Strattec Security Corporation

Fiscal Year 2024 Annual Report
and Form 10K

Nasdaq: STRT
We are a leading global provider of advanced automotive access, security, and
user interface solutions. With a history spanning over 110 years, STRATTEC has
consistently been at the forefront of innovation in vehicle security, transitioning from
mechanical to integrated electro-mechanical systems.
We serve a broad range of customers, including leading automotive OEMs, offering
products such as power access solutions, latches, key fobs, advanced security systems,
steering wheel controls, and electronic shifters.
Key Concepts
p

LETTER TO SHAREHOLDERS
Dear Shareholders:
I am excited to be writing my first letter to you as President and CEO of STRATTEC.
I came to the Company in July 2024 because of its strong legacy in the automotive
industry, its solid customer base and its reputation for innovation. I believe that
my over 25 years of experience in this industry can be leveraged to take STRATTEC
to the next level.
A Solid Base Supported with Talent and Energy
As a global provider of advanced automotive access, security and user interface solutions, we believe our
technologies and innovation are validated by our customers who are the leading automobile manufacturers
around the world. We provide a breadth of products in power access solutions, user interface software and
advanced security systems. Importantly, we are relevant for the industry because our products are powertrain
agnostic. We deliver innovative, high-quality products to our customers across internal combustion engines,
hybrid and electric vehicles.
Our leading technologies continuously evolve with advancing innovative system solutions -- from powered end
gates, sliding doors and decklids to the controls you find on your steering wheels, push button ignitions,
electronic gear shifts and advanced key-fobs with phone as a key feature.
Underlying this innovation is a passionate and skilled team of which I am honored to be a member. Notably, we
have deep technical experience and strong customer relationships for a company of our size in the global
automotive industry.
Making Change to Deliver for Shareholders
I am also very impressed with the changes that were implemented by the Board of Directors and their recent
engagement with shareholders. Your Board has been very busy over the last year. In addition to Board
refreshment, major governance changes have measurably improved our accountability to shareholders. I hope
you take the time to read our Chairman’s letter in the proxy statement to learn more about this progress.
Fiscal 2024 Financial Results
We ended fiscal 2024 on a strong note which included one-time price increases and elevated recovery of
engineering costs for a large customer project. We also captured pricing that will continue to carry forward
through fiscal 2025. For the year, revenue was $537.8 million, an increase of 9%, or $44.8 million, over the prior
year. This growth included $23.0 million in price increases that helped to offset the impact of inflation and an
additional $9.7 million in retroactive pricing to address cost increases from prior years.
We reported gross margin of 12.2%, a 360-basis point improvement over the prior year given higher sales volume
and pricing which more than offset labor and material inflation, higher warranty costs and negative effect of
changes in foreign currency exchange rates. The $9.7 million in one-time retroactive pricing contributed
approximately 130 basis points of this improvement after factoring in $1.7 million of higher prices paid to
suppliers. Operating expenses were lower due to $3.2 million in higher non-recurring engineering

reimbursements compared with the prior year. Operating income for the year was $17.8 million, or 3.3% of sales,
a measurable improvement over the $6.1 million loss the prior year.
We reported net income of $16.3 million, or $4.07 per diluted share, compared with a loss of $6.7 million, or
$1.70 per diluted share the prior year. Net income benefited approximately $7.7 million after tax, or $1.92 per
diluted share, from the non-recurring pricing and engineering recovery benefits previously mentioned.
I am excited to join the team that delivered this improvement on the business and am looking forward to driving
more stable, predictable results in the future.
Near-term Priorities and Opportunities
My priorities for fiscal 2025 are straightforward:
•
Develop a culture of accountability and predictable performance
•
Focus on high value, sustainable products
•
Continue to optimize our cost structure
•
Define key competencies to drive future growth organically
•
Identify investments necessary to sustain the future growth of the business.
As we look to develop a strategy that can provide sustainable growth to drive earnings power and shareholder
value, the immediate opportunities are to provide stability in the underlying operations, continue to focus on our
cost structure while investing in needed information technology infrastructure, fill in gaps in product offerings for
future platforms, and define the target customer base and geographic reach. I believe it is important as we
develop our strategy that we continue to innovate, earn deserved margins with all of our products and look to the
future to define technologies that will be relevant in many years to come.
In closing, I appreciate the trust and confidence you have given STRATTEC over the years. I hope you share my
excitement about the potential for the Company.
With kindest regards,
Jennifer L. Slater
President and CEO
September 10, 2024

Forward-Looking Statements Disclosure
This report and the foregoing letter from our President and Chief Executive Officer contains “forward-looking
statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of
1995. “Forward-looking” statements can be identified by words such as “will,” “believe,” “anticipate,” “expect,”
“estimate,” “intend,” “plan,” or variations of these words, or similar expressions. These forward-looking
statements are neither historical facts nor assurances of future performance. For a discussion of factors that could
cause future results to differ from historical performance or those forward-looking statements, see “SPECIAL NOTE
REGARDING FORWARD-LOOKING STATEMENTS” on page 1 of the attached Annual Report on Form 10-K for the
fiscal June 30, 2024, other matters described under “Risk Factors” in Part I, Item 1A of the Annual Report, and
recent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange
Commission, which are available on the SEC’s website at www.sec.gov. STRATTEC SECURITY CORPORATION
disclaims any obligation or intention to update forward-looking statements and the estimates and assumptions
associated with them.

[This page intentionally left blank]

SEC Form 10K

[This page intentionally left blank]

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
☒
Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the fiscal year ended June 30, 2024.
☐
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Commission File Number 0-25150
STRATTEC SECURITY CORPORATION
(Exact name of registrant as specified in its charter)
Wisconsin
39-1804239
(State of Incorporation)
(I.R.S. Employer Identification No.)
3333 West Good Hope Road, Milwaukee, WI 53209
(Address of principal executive offices)
Registrant’s telephone number, including area code: (414) 247-3333
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of exchange on which registered
Common Stock, $.01 par value
STRT
The NASDAQ Stock Market
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ☐Yes ☒No
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. ☐Yes ☒No
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. ☒Yes ☐No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405
of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit
such files). ☒Yes ☐No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or
an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging
growth company” in Rule 12b-2 of the Exchange Act.:
Large accelerated filer
☐
Accelerated filer
☒
Non-accelerated filer
☐
Smaller Reporting Company
☒
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any
new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal
control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that
prepared or issued its audit report.☒
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the Registrant included in
the filing reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation
received by any of the Registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
☐Yes ☒No
The aggregate market value of the voting Common Stock held by non-affiliates of the registrant as of December 29, 2023 (the last business day of the
Registrant’s most recently completed second quarter), was approximately $96,493,000 (based upon the last reported sale price of the Common Stock
at December 29, 2023 on the NASDAQ Global Market). Shares of common stock held by any executive officer or director of the registrant have been
excluded from this computation because such persons may be deemed to be affiliates. This determination of affiliate status is not a conclusive
determination for other purposes.
On August 2, 2024, there were outstanding 4,068,052 shares of the Registrant’s $.01 par value Common Stock (which includes any unvested
restricted shares previously awarded).
Documents Incorporated by Reference
Part III of this report incorporates information by reference from registrant's Proxy Statement for the annual meeting of its shareholders to be held on
October 23, 2024.

STRATTEC SECURITY CORPORATION
ANNUAL REPORT IN FORM 10-K
June 30, 2024
Page
PART I
2
ITEM 1.
BUSINESS ...........................................................................................................................................................
2
ITEM 1A.
RISK FACTORS..................................................................................................................................................
10
ITEM 1B.
UNRESOLVED STAFF COMMENTS...............................................................................................................
16
ITEM 1C.
CYBERSECURITY .............................................................................................................................................
16
ITEM 2.
PROPERTIES.......................................................................................................................................................
16
ITEM 3.
LEGAL PROCEEDINGS.....................................................................................................................................
17
ITEM 4.
MINE SAFETY DISCLOSURES........................................................................................................................
17
PART II
18
ITEM 5.
MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS
AND ISSUER PURCHASES OF EQUITY SECURITIES.................................................................................
18
ITEM 6.
[RESERVED].......................................................................................................................................................
18
ITEM 7.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS .....................................................................................................................................................
19
ITEM 7A.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK ....................................
26
ITEM 8.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.....................................................................
27
ITEM 9.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE...............................................................................................................................
55
ITEM 9A.
CONTROLS AND PROCEDURES ....................................................................................................................
55
ITEM 9B.
OTHER INFORMATION....................................................................................................................................
58
ITEM 9C.
DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS...................
58
PART III
59
ITEM 10.
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.............................................
59
ITEM 11.
EXECUTIVE COMPENSATION .......................................................................................................................
59
ITEM 12.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED SHAREHOLDER MATTERS..........................................................................................................
59
ITEM 13.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE..
59
ITEM 14.
PRINCIPAL ACCOUNTANT FEES AND SERVICES.....................................................................................
59
PART IV
60
ITEM 15.
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES...........................................................................
60
ITEM 16.
FORM 10-K SUMMARY....................................................................................................................................
62
SIGNATURES
..............................................................................................................................................................................
63

1
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
A number of the matters and subject areas discussed in this Form 10-K as well as in portions of the Company’s Proxy
Statement, dated September 20, 2024, which is incorporated herein by reference, contain “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking
words or phrases such as “anticipate,” “believe,” “would,” “expect,” “intend,” “may,” “planned,” “potential,” “should,” “will” and
“could,” or the negative of these terms or words of similar meaning. These statements include expected future financial results,
product offerings, global expansion, liquidity needs, financing ability, planned capital expenditures, management’s or the Company’s
expectations and beliefs, and similar matters discussed, or otherwise incorporated herein by reference, in this Form 10-K. The
discussions of such matters and subject areas are qualified by the inherent risks and uncertainties surrounding future expectations
generally, and also may materially differ from the Company’s actual future experience.
The Company’s business, operations and financial performance are subject to certain risks and uncertainties, which could result
in material differences in actual results from the Company’s current expectations. These risks and uncertainties include, but are not
limited to, general economic conditions, in particular relating to the automotive industry, consumer demand for the Company’s and its
customers’ products, competitive and technological developments, customer purchasing actions, changes in warranty provisions and
customers' product recall policies, work stoppages at the Company or at the location of its key customers as a result of labor disputes,
foreign currency fluctuations, uncertainties stemming from U.S. trade policies, tariffs and reactions to same from foreign countries,
delays and restrictions impacting the import of goods and components stemming from heightened security procedures implemented by
the U.S. government related to U.S.-Mexico border crossings, the volume and scope of product returns or customer cost
reimbursement actions, changes in the costs of operations, warranty claims, adverse business and operational issues resulting from any
material global supply chain and logistics disruption, the ongoing and lingering effects of the semiconductor chip supply shortages,
matters adversely impacting the timing, availability and cost of material component parts and raw materials for the production of our
products and the products of our customers, or the continuation or worsening thereof, matters related to the pricing actions
implemented by the Company and customer responses and concessions related to the same, and other matters described under “Risk
Factors” in Part I, Item 1A of this report.
Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-
looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking
statements made herein are only made as of the date of this Form 10-K and the Company undertakes no obligation to publicly update
such forward-looking statements to reflect subsequent events or circumstances occurring after the date of this Form 10-K.

2
PART I
ITEM 1. BUSINESS
Basic Business
STRATTEC SECURITY CORPORATION designs, develops, manufactures and markets automotive security, access control,
and user interface controls products and solutions. This includes mechanical locks and keys, electronically enhanced locks and keys,
passive entry passive start systems (PEPS), phone as a key systems (Paak), steering column and instrument panel ignition lock
housings, latches, power sliding side door systems, power tailgate systems, power lift gate systems, power deck lid systems, door
handles, steering wheel switches and controller, E-shifters, paddle switches and related products for primarily North American
automotive customers. We also previously supplied global automotive manufacturers through a strategic relationship with WITTE
Automotive (“WITTE”) of Velbert, Germany and ADAC Plastics Inc. (doing business as ADAC Automotive (“ADAC”), of Grand
Rapids, Michigan) called Vehicle Access Systems Technology LLC ("VAST LLC"), doing business as the VAST Automotive Group
(“VAST”). Under this unique strategic relationship, STRATTEC, WITTE and ADAC marketed the products of each company to
global customers under the “VAST Automotive Group” brand name. Effective as of June 30, 2023, STRATTEC sold its one-third
interest in VAST LLC to WITTE. As of the closing of the sale of its VAST LLC interest, STRATTEC entered into a strategic
preferred partner relationship with WITTE covering VAST LLC pursuant to the terms of a cooperation framework agreement that
enables STRATTEC to continue to market and rely on the global capabilities of VAST LLC. See "VAST, LLC, SPA, LLC and SPA
de Mexico Equity Restructuring Agreement" below for additional information regarding the sale of STRATTEC's VAST LLC interest
to WITTE. STRATTEC products are shipped to customer locations in the United States, Canada, Mexico, Europe, South America,
Korea, and China, and we, along with our partners, provide full service and aftermarket support for each VAST Automotive Group
partners’ products.
History
The product line that became STRATTEC was part of Briggs & Stratton Corporation’s founding business in 1908. In 1995,
STRATTEC was spun off from Briggs & Stratton through a tax-free distribution to the then-existing Briggs & Stratton shareholders
and has been an independent public company for over twenty-nine years.
Our history in the automotive security business spans 116 years. STRATTEC has been the world’s largest producer of
automotive locks and keys since the late 1920s, and we currently maintain a significant share of the North American markets for these
products.
Products
Our traditional security products are lock sets (locks and keys) for cars and light trucks. Typically, two keys are provided with
each vehicle lockset. Most of the vehicles we currently supply are using keys with sophisticated radio frequency identification
technology for additional theft prevention. Keys with remote entry devices integrated into a single unit and bladeless electronic keys
as well as turn-key PEPS systems have been added to our product line and are gaining in popularity. Paak systems are also gaining in
popularity and we will be supplying products for these systems.
Ignition lock housings represent another security product for us. These housings are the mating part for our ignition locks and
typically are part of the steering column structure, although there are instrument panel-mounted versions for certain vehicle
applications. These housings are either die cast from zinc or injection molded plastic and may include electronic components for theft
deterrent systems.
We have developed and are continuing to develop access control products, including trunk latches, lift gate latches, tailgate
latches, hood latches, side door latches and related hardware. With our acquisition of Delphi Corporation’s Power Products Group in
fiscal 2009, we have been supplying and continue to supply various power access systems for sliding side doors, tailgates, lift gates
and trunk lids to our automotive industry customers. Through a joint venture formed with ADAC Automotive during fiscal 2007, we
also supply painted and non-painted door handles and components and related vehicle access hardware.
Recently, we also added a new product category in User Interface Controls by developing and putting in production products
such as steering switches and its controller, E-shifters and paddle switches.
In recent years, more and more vehicle access systems have moved from purely mechanical components to integrated electro-
mechanical systems. STRATTEC has been at the forefront of this new technology, working with Original Equipment Manufacturers’
(OEMs) product development and purchasing groups to provide cost-effective, innovative solutions to the challenges facing our
customers.

