers under the “VAST Automotive Group” brand name (as more fully described herein). STRATTEC products are shipped to customer locations in the United States, Canada, Mexico, Europe, South America, Korea, China and India, and we provide full service and aftermarket support for each VAST Automotive Group partner’s products. We also maintain a 51 percent interest in a joint venture, STRATTEC Advanced Logic, LLC (“SAL LLC”), which exists to introduce a new generation of biometric security products based on the designs of Actuator Systems, our partner and the owner of the remaining ownership interest. The business of SAL LLC has been wound down to sell only commercial biometric locks.

The accompanying condensed consolidated financial statements reflect the consolidated results of STRATTEC SECURITY CORPORATION, its wholly owned Mexican subsidiary, STRATTEC de Mexico, and its majority owned subsidiaries, ADAC-STRATTEC, LLC and STRATTEC POWER ACCESS LLC. STRATTEC SECURITY CORPORATION is located in Milwaukee, Wisconsin. STRATTEC de Mexico is located in Juarez, Mexico. ADAC-STRATTEC, LLC and STRATTEC POWER ACCESS LLC have operations in El Paso, Texas and Juarez and Leon, Mexico. Equity investments in Vehicle Access Systems Technology LLC (“VAST LLC”) and SAL LLC, for which we exercise significant influence but do not control and are not the primary beneficiary, are accounted for using the equity method. VAST LLC consists primarily of four wholly owned subsidiaries in China, one wholly owned subsidiary in Brazil and one joint venture entity in India. The results of the VAST LLC foreign subsidiaries and joint venture are reported on a one-month lag basis. SAL LLC is located in El Paso, Texas. We have only one reporting segment.

In the opinion of management, the accompanying condensed consolidated balance sheets as of March 31, 2019 and July 1, 2018, 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 2018 Annual Report, which was filed with the Securities and Exchange Commission as an exhibit to our Form 10-K on September 6, 2018.

Equity Earnings of Joint Ventures (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Apr. 01, 2018	Mar. 31, 2019	Apr. 01, 2018
Summarized statements of operations
STRATTEC’s Equity Earnings of VAST LLC	$ 66	$ 619	$ 2,451	$ 3,118
VAST LLC
Summarized statements of operations
Net Sales	35,771	44,133	123,546	127,976
Cost of Goods Sold	29,303	34,063	98,173	98,339
Gross Profit (Loss)	6,468	10,070	25,373	29,637
Engineering, Selling and Administrative Expense	7,377	7,429	20,246	19,775
(Loss) income From Operations	(909)	2,641	5,127	9,862
Other Income (Expense), net	882	163	3,186	949
(Loss) Income before (Benefit) Provision for Income Taxes	(27)	2,804	8,313	10,811
(Benefit) Provision for Income Taxes	(64)	683	1,061	1,367
Net Income (Loss)	37	2,121	7,252	9,444
STRATTEC’s Share of VAST LLC Net Income	12	707	2,417	3,148
Intercompany Profit Elimination	13	(4)	10	(6)
STRATTEC’s Equity Earnings of VAST LLC	$ 25	$ 703	$ 2,427	$ 3,142

Basis of Financial Statements (Details Textual)	9 Months Ended
Basis of Financial Statements (Details Textual)	Mar. 31, 2019 Subsidiary Joint_Venture Segment
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of reporting segments related to STRATTEC Security Corporation \| Segment	1
SAL, LLC
Organization Consolidation And Presentation Of Financial Statements [Line Items]
STRATTEC's percentage ownership in joint venture	51.00%
VAST LLC
Organization Consolidation And Presentation Of Financial Statements [Line Items]
STRATTEC's percentage ownership in joint venture	33.33%
VAST LLC \| CHINA
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of wholly owned subsidiaries	4
VAST LLC \| BRAZIL
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of wholly owned subsidiaries	1
VAST LLC \| INDIA
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of joint venture entities \| Joint_Venture	1

