STRATTEC SECURITY CORP Segments Disclosure
NOTE 14. SEGMENT INFORMATION
The Company operates within the automotive industry, offering a range of closely related products with shared production processes, distribution channels, and customers. These business activities are managed collectively, and the Company is organized and operates as a single business unit. As such, the Company has one reportable segment. The financial results for this reportable segment are equal to consolidated results as reported in the accompanying consolidated statements of income and comprehensive income and consolidated balance sheets.
Financial results, forecasts and budget to actual variances for the Company's reportable segment are provided to and regularly reviewed by the Chief Operating Decision Maker ("CODM"), which is the Company's . The primary measure of segment profit or loss that the CODM uses to evaluate performance and allocate resources is Net income attributable to Strattec.
The CODM considers the impact of significant segment expenses on this measure to assess profitability and guide strategic decision making including entering into significant contracts, expanding into new markets or launching new products, making significant capital expenditures, hiring and terminating key personnel and approving operating budgets.
The significant expenses that are regularly provided to the CODM are disclosed in the consolidated statements of income as a part of Net income attributable to Strattec and were as follows (in thousands):
|
|
Years Ended |
|
|||||
|
|
June 29, 2025 |
June 30, 2024 |
|
||||
Net sales |
|
$ |
565,066 |
|
|
$ |
537,766 |
|
Significant expenses: |
|
|
|
|
|
|
||
Direct material costs |
|
|
315,320 |
|
|
|
301,660 |
|
Labor and overhead costs |
|
|
165,169 |
|
|
|
170,638 |
|
Selling costs |
|
|
10,691 |
|
|
|
9,267 |
|
Administrative costs |
|
|
23,888 |
|
|
|
15,487 |
|
Engineering costs |
|
|
27,214 |
|
|
|
22,900 |
|
Interest income |
|
|
(2,039 |
) |
|
|
(572 |
) |
Interest expense |
|
|
1,007 |
|
|
|
900 |
|
Other income, net |
|
|
(820 |
) |
|
|
(2,717 |
) |
Income tax expense |
|
|
5,717 |
|
|
|
3,775 |
|
Net income |
|
|
18,919 |
|
|
|
16,428 |
|
Net income attributable to non-controlling interest |
|
|
234 |
|
|
|
115 |
|
Net income attributable to Strattec |
|
$ |
18,685 |
|
|
$ |
16,313 |
|
Sales and net tangible long-lived assets (property, plant and equipment, net and right-of-use assets) are presented by country; sales are attributed based on the location to which products were shipped (in thousands):
|
Net Sales |
|
|
Tangible Long-Lived Assets, Net |
|
||||||||||
|
Years Ended |
|
|
As of |
|
||||||||||
|
June 29, 2025 |
|
|
June 30, 2024 |
|
|
June 29, 2025 |
|
|
June 30, 2024 |
|
||||
United States |
$ |
381,405 |
|
|
$ |
382,386 |
|
|
$ |
26,186 |
|
|
$ |
28,542 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Mexico |
$ |
52,845 |
|
|
$ |
42,979 |
|
|
$ |
53,633 |
|
|
$ |
60,726 |
|
Canada |
|
59,717 |
|
|
|
57,061 |
|
|
|
20 |
|
|
|
9 |
|
Korea |
|
56,855 |
|
|
|
44,735 |
|
|
|
9 |
|
|
|
155 |
|
Other |
|
14,244 |
|
|
|
10,605 |
|
|
|
504 |
|
|
|
553 |
|
Total Foreign |
$ |
183,661 |
|
|
$ |
155,380 |
|
|
$ |
54,166 |
|
|
$ |
61,443 |
|
Sales by product group were as follows (in thousands and percent of total net sales):
|
|
Years Ended |
|
|||||||||||||
|
|
June 29, 2025 |
|
|
June 30, 2024 |
|
||||||||||
|
|
Net Sales |
|
|
% |
|
|
Net Sales |
|
|
% |
|
||||
Power access solutions |
|
$ |
138,402 |
|
|
|
24 |
% |
|
$ |
126,680 |
|
|
|
24 |
% |
Door handles & exterior trim |
|
|
140,554 |
|
|
|
25 |
|
|
|
135,355 |
|
|
|
25 |
|
Keys & locksets |
|
|
99,788 |
|
|
|
18 |
|
|
|
106,374 |
|
|
|
20 |
|
Latches |
|
|
75,359 |
|
|
|
13 |
|
|
|
67,844 |
|
|
|
13 |
|
User interface controls |
|
|
53,405 |
|
|
|
9 |
|
|
|
47,637 |
|
|
|
9 |
|
Aftermarket and service |
|
|
46,703 |
|
|
|
8 |
|
|
|
42,732 |
|
|
|
8 |
|
Other |
|
|
10,855 |
|
|
|
2 |
|
|
|
11,144 |
|
|
|
2 |
|
|
|
$ |
565,066 |
|
|
|
100 |
% |
|
$ |
537,766 |
|
|
|
100 |
% |
Sales to and receivables from customers that individually accounted for 10% or more of the Company's total net sales were as follows (in thousands and percent of total):
|
|
Years Ended |
|
|||||||||||||
|
|
June 29, 2025 |
June 30, 2024 |
|
||||||||||||
|
|
Net Sales |
|
|
% |
|
|
Net Sales |
|
|
% |
|
||||
General Motors Company |
|
$ |
165,701 |
|
|
|
29 |
% |
|
$ |
163,097 |
|
|
|
30 |
% |
Ford Motor Company |
|
|
129,193 |
|
|
|
23 |
|
|
|
114,937 |
|
|
|
21 |
|
Stellantis |
|
|
65,821 |
|
|
|
12 |
|
|
|
77,665 |
|
|
|
14 |
|
|
|
$ |
360,715 |
|
|
|
64 |
% |
|
$ |
355,699 |
|
|
|
66 |
% |
|
|
June 29, 2025 |
|
|
June 30, 2024 |
|
||||||||||
|
|
Receivables |
|
|
% |
|
|
Receivables |
|
|
% |
|
||||
General Motors Company |
|
$ |
26,581 |
|
|
|
26 |
% |
|
$ |
28,645 |
|
|
|
29 |
% |
Ford Motor Company |
|
|
19,916 |
|
|
|
20 |
|
|
|
24,832 |
|
|
|
25 |
|
Stellantis |
|
|
14,812 |
|
|
|
15 |
|
|
|
12,213 |
|
|
|
12 |
|
|
|
$ |
61,309 |
|
|
|
60 |
% |
|
$ |
65,690 |
|
|
|
66 |
% |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.