3
STRATTEC’s customer-focused structure and formalized product development process helps us identify and meet customer
needs in order to support the customer's program milestones. From concept and design, through implementation and into the
aftermarket, STRATTEC delivers products that provide the optimum value solution to security, access control and user interface
controls requirements. We have a comprehensive Products & Solutions portfolio that can be viewed on our website at
www.strattec.com (see “Available Information” below for additional information).
To maintain a strong focus on each of these security, access control and user interface controls products, we have Product
Business Managers who oversee the product’s entire life cycle, including product concept, application, manufacturing, warranty
analysis, service/aftermarket, and financial/commercial issues. The Product Business Managers work closely with our sales
organization, our engineering group, and our manufacturing operations to ensure their products are receiving the right amount of
quality attention so that their value to STRATTEC and the marketplace is enhanced.
Markets
We are a direct supplier to OEM automotive and light truck manufacturers as well as other transportation-related manufacturers.
Our largest customers are General Motors Company, Ford Motor Company and Stellantis. Our product mix varies by customer, but
generally our overall sales tend to be highest in door handles and trim components produced by ADAC-STRATTEC de Mexico,
followed by lock and key, including aftermarket produced by STRATTEC de Mexico, power access products produced by
STRATTEC Power Access de Mexico, and latch mechanisms and ignition lock housing components produced by STRATTEC de
Mexico. See Operations discussion included herein for further description.
Direct sales to various OEMs represented approximately 81 percent and 80 percent of our total sales for fiscal 2024 and 2023,
respectively. The remainder of our revenue is primarily through sales to the OEM service channels, the aftermarket and Tier 1
automotive supplier customers, and sales of certain products to non-automotive commercial customers.
Sales to our major automotive customers, both OEM and Tier 1, are coordinated through direct sales personnel located in our
Detroit-area office. Sales are also facilitated through daily interaction between our Program Managers, Application Engineers and
other product engineering personnel. Sales to other OEM customers are accomplished through a combination of our sales personnel
located in Detroit and personnel in our Milwaukee headquarters office.
The majority of our OEM products are sold in North America. While some exporting is done to Tier 1 and directly to
automotive assembly plants in Europe, Asia and South America, we have restructured our presence in these markets and elsewhere
through our entry into a cooperation framework agreement with WITTE related to the business of VAST LLC as part of our sale of
our VAST LLC interest to WITTE under the terms of the Equity Restructuring Agreement. We are also independently evaluating our
presence in markets outside of North America through other channels.
OEM service and replacement parts are sold to the OEM’s service operations. In addition, we distribute our components and
security products to the automotive aftermarket through authorized wholesale distributors, as well as other marketers and users of
component parts, including export customers.
Customer Sales Focus
To bring the proper focus to the relationships with our major customers, we have six customer-focused teams, each with a
Director of Sales, Product Business Manager and one or two Engineering Program Managers and various Customer Application
Engineers. In addition to customer teams for General Motors, Ford and Stellantis, we currently have teams for New Domestic Vehicle
Manufacturers (primarily new EVs, the European, Japanese and Korean automotive manufactures), User Interface Controls customers,
Tier 1 customers, and Service and Aftermarket customers. Sales and engineering for ADAC-STRATTEC LLC (described in greater
detail below) are supported by our partner in this joint venture, ADAC Automotive.
Each Sales Director is responsible for the overall relationship between STRATTEC and a specific customer group. Product
Business Managers and Program Managers are responsible for coordinating cross functional activities while managing new product
programs for their customers.
Product Engineering Focus
To best serve our customers’ product needs, STRATTEC’s engineering resources are organized into groups which focus on
specific access control applications. We currently have six engineering groups: Locks and Keys, Aftermarket, Latches, Power Access
Systems, User Interface Controls and Wireless Systems. Each group has a Product Business Manager, an Engineering Manager and a
complement of skilled engineers who design and develop products for specific applications. In doing this, each engineering group
works closely with both the customer and product teams, Engineering Program Managers, and Application Engineers.

4
Underlying this organization is a formalized product development process to identify and meet customer needs in the shortest
possible time. By following this streamlined development system, we shorten product lead times, tighten our response to market
changes and provide our customers with the optimum value solution to their security, access control and user interface controls
requirements. STRATTEC is also IATF 16949:2016 and ISO 14001 certified. This means we embrace the philosophy that quality
should exist not only in the finished product, but in every step of our processes as well.
Operations
A significant number of the components that go into our products are manufactured at our headquarters in Milwaukee,
Wisconsin. This facility produces zinc die cast components, stampings and milled key blades. We have three owned production
facilities currently in operation in Juarez, Mexico operating as STRATTEC de Mexico. Plant No. 1 houses key finishing and assembly
operations for locksets, PEPS and Paak components, ignition lock housings, steering wheel switches and its controllers, E-shifters and
paddle switches. Plant No. 2 houses our key molding and plastic injection molding operations for door handles and components, as
well as containing dedicated space for the assembly operations of ADAC-STRATTEC de Mexico. Plant No. 3 houses both latch and
power access assembly operations for STRATTEC Power Access de Mexico. Plant No. 4 is in Leon, Mexico and houses our custom
paint system for door handles and assembly for ADAC-STRATTEC de Mexico and is owned by the ADAC-STRATTEC de Mexico
joint venture.
STRATTEC de MEXICO
STRATTEC de Mexico is a wholly owned subsidiary of STRATTEC which owns and operates the three production facilities in
Juarez, Mexico described above under "Operations". These facilities house our assembly operations for locksets and ignition lock
housings, our key finishing and plastic injection molding operations, our assembly operations for ADAC-STRATTEC de Mexico
described below and our latch and power access assembly operations for STRATTEC POWER ACCESS de Mexico described below.
Vehicle Access Systems Technology LLC
In fiscal 2001, we entered into an alliance with WITTE-Velbert GmbH, an automotive supplier based in Germany which
designs, develops, manufactures and markets automotive access control products for European-based customers. This alliance
consisted of two initiatives: a legal arrangement which allowed STRATTEC to manufacture and market WITTE’s core products in
North America and WITTE to manufacture and market STRATTEC’s core products in Europe; and a 50:50 joint venture, WITTE-
STRATTEC LLC, to invest in operations with local partners in strategic markets outside of Europe and North America.
In February of 2006, we expanded this alliance and related joint venture with the addition of a third partner, ADAC Plastics,
Inc., and renamed the resulting joint venture VAST. ADAC, of Grand Rapids, Michigan, added North American expertise in door
handles, a part of WITTE’s core product line that STRATTEC did not have, and an expertise in color-matched painting of these
components.
ADAC-STRATTEC LLC and ADAC-STRATTEC de MEXICO
During fiscal 2007, we formed a new entity with ADAC Automotive called ADAC-STRATTEC LLC including a wholly owned
Mexican subsidiary ADAC-STRATTEC de Mexico (collectively, ASdM). The purpose of this joint venture is to produce certain
ADAC and STRATTEC products utilizing ADAC’s plastic molding injection expertise and STRATTEC’s assembly capability.
ASdM currently operates out of defined space in STRATTEC de Mexico Plant No. 2 located in Juarez, Mexico. Products from this
joint venture include non-painted door handle components and exterior trim components for OEM customers producing in North
America. STRATTEC owns 51% of this joint venture and its financial results are consolidated into STRATTEC’s financial
statements. ASdM represented $135.9 million and $121.9 million of our consolidated net sales in our fiscal 2024 and 2023,
respectively. STRATTEC de Mexico Plant No. 4 is in Leon, Mexico and houses our custom paint system for door handles and
assembly for ADAC-STRATTEC de Mexico.
STRATTEC POWER ACCESS LLC and STRATTEC POWER ACCESS de MEXICO
During fiscal year 2009, we formed a new subsidiary with WITTE Automotive called STRATTEC POWER ACCESS LLC
(“SPA”) to acquire the North American business of the Delphi Power Products Group. WITTE was a 20 percent minority owner in
SPA until June 30, 2023, at which time WITTE sold its minority interest to STRATTEC. See "VAST, LLC, SPA, LLC and SPA de
Mexico Equity Restructuring Agreement" below for additional information regarding STRATTEC's purchase of WITTE's interest in
SPA. SPA owns 100 percent of a Mexican subsidiary, STRATTEC POWER ACCESS de Mexico. The purpose of this subsidiary is to
produce power access devices for sliding side doors, tailgates, lift gates, trunk lids and other related products. STRATTEC POWER
ACCESS de Mexico currently operates out of defined space in STRATTEC de Mexico Plant No. 3 located in Juarez, Mexico.

5
Financial results for SPA are consolidated in STRATTEC’s financial statements. In our fiscal years ending 2024 and 2023, SPA
represented $130.3 million and $114.1 million, respectively, of our consolidated net sales.
VAST LLC, SPA LLC and SPA de MEXICO Equity Restructuring Agreement
On June 30, 2023, STRATTEC completed an Equity Restructuring Agreement with WITTE (“Restructuring Agreement”)
related to both the VAST LLC and the SPA joint ventures. Prior to the Restructuring Agreement, STRATTEC was a one-third owner
of VAST LLC with WITTE and ADAC Plastics, Inc. Under the terms of the Restructuring Agreement, STRATTEC sold its one-third
interest in VAST LLC to WITTE for a net purchase price of $18,500,000 which also included STRATTEC acquiring : (1) WITTE's
20% minority interest in SPA; and (2) the net assets of VAST LLC's Korea branch office, which business is operated by a newly
registered Korea branch of the Company. As part of the Restructuring Agreement, ADAC Plastics, Inc. took over 100% of VAST
Brazil. As of the closing of the Restructuring Agreement, STRATTEC ceased to be an owner of VAST LLC but obtained 100%
ownership of SPA.
While the equity ownership in VAST has changed, we expect to continue to leverage the VAST brand and to collaborate on
product development and manufacturing capabilities with WITTE and VAST in winning new business and serving global
customers. Accordingly, at closing of the Restructuring Agreement, we entered into a cooperation framework agreement with WITTE
covering the business of VAST LLC which provides a framework for the parties to collaborate on global programs related to product
development and manufacturing. This will enable STRATTEC to supply and deliver global programs by leveraging the VAST global
footprint with the added advantage of providing regional support from WITTE’s operating entities in Europe, China and India. We
will also jointly, along with ADAC Plastics and WITTE, continue to leverage the sales/engineering offices in Japan, Korea and Brazil.
The Restructuring Agreement and cooperation framework agreement position STRATTEC to redeploy assets, both financial and
technical, to create greater focus on STRATTEC-specific strategic growth opportunities in North America and around the world. We
believe this allows us to be more focused and competitive in this exciting and once-in-a-lifetime restructuring of a major industry
where we are well-positioned to take advantage of new opportunities. This includes more of our product applications on Electric
Vehicles, growing consumer demand for Power Access products, expansion of electronics capabilities and other new automotive
products. It will also give us greater resources to further explore diversification of markets, complimentary technology and regions
outside of North America.
ADAC-STRATTEC LLC and ADAC-STRATTEC de MEXICO were unaffected by the Restructuring Agreement. For further
information on VAST LLC and the equity restructuring, see "Investment in Joint Ventures and Majority Owned Subsidiaries" and
"Equity (Loss) Earnings of Joint Ventures" included in Notes to Financial Statements under Item 8 in this Form 10-K.
Seasonal Nature of the Business
The manufacturing of components used in automobiles is driven by the normal peaks and valleys associated with the automotive
industry. Typically, the months of July and August are relatively slow as summer vacation shutdowns and model year changeovers
occur at the automotive assembly plants. September volumes increase rapidly as each new model year begins. This volume strength
typically continues through October and into early November. As the holiday and winter seasons approach, the demand for
automobiles slows, as does production. March usually brings a major sales and production increase, which then continues through
most of June. This results in our first fiscal quarter sales and operating results typically being our weakest, with the remaining quarters
being more consistent.

6
Vehicle List
2025 Vehicles
We are proud to be associated with many of the quality vehicles produced in North America and elsewhere.
The following cars and light trucks are equipped with STRATTEC components during our 2025 fiscal year:
PASSENGER CARS
Acura ZDX (EV)
Aston Martin Vantage *
Chevrolet Malibu
Aston Martin AMR24 *
Cadillac ATS *
Dodge Charger (EV)
Aston Martin DB 12 *
Cadillac CT4
Ford Focus
Aston Martin DBS *
Cadillac CT5 *
Ford Focus (Mild Hybrid EV)
Aston Martin DBX *
Cadillac Celestiq (EV)
Ford Mustang
Aston Martin Valhalla *
Chevrolet Corvette
Volkswagen Jetta
Aston Martin Valkyrie *
Chevrolet Corvette E-Ray (Hybrid EV)
Aston Martin Valour *
Chevrolet Joy *
LIGHT TRUCKS, VANS AND SPORT UTILITY VEHICLES
Acura MDX
Chevrolet Spin *
GMC Yukon and Yukon XL
Acura RDX
Chevrolet Suburban
Honda Odyssey
Audi Q5
Chevrolet Tahoe
Honda Passport
Brightdrop EV400 (EV)
Chevrolet Trail Blazer *
Honda Prologue (EV)
Brightdrop EV600 (EV)
Chevrolet Traverse
Hyundai Staria *
Buick Enclave
Chevrolet Trax *
Jeep Commander *
Buick Envista *
Chrysler Pacifica (PH option)
Jeep Compass
BMW X7
Dodge Durango
Jeep Gladiator
Cadillac Escalade
Dodge Hornet (PH option)
Jeep Grand Cherokee
Cadillac Escalade IQ (EV)
Ford Bronco Sport
Jeep Meridian
Cadillac Lyriq (EV)
Ford Escape (PH option)
Jeep Recon (EV)
Cadillac Optiq (EV)
Ford Expedition (PH option)
Jeep Wagoneer
Cadillac Vistiq (EV)
Ford Explorer (PH option)
Jeep Wrangler/Wrangler
Cadillac XT4
Ford F-150 Lightning (EV)
Unlimited (PH option)
Cadillac XT5
Ford F-Series Pickup (PH option)
Kia Carnival *
Cadillac XT6
Ford F-Series Super Duty Pickup
Lincoln Aviator (PH option)
Chevrolet Blazer
Ford Maverick Pickup (PH option)
Lincoln Corsair (PH option)
Chevrolet Blazer (EV)
Ford Mustang Mach-E (EV)
Lincoln Navigator (PH option)
Chevrolet Cobalt *
Ford Ranger Pickup * (PH option)
Ram 1500 Classic Pickup
Chevrolet Colorado *
Ford Transit Connect * (PH option)
Ram 1500 Pickup
Chevrolet Equinox
GMC Acadia
Ram HD Pickup
Chevrolet Equinox (EV)
GMC Canyon *
Ram REV Pickup (EV)
Chevrolet Express Van
GMC Hummer (EV)
Tesla Everest (EV)
Chevrolet S-10 *
GMC Savana
Volkswagen Tiguan (PH option)
Chevrolet Seeker *
GMC Sierra & Sierra HD
Volvo Polestar 3 (EV)
Chevrolet Silverado &
GMC Sierra Pickup (EV)
Volvo EX90 (EV)
Silverado HD Pickup
GMC Terrain
Volvo Heavy Truck
Chevrolet Silverado (EV)
* Vehicles produced outside of North America, or both in and outside North America.
EV – Electric Vehicle
PH – Plug-In Hybrid

7
Emerging Technologies
Automotive vehicle security and access systems, which are both theft deterrent and consumer friendly, are trending toward
electro-mechanical, software and connected devices. Electronic companies are developing user identification systems such as bio-
systems, card holder (transmitter) systems, etc., while mechanical locks, keys, housings, and latches are evolving to accommodate
electronics. We believe we are positioning ourselves as a vehicle security, access control and user interface controls supplier by
building our product, engineering and manufacturing expertise in the required electro-mechanical products, which include access
systems, latches, keys with remote entry electronic systems, ignition interface systems with passive start and Paak capabilities and
various user interface controls technologies. In both 2018 and 2019, we were awarded the Automotive News Pace Award for
Excellence and Innovation for our Invis-A-RiseTM Power Liftgate and Invis-A-RiseTM Power Tailgate products. Those technologies
continue to enable STRATTEC to provide differentiation in the marketplace. As the automotive industry continues developing various
levels of autonomous vehicles, we believe that we are well positioned to continue the development and incorporation of power sliding
doors, power tailgates and other consumer convenience features into these types of vehicles.
These technologies benefit us by increasing our potential customer base as a Tier 2 supplier while maintaining our Tier 1 status
on some product lines and by adding additional product line availability.
Sources and Availability of Raw Materials
Our primary raw materials are high-grade zinc, brass, nickel silver, steel, aluminum, plastic resins and semiconductor chips and
other electronics. These materials are generally available from a number of suppliers, but we have chosen to concentrate our sourcing
with one primary vendor for each commodity. We believe our sources for raw materials are very reliable and adequate for our needs.
We have not experienced any significant long term supply problems in our operations and do not anticipate any significant supply
problems into the foreseeable future. See further discussion under “Risk Factors-Sources of and Fluctuations in Market Prices of Raw
Materials” included under Item 1A of this Form 10-K.
Patents, Trademarks and Other Intellectual Property
We believe that the success of our business results not only from the technical competence, creativity and marketing abilities of
our employees but also from the protection of our intellectual property through patents, trademarks and copyrights. As part of our
ongoing research, development and manufacturing activities, we have a policy of seeking patents on new products, processes and
improvements when appropriate.
Although, in the aggregate, the intellectual property discussed herein is of considerable importance to the manufacturing and
marketing of many of our security, access control and user interface controls products, we do not consider any single patent or
trademark or group of related patents or trademarks to be material to our business as a whole, except for the STRATTEC and
STRATTEC with logo trademarks.
We also rely upon trade secret protection for our confidential and proprietary information. We maintain confidentiality
agreements with our customers and key executives. In addition, we enter into confidentiality agreements with selected suppliers,
consultants and employees as appropriate to evaluate new products or business relationships pertinent to our success. However, there
can be no assurance that others will not independently obtain similar information and techniques or otherwise gain access to our trade
secrets or that we can effectively protect our trade secrets.
Dependence Upon Significant Customers
A significant portion of our annual sales are to General Motors Company, Ford Motor Company, and Stellantis. These three
customers accounted for approximately 66 percent of our net sales in both 2024 and in 2023. Further information regarding sales to
our largest customers is set forth under the caption “Risk Factors – Loss of Significant Customers, Vehicle Content, Vehicle Models
and Market Share” and “Risk Factors – Production Slowdowns by Customers” included under Item 1A of this Form 10-K and “Notes
to Financial Statements-Sales and Receivable Concentration” included in Notes to Financial Statements under Item 8 in this Form 10-
K.
The products sold to these customers are model specific, fitting only certain defined applications. Consequently, we are highly
dependent on our major customers for their business, and on these customers' ability to produce and sell vehicles which utilize our
products. We have enjoyed good relationships with General Motors Company, Ford Motor Company, Stellantis and other customers
in the past, and expect to continue to do so in the future. However, a significant change in the purchasing practices of, or a significant
loss of volume from, one or more of these customers could have a detrimental effect on our financial performance. We cannot provide
any assurance that any lost sales volume could be replaced despite our historical relationships with our customers.