Credit Facilities (Details Textual) - USD ($)	9 Months Ended
Credit Facilities (Details Textual) - USD ($)	Mar. 31, 2019	Jul. 01, 2019
STRATTEC Credit Facility
Line Of Credit Facility [Line Items]
Secured revolving credit facility	$ 40,000,000
Credit facility maturity date	Aug. 01, 2021
Interest rate on borrowings under the credit facility	the London Interbank Offering Rate (“LIBOR”) plus 1.0 percent or the bank’s prime rate.
Interest rate - percentage points added to LIBOR - on borrowings under credit facility	1.00%
ADAC-STRATTEC Credit Facility
Line Of Credit Facility [Line Items]
Secured revolving credit facility	$ 30,000,000
Credit facility maturity date	Aug. 01, 2021
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%
ADAC-STRATTEC Credit Facility \| Scenario Forecast
Line Of Credit Facility [Line Items]
Secured revolving credit facility		$ 25,000,000

Derivative Instruments - Pre-Tax Effects of the Peso Forward Contracts (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Apr. 01, 2018	Mar. 31, 2019	Apr. 01, 2018
Pre-tax effects of the Mexican peso forward contracts
Realized Gain	$ 122	$ 322	$ 344	$ 981
Unrealized Gain (Loss)	23	392	116	(687)
Not Designated as Hedging Instrument \| Other Income (Expense), Net
Pre-tax effects of the Mexican peso forward contracts
Realized Gain	122	322	344	981
Unrealized Gain (Loss)	$ 23	$ 392	$ 116	$ (687)

Revenue by Customer or Customer Group (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Apr. 01, 2018	Mar. 31, 2019	Apr. 01, 2018
Entity Wide Revenue Major Customer [Line Items]
Revenue	$ 128,230	$ 116,823	$ 358,302	$ 322,465
Fiat Chrysler Automobiles
Entity Wide Revenue Major Customer [Line Items]
Revenue	29,917	31,283	85,824	77,387
General Motors Company
Entity Wide Revenue Major Customer [Line Items]
Revenue	30,969	22,417	80,111	64,151
Ford Motor Company
Entity Wide Revenue Major Customer [Line Items]
Revenue	15,942	18,062	47,579	49,494
Tier 1 Customers
Entity Wide Revenue Major Customer [Line Items]
Revenue	20,078	19,027	56,357	51,284
Commercial and Other OEM Customers
Entity Wide Revenue Major Customer [Line Items]
Revenue	22,794	21,713	65,190	59,341
Hyundai / Kia
Entity Wide Revenue Major Customer [Line Items]
Revenue	$ 8,530	$ 4,321	$ 23,241	$ 20,808

Pension and Postretirement Benefits (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Mar. 31, 2019	Dec. 30, 2018	Apr. 01, 2018	Mar. 31, 2019	Apr. 01, 2018
COMPONENTS OF NET PERIODIC BENEFIT COST:
Plan Settlements		$ 32,400		$ 32,434
Pension Benefits
COMPONENTS OF NET PERIODIC BENEFIT COST:
Service cost	$ 15		$ 17	46	$ 50
Interest cost	19		965	2,083	2,893
Expected return on plan assets			(1,528)	(2,276)	(4,583)
Plan Settlements				(32,434)
Amortization of prior service cost (credit)			3		9
Amortization of unrecognized net loss			509	832	1,526
Net periodic benefit cost (credit)	34		(34)	(31,749)	(105)
Postretirement Benefits
COMPONENTS OF NET PERIODIC BENEFIT COST:
Service cost	2		3	8	10
Interest cost	8		11	30	33
Amortization of prior service cost (credit)	(109)		(191)	(329)	(573)
Amortization of unrecognized net loss	109		119	323	359
Net periodic benefit cost (credit)	$ 10		$ (58)	$ 32	$ (171)

Equity Earnings of Joint Ventures

9 Months Ended

Mar. 31, 2019

Equity Method Investments And Joint Ventures [Abstract]

Equity Earnings of Joint Ventures

We hold a one-third interest in a joint venture company, VAST LLC, with WITTE and ADAC. VAST LLC exists to seek opportunities to manufacture and sell all three companies’ products in areas of the world outside of North America and Europe. Our investment in VAST LLC, for which we exercise significant influence but do not control and are not the primary beneficiary, is accounted for using the equity method.

