STRATTEC SECURITY CORPORATION
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(Exact name of registrant as specified in charter)
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Wisconsin
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(State or other jurisdiction of incorporation)
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0-25150
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39-1804239
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(Commission File Number)
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(I.R.S. Employer I.D. Number)
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3333 West Good Hope Road
Milwaukee, WI
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53209
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(Address of Principal Executive Offices)
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(Zip Code)
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(414) 247-3333
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(Registrant's telephone number; including area code)
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☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02.
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Results of Operations and Financial Condition.
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Item 9.01.
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Financial Statements and Exhibits.
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(d)
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Exhibits
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STRATTEC SECURITY CORPORATION
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||
Date: October 25, 2018
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||
By: |
/s/ Patrick J. Hansen
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Patrick J. Hansen, Senior Vice President and
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||
Chief Financial Officer
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Three Months Ended
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||||||||
September 30, 2018
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October 1, 2017
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|||||||
Fiat Chrysler Automobiles
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$
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30,297
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$
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24,102
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||||
General Motors Company
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25,287
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20,338
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||||||
Ford Motor Company
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15,523
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15,373
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||||||
Tier 1 Customers
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17,816
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15,743
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||||||
Commercial and Other OEM Customers
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20,928
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17,867
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||||||
Hyundai / Kia
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7,308
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9,037
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||||||
TOTAL
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$
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117,159
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$
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102,460
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September 30,
2018
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October 1,
2017
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|||||||
Equity Earnings of VAST LLC Joint Venture
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$
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915
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$
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1,035
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||||
Equity Loss of STRATTEC Advanced Logic LLC
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(6
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)
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(9
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)
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||||
Net Foreign Currency Transaction Gain (Loss)
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(31
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)
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63
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|||||
Other
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(214
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)
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24
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|||||
$
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664
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$
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1,113
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First Quarter Ended
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||||||||
September 30, 2018
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October 1, 2017
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|||||||
Net Sales
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$
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117,159
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$
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102,460
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||||
Cost of Goods Sold
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101,976
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88,997
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||||||
Gross Profit
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15,183
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13,463
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||||||
Engineering, Selling & Administrative Expenses
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11,031
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10,042
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||||||
Income from Operations
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4,152
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3,421
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||||||
Interest Income
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-
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4
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||||||
Interest Expense
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(407
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)
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(203
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)
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||||
Other Income, Net
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664
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1,113
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||||||
Income before (Benefit) Provision for Income Taxes and
Non-Controlling Interest
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4,409
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4,335
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||||||
(Benefit) Provision for Income Taxes
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(20
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)
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1,066
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|||||
Net Income
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4,429
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3,269
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||||||
Net Income Attributable to
Non-Controlling Interest
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(962
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)
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(813
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)
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||||
Net Income Attributable to STRATTEC SECURITY CORP.
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$
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3,467
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$
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2,456
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||||
Earnings Per Share:
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||||||||
Basic
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$
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0.95
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$
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0.68
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||||
Diluted
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$
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0.93
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$
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0.67
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||||
Average Basic Shares Outstanding
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3,652
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3,611
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||||||
Average Diluted Shares Outstanding
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3,711
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3,681
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||||||
Other
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||||||||
Capital Expenditures
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$
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3,969
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$
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7,571
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||||
Depreciation & Amortization
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$
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4,047
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$
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3,095
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September 30, 2018
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July 1, 2018
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|||||||
(Unaudited)
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||||||||
ASSETS
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||||||||
Current Assets:
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||||||||
Cash and cash equivalents
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$
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10,345
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$
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8,090
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||||
Receivables, net
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78,525
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73,832
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||||||
Inventories, net
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46,279
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46,654
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||||||
Other current assets
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20,469
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22,527
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||||||
Total Current Assets
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155,618
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151,103
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||||||
Investment in Joint Ventures
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21,787
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22,192
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||||||
Other Long Term Assets
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17,542
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17,338
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||||||
Property, Plant and Equipment, Net
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118,001
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116,542
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||||||
$
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312,948
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$
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307,175
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|||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
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||||||||
Current Liabilities:
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||||||||
Accounts Payable
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$
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39,010
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$
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38,439
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||||
Borrowings Under Credit Facility
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2,000
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-
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||||||
Other
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31,459
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30,354
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||||||
Total Current Liabilities
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72,469
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68,793
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||||||
Accrued Pension and Post Retirement Obligations
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2,368
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2,379
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||||||
Borrowings Under Credit Facility
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49,000
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51,000
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||||||
Other Long-term Liabilities
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1,179
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1,757
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||||||
Shareholders’ Equity
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334,725
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331,375
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||||||
Accumulated Other Comprehensive Loss
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(32,946
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)
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(33,439
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)
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||||
Less: Treasury Stock
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(135,767
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)
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(135,778
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)
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||||
Total STRATTEC SECURITY
CORPORATION Shareholders’ Equity
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166,012
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162,158
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||||||
Non-Controlling Interest
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21,920
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21,088
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||||||
Total Shareholders’ Equity
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187,932
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183,246
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||||||
$
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312,948
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$
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307,175
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First Quarter Ended
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||||||||
September 30, 2018
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October 1, 2017
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|||||||
Cash Flows from Operating Activities:
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||||||||
Net Income
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$
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4,429
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$
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3,269
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||||
Adjustment to Reconcile Net Income to Net Cash Provided by Operating Activities:
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||||||||
Depreciation and Amortization
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4,047
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3,095
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||||||
Equity Earnings in Joint Ventures
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(909
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)
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(1,026
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)
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||||
Foreign Currency Transaction Loss
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428
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137
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||||||
Unrealized (Gain) Loss on Peso Forward Contracts
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(225
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)
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258
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|||||
Stock Based Compensation Expense
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385
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371
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||||||
Deferred Income Taxes
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(372
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)
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-
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|||||
Change in Operating Assets/Liabilities
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14
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(5,745
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)
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|||||
Other, net
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-
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(5
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)
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|||||
Net Cash Provided by Operating Activities
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7,797
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354
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||||||
Cash Flows from Investing Activities:
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||||||||
Additions to Property, Plant and Equipment
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(3,969
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)
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(7,571
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)
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||||
Net Cash Used in Investing Activities
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(3,969
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)
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(7,571
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)
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Cash Flow from Financing Activities:
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||||||||
Borrowings on Credit Facility
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2,000
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12,000
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||||||
Repayment of Borrowings under Credit Facility
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(2,000
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)
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(2,000
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)
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||||
Dividends Paid to Non-Controlling Interest of Subsidiaries
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(784
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)
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(2,017
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)
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||||
Dividends Paid
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(514
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)
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(508
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)
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||||
Exercise of Stock Options and Employee Stock Purchases
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23
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25
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||||||
Net Cash (Used In) Provided by Financing Activities
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(1,275
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)
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7,500
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|||||
Foreign Currency Impact on Cash
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(298
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)
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(146
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)
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||||
Net Increase in Cash & Cash Equivalents
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2,255
|
137
|
||||||
Cash and Cash Equivalents:
|
||||||||
Beginning of Period
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8,090
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8,361
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||||||
End of Period
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$
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10,345
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$
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8,498
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