8
Sales and Marketing; Backlog
We provide our customers with engineered security, access control and user interface controls products including locksets, fobs,
push button passive entry passive start and phone as a key ignition systems, steering column lock housings, electromechanical latches,
power sliding door systems, power tailgate systems, power liftgate systems, power decklids, painted and non-painted door handles,
door handle components and trim, steering wheel switches and controllers, E-shifters, paddle switches and other products which are
unique to specific vehicles. Any given vehicle typically takes 1 to 3 years of development and engineering design time prior to being
offered to the public. Our products are designed concurrently with the vehicle. Therefore, commitment to STRATTEC as the
production source for such products and components occurs 1 to 3 years prior to the start of production for such components. We
employ a commercial and engineering staff that assists in providing design and technical solutions to our customers. We believe that
our customer focus and engineering expertise are competitive advantages that contribute to our strong market position in our industry.
For example, we regularly provide innovative design proposals for our product offerings to our customers that we believe will
improve customer access, vehicle security system quality, theft deterrence and system cost.
The typical process used by automotive manufacturers in selecting a supplier for our products is to offer the business
opportunity to us and several of our competitors. Each competitor will pursue the opportunity, doing its best to provide the customer
with the most attractive proposal. Price pressure is strong during this process but once an agreement is reached, a commitment is made
for each year of the product program. Typically, price reductions resulting from productivity improvement by STRATTEC over the
life of the product program are included in the contract and are estimated in evaluating each of these opportunities. A blanket purchase
order, a contract indicating a specified part will be supplied at a specified price during a defined time period, is issued by customers
for each model year. Production quantity releases or quantity commitments are made to that purchase order for weekly deliveries to
the customer. As a consequence and because we are a "Just-in-Time" supplier to the automotive industry, we do not maintain a
backlog of orders in the classic sense for future production and shipment and, accordingly, we are unable to provide a meaningful
backlog comparison from year to year.
Competition
We compete with domestic and foreign-based competitors on the basis of custom product design, engineering support, quality,
delivery and price. While the number of direct competitors in our product markets is currently relatively small, the automotive
manufacturers actively encourage competition between potential suppliers. We have a large share of the North American market for
our security, access control and user interface controls products because of our ability to provide optimal value, which is a beneficial
combination of price, quality, technical support, program management, innovation and aftermarket support. In order to optimize our
production costs while still offering a wide range of technical support, we utilize assembly operations and certain light manufacturing
operations in Mexico, which results in lower labor costs as compared to the United States.
As locks and keys become more sophisticated and involve additional electronics, competitors with specific electronic expertise
may emerge to challenge us. To address this, we have in recent years strengthened our electrical engineering knowledge and service.
We are also working with several electronics suppliers to jointly develop and supply these advanced products.
Our lockset, user interface controls, wireless, latches and power access competitors include Huf North America, Ushin, Valeo,
Tokai-Rika, Marquardt, Alpha-Tech, Honda Lock, Shin Chang, Magna, Edscha, Stabilus, Aisin, Brose, Mitsuba, Ohi, Kiekert, Inteva,
Novares and Gecom. For additional information related to competition, see the information set forth under “Risk Factors-Highly
Competitive Automotive Supply Industry” included under Item 1A of this Form 10-K.
Research and Development
We engage in research and development activities pertinent to automotive security, access control and user interface controls. A
major area of focus for research is the expanding role of vehicle security, access and user interface via electronic interlocks and modes
of communicating authorization data between consumers and vehicles. Development activities include new products, applications and
product performance improvements. In addition, specialized data collection equipment is developed to facilitate increased product
development efficiency and continuous quality improvements. For fiscal years 2024 and 2023, we incurred approximately $14.8
million and $15.9 million, respectively, on research and development expenses. We believe that, historically, we have committed
sufficient resources to research and development and we intend to continue to invest in the future as required to support additional
product programs associated with both existing and new customers. Patents are pursued and will continue to be pursued as appropriate
to protect our interests resulting from these activities.

9
Customer Tooling
We incur costs related to tooling used in component production and assembly. Some of these costs are reimbursed by customers
who then own the tools involved. See the information set forth under “Organization and Summary of Significant Accounting Policies-
Customer Tooling in Progress” included in Notes to Financial Statements under Item 8 in this Form 10-K.
Environmental Compliance
As is the case with other manufacturers, we are subject to federal, state, local and foreign laws and other legal requirements
relating to the generation, storage, transport, treatment and disposal of materials as a result of our manufacturing and assembly
operations. These laws include the Resource Conservation and Recovery Act (as amended), the Clean Air Act (as amended), the Clean
Water Act of 1990 (as amended) and the Comprehensive Environmental Response, Compensation and Liability Act (as amended). We
have an environmental management system that is ISO-14001 certified. We believe that our existing environmental management
system is adequate and we have no current plans for substantial capital expenditures in the environmental area.
As discussed in “Commitments and Contingencies” under Notes to Financial Statement under Item 8 in this Form 10-K, a site at
our Milwaukee facility is contaminated by a solvent spill from a former above-ground solvent storage tank located on the east side of
the facility, which spill occurred in 1985. We continue to monitor this situation.
We do not currently anticipate any materially adverse impact on our financial statements or competitive position as a result of
compliance with federal, state, local and foreign environmental laws or other legal requirements. However, risk of environmental
liability and charges associated with maintaining compliance with environmental laws is inherent in the nature of our business and
there is no assurance that material liabilities or charges could not arise.
Human Capital
At June 30, 2024, we had 3,365 associates worldwide, of which 457 were employed in the United States and 2,905 were
employed outside of the United States. 170 or 5.1 percent were represented by a collective bargaining agreement at our Milwaukee,
Wisconsin facility, all of whom are our production associates. Approximately 152 or 4.5 percent were represented by a collective
bargaining agreement at our Leon, Mexico facility. In recent years, we have not experienced any significant work slowdowns,
stoppages or other labor disruptions. The current contract with our Milwaukee unionized associates is effective through November 1,
2025. The current contract with our Leon unionized associates is effective through April 8, 2025.
We are guided by our “Values and Beliefs” mission statement that focuses on Empowerment, Communication, Citizenship,
Enterprise, Change and Consensus. We remain committed to areas of work place safety, product quality and customer satisfaction.
Successful execution of our mission is dependent on attracting, developing and retaining key associates and members of our
management team, as well as providing competitive pay and benefits.
Social Responsibility
We are committed to conducting business and making decisions honestly, fairly and within the law, and are guided by our
“Values and Beliefs” mission statement. We are dedicated to earning and keeping the trust and confidence of our shareholders,
customers and associates as well as the communities where we do business.
Our “Code of Business Ethics” provides guidelines and a framework for conducting business in an ethical manner. These beliefs
go beyond STRATTEC and are expected of our suppliers as detailed in our “Supplier Code of Conduct.” We have adopted policies
that seek to eliminate human trafficking, slavery, child labor and similar unethical and illegal practices from our global supply chain.
In addition, we annually compile and file a Form SD with the Securities and Exchange Commission regarding “Conflict Minerals
Disclosure and Report” as directed by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The purpose of this
report is to help prevent products used to finance or benefit armed groups in the covered countries of this filing.
Our commitment to our environment is documented in our “Environmental Management System,” which provides for
continuous improvement of our efforts toward preventing pollution, complying with relevant environmental legislation and
regulations and complying with customer-based environmental regulations. In addition, we maintain our own IATF 16949:2016 and
ISO 14001 annual certifications, which are globally recognized quality standards for the automotive industry. STRATTEC’s major
initiatives in this area consist of energy improvement initiatives, primarily related to solar in Milwaukee, WI, Auburn Hills, MI, and
Juarez, Mexico, and moves to more energy efficient production capital equipment in Milwaukee, WI to reduce carbon emissions.

10
Available Information
We maintain our corporate website at www.strattec.com and make available, free of charge, through this website our Code of
Business Ethics, annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements for
annual shareholder meetings and amendments to those reports that we file with, or furnish to, the Securities and Exchange
Commission (the "Commission") as soon as reasonably practicable after we electronically file such material with, or furnish it to, the
Commission. We are not including all the information contained on or made available through our website as a part of, or
incorporating such information by reference into, this Annual Report on Form 10-K. However, this report includes (or incorporates by
reference) all material information about STRATTEC that is included on our website which is otherwise required to be included in
this report.
ITEM 1A. RISK FACTORS
We recognize we are subject to the following risk factors based on our operations and the nature of the automotive industry in
which we operate:
BUSINESS RISKS
Loss of Significant Customers, Vehicle Content, Vehicle Models and Market Share – Sales to General Motors Company,
Ford Motor Company and Stellantis represented approximately 66 percent of our annual net sales (based on fiscal 2024 results) and,
accordingly, these customers account for a significant percentage of our outstanding accounts receivable. The contracts with these
customers provide for supplying the customer’s requirements for a particular model. The contracts do not specify a specific quantity of
parts. The contracts typically cover the life of a model, which averages approximately four to five years. Components for certain
customer models may also be “market tested” annually. Therefore, the loss of any one of these customers, the loss of a contract for a
specific vehicle model, a reduction in vehicle content, the early cancellation of a specific vehicle model, technological changes or a
significant reduction in demand for certain key models could occur, and if so, could have a material adverse effect on our existing and
future revenues, operating results, financial condition and cash flows.
Our major customers also have significant under-funded legacy liabilities related to pension and postretirement health care
obligations. The loss in our major customers’ North American automotive market share to the New Domestic automotive
manufacturers (primarily the Japanese and Korean automotive manufacturers) and/or a significant decline in the overall market
demand for new vehicles may ultimately result in severe financial difficulty for these customers, including bankruptcy. If our major
customers cannot fund their operations, we may incur significant write-offs of accounts receivable and inventory, incur impairment
charges or require restructuring actions.
Production Slowdowns by Customers – Our major customers and many of their suppliers were significantly impacted by the
Great Recession of 2008/2009, by the COVID-19 pandemic in 2020, by supply chain issues resulting from the conflict in the Ukraine,
and by a semiconductor chip shortage in 2021 and 2022. Many of our major customers instituted production cuts during our fiscal
2009 and 2010 due to the Great Recession and shuttered plants. Similarly, during 2020, 2021 and 2022 in response to the effects of the
COVID-19 pandemic, the Ukraine conflict and the semiconductor chip shortage, many of our major customers again instituted
production cuts and shuttered plants. While production subsequently increased after the cuts made in 2009 and again in 2021 when
plants reopened following the COVID-19 closures, the current Ukraine conflict and semiconductor chip shortage, any additional
economic slowdowns, pandemics or part supply shortages could bring about new production cuts which could have a material adverse
effect on our existing and future revenues, operating results, financial condition and cash flows.
Cross-border Trade Issues or Tariffs – Our business is impacted by international or cross-border trade, including the import
and export of products and goods into and out of the United States and trade tensions among nations. The shipping of goods across
national borders is often more expensive and complicated than domestic shipping. Customs and duty procedures and reviews,
including duty-free thresholds in various key markets, the application of tariffs, and security related governmental processes at
international borders, may increase costs, discourage cross-border purchases, delay transit and create shipping uncertainties. Further,
uncertainties stemming from changes in U.S. trade policies in particular with European countries and China, tariffs and the reaction of
other countries thereto, could have an adverse effect on our business and may adversely impact our results of operations, financial
condition and cash flows or reduce profitability on certain of our products.

11
Highly Competitive Automotive Supply Industry – The automotive component supply industry is highly competitive. Some
of our competitors are companies, or divisions or subsidiaries of companies, that are larger than STRATTEC and have greater
financial, global and technology capabilities. Our products may not be able to compete successfully with the products of these other
companies, which could result in loss of customers and, as a result, decreased sales and profitability. Some of our major customers
have previously announced that they will be reducing their supply base. This could potentially result in the loss of these customers and
consolidation within the supply base. The loss of any of our major customers could have a material adverse effect on our existing and
future revenues, results of operations, financial condition and cash flows.
In addition, our competitive position in the North American automotive component supply industry could be adversely affected
in the event that we are unsuccessful in making strategic investments, acquisitions or alliances or in establishing joint ventures that
would enable us to expand globally. We principally compete for new business at the beginning of the development of new models and
upon the redesign of existing models by our major customers. New model development generally begins two to five years prior to the
marketing of such new models to the public. The failure to obtain new business on new models or to retain or increase business on
redesigned existing models could adversely affect our business and financial results. In addition, as a result of relatively long lead
times for many of our components, it may be difficult in the short-term for us to obtain new sales to replace any unexpected decline in
the sale of existing products. Finally, we may incur significant product development expense in preparing to meet anticipated
customer requirements which may not be recovered.
Cyclicality and Seasonality in the Automotive Market – The automotive market is cyclical and is dependent on consumer
spending, on the availability of consumer credit and to a certain extent, on customer sales incentives. Economic factors adversely
affecting consumer demand for automobiles and automotive production, such as rising fuel costs, could adversely impact our net sales
and net income. We typically experience decreased sales and operating income during the first fiscal quarter of each year due to the
impact of scheduled customer plant shut-downs in July and new model changeovers during that period.
OPERATIONAL RISKS
Shortage of Raw Materials or Components Supply – In the event of catastrophic acts of nature such as fires, tsunamis,
hurricanes, earthquakes and global pandemics and wars, a rapid increase in production demands or other unforeseen economic events
such has prolonged periods of inflation, either we or our customers or other suppliers may experience supply shortages of raw
materials or components. This could be caused by a number of factors, including a lack of production line capacity or manpower,
working capital constraints or adverse conditions in banking and capital markets. In order to manage and reduce the costs of purchased
goods and services, we and others within our industry have been rationalizing and consolidating our supply base. As a result, there is
greater dependence on fewer sources of supply for certain components and materials used in our products, which could increase the
possibility of a supply shortage of any particular component. If any of our customers experience a material supply shortage, either
directly or as a result of supply shortages at another supplier, that customer may halt or limit the purchase of our products. Similarly, if
we or one of our own suppliers experience a supply shortage, we may become unable to produce the affected products if we cannot
procure the components from another source. Such production interruptions could impede a ramp-up in vehicle production and could
have a material adverse effect on our business, results of operations, financial condition and cash flows.
We consider the production capacities and financial condition of suppliers in our selection process, and expect that they will
meet our delivery requirements. However, there can be no assurance that strong demand, capacity limitations, shortages of raw
materials, labor disputes or other problems will not result in any shortages or delays in the supply of components to us.
Because of the COVID-19 pandemic and the Ukraine conflict, we have experienced supply chain disruptions in particular with
semiconductor chip shortages that impact our OEM customers’ ability to finish assembly of new vehicles and which have adversely
impacted orders for our products and, accordingly, our results of operations and cash flows. The continuation or renewal of these
impacts could have a material adverse effect on our future revenues, financial results, financial condition and cash flows.
Sources of and Fluctuations in Market Prices of Raw Materials – Our primary raw materials are high-grade zinc, brass,
nickel silver, aluminum, steel and plastic resins, which are typically sourced from a limited number of suppliers. We believe our
sources of raw materials are reliable and adequate for our needs. However, the development of future sourcing issues related to using
existing or alternative raw materials and the global availability of these materials as well as significant fluctuations in the market
prices of these materials may have an adverse effect on our results of operations, financial condition and cash flows if the increased
raw material costs cannot be recovered from our customers. During recent fiscal years, we experienced higher raw material costs on
the items listed above including freight costs on both raw material and purchased components.
Given the significant financial impact on us relating to changes in the cost of our primary raw materials, commencing with fiscal
2008 and thereafter, we began quoting quarterly material price adjustments for changes in our zinc costs in our negotiations with our
customers. Our success in obtaining these quarterly price adjustments in our customer contracts is dependent on separate negotiations