The following are summarized statements of operations for VAST LLC (in thousands):

	Three Months Ended						Nine Months Ended
	March 31, 2019			April 1, 2018			March 31, 2019		April 1, 2018
Net Sales	$	35,771		$	44,133		$	123,546	$	127,976
Cost of Goods Sold		29,303			34,063			98,173		98,339
Gross Profit		6,468			10,070			25,373		29,637
Engineering, Selling and Administrative Expenses		7,377			7,429			20,246		19,775
(Loss) income From Operations		(909	)		2,641			5,127		9,862
Other Income, net		882			163			3,186		949
(Loss) Income before (Benefit) Provision for Income Taxes		(27	)		2,804			8,313		10,811
(Benefit) Provision for Income Taxes		(64	)		683			1,061		1,367
Net Income	$	37		$	2,121		$	7,252	$	9,444
STRATTEC’s Share of VAST LLC Net Income	$	12		$	707		$	2,417	$	3,148
Intercompany Profit Elimination		13			(4	)		10		(6	)
STRATTEC’s Equity Earnings of VAST LLC	$	25		$	703		$	2,427	$	3,142

We hold a 51% ownership interest in a joint venture company, SAL LLC, which was formed to introduce a new generation of biometric security products based upon the designs of Actuator Systems LLC, our partner. SAL LLC is considered a variable interest entity based on loans from STRATTEC as discussed below. STRATTEC is not the primary beneficiary and does not control the entity. Accordingly, our investment in SAL LLC is accounted for using the equity method.

Loans were made from STRATTEC to SAL LLC in support of operating expenses and working capital needs. The outstanding loan amounts totaled $2.6 million as of March 31, 2019 and July 1, 2018. As of each balance sheet date, the outstanding loan amount was eliminated against STRATTEC’s Investment in SAL LLC in the preparation of the consolidated financial statements.

Even though we maintain a 51 percent ownership interest in SAL LLC, effective with our fiscal 2015 fourth quarter and thereafter, 100 percent of the funding for SAL LLC was being made by loans from STRATTEC to SAL LLC. Therefore, STRATTEC recognized 100 percent of the losses of SAL LLC up to our committed financial support through Equity Earnings of Joint Ventures in the accompanying Condensed Consolidated Statements of Income (Loss) and Comprehensive Income for all periods presented in this report. STRATTEC’s equity earnings of SAL LLC totaled $41,000 and $24,000 for the three and nine month periods ended March 31, 2019, respectively. STRATTEC’s equity loss of SAL LLC totaled $84,000 and $24,000 for the three and nine month periods ended April 1, 2018, respectively.

The business of SAL LLC has been wound down to sell only commercial biometric locks.

We have sales of component parts to VAST LLC and SAL LLC, purchases of component parts from VAST LLC, expenses charged to VAST LLC for engineering and accounting services and expenses charged to us from VAST LLC for general headquarters expenses. The following table summarizes these related party transactions with VAST LLC and SAL LLC for the periods indicated below (in thousands):

	Three Months Ended				Nine Months Ended
	March 31, 2019		April 1, 2018		March 31, 2019		April 1, 2018
Sales to VAST LLC	$	878	$	507	$	2,751	$	2,090
Sales to SAL LLC	$	—	$	—	$	—	$	182
Purchases from VAST LLC	$	36	$	29	$	164	$	158
Expenses Charged to VAST LLC	$	317	$	232	$	1,096	$	615
Expenses Charged from VAST LLC	$	192	$	176	$	628	$	706

Fair Value of Financial Instruments (Details) - Fair Value Measurements Recurring $ in Thousands	Mar. 31, 2019 USD ($)
Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Assets at Fair Value	$ 2,844
Level 1 \| Fixed Income Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Assets at Fair Value	889
Level 1 \| Stock Index Funds \| Small Cap
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Assets at Fair Value	268
Level 1 \| Stock Index Funds \| Mid Cap
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Assets at Fair Value	281
Level 1 \| Stock Index Funds \| Large Cap
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Assets at Fair Value	565
Level 1 \| Stock Index Funds \| International
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Assets at Fair Value	841
Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Assets at Fair Value	81
Level 2 \| Cash and Cash Equivalents
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Assets at Fair Value	4
Level 2 \| Mexican Peso Forward Contracts
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total Assets at Fair Value	$ 77

Pension and Postretirement Benefits (Tables)

9 Months Ended

Mar. 31, 2019

Compensation And Retirement Disclosure [Abstract]