12
with each customer. It is not a standard practice for our customers to include such price adjustments in their contracts. We have been
successful in obtaining quarterly price adjustments in some of our customer contracts. However, we have not been successful in
obtaining the adjustments with all of our customers.
Foreign Operations – We operate wholly owned and majority owned manufacturing operations in Mexico. As these operations
continue to expand, their success will depend, in part, on our ability to anticipate and effectively manage certain risks inherent in
international operations, including: enforcing agreements and collecting receivables through certain foreign legal systems, payment
cycles of foreign customers, compliance with foreign tax laws, general economic and political conditions in these countries and
compliance with foreign laws and regulations.
Cyber Vulnerability – In the ordinary course of business, we collect and store sensitive data, including our proprietary business
information and that of our customers, suppliers and business partners, as well as personally identifiable information of our customers
and employees, in our internal data centers, cloud services and on our networks. The secure processing, maintenance and transmission
of this information is critical to our operations and business strategy. Cybersecurity attacks are becoming more sophisticated and
include, but are not limited to, malicious software attempts to gain unauthorized access to data, and other electronic security breaches
that could lead to disruptions in critical systems, unauthorized release of confidential or otherwise protected information, corruption or
destruction of data and other manipulation or improper use of systems or networks. Despite our security measures, our information
technology and infrastructure, as well as that of our partners, customers and suppliers, may be vulnerable to malicious attacks,
breaches or system failures due to employee error, malfeasance or other disruptions, including as a result of rollouts of new systems.
Any such breach or operation failure would compromise our networks or that of our business partners, customers or suppliers, and the
information stored could be accessed, publicly disclosed, lost or stolen, cause transaction processing errors, processing inefficiencies,
delays or cancellation of customer orders, the loss of customers, impediments to the manufacturing or shipment of products, or other
business disruptions. Although we have cybersecurity insurance in place, such access or other loss of information could result in legal
claims or proceedings, regulatory fines or penalties, disruption in our operations, damage to our reputation, loss of confidence in our
products and services, increased costs, or the loss of assets, any of which could have a negative impact on our business, results of
operations, financial condition and cash flows. In addition, as security threats and cybersecurity and data privacy and protection laws
and regulations continue to evolve and increase in terms of sophistication, we may be required to or choose to invest additional
resources in the security of our systems. Any such increased level of investment could adversely affect our financial condition or
results of operations. We have programs in place to address and mitigate cybersecurity risks. These programs include regular
monitoring of outside threats, continuous update of software to mitigate risk, education of employees to the risks of external threats,
and simplification of infrastructure to minimize servers. Although we believe the foregoing programs are reasonable actions to
mitigate cybersecurity risks, the failure of these programs to adequately protect against these risks could have a negative impact on our
business, results of operations, financial condition and cash flows.
Qualified Personnel – Our business success depends, to a significant degree, on attracting and retaining qualified personnel.
Our ability to sustain and grow our business requires us to hire, retain, develop and motivate a highly skilled and diverse management
team and workforce. These types of employees are in high demand and often have competing employment opportunities. The labor
market for skilled employees is highly competitive and we may lose key employees or be forced to increase their compensation to
retain these types of employees. Failure to ensure that we have the leadership capacity with the necessary skill set and experience
could impede our ability to deliver our growth objectives and execute our strategic plan. Organizational and reporting changes
resulting from any future leadership transition or corporate initiatives could result in increased turnover. Additionally, any unplanned
turnover or inability to attract and retain key employees could have a negative effect on our results of operations, including by
significantly increasing our recruitment, training and other related employee costs. Moreover, the loss of key personnel, or the failure
to attract qualified personnel, could have a material adverse effect on our business, results of operations, financial condition and cash
flows.
Disruptions Due to Work Stoppages and Other Labor Matters – Our major customers and many of their suppliers have
unionized work forces. Work stoppages or slow-downs experienced by our customers or their suppliers could result in slow-downs or
closures of assembly plants where our products are included in assembled vehicles. For example, strikes by a critical supplier called
by the United Auto Workers led to extended shut-downs of most of General Motors’ North American assembly plants in February
2008 and September 2019. A material work stoppage experienced by one or more of our customers could have an adverse effect on
our business and our financial results. In addition, all production associates at our Milwaukee facility are unionized. A sixteen-day
strike by these associates in June 2001 resulted in increased costs as all salaried associates worked with additional outside resources to
produce the components necessary to meet customer requirements. The current contract with our Milwaukee unionized associates is
effective through November 1, 2025. We also have unionized associates at our Leon, Mexico facility. The current contract with our
Leon unionized associates is effective through April 8, 2025. We may encounter further labor disruption and we may also encounter
unionization efforts in our other plants or other types of labor conflicts, any of which could have an adverse effect on our business,
financial results, financial condition and cash flows. Labor contracts between General Motors Company, Ford Motor Company and
Stellantis and their unionized associates under the United Auto Workers union expire in April 2028. In addition, their respective labor

13
agreements with the Canadian auto workers union expire in September 2026. Labor disruptions encountered by our customers during
the contract period could have an adverse effect on our business and our financial results.
Climate Change and Environmental, Social, and Governance (ESG) Matters - Natural disasters or extreme weather
conditions resulting from global climate change could lead us, our customers or our suppliers to experience disruptions in operations
or disruptions in the availability of key components, which could lead to a material adverse impact on our results of operations,
financial condition and cash flows. Further, various stakeholders, including customers, suppliers, lenders, regulators and those in the
workforce, are increasing their expectations of companies to do their part to combat global climate change and its impact, and to
conduct their operations in an environmentally sustainable manner with appropriate oversight by senior leadership. A failure to
respond to the expectations and initiatives of our stakeholders could result in damage to our reputation and relationships with various
stakeholders. We could also experience adverse impacts to our financial condition due to volatility in the cost or availability of capital,
difficultly obtaining new business or entering into new supplier relationships, a possible loss of market share on our current product
portfolio, fines and penalties or difficulty attracting and retaining a skilled workforce.
In addition to the increased stakeholder focus on climate change, customer, investor, and employee expectations in ESG have
been rapidly evolving and increasing. The enhanced stakeholder focus on ESG requires the continuous monitoring of various and
evolving regulations and standards and their associated requirements. Our failure, or that of our supply base, to adequately meet
stakeholder expectations may result in, among other things, the loss of business, diluted market valuation, an inability to attract
customers or an inability to attract and retain top talent that could adversely affect our business, financial condition or results of
operations.
FINANCIAL RISKS
Financial Distress of Automotive Supply Base – During the Great Recession, which impacted calendar years 2009 and 2010,
deteriorating automotive industry conditions adversely affected STRATTEC and our supply base. Lower production levels at our
major customers, volatility in certain raw material and energy costs and the global credit market crisis resulted in severe financial
distress among many companies within the automotive supply base. During the above time frame, several automotive suppliers filed
for bankruptcy protection or ceased operations. The potential continuation or renewal of financial distress within the supply base
(whether from infectious disease, the Ukraine conflict, the ongoing supply chain and logistics disruptions or otherwise) and our
suppliers’ inability to obtain credit from lending institutions could lead to commercial disputes and possible supply chain
interruptions. In addition, the potential for future adverse industry conditions (including from infectious disease, the Ukraine conflict
or otherwise) may require us to provide financial assistance or other measures to ensure uninterrupted production. The continuation or
renewal of these industry conditions could have a material adverse effect on our existing and future revenues, financial results,
financial condition and cash flows.
Cost Reduction – There is continuing pressure from our major customers to reduce the prices we charge for our products. This
requires us to generate cost reductions, including reductions in the cost of components purchased from outside suppliers. If we are
unable to generate sufficient production cost savings in the future to offset pre-programmed price reductions or additional price
reduction demands, our gross margin and profitability will be adversely affected.
Currency Exchange Rate Fluctuations – Our sales are denominated in U.S. dollars. We have manufacturing operations in
Mexico, and as a result, a portion of our manufacturing costs are incurred in Mexican pesos. Therefore, fluctuations in the U.S.
dollar/Mexican peso exchange rate may have a material effect on our profitability, cash flows, financial position, and may
significantly affect the comparability of our results between financial periods. Any depreciation in the value of the U.S. dollar in
relation to the value of the Mexican peso will adversely affect the cost of our Mexican operations when translated into U.S. dollars.
Similarly, any appreciation in the value of the U.S. dollar in relation to the value of the Mexican peso will decrease the cost of our
Mexican operations when translated into U.S. dollars.
Inflationary Pressures – We continue to experience elevated inflation in the markets in which we operate, with higher
commodity, labor, freight and other cost pressure. While many costs will moderate over time, the increases in wage levels are likely to
have longer-term effects on our cost structure. Additionally, we may continue to experience price increases from our suppliers in
connection with the inflationary pressures they face. The inability to offset inflationary price increases through price increases from
our customers, modifications to our products, continuous improvement actions or otherwise may have a material adverse effect on our
financial results and financial condition.
Interest Rates – Higher interest rates could have a dampening effect on overall economic activity, the financial condition of our
customers and suppliers and the financial condition of end consumers who ultimately create demand for the products we supply, all of
which could negatively affect demand for our products.

14
Program Volume and Pricing Fluctuations – We incur costs and make capital expenditures for new program awards based
upon certain estimates of production volumes over the anticipated program life for certain vehicles. While we attempt to establish the
price of our products for variances in production volumes, if the actual production of certain vehicle models is significantly less than
planned, our net sales and net income may be adversely affected. We cannot predict our customers’ demands for the products we
supply either in the aggregate or for particular reporting periods.
Investments in Customer Program Specific Assets – We make investments in machinery and equipment used exclusively to
manufacture products for specific customer programs. This machinery and equipment is capitalized and depreciated over the expected
useful life of each respective asset. Therefore, the loss of any one of our major customers, the loss of specific vehicle models or the
early cancellation of a vehicle model could result in impairment in the value of these assets which may have a material adverse effect
on our financial results and financial condition.
Credit Facilities – Historically, from time to time we have relied on our existing credit facilities to provide us with adequate
working capital to operate our business and fund our capital expenditures, including our expansion initiatives. Escalation of any global
inflationary pressures on our operating results may impact our ability to satisfy our lending covenants in the short term. Additionally,
we cannot provide assurance that we will be able to refinance, extend the maturity of, or otherwise amend the terms of our existing
credit facilities, or that any refinancing, extension, or amendment will be on terms favorable to us or even on commercially reasonable
terms. If our lenders reduce or terminate our access to amounts under our credit facilities, we may not have sufficient capital to fund
our working capital needs and/or we may need to secure additional capital or financing to fund our working capital requirements or to
repay outstanding debt under our credit facilities. Moreover, new credit facilities resulting from any refinancing of our existing
facilities could have a significantly higher rate of interest and greater borrowing costs than our existing facilities. We can make no
assurance that we will be successful in ensuring our availability of amounts under our credit facilities or in connection with raising
additional capital and that any amount, if raised, will be sufficient to meet our cash flow requirements. If we are not able to maintain
our borrowing availability under our credit facilities and/or raise additional capital when needed, we may be forced to sharply curtail
our efforts to manufacture and promote the sale of our products or to curtail our operations.
There can be no assurance that the financial terms or covenants of any new credit facility will be the same or as favorable as
those under our existing facilities. Additionally, our ability to complete a refinancing of our existing credit facilities prior to their
respective maturities is subject to a number of conditions beyond our control. For example, if a disruption in the financial markets
were to occur at the time that we intended to refinance our credit facilities, we might be restricted in our ability to access the credit
lines. The restrictive covenants in any such new credit facility may limit our ability to engage in acts that may be in our best long term
interests. A breach of any of these types of restrictive covenants in our credit facilities could result in a default under these facilities.
If a default occurs, the lenders under our credit facilities may elect to declare all outstanding borrowings, together with accrued
interest, to be immediately due and payable, to terminate any commitments they have to provide further borrowings and to exercise
any other rights they have under the facilities or applicable law.
Warranty Claims – We are exposed to warranty claims in the event that our products fail to perform as expected, and we may
be required to participate in the repair costs incurred by our customers for such products. We are engaged in ongoing discussions with
our customers regarding warranty information and potential claims. The results of these discussions could result in additional warranty
charges/claims in future periods. Depending on the nature of and the volume of vehicles involved in the potential warranty claims,
these charges could be material to our financial statements. Prior to fiscal 2010, we had experienced relatively low warranty charges
from our customers due to our commercial arrangements and improvements in the quality, reliability and durability of our products.
Due to our largest customers’ extension and/or expansion of their warranty protection programs and demands for higher warranty cost
sharing arrangements from their suppliers in their terms and conditions of purchase, including from STRATTEC, we increased our
provision to cover warranty exposures since fiscal year 2010. In 2015, 2018, and 2023, our increased warranty provision was the result
of various known or expected customer warranty issues outstanding and estimated future warranty costs to be incurred as of June
2015, June 2018, and June 2023, respectively, for which amounts were reasonably estimable. As additional information becomes
available, actual results may differ from recorded estimates or we may need to record additional warranty provisions. Although we
have product recall insurance in place, if our customers demand higher warranty-related cost recoveries, or if our products fail to
perform as expected, it could have a material adverse impact on our results of operations, financial condition and cash flows.
LEGAL AND REGULATORY RISKS
Environmental, Safety and Other Regulations – We are subject to federal, state, local and foreign laws and other legal
requirements related to the generation, storage, transport, treatment and disposal of materials as a result of our manufacturing and
assembly operations. These laws include, among others, the Resource Conservation and Recovery Act (as amended), the Clean Air
Act (as amended) and the Comprehensive Environmental Response, Compensation and Liability Act (as amended). We have an
environmental management system that is ISO-14001 certified. We believe that our existing environmental management system is
adequate for current and anticipated operations and we have no current plans for substantial capital expenditures in the environmental

15
area. An environmental reserve was established in 1995 for estimated costs to remediate a site at our Milwaukee facility. The site was
contaminated from a former above-ground solvent storage tank, located on the east side of the facility. The contamination occurred in
1985 and is being monitored in accordance with federal, state and local requirements. We do not currently anticipate any material
adverse impact on our results of operations, financial condition or competitive position as a result of compliance with federal, state,
local and foreign environmental laws or other related legal requirements. However, risk of environmental liability and changes
associated with maintaining compliance with environmental laws is inherent in the nature of our business and there is no assurance
that material liabilities or changes could not arise.
Compliance Related to Conflict Minerals Regulations – We are required to disclose the use of tin, tantalum, tungsten and
gold (collectively, “conflict minerals”) mined from the Democratic Republic of the Congo and adjoining countries (the “covered
countries”) if a conflict mineral(s) is necessary to the functionality of a product manufactured, or contracted to be manufactured, by
us. We may determine, as part of our compliance efforts, that certain products or components we obtain from our suppliers could
contain conflict minerals. If we are unable to conclude that all our products are free from conflict minerals originating from covered
countries, this could have a negative impact on both our existing and future business, reputation and/or results of operations. We may
also encounter challenges to satisfy customers who require that our products be certified as conflict free, which could place us at a
competitive disadvantage if we are unable to substantiate such a claim. Compliance with these rules could also affect the sourcing and
availability of some of the minerals used in the manufacture of products or components we obtain from our suppliers, including our
ability to obtain products or components in sufficient quantities and/or at competitive prices to sell to our customers.
Income Taxes – We are a U.S.-based multinational company subject to tax in multiple U.S. and foreign tax jurisdictions.
Significant judgment is required in determining our global provision for income taxes, deferred tax assets or liabilities and in
evaluating our tax positions on a worldwide basis. While we believe our tax positions are consistent with the tax laws in the
jurisdictions in which we conduct our business, it is possible that these positions may be overturned by jurisdictional tax authorities,
which may have a significant impact on our global provision for income taxes. Tax laws are dynamic and subject to change as new
laws are passed and new interpretations of these laws are issued or applied. We are also subject to ongoing tax audits. These audits can
involve complex issues, which may require an extended period of time to resolve and can be highly subjective. Tax authorities may
disagree with certain tax reporting positions taken by us and, as a result, assess additional taxes against us. We regularly assess the
likely outcomes of these audits in order to determine the appropriateness of our tax provision.
RISK RELATED TO INFECTIOUS DISEASE OUTBREAKS, SUCH AS COVID-19
Pandemics or disease outbreaks, such as COVID-19, have disrupted, and may continue to disrupt, the global economy. For
example, the Coronavirus (COVID-19) pandemic adversely affected our operations and supply chains, in particular related to the
sourcing of semiconductor chips, which caused us to experience reductions in demand for certain of our products and services as a
result of the pandemic and this supply chain disruption. Because we and our suppliers manufacture products in facilities around the
world, we have been and may continue to be vulnerable to an outbreak of COVID-19 (or the resurgence of such an outbreak) or other
contagious diseases in those regions as well as in the United States. The effects of COVID-19 and other contagious diseases have
included and may continue to include disruptions or restrictions on our ability to travel, our ability to manufacture our affected
products and our ability to ship these affected products to customers as well as disruptions that have and may continue to affect our
key customers and suppliers, including those in these regions or other affected regions of the world, including in the United States,
Mexico, China and neighboring countries. Current and future disruption of our ability to manufacture or distribute our products or of
the ability of our customers to take orders of our products or our suppliers to deliver key raw materials on a timely basis could have a
material adverse effect on our sales levels, pricing for raw materials and components and our operating results. In addition, the
worsening of COVID-19 and future outbreaks of contagious diseases in the human population could result in a widespread health
crisis that adversely affects the economies and financial markets of many countries (including those where we operate or where our
products are ultimately used), resulting in an economic downturn that could affect demand for our products and impact our operating
results.
RISK RELATED TO GEOPOLITICAL INSTABILITY
We are currently operating in a period of geopolitical instability resulting from the ongoing military conflict between Russia
and the Ukraine, which has significantly contributed to economic uncertainty, capital market disruption and supply chain interruptions
in the U.S. and global markets. On February 24, 2022, a full-scale military invasion of the Ukraine by Russian troops began. While the
length and impact of the ongoing conflict is unpredictable, the Ukraine conflict could lead to market disruptions, including supply
chain interruptions and significant volatility in commodity prices, and in credit and capital markets. The conflict in the Ukraine has led
to sanctions and other penalties being levied against Russia by the U.S., the EU, and other countries. Additional potential sanctions
and penalties have also been proposed. Russian military actions and the resulting sanctions, as well as future geopolitical conflicts,
could adversely affect the global economy and financial markets and lead to instability and lack of liquidity in capital markets,
potentially further disrupting the supply chain for necessary components and raw materials used by us or our customers in producing

16
product. Any of the foregoing factors could have a material adverse effect on our business, operating results, financial condition and
cash flows.
GENERAL RISK FACTOR
In addition to the specific risks above, we, our customers, and our suppliers may be adversely affected by changing economic
conditions throughout the world. These conditions may result in reduced consumer and investor confidence, instability in the credit
and financial markets, volatile corporate profits, and reduced business and consumer spending. We, our customers, and our suppliers
and the economy as a whole also may be affected by future world or local events outside of our control, such as tariffs and other trade
protection measures put in place by the United States or other countries, acts of terrorism, developments in the war on terrorism, civil
unrest, conflicts in international situations, weather events, natural disasters, outbreaks of infectious diseases, such as the COVID-19
pandemic, and government or political related developments or issues, including changes in tax laws and regulations. These factors
could have a material adverse impact on our results of operations, financial condition, and cash flows. Additionally, political and
social turmoil, international conflicts (such as the Ukraine conflict) and terrorist acts may put pressure on global economic conditions
that may adversely impact our operating results. Unstable political, social or economic conditions may make it difficult for us, our
customers and our suppliers to accurately forecast and plan future business activities. If such conditions arise or persist, they could
have a material adverse impact on our results of operations, financial condition and cash flows.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 1C. CYBERSECURITY
We take cybersecurity threats seriously, including regular assessment of cybersecurity risks both internally and with third party
assistance and updates to the Board of Directors at least annually. We use the National Institute of Standards and Technology
Cybersecurity Framework (NIST CSF) as the basis for the information security management system. As we implement new
technologies, the NIST CSF is used as the guiding framework. Among other best practices, we use multi-factor authentication
wherever possible for external access to systems, assess and update current versions of security solutions, perform regular
cybersecurity training and email phishing campaigns for employees, use third parties to perform external penetration testing, and
maintain disaster recovery and incident response plans, which include retainer contracts for third party cybersecurity response
specialists. We employ a combination of methods to monitor for new or developing cybersecurity risks.
The Board regularly receives reports and training from management and third parties on cybersecurity matters. Management is
responsible for developing cybersecurity programs, as may be required by applicable law or regulation. Our cybersecurity personnel
have the appropriate expertise in IT and cybersecurity, which generally has been gained from a combination of education, including
relevant degrees and/or certifications, and prior work experience. Our cybersecurity personnel, along with third parties, monitor the
prevention, detection, mitigation, and remediation of cybersecurity incidents as part of the cybersecurity programs described above.
Incidents, if any, are escalated to management and the Board according to our incident response policy. There have been no material
cybersecurity incidents in the periods presented.
ITEM 2. PROPERTIES
We have five manufacturing plants, one warehouse, and one sales office. These facilities are described as follows:
Location
Type
Sq. Ft.
Owned or
Leased
Milwaukee, Wisconsin ................
Headquarters and General Offices; Component Parts
Manufacturing
345,123
Owned
Juarez, Chihuahua Mexico...........
Subsidiary Offices and Assembly
169,926
Owned
Juarez, Chihuahua Mexico...........
Subsidiary Offices and Assembly
77,527
Owned
Juarez, Chihuahua Mexico...........
Subsidiary Offices, Key Finishing, Injection Molding
and Assembly Operations
114,841
Owned
Leon, Mexico...............................
Subsidiary Offices, Door Handle Injecting Molding,
Painting and Assembly
130,532
Owned
El Paso, Texas..............................
Finished Goods and Service Parts Distribution Warehouse
114,715
Leased**
Auburn Hills, Michigan...............
Sales and Engineering Office for Detroit Customer Area
62,736
Owned
** Leased unit within a complex.

17
ITEM 3. LEGAL PROCEEDINGS
In the normal course of business we may be involved in various legal proceedings from time to time. We do not believe we are
currently involved in any claim, action or proceeding the ultimate disposition of which would have a material adverse effect on our
financial statements.
ITEM 4. MINE SAFETY DISCLOSURES
None.

18
PART II
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER
PURCHASES OF EQUITY SECURITIES
Our common stock is traded on the NASDAQ Global Market under the symbol “STRT.”
Registered shareholders of record at June 30, 2024, were 800.
The Company’s Board of Directors authorized a stock repurchase program on October 16, 1996, and the program was publicly
announced on October 17, 1996. Since inception of the stock repurchase program, the Board of Directors has periodically increased
the number of shares authorized for repurchase under the program. At June 30, 2024, the number of shares of the Company’s
common stock authorized for repurchase under the program totaled 3,839,395. The program currently authorizes the repurchase of the
Company’s common stock from time to time, directly or through brokers or agents, and has no expiration date. Over the life of the
repurchase program through June 30, 2024, a total of 3,655,322 shares have been repurchased at a cost of approximately $136.4
million. No shares were repurchased during the fiscal year ended June 30, 2024.
ITEM 6. [RESERVED]

19
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
The following Discussion and Analysis should be read in conjunction with STRATTEC SECURITY CORPORATION’s
accompanying Financial Statements and Notes thereto included in this Form 10-K. Unless otherwise indicated, all references to years
or quarters refer to fiscal years or fiscal quarters of STRATTEC.
Executive Overview
Historically, traditional domestic automotive OEMs (General Motors, Ford and Stellantis) have comprised a majority of our
total net sales. During the past two decades, these customers have lost North American market share to New Domestic automotive
manufacturers (primarily Japanese and Korean automotive manufacturers). In addition, our financial performance depends in large
part on conditions in the North American automotive industry, which in turn, are largely dependent upon the U.S. economy. During
fiscal years 2024 and 2023, the traditional domestic automotive OEMs represented 66 percent of our total net sales.
Fiscal 2024 net sales were $537.8 million compared to $492.9 million in fiscal 2023. $32.7 million of the $44.9 million net sales
increase was driven by net price increases to our major OEM customers. When excluding this pricing effect, underlying sales
increased by $12.2 million, up 2.5% over the prior year, largely reflecting the launch of new customer programs in the latter half of
the fiscal year. The $32.7 million of aforementioned net price increase was composed of $9.7 million one-time retroactive pricing that
is not expected to recur, and $23.0 million in ongoing increases in current part prices to our customers. In addition, we settled
negotiations with certain key suppliers and paid $5.7 million in higher prices during the year, of which $1.7 million relates to one-time
retroactive pricing with the remaining $4.0 million attributable to higher supplier prices on an ongoing basis. The net margin result
of both customer and supplier changes in price represented a $27.0 million net margin improvement in fiscal 2024, comprised of $8.0
million of nonrecurring one-time pricing and $19.0 million of ongoing pricing. These net margin improvements surpassed the higher
end of our target ranges of $6.0 million and $15.0 million for one-time and ongoing net pricing respectively, which were provided in
the fiscal 2024 Outlook in our 2023 Form 10-K.
During fiscal 2024, our cost of sales performance proved challenging. Despite favorability in our raw materials costs, which
recovered from elevated levels in fiscal 2023, and improved efficiency of our Mexican operations through a salaried staff reduction in
the first quarter and production efficiencies implemented throughout the year, our overall cost of sales performance deteriorated.
Factors driving higher costs in our manufacturing operations were primarily:
•
a weakened U.S. dollar against the Mexican peso, raising the cost of our Mexican operations
•
higher Mexican labor wages due to government-mandated minimum wage increases
•
higher shipping costs primarily due to expedited shipments related to the launch of new product programs
Sales, engineering and administrative expenses decreased in fiscal 2024, primarily due to historically high engineering cost
reimbursements from our customers, offset by expenses related to the company bonus plan and the transition of our Chief Executive
Officer position. Our improved operating performance enabled us to achieve net income attributable to STRATTEC of $16.3 million
in fiscal 2024 compared with a net loss attributable to STRATTEC of $6.7 million in fiscal 2023.
Based on July 2024 projections from our third-party forecasting service, S&P Global, North American light vehicle production
is forecasted to grow modestly between 2024 and 2028. Model year 2024 preliminary North American vehicle build was 15.8
million. S&P Global currently expects 2025 model year vehicle build to remain at 15.8 million vehicles, growing to 16.2 million
vehicles in 2026 and then to 16.4 million vehicles for 2027 and 2028. The North American vehicle build forecasts for our primary
customers (Ford, General Motors and Stellantis) project a modest decline from 6.7 million vehicles in 2024 to 6.5 million vehicles in
2025 and then an increase to 6.9 million vehicles in model year 2026, stabilizing at that level for model years 2027 and 2028. In an
effort to increase our sales, we will continue pursuing opportunities to expand our offerings with existing and new customers. These
forecasts are subject to variability based upon a number of factors, including the overall North American economy, current
employment levels, availability and cost of consumer credit, home equity values, fuel prices, changes in customer vehicle and option
preferences, product quality issues, including those related to recall and product warranty coverage issues, and other key factors that
we believe could determine whether consumers can or will purchase new vehicles or particular brands.

20
Results of Operations
2024 Compared to 2023
Years Ended
June 30, 2024
July 2, 2023
Net Sales (millions of dollars).................................................................. $
537.8
$
492.9
Net Sales to each of our customers or customer groups in the current year and prior year were as follows (millions of dollars):
Years Ended
June 30, 2024
July 2, 2023
General Motors Company......................................................................... $
163.1
$
150.3
Ford Motor Company ...............................................................................
114.9
96.6
Stellantis ...................................................................................................
77.7
78.1
Tier 1 Customers.......................................................................................
77.5
73.3
Commercial and Other OEM Customers..................................................
58.9
56.3
Hyundai / Kia............................................................................................
45.7
38.3
Total...................................................................................................... $
537.8
$
492.9
The year-over-year sales increase of $44.9 million reflects net price increases from our major OEM customers of $32.7 million
of which $23.0 million is attributable to ongoing increases in current part prices and $9.7 million relates to one-time retroactive price
increases for parts shipped in the prior year for which the net price increase was agreed to during the current year. In addition to the
net price increases, the following items specifically impacted sales to the noted customer groups between years:
-
Sales to General Motors Company were favorably impacted by new door handle business supplied on the Chevrolet
Equinox EV.
-
Sales to Ford Motor Company were positively impacted by added power end gate content we supply on the F-Series
Super Duty Pickup and by new tailgate latch content supplied on the F-Series Pickups.
-
Sales to Stellantis were negatively impacted by reduced customer vehicle production volumes as well as reduced content
we supply for the Dodge Ram Pickup and several passenger car programs ending.
-
Sales to Tier 1 Customers improved in the current year compared to the prior year due to new door hardware content on
the F-Series Super Duty Pickup, which is sold to a Tier 1 customer.
-
Sales to Commercial and Other OEM Customers, which are comprised of aftermarket products and vehicle access
control products, such as latches, fobs, driver controls and door handles, were positively impacted by sales for new
business awarded from Aston Martin.
-
Sales to Hyundai / Kia were positively impacted by an overall increase in customer vehicle production volumes between
years.
Cost of goods sold in the current year and prior year were as follows (millions of dollars):
Years Ended
June 30, 2024
July 2, 2023
Millions of
Dollars
Percent of
Net Sales
Millions of
Dollars
Percent of
Net Sales
Direct Material Costs................................................... $
301.7
56.1% $
295.6
60.0%
Labor and Overhead Costs ..........................................
170.6
31.7%
155.2
31.5%
Total Cost of Goods Sold ........................................ $
472.3
$
450.8
Prior year reclassifications have been made for consistency with current year presentation.
Total cost of goods sold increased $21.5 million between years. The year-over-year increase in direct material costs of $6.1
million was the result of increases in sales volumes and content we supply, as discussed above, and $5.7 million of negotiated material
price increases paid to key suppliers. Price increases paid to suppliers attributed to ongoing operations totaled $4.0 million while the
remaining $1.7 million related to one-time retroactive price increases. The impact of content and material price increases was partially
offset by reduced zinc costs of approximately $3.1 million in the current year as compared to the prior year. The year-over-year
increase in labor and overhead costs of $15.4 million was impacted by the following:
Cost Increases:
-
The U.S. dollar value of our Mexican operations was negatively impacted by approximately $8.5 million in the current
year as compared to the prior year due to an unfavorable Mexican peso to U.S. dollar exchange rate between years. The