Summary of Net Periodic Benefit Cost Recognized

The following table summarizes the net periodic benefit cost recognized for each of the periods indicated under these plans (in thousands):

	Pension Benefits					Postretirement Benefits
	Three Months Ended					Three Months Ended
	March 31, 2019		April 1, 2018			March 31, 2019			April 1, 2018
Service cost	$	15	$	17		$	2		$	3
Interest cost		19		965		8				11
Expected return on plan assets		—		(1,528	)		—			—
Amortization of prior service cost (credit)		—		3			(109	)		(191	)
Amortization of unrecognized net loss		—		509		109				119
Net periodic benefit cost (credit)	$	34	$	(34	)	$	10		$	(58	)

	Pension Benefits						Postretirement Benefits
	Nine Months Ended						Nine Months Ended
	March 31, 2019			April 1, 2018			March 31, 2019			April 1, 2018
Service cost	$	46		$	50		$	8		$	10
Interest cost		2,083			2,893		30				33
Expected return on plan assets		(2,276	)		(4,583	)		—			—
Plan Settlements		(32,434	)		—			—			—
Amortization of prior service cost (credit)		—			9			(329	)		(573	)
Amortization of unrecognized net loss	832				1,526		323				359
Net periodic benefit (credit) cost	$	(31,749	)	$	(105	)	$	32		$	(171	)

Commitments and Contingencies

9 Months Ended

Mar. 31, 2019

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

We are from time to time subject to various legal actions and claims incidental to our business, including those arising out of alleged defects, alleged breaches of contracts, product warranties, intellectual property matters and employment related matters. It is our opinion that the outcome of such matters will not have a material adverse impact on our consolidated financial position, results of operations or cash flows. With respect to warranty matters, although we cannot ensure that future costs of warranty claims by customers will not be material, we believe our established reserves are adequate to cover potential warranty settlements.

In 1995, we recorded a provision of $3 million for estimated costs to remediate an environmental contamination site at our Milwaukee facility. The facility was contaminated by a solvent spill, which occurred in 1985, from a former above ground solvent storage tank located on the east side of the facility. The reserve was originally established based on third party estimates to adequately cover the cost for active remediation of the contamination. Due to changing technology and related costs associated with active remediation of the contamination, in fiscal 2010, the reserve was adjusted based on updated third party estimates to adequately cover the cost for active remediation of the contamination. Additionally, in fiscal 2016, we obtained updated third party estimates for adequately covering the cost for active remediation of this contamination. Based upon the updated estimates, no further adjustment to the reserve was required. From 1995 through March 31, 2019, costs of approximately $596,000 have been incurred related to the installation of monitoring wells on the property and ongoing monitoring costs. We monitor and evaluate the site with the use of these groundwater monitoring wells. An environmental consultant samples these wells one or two times a year to determine the status of the contamination and the potential for remediation of the contamination by natural attenuation, the dissipation of the contamination over time to concentrations below applicable standards. If such sampling evidences a sufficient degree of and trend toward natural attenuation of the contamination at the site, we may be able to obtain a closure letter from the regulatory authorities resolving the issue without the need for active remediation. If a sufficient degree and trend toward natural attenuation is not evidenced by sampling, a more active form of remediation beyond natural attenuation may be required. The sampling has not yet satisfied all of the requirements for closure by natural attenuation. As a result, sampling continues and the reserve remains at an amount to reflect our estimated cost of active remediation. The reserve is not measured on a discounted basis. We believe, based on findings-to-date and known environmental regulations, that the remaining environmental reserve of $1.3 million at March 31, 2019 is adequate.

Credit Facilities (Details) - USD ($)
$ in Thousands

Mar. 31, 2019

Jul. 01, 2018

Line Of Credit Facility [Line Items]

Outstanding Borrowing

$ 44,000

^[1]

$ 51,000

STRATTEC Credit Facility

Line Of Credit Facility [Line Items]

Outstanding Borrowing

19,000

23,000

ADAC-STRATTEC Credit Facility

Line Of Credit Facility [Line Items]

Outstanding Borrowing

$ 25,000

$ 28,000

[1]

Unaudited

The carrying value as of the balance sheet date of the noncurrent portion of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.