21
average U.S. dollar / Mexican peso exchange rate decreased to approximately 17.13 pesos to the dollar for the year from
approximately 18.98 pesos to the dollar in the prior year.
-
Mexico wages and benefits increased $6.6 million in the current year as compared to the prior year as a result of annual
wage increases, including January 1, 2024 and January 1, 2023 government mandated minimum wage increases.
-
Freight costs increased $4.1 million between years due to an increase in shipments from foreign vendors, a change in
shipping terms with a major supplier that occurred in June 2023, and an increase in expedited shipments.
-
The current year includes expense provisions of $2.7 million under our incentive bonus plan. The prior year includes no
bonus expense.
-
The current year includes severance costs of $220,000 related to a realignment of our Mexican workforce.
Cost Decreases:
-
Mexico wages and benefits decreased by $1.5 million due to a September 1, 2023 salaried staff reduction in Mexico and
current year production efficiencies that controlled headcount and hours worked.
-
Royalty costs paid on sales of certain aftermarket products decreased $0.9 million in the year as compared to the prior
year due to lower volumes in these aftermarket products.
The net unfavorable impact of specific labor and overhead costs noted above was partially offset by more favorable absorption
of our fixed overhead costs in the current year as compared to the prior year due to higher production volumes driven by an increase in
finished goods inventory during the year and increased sales volumes.
Years Ended
June 30, 2024
July 2, 2023
Gross Profit (millions of dollars) ............................................................. $
65.5
$
42.2
Gross Profit as a percentage of net sales..................................................
12.2%
8.6%
Gross profit margin improvement between years was driven by pricing relief achieved during the current year as discussed
above. The impact of one-time retroactive pricing in the current year increased the gross profit margin percentage by 1.3 percentage
points. Additionally, favorable impacts of ongoing customer price increases, reduced zinc costs, favorable absorption, production
efficiencies in Mexico and reduced royalty costs were partially offset by an unfavorable U.S. dollar to Mexican peso exchange rate,
wage increases in Mexico, and increased freight, bonus, and severance costs, all as discussed above.
Engineering, Selling and Administrative Expenses in the current year and prior year were as follows:
Years Ended
June 30, 2024
July 2, 2023
Expenses (millions of dollars).................................................................. $
47.7
$
48.2
Expenses as a percentage of net sales ......................................................
8.9%
9.8%
Engineering, selling and administrative expenses were impacted by the following:
Cost Decrease:
-
Current year costs decreased $3.2 million in comparison to the prior year due to an increase in customer billings for the
reimbursement of engineering development costs.
Cost Increase:
-
The current year includes one-time charges of $1.0 million associated with the transition of our Chief Executive Officer
position.
-
The current year includes expense provisions of $1.9 million under our incentive bonus plan. The prior year includes no
bonus expense.
Income from operations in the current year was $17.8 million compared to loss from operations of $6.1 million in the prior year.
This change between years was the result of an increase in sales in the current year as compared to the prior year along with a
reduction in engineering, selling and administrative expenses partially offset by an increase in cost of goods sold, all as discussed
above.
Effective June 30, 2023, STRATTEC sold its one-third interest in VAST LLC to WITTE. Refer to the discussion of the Equity
Restructuring Agreement within Joint Ventures and Majority Owned Subsidiaries included in the Notes to Financial Statements within
this Form 10-K for additional information regarding the sale. The equity loss of joint ventures was $331,000 in the current year
compared to equity earnings of joint ventures of $1.6 million in the prior year. The current year loss was the result of additional
professional fees incurred related to the sale of STRATTEC's investment in VAST LLC. The $331,000 loss is an adjustment to the
gain on sale of VAST LLC, which was recorded in the prior year. Our adjusted loss to date on the sale of VAST LLC totals $221,000.
Prior year equity earnings includes STRATTEC's one-third of a loss on disposal of VAST LLC's investment in Brazil of $531,000 and
a gain on sale of STRATTEC's one-third share of VAST LLC of $110,000.

22
Included in other income (expense), net in the current year and prior year were the following items (thousands of dollars):
Years Ended
June 30, 2024
July 2, 2023
Foreign currency transaction gain (loss) .......................................................... $
2,153
$
(2,935)
Rabbi Trust Assets gain....................................................................................
211
202
Realized and unrealized gain on Mexican peso forward contracts, net ...........
885
1,022
Pension and postretirement plans cost..............................................................
(395)
(722)
Other.................................................................................................................
194
255
$
3,048
$
(2,178)
-
Foreign currency transaction gains and losses resulted from activity associated with foreign denominated assets and
liabilities held by our Mexican subsidiaries.
-
The Rabbi Trust assets fund our amended and restated supplemental executive retirement plan. The investments held in
the Trust are considered trading securities.
-
We entered into the Mexican peso currency forward contracts during fiscal 2024 and 2023 to reduce earnings volatility
resulting from changes in exchange rates affecting the U.S. dollar cost of our Mexican operations. No peso forward
currency contracts are outstanding as of June 30, 2024.
-
Pension and postretirement plan costs include net periodic benefit cost other than the service cost component.
Our effective income tax rate for 2024 was 18.7 percent compared to (16.7) percent in 2023. Our 2024 effective tax rate was
reduced by $1.2 million due to changes in the estimate of our 2023 foreign tax credits associated with the sale of our interest in VAST
LLC. Our 2023 effective tax rate was impacted by $2.2 million in China non-resident capital gain tax resulting from the sale of our
interest in VAST LLC, a valuation allowance of $1.4 million related to our assessment of the future realization of capital loss
carryforwards generated from the sale of our interest in VAST LLC, a net Global Intangible Low Tax Income (GILTI) cost of
$613,000 and the impact of available R&D and foreign tax credits on pre-tax book losses. Our income tax provision for each year
2024 and 2023 was affected by the non-controlling interest portion of our pre-tax income and R&D tax credit. The non-controlling
interest impacts the effective tax rate as our ADAC-STRATTEC LLC entity was taxed as a partnership for U.S. tax purposes in 2024
and our ADAC-STRATTEC LLC and STRATTEC POWER ACCESS LLC entities were taxed as partnerships for U.S. tax purposes
in 2023.
Liquidity and Capital Resources
Working Capital (millions of dollars)
June 30, 2024
July 2, 2023
Current Assets........................................................................................... $
253.8
$
225.8
Current Liabilities.....................................................................................
118.3
109.0
Working Capital ....................................................................................... $
135.5
$
116.8
Outstanding Receivable Balances from Major Customers
Our primary source of cash flow is from our major customers, which include Stellantis, General Motors Company and Ford
Motor Company. As of the date of filing this Annual Report with the Securities and Exchange Commission, all of our customers are
making payments on their outstanding accounts receivable in accordance with the payment terms included on their purchase orders. A
summary of our outstanding receivable balances from our major customers as of June 30, 2024 and July 2, 2023 was as follows
(millions of dollars):
June 30, 2024
July 2, 2023
General Motors Company......................................................................... $
28.6
$
27.5
Ford Motor Company ...............................................................................
24.8
17.4
Stellantis ...................................................................................................
12.2
14.1
$
65.6
$
59.0

23
Cash Balances in Mexico
We earn a portion of our operating income in Mexico. As of June 30, 2024, $1.4 million of our $25.4 million cash and cash
equivalents balance was held in Mexico. These funds are available for repatriation as deemed necessary.
Cash Flow Analysis
Years Ended
June 30, 2024
July 2, 2023
Cash Flows from (millions of dollars):
Operating Activities.............................................................................. $
12.3
$
10.1
Investing Activities...............................................................................
(7.8)
8.9
Financing Activities..............................................................................
—
(7.4)
$
4.5
$
11.6
Cash flow from operating activities increased $2.2 million between years as the impact of increased profitability between years,
as previously discussed, was offset by a net increase in working capital. The net increase in our working capital included the following
working capital changes (millions of dollars):
Increase (Decrease) in Working Capital Requirements
2024
2023
Change
Accounts Receivable................................................................ $
9.4
$
13.7
$
(4.3)
Inventories................................................................................
4.1
(2.9)
7.0
Customer Tooling ....................................................................
1.4
10.0
(8.6)
Other Assets .............................................................................
12.2
0.5
11.7
Accounts Payable and Other Liabilities...................................
(10.7)
(24.0)
13.3
$
16.4
$
(2.7) $
19.1
-
Accounts receivable balances increased in both the current and prior year periods. The increase in the accounts receivable
balance during 2024 reflects increased sales as of the end of our fiscal 2024 as compared to the end of our fiscal 2023 as
well as an increase of $6.4 million in open customer billings for the reimbursement of customer tooling costs and
engineering development costs. The increase in accounts receivable balances during 2023 reflects increased sales as of the
end of our fiscal 2023 as compared to the end of our fiscal 2022.
-
The change in inventory levels reflected an increase during the current year and a decrease during the prior year. The
current year increase was driven by an increase in finished product inventory balances resulting from our long-term
inventory reduction plan that looks to shift the composition of our inventory from purchased materials to finished
production, improving responsiveness while reducing overall inventories. The prior year decrease was due to a reduction
in inventory balances to align with historical customer production patterns, mostly offset by a change in inventory
management and shipping terms with a significant vendor.
-
The change in customer tooling balances, which consisted of costs incurred for the development of tooling that will be
directly reimbursed by the customer whose parts are produced from the tool, was the result of the timing of tooling
development spending required to meet customer production requirements and related billings for customer
reimbursements.
-
The current year increase in other assets is due to an $11.8 million increase in value added tax ("VAT") recoverable
balances related to our Mexican operations. VAT recoverable balances increased due to a temporary issue with our
Mexican tax certification. Although the certification issue was resolved during our December 2023 quarter, we were
required to pay VAT on all parts temporarily imported into Mexico before seeking reimbursement for periods in which the
certification issue was outstanding, which periods are now open to audit with the Mexican tax authority along with all
periods subsequent to resolution of the certification issue. We believe temporary increases in the VAT recoverable balance
will remain elevated until the periods under audit are closed.
-
Accounts payable balances increased in both the current and prior year periods. The current year increase was due to the
following:

24
- Accrued salaries and benefits increased $6.3 million due to the accrual of $4.5 million under our incentive bonus
plan as well as increased benefit accruals for our Mexican associates, which resulted from annual wage increases,
including January 1, 2024 government mandated increases. There was no bonus accrual as of June 2023.
- VAT payable balances increased $3.5 million due to periods from 2024 being open to audit. Refer to the
discussion of VAT recoverable balances and the VAT certification issue above.
- Income tax payable balances increased $2.5 million in 2024 based on the required income tax provision, the timing
and amounts of federal, state and foreign tax payments made, and the timing of utilization of tax credits.
The prior year increase was due to the following:
- Accounts payable increased $14.0 million primarily due to a change in inventory management, shipping terms,
and payment terms with a significant vendor and the temporary suspension of ADAC-STRATTEC LLC's payment
of engineering, research and design fees and sales fees to ADAC in order to comply with ADAC-STRATTEC debt
covenants.
- Accrued salaries and benefits increased $4.7 million due to increased salaries and benefits for our Mexican
associates.
- Income taxes payable increased $2.4 million primarily due to the accrual of a China non-resident capital gain tax
as a result of the sale of our interest in VAST LLC.
- Value added tax payable balances increased $3.0 million due to several periods being open to audit in Mexico.
Net cash used in investing activities of $7.8 million during 2024 included capital expenditures of $9.8 million in support of
requirements for new product programs and the upgrade and replacement of existing equipment partially offset by additional proceeds
from the sale of our interest in VAST LLC of $2.0. Net cash provided by investing activities of $8.9 million during 2023 included
proceeds from the sale of our interest in VAST LLC of $26.2 million and a net increase in cash of $354,000 resulting from
STRATTEC's purchase of the net assets of VAST Korea. The cash inflows were partially offset by capital expenditures of $17.4
million in support of requirements for new product programs and the upgrade and replacement of existing equipment and a $278,000
investment in VAST LLC for the purpose of funding general operating expenses for Sistema de Acesso Veicular Ltda, VAST LLC's
Brazilian joint venture.
Net cash provided by financing activities of $72,000 during 2024 included additional borrowings under our credit facilities of
$2.0 million and $72,000 received for purchases under our employee stock purchase plan. These cash inflows were partially offset by
the repayment of borrowings under credit facilities of $2.0 million. Net cash used in financing activities of $7.4 million during 2023
included a payment of $9.0 million related to STRATTEC's purchase of the remaining non-controlling interest of STRATTEC
POWER ACCESS LLC from WITTE Automotive, the repayment of borrowings under credit facilities of $15.0 million, and $600,000
of dividend payments to non-controlling interests in our subsidiaries. These cash outflows were partially offset by additional
borrowings under our credit facilities of $17.0 million and $183,000 received for the exercise of stock options under our stock
incentive plan and purchases under our employee stock purchase plan.
Cash Requirements
Dividends
On May 13, 2020, our Board of Directors took action to temporarily suspend payment of our quarterly dividend for the
foreseeable future in order to conserve cash as a result of the economic downturn that began with COVID-19. No dividends were paid
to shareholders during fiscal 2024 or fiscal 2023.
Future Capital Expenditures
We anticipate capital expenditures will be approximately $15.0 million in fiscal 2025 in support of requirements for new
product programs and the upgrade and replacement of existing equipment.
Stock Repurchase Program
Our Board of Directors has authorized a stock repurchase program to buy back outstanding shares of our common stock. Shares
authorized for buy back under the program totaled 3,839,395 at June 30, 2024. A total of 3,655,322 shares have been repurchased over
the life of the program through June 30, 2024, at a cost of approximately $136.4 million. No shares were repurchased during fiscal
2024 or 2023. Additional repurchases may occur from time to time and are expected to continue to be funded by cash flow from
operations and current cash balances.

25
Other Cash Requirements
In connection with the June 30, 2023 sale of our interest in VAST LLC to WITTE Automotive, we will be required to pay
nonresident capital gain tax in China. The payment, which is expected to be made during our fiscal 2025, is expected to total
approximately $1.9 million.
We anticipate payments of approximately $4.5 million to associates in connection with our incentive bonus plan during the first
quarter of our fiscal 2025 related to bonuses earned in our fiscal 2024.
We also have an operating lease for our El Paso, Texas finished goods and service parts distribution warehouse, which has a
term in excess of one year. We also have purchase commitments related to zinc and other purchased parts. Refer to required future
payments under the lease and purchase commitments in the discussion of Leases under Organization and Summary of Significant
Accounting Policies and in the discussion of Commitments and Contingencies included in the Notes to Financial Statements included
as part of Item 8 within this Form 10-K.
Credit Facilities
STRATTEC has a $40 million secured revolving credit facility (the “STRATTEC Credit Facility”) with BMO Harris Bank N.A.
ADAC-STRATTEC LLC has a $20 million secured revolving credit facility (the “ADAC-STRATTEC Credit Facility”) with BMO
Harris Bank N.A., which is guaranteed by STRATTEC. The ADAC-STRATTEC Credit Facility borrowing limit decreases to $18
million on August 1, 2025. The credit facilities both expire August 1, 2026. Borrowings under either credit facility are secured by our
U.S. cash balances, accounts receivable, inventory, and fixed assets located in the U.S. Interest on borrowings under the STRATTEC
Credit Facility were at varying rates based, at our option, on LIBOR plus 1.25 percent or the bank’s prime rate through February 22,
2023, SOFR plus 1.35 percent for the period February 23, 2023 through September 5, 2023, and SOFR plus 1.85 percent subsequent
to September 5, 2023. Interest on borrowings under the ADAC-STRATTEC Credit Facility were at varying rates based, at our option,
on the bank's prime rate with no interest rate margin through May 30, 2024 and a 2 percent interest rate margin subsequent to May 30,
2024 or LIBOR plus 1.25 percent through February 6, 2023, SOFR plus 1.35 percent for the period February 7, 2023 through May 30,
2024, and SOFR plus 3.10 percent subsequent to May 30, 2024. 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 June 30, 2024,
we were in compliance with all financial covenants required by these credit facilities. There were no outstanding borrowings under the
STRATTEC Credit Facility as of June 30, 2024 or July 2, 2023. The average outstanding borrowings and weighted average interest
rate on the STRATTEC Credit Facility loans were approximately $33,000 and 8.5 percent, respectively, during 2024. The average
outstanding borrowings and weighted average interest rate on the STRATTEC Credit Facility loans were approximately $15.4 million
and 5.7 percent, respectively, during 2023. Outstanding borrowings under the ADAC-STRATTEC Credit Facility totaled $13 million
at both June 30, 2024 and July 2, 2023. The average outstanding borrowings and weighted average interest rate on the ADAC-
STRATTEC Credit Facility loans were approximately $13.0 million and 6.8 percent, respectively, during 2024. The average
outstanding borrowings and weighted average interest rate on the ADAC-STRATTEC Credit Facility loans were approximately $12.4
million and 5.3 percent, respectively, during 2023. We believe that the credit facilities are adequate, along with existing cash flows
from operations, to meet our anticipated capital expenditure, working capital, dividend, and operating expenditure requirements.
Joint Ventures and Majority Owned Subsidiaries
Refer to the discussion of Investment in Joint Ventures and Majority Owned Subsidiaries and discussion of Equity (Loss)
Earnings of Joint Ventures included in the Notes to Financial Statements included within this Form 10-K.
Critical Accounting Policies
We believe the following represents our critical accounting policies:
Liability for Uncertain Tax Positions – We are subject to income taxation in many jurisdictions around the world. Significant
management judgment is required in the accounting for income tax contingencies because the outcomes are often difficult to
determine. We are required to measure and recognize uncertain tax positions that we have taken or expect to take in our income tax
returns. The benefit of an uncertain tax position can only be recognized in the financial statements if management concludes that it is
more likely than not that the position will be sustained with the tax authorities. For a position that is likely to be sustained, the benefit
recognized in the financial statements is measured at the largest amount that is greater than 50 percent likely of being realized. A
reserve is established for the difference between a position taken in an income tax return and the amount recognized in the financial
statements. The amount of unrecognized benefits, that if recognized, would affect the effective tax rate was $1.2 million at June 30,
2024 and $1.1 million at July 2, 2023. An increase or decrease in our assessment of the recorded amount of unrecognized benefits by

26
10 percent would result in an increase or decrease in the reported tax provision, before the impact of interest and penalties, of
$120,000 at June 30, 2024 and $110,000 at July 2, 2023. Refer to the discussion of Income Taxes included in the Notes to Financial
Statements included as part of Item 8 within this Form 10-K.
Warranty Reserve – We have a warranty reserve recorded related to our exposure to warranty claims in the event our products
fail to perform as expected, and we may be required to participate in the repair costs incurred by our customers for such products. The
recorded warranty reserve balance involves judgment and estimates. Our reserve estimate is based on an analysis of historical
warranty data as well as current trends and information. Actual warranty costs might differ from estimates due to the level of actual
claims varying from our claims experience and estimates and final negotiations and settlements reached with our customers.
Therefore, future actual claims experience could result in changes in our estimates of the required reserve. Sensitivity of potential
warranty or product recall claims is dependent on the respective customer platform, volumes, production years and product content.
We have product recall insurance once a recall claim exceeds $2.5 million with a limit of $30 million. Refer to the discussion of
Warranty Reserve under Organization and Summary of Significant Accounting Policies included in the Notes to Financial Statements
included as part of Item 8 within this Form 10-K.
We believe the reserve discussed above is estimated using consistent and appropriate methods. However, changes to the
assumptions could materially affect the recorded reserve amount.
New Accounting Standards
Refer to the discussion of New Accounting Standards under Organization and Summary of Significant Accounting Policies
included in the Notes to Financial Statements included as part of Item 8 within this Form 10-K.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not applicable.

27
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Page
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (Deloitte & Touche LLP PCAOB
No. 34)..........................................................................................................................................................................
28
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS).......................
30
CONSOLIDATED BALANCE SHEETS .............................................................................................................................
31
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY...............................................................................
32
CONSOLIDATED STATEMENTS OF CASH FLOWS......................................................................................................
33
NOTES TO FINANCIAL STATEMENTS...........................................................................................................................
34

28
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of STRATTEC SECURITY CORPORATION
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of STRATTEC SECURITY CORPORATION and subsidiaries (the
"Company") as of June 30, 2024 and July 2, 2023, the related consolidated statements of income (loss) and comprehensive income
(loss), shareholders’ equity, and cash flows, for the fiscal years ended June 30, 2024 and July 2, 2023, and the related notes
(collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects,
the financial position of the Company as of June 30, 2024 and July 2, 2023, and the results of its operations and its cash flows for the
fiscal years ended June 30, 2024 and July 2, 2023, in conformity with accounting principles generally accepted in the United States of
America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the Company's internal control over financial reporting as of June 30, 2024, based on criteria established in Internal
Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our
report dated September 5, 2024, expressed an unqualified opinion on the Company's internal control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the
Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to
be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to
error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used
and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe
that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was
communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material
to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of
critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by
communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or
disclosures to which it relates.
Specific Warranty Reserve – Refer to the Warranty Reserve Footnote to the Financial Statements
Critical Audit Metter Description
The Company records a specific warranty reserve for known warranty claims when its products fail to perform as expected and when
it is probable that they will participate in the repair costs incurred by its customers for such products.
The specific warranty reserve is estimated based on management’s analysis of historical warranty data, current trends and information,
known and projected claims for products sold, and the terms of specific agreements. The specific warranty reserve requires
management to apply significant judgment to develop its estimate. Actual warranty costs may differ from management’s estimated
costs as a result of, but not limited to, negotiation with customers, changes to the assumptions of repair and/or replacement costs, and
repair rate. Such matters may require future adjustments to the reserve which could be material.
We identified a certain specific warranty reserve as a critical audit matter because estimating future warranty costs requires significant
judgment by management. Auditing management’s assumptions about management’s estimated future warranty costs involves a high
degree of auditor judgment and an increased extent of effort to evaluate the reasonableness of management’s estimates.

29
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the determination of the certain specific warranty reserve included the following, among others:
-
We tested the effectiveness of internal controls relating to management’s process for developing the assumptions and
inputs used to estimate the certain specific warranty reserve.
-
We evaluated the methods and significant assumptions, including the frequency and average cost of warranty claims, used
by management to estimate the certain specific warranty reserve by:
o
Evaluating the methodology used to determine the certain specific warranty reserve in order to understand how key
assumptions were developed.
o
Testing the accuracy of the underlying data that served as the basis for the analysis, including the historical claims
and settlements paid on those claims.
o
Testing the completeness of the certain specific warranty reserve by conducting interviews of operational and
executive management regarding knowledge of known product warranty claims or product issues and evaluating
whether they were appropriately considered in the determination of the certain specific warranty reserve.
o
Comparing certain inputs used in the certain specific warranty reserve to industry data to assess the reasonableness
of management’s assumptions used in the estimate.
o
Developing an independent expectation of the Company’s certain specific warranty reserve and comparing it to
management’s estimate to evaluate the reasonableness of the estimate.
/s/ Deloitte & Touche LLP
Milwaukee, Wisconsin
September 5, 2024
We have served as the Company's auditor since 2023.

30
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Years Ended
June 30, 2024
July 2, 2023
NET SALES..........................................................................................................................
$
537,766
$
492,946
Cost of goods sold..................................................................................................................
472,298
450,794
GROSS PROFIT ..................................................................................................................
65,468
42,152
Engineering, selling, and administrative expenses.................................................................
47,654
48,241
INCOME (LOSS) FROM OPERATIONS ........................................................................
17,814
(6,089)
Equity (loss) earnings of joint ventures..................................................................................
(331)
1,559
Interest expense......................................................................................................................
(900)
(960)
Investment Income .................................................................................................................
572
—
Other income (expense), net...................................................................................................
3,048
(2,178)
INCOME (LOSS) BEFORE BENEFIT FOR INCOME TAXES
AND NON-CONTROLLING INTEREST .....................................................................
20,203
(7,668)
Provision for income taxes.....................................................................................................
3,775
1,281
NET INCOME (LOSS)........................................................................................................
16,428
(8,949)
Net income (loss) attributable to non-controlling interest......................................................
115
(2,279)
NET INCOME (LOSS) ATTRIBUTABLE TO STRATTEC
SECURITY CORPORATION.........................................................................................
$
16,313
$
(6,670)
COMPREHENSIVE INCOME (LOSS):
NET INCOME (LOSS)........................................................................................................
$
16,428
$
(8,949)
Currency translation adjustments, net of tax..........................................................................
(2,794)
6,164
Pension and postretirement plans, net of tax..........................................................................
193
689
TOTAL OTHER COMPREHENSIVE (LOSS) INCOME..............................................
(2,601)
6,853
COMPREHENSIVE INCOME (LOSS) ............................................................................
13,827
(2,096)
Comprehensive (loss) income attributable to non-controlling interest ..................................
(991)
180
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO
STRATTEC SECURITY CORPORATION ..................................................................
$
14,818
$
(2,276)
INCOME (LOSS) PER SHARE ATTRIBUTABLE TO STRATTEC
SECURITY CORPORATION:
Basic...................................................................................................................................
$
4.10
$
(1.70)
Diluted ...............................................................................................................................
$
4.07
$
(1.70)
AVERAGE SHARES OUTSTANDING:
Basic...................................................................................................................................
3,975
3,921
Diluted ...............................................................................................................................
4,004
3,921
The accompanying Notes to Financial Statements are an integral part of these Consolidated Statements of Income (Loss) and
Comprehensive Income (Loss).

31
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AMOUNTS AND PER SHARE AMOUNTS)
June 30, 2024
July 2, 2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents..................................................................................................
$
25,410
$
20,571
Receivables, less allowance for credit losses of $500 at June 30, 2024 and
July 2, 2023 .....................................................................................................................
99,297
89,811
Inventories, net...................................................................................................................
81,649
77,597
Customer tooling in progress, net.......................................................................................
22,173
20,800
Income taxes recoverable...................................................................................................
319
2,711
Value added tax recoverable ..............................................................................................
19,684
7,912
Other current assets ............................................................................................................
5,282
6,380
Total current assets.........................................................................................................
253,814
225,782
DEFERRED INCOME TAXES..........................................................................................
17,593
13,619
OTHER LONG-TERM ASSETS .......................................................................................
6,698
7,083
PROPERTY, PLANT AND EQUIPMENT, NET.............................................................
86,184
94,446
$
364,289
$
340,930
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable ...............................................................................................................
$
54,911
$
57,927
Accrued liabilities:
Payroll and benefits........................................................................................................
28,953
22,616
Value added tax payable.................................................................................................
9,970
6,499
Income tax payable.........................................................................................................
5,103
2,607
Environmental ................................................................................................................
1,390
1,390
Warranty.........................................................................................................................
10,695
9,725
Other...............................................................................................................................
7,266
8,222
Total current liabilities ...............................................................................................
118,288
108,986
Commitments and Contingencies – see note beginning on page 46
BORROWINGS UNDER CREDIT FACILITIES............................................................
13,000
13,000
ACCRUED PENSION OBLIGATIONS............................................................................
1,379
1,206
ACCRUED POSTRETIREMENT OBLIGATIONS........................................................
1,050
1,157
OTHER LONG-TERM LIABILITIES..............................................................................
4,957
5,557
SHAREHOLDERS’ EQUITY:
Common stock, authorized 18,000,000, $.01 par value, issued 7,586,920 shares at
June 30, 2024 and 7,530,170 shares at July 2, 2023 .......................................................
76
75
Capital in excess of par value.............................................................................................
101,024
100,309
Retained earnings ...............................................................................................................
250,612
234,299
Accumulated other comprehensive loss.............................................................................
(15,689)
(14,194)
Less: Treasury stock at cost (3,598,126 shares at June 30, 2024 and 3,601,124 shares
at July 2, 2023)................................................................................................................
(135,478)
(135,526)
Total STRATTEC SECURITY CORPORATION shareholders’ equity.......................
200,545
184,963
Non-controlling interest .................................................................................................
25,070
26,061
Total shareholders’ equity..........................................................................................
225,615
211,024
$
364,289
$
340,930
The accompanying Notes to Financial Statements are an integral part of these Consolidated Balance Sheets.

32
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Total
Shareholders'
Equity
Common
Stock
Capital in
Excess of
Par Value
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Treasury
Stock
Non-
controlling
interest
BALANCE July 3, 2022 .......... $
219,947
$
75
$
101,524
$
240,969
$
(18,588)
$
(135,580)
$
31,547
Net loss ...................................
(8,949)
—
—
(6,670)
—
—
(2,279)
Currency translation
adjustments ...........................
6,164
—
—
—
3,705
—
2,459
Pension and postretirement
funded status adjustment,
net of tax of $212...................
689
—
—
—
689
—
—
Cash dividends paid to non-
controlling interests of
subsidiaries ...........................
(600)
—
—
—
—
—
(600)
Purchase of SPA Non-
controlling interest .................
(7,877)
—
(2,811)
—
—
(5,066)
Stock-based compensation.........
1,466
—
1,466
—
—
—
—
Stock option exercises...............
109
—
109
—
—
—
—
Employee stock purchases.........
75
—
21
—
—
54
—
BALANCE July 2, 2023 .......... $
211,024
$
75
$
100,309
$
234,299
$
(14,194)
$
(135,526)
$
26,061
Net income ..............................
16,428
—
—
16,313
—
—
115
Currency translation
adjustments ...........................
(2,794)
—
—
—
(1,688)
—
(1,106)
Pension and postretirement
funded status adjustment,
net of tax of $59.....................
193
—
—
—
193
—
—
Purchase of SPA Non-
controlling interest .................
(775)
—
(775)
—
—
—
Stock-based compensation.........
1,467
—
1,467
—
—
—
—
Employee stock purchases.........
72
1
23
—
—
48
—
BALANCE June 30, 2024........ $
225,615
$
76
$
101,024
$
250,612
$
(15,689)
$
(135,478)
$
25,070
The accompanying Notes to Financial Statements are an integral part of these Consolidated Statements of Shareholders’ Equity.

33
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
Years Ended
June 30, 2024
July 2, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)................................................................................................................
$
16,428
$
(8,949)
Adjustments to reconcile net income (loss) to net cash provided by operating
activities:
Equity loss (earnings) of joint ventures..........................................................................
331
(1,559)
Depreciation ...................................................................................................................
16,547
17,485
Foreign currency transaction (gain) loss ........................................................................
(2,153)
2,935
Loss on settlement of pension obligation.......................................................................
—
217
Deferred income taxes....................................................................................................
(4,711)
(4,937)
Stock-based compensation expense ...............................................................................
1,467
1,466
Change in operating assets and liabilities: .....................................................................
Receivables.................................................................................................................
(9,356)
(13,696)
Inventories..................................................................................................................
(4,052)
2,885
Other assets.................................................................................................................
(13,562)
(10,483)
Accounts payable and accrued liabilities ...................................................................
10,738
23,964
Other, net........................................................................................................................
588
767
Net cash provided by operating activities ......................................................................
12,265
10,095
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in joint ventures ...............................................................................................
—
(278)
Proceeds from Sale of interest in VAST LLC....................................................................
2,000
26,170
Purchase of VAST Korea net assets...................................................................................
—
354
Additions to property, plant and equipment.......................................................................
(9,788)
(17,370)
Proceeds received on sale of property, plant and equipment .............................................
—
25
Net cash (used in) provided by investing activities............................................................
(7,788)
8,901
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings under credit facilities......................................................................................
2,000
17,000
Repayments under credit facilities .....................................................................................
(2,000)
(15,000)
Purchase of SPA non-controlling interest ..........................................................................
—
(9,019)
Exercise of stock options and employee stock purchases..................................................
72
183
Dividends paid to non-controlling interests of subsidiaries...............................................
—
(600)
Net cash provided by (used in) financing activities ...........................................................
72
(7,436)
FOREIGN CURRENCY IMPACT ON CASH.................................................................
290
237
NET INCREASE IN CASH AND CASH
EQUIVALENTS................................................................................................................
4,839
11,797
CASH AND CASH EQUIVALENTS
Beginning of year...............................................................................................................
20,571
8,774
End of year .........................................................................................................................
$
25,410
$
20,571
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash Paid During the Period For:
Income taxes.......................................................................................................................
$
3,801
$
2,759
Interest................................................................................................................................
$
888
$
890
Non-Cash Investing Activities:
Purchase price receivable from sale of interest in VAST LLC..........................................
$
—
$
(2,000)
Change in capital expenditures in accounts payable..........................................................
$
171
$
(1,437)
The accompanying Notes to Financial Statements are an integral part of these Consolidated Statements of Cash Flows.

34
NOTES TO FINANCIAL STATEMENTS
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
STRATTEC SECURITY CORPORATION designs, develops, manufactures and markets automotive security, access control,
and user interface controls products and solutions. This includes mechanical locks and keys, electronically enhanced locks and keys,
passive entry passive start systems (PEPS), phone as a key systems (PaaK), steering column and instrument panel ignition lock
housings, latches, power sliding side door systems, power tailgate systems, power lift gate systems, power deck lid systems, door
handles steering wheel switches and controller, E-shifters, paddle switches and related products for primarily North American
automotive customers. We also previously supplied global automotive manufacturers through a strategic relationship with WITTE
Automotive (“WITTE”) of Velbert, Germany and ADAC Plastics Inc. (doing business as ADAC Automotive (“ADAC”), of Grand
Rapids, Michigan) called Vehicle Access Systems Technology LLC ("VAST LLC"), doing business as the VAST Automotive Group
(“VAST”). Under this unique strategic relationship, STRATTEC, WITTE and ADAC marketed the products of each company to
global customers under the “VAST Automotive Group” brand name. Effective as of June 30, 2023, STRATTEC sold its one-third
interest in VAST LLC to WITTE. As of the closing of the sale of its VAST LLC interest, STRATTEC entered into a strategic
preferred partner relationship with WITTE covering VAST LLC pursuant to the terms of a cooperation framework agreement that
enables STRATTEC to continue to market and rely on the global capabilities of VAST LLC. STRATTEC products are shipped to
customer locations in the United States, Canada, Mexico, Europe, South America, Korea, and China, and we, along with our partners,
provide full service and aftermarket support for each VAST Automotive Group partners’ products.
The accompanying consolidated financial statements reflect the consolidated results of STRATTEC SECURITY
CORPORATION, its wholly owned subsidiaries, STRATTEC de Mexico and STRATTEC POWER ACCESS LLC (“SPA”), and its
majority owned subsidiary, ADAC-STRATTEC, LLC. Effective June 30, 2023, SPA became a wholly owned subsidiary of
STRATTEC SECURITY CORPORAITON as a result of the purchase of the remaining non-controlling interest. Prior to June 30,
2023, STRATEC owned 80 percent of SPA. STRATTEC is headquartered in Milwaukee, Wisconsin. STRATTEC de Mexico is
located in Juarez, Mexico. ADAC-STRATTEC, LLC and SPA have operations in El Paso, Texas and in Juarez and Leon, Mexico. For
periods prior to June 30, 2023, the accompanying financial statements also reflect the results of our one-third equity investment in
VAST LLC for which we exercised significant influence but did not control and were not variable interest entities of STRATTEC.
VAST LLC was accounted for using the equity method and consisted primarily of four wholly owned subsidiaries in China, one
wholly owned subsidiary in Brazil and one joint venture entity in India. We have only one reporting segment.
Risks and Uncertainties: STRATTEC’s operating performance is subject to global economic conditions, inflationary
pressures and levels of consumer spending specifically within the automotive industry. In our fiscal year 2023, the inflationary
pressures negatively affected the areas of raw materials, purchased materials and wage rates in Mexico, resulting in increased raw
material and purchased part costs in the year. While our fiscal 2024 results reflect reduced raw material costs as compared to our fiscal
2023, inflationary pressures on purchased material and wage rates in Mexico persist and may continue to negatively impact our fiscal
2025 operating results.
Additionally, unforeseen global economic conditions may adversely impact our supply chain and our operations, including
impacting our customers, workforce and suppliers, any of which may continue to disrupt and limit sourcing of critical supply chain
components needed by us and our customers to meet expected production schedules. Moreover, these events may create added
inflationary pressures on our operations, including further increases in wages and the prices of raw materials and purchased parts. All
of these foregoing matters, including their scope and duration, are uncertain and cannot be predicted as to timing and cost impacts
upon our operations. These changing conditions may also affect the estimates and assumptions made by our management in our
financial statements. Such estimates and assumptions affect, among other things, our long-lived asset valuations, assessment of our
annual effective tax rate, valuation of deferred income taxes, assessment of excess and obsolete inventory reserves, and assessment of
collectability of trade receivables.
Significant Accounting Policies: The significant accounting policies followed in the preparation of these financial statements,
as summarized in the following paragraphs, are in conformity with accounting principles generally accepted in the United States of
America (U.S. GAAP).
Principles of Consolidation and Presentation: The accompanying consolidated financial statements include the accounts of
STRATTEC SECURITY CORPORATION, its wholly owned subsidiaries and its majority owned subsidiary. Equity investments for
which STRATTEC exercises significant influence but does not control and are not variable interest entities of STRATTEC are
accounted for using the equity method. All significant inter-company transactions and balances have been eliminated.
New Accounting Standards: In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses. The update
revises the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded.
Originally, the update was effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15,

35
2019, with early adoption permitted. In November 2019, FASB issued ASU 2019-10, Financial Instruments – Credit Losses,
Derivatives and Hedging, and Leases. This ASU defers the effective date of ASU 2016-13 for public companies that are considered
smaller reporting companies as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods
within those fiscal years. We adopted this standard in the first quarter of our fiscal 2024. The adoption of this pronouncement did not
have a material impact on our consolidated financial statements.
In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements - Codification Amendments in Response to the
SEC's Disclosure Update and Simplification Initiative. The update incorporates into the Codification several disclosures and
presentation requirements currently residing in SEC Regulations S-X and S-K. The effective date of ASU 2023-06 will be the date
that the SEC eliminates the corresponding disclosure requirement from Regulation S-X and Regulation S-K. All amendments must be
applied prospectively. The adoption of this pronouncement is not expected to have a material impact on our consolidated financial
statements.
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment
Disclosures. The update enhances annual and interim reportable segment disclosures primarily by requiring disclosures about
significant reportable segment expenses and provides new segment disclosure requirements for entities with a single reportable
segment. ASU 2023-07 is effective for public business entities for fiscal years beginning after December 15, 2023 and for interim
periods within fiscal years beginning after December 15, 2024, with early adoption permitted. This update is to be applied
retrospectively to all periods presented in the financial statements. As a result of this update, we will be required to provide single
reportable segment disclosure. Annual reporting under this update becomes effective for us in our fiscal 2025. Interim reporting under
this update becomes effective for us in our fiscal 2026. We are currently assessing the required disclosure impacts of this update.
In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. The update requires greater
disaggregation of income tax disclosures related to the income tax rate reconciliation and income taxes paid. ASU 2023-09 is effective
for public business entities for annual periods beginning after December 15, 2024, with early adoption permitted. This update is to be
applied on a prospective basis. Retrospective application is permitted. Annual reporting under this update becomes effective for us in
our fiscal 2026. We are currently assessing the required disclosure impacts of this update.
Subsequent Event: In August 2024, we entered into a peso forward contract providing for monthly settlements during the
period September 2024 through August 2025. The notional amount over the contract period totals $33.5 million with a weighted
average forward exchange rate of $19.73. Refer to the Derivative Instruments discussion below.
Fiscal Year: Our fiscal year ends on the Sunday nearest June 30. The years ended June 30, 2024 and July 2, 2023 are each
comprised of 52 weeks.
Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make
estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses for the periods presented.
These estimates and assumptions could also affect the disclosure of contingencies. Actual results and outcomes may differ from
management’s estimates and assumptions.
Cash and Cash Equivalents: Cash and cash equivalents include all short-term investments with an original maturity of three
months or less due to the short-term nature of the instruments. Excess cash balances are placed in money market funds comprised of
government agency securities, bank money market deposits and short-term certificates of deposit.
Derivative Instruments: We own and operate manufacturing operations in Mexico. As a result, a portion of our manufacturing
costs are incurred in Mexican pesos, which causes our earnings and cash flows to fluctuate due to changes in the U.S. dollar/Mexican
peso exchange rate. During 2023 and 2024, we had contracts with Bank of Montreal that provide for monthly Mexican peso currency
forward contracts for a portion of our estimated peso denominated operating costs. Our objective in entering into currency forward
contracts is to minimize our earnings volatility resulting from changes in exchange rates affecting the U.S. dollar cost of our Mexican
operations. The Mexican peso forward contracts are not used for speculative purposes and are not designated as hedges. As a result, all
currency forward contracts are recognized in our accompanying consolidated financial statements at fair value and changes in the fair
value are reported in current earnings as part of Other Income (Expense), net. No Mexican peso forward contracts were outstanding as
of June 30, 2024 or July 2, 2023.

36
The pre-tax effects of the Mexican peso forward contracts on the accompanying Consolidated Statements of Income (Loss) and
Comprehensive Income (Loss) consisted of the following (thousands of dollars):
Other Income (Expense), net
Years Ended
June 30, 2024
July 2, 2023
Not Designated as Hedging Instruments:
Realized and unrealized gain, net.......................................................... $
885
$
1,022
Fair Value of Financial Instruments: The fair value of our cash and cash equivalents, accounts receivable, accounts payable
and borrowings under our credit facilities approximated their book value as of June 30, 2024 and July 2, 2023. 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 for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques
used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. There is an
established fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last
unobservable. Level 1 – Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time
quotes for transactions in active exchange markets involving identical assets. Level 2 – Inputs, other than quoted prices included
within Level 1, which are observable for the asset or liability, either directly or indirectly. These are typically obtained from readily-
available pricing sources for comparable instruments. Level 3 – Unobservable inputs, where there is little or no market activity for the
asset or liability. These inputs reflect the reporting entity’s own assumptions of the data that market participants would use in pricing
the asset or liability, based on the best information available in the circumstances. The following table summarizes our financial assets
and liabilities measured at fair value on a recurring basis as of June 30, 2024 and July 2, 2023 (thousands of dollars):
June 30, 2024
July 2, 2023
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Assets:
Rabbi Trust assets:
Stock index funds:
Small cap ............................... $
84
$
—
$
—
$
84
$
161
$
—
$
—
$
161
Mid cap..................................
163
—
—
163
327
—
—
327
Large cap ...............................
349
—
—
349
492
—
—
492
International...........................
399
—
—
399
503
—
—
503
Fixed income funds ....................
458
—
—
458
1,022
—
—
1,022
Cash and cash equivalents..........
—
185
—
185
—
113
—
113
Total assets at fair value .... $ 1,453
$
185
$
—
$ 1,638
$ 2,505
$
113
$
—
$ 2,618
The Rabbi Trust assets fund our supplemental executive retirement plan and are included in Other Long-Term Assets in the
accompanying Consolidated Balance Sheets. The reduction in Rabbi trust assets between periods resulted from $1.2 million in assets
being moved from the trust in June 2024 related to a July 2024 settlement payment. Refer to discussion of Mexican peso forward
contracts under Derivative Instruments above.
Receivables: Receivables consist primarily of trade receivables due from Original Equipment Manufacturers in the automotive
industry and locksmith/dealership distributors relating to our service and aftermarket sales. We evaluate the collectability of
receivables based on a number of factors. An allowance for credit losses is recorded for significant past due receivable balances based
on a review of the past due items, general economic conditions (including with respect to the impact of the Ukraine conflict and the
supply chain disruptions on our customers) and the industry as a whole. The allowance for credit losses totaled $500,000 at June 30,
2024 and July 2, 2023.
Inventories: Inventories are comprised of material, direct labor and manufacturing overhead, and are stated at net realizable
value using the first-in, first-out (“FIFO”) cost method of accounting. Inventories consisted of the following (thousands of dollars):
June 30, 2024
July 2, 2023
Finished products ...................................................................................... $
19,833
$
15,935
Work in process.........................................................................................
15,461
15,816
Purchased materials...................................................................................
46,355
45,846
Inventories, net.......................................................................................... $
81,649
$
77,597

37
We record a reserve for excess and obsolete inventory based on historical and estimated future demand and market conditions.
The reserve level is determined by comparing inventory levels of individual materials and parts to historical usage and estimated
future sales by analyzing the age of the inventory in order to identify specific materials and parts that are unlikely to be sold. Technical
obsolescence and other known factors are also considered in evaluating the reserve level. The activity related to the excess and
obsolete inventory reserve was as follows (thousands of dollars):
Balance,
Beginning
of Year
Provision
Charged to
Expense
Amounts
Written Off /
(Recoveries)
Balance,
End of Year
Year ended June 30, 2024....................................................... $
7,115
$
1,887
$
1,222
$
7,780
Year ended July 2, 2023 ......................................................... $
5,489
$
1,457
$
(169) $
7,115
Customer Tooling in Progress: We incur costs related to tooling used in component production and assembly. Costs for
development of certain tooling, which will be directly reimbursed by the customer whose parts are produced from the tool, are
accumulated on the balance sheet and are then billed to the customer. The accumulated costs are billed upon formal acceptance by the
customer of products produced with the individual tool. Other tooling costs are not directly reimbursed by the customer. We capitalize
and amortize these other tooling costs over the life of the related product based on the fact that the related tool will be used over the
life of the supply arrangement. To the extent that estimated costs exceed expected reimbursement from the customer we recognize a
loss.
Value-Added Tax: Our Mexican entities are subject to value-added tax ("VAT"). VAT is paid on goods and services and
collected on sales. A VAT certification generally allows for relief from VAT tax for temporarily imported goods. Our VAT
recoverable and payable balances were increased as of July 2, 2023 due to several monthly VAT tax periods being open to audit by the
Mexican tax authority. As of June 30, 2024, the audits for periods prior to July 2023 have been closed. VAT recoverable balances
increased $11.8 million during 2024 mostly due to a temporary issue with our VAT certification. Although the certification issue was
resolved during our December 2023 quarter, we were required to pay VAT on all parts temporarily imported into Mexico before
seeking reimbursement for periods in which the certification issue was outstanding, which periods are now open to audit with the
Mexican tax authority along with all periods subsequent to resolution of the certification issue. VAT payable balances increased $3.5
million during 2024 mostly due to all periods subsequent to resolution of the VAT certificate issue being open to audit. We believe
temporary increases in the VAT recoverable and payable balances will remain elevated until the periods under audit are closed.
Property, Plant and Equipment: Property, plant and equipment are stated at cost. Property, plant and equipment are
depreciated on a straight-line basis over the estimated useful lives of the assets as follows:
Classification
Expected
Useful Lives
Land improvements ....................................................................................................
20 years
Buildings and improvements ......................................................................................
15 to 35 years
Machinery and equipment ..........................................................................................
3 to 15 years
Property, plant and equipment consisted of the following (thousands of dollars):
June 30, 2024
July 2, 2023
Land and improvements............................................................................ $
6,697
$
6,963
Buildings and improvements.....................................................................
39,927
41,218
Machinery and equipment.........................................................................
258,622
251,995
305,246
300,176
Less: accumulated depreciation ................................................................
(219,062)
(205,730)
$
86,184
$
94,446
Depreciation expense was as follows for the periods indicated (thousands of dollars):
Fiscal Year
Depreciation
Expense
2024 .................................................................................................................................
$
16,547
2023 .................................................................................................................................
$
17,485

38
The gross and net book value of property, plant and equipment located outside of the United States, primarily in Mexico, were
as follows (thousands of dollars):
June 30, 2024
July 2, 2023
Gross book value....................................................................................... $
180,566
$
178,592
Net book value .......................................................................................... $
61,308
$
68,240
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount
of an asset may not be recoverable. If such indicators are present, the recoverability of assets to be held and used is assessed by a
comparison of the carrying amount of an asset to future net undiscounted cash flows expected to be generated by the asset. If an asset
is determined to not be recoverable, the impairment recognized is calculated as the excess of the carrying amount of the asset over the
fair value of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less estimated costs to
sell. There were no impairments recorded in the years ended June 30, 2024 or July 2, 2023.
Expenditures for repairs and maintenance are charged to expense as incurred. Expenditures for major renewals and betterments,
which significantly extend the useful lives of existing plant and equipment, are capitalized and depreciated. Upon retirement or
disposition of plant and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting
gain or loss is recognized in income.
Leases: Our right-of-use operating lease assets are recorded at the present value of future minimum lease payments, net of
amortization. We have an operating lease for our El Paso, Texas finished goods and service parts distribution warehouse. This lease
has a current lease term through December 2028 and does not include any options to extend the lease term beyond such timeframe.
We have two operating leases for office space at our Korean branch office. Both of these leases have a lease term through July 1, 2024
with automatic renewal. For purposes of calculating operating lease obligations, we included an extension of four years after July 1,
2024 as it is reasonably certain that we will exercise such automatic renewals. Our leases do not contain material residual value
guarantees or restrictive covenants. Operating lease expense is recognized on a straight-line basis over the lease term.
As the lease does not provide an implicit rate, we used our incremental borrowing rate at lease commencement to determine the
present value of our lease payments. The incremental borrowing rate is an entity-specific rate which represents the rate of interest we
would pay to borrow over a similar term with similar payments.
The operating lease asset and obligation related to our operating leases included in the accompanying Consolidated Balance
Sheets are presented below (thousands of dollars):
June 30, 2024
July 2, 2023
Right-of-Use Asset Under Operating Lease:
Other Long-Term Assets .................................................................................... $
3,801
$
4,465
Lease Obligation Under Operating Lease:
Current Liabilities: Accrued Liabilities: Other................................................... $
744
$
465
Other Long-Term Liabilities...............................................................................
3,390
4,000
$
4,134
$
4,465
Future minimum lease payments, by our fiscal year, including options to extend that are reasonably certain to be exercised,
under the non-cancelable leases are as follows as of June 30, 2024 (thousands of dollars):
2025 ...................................................................................................................................................
$
979
2026 ...................................................................................................................................................
1,026
2027 ...................................................................................................................................................
1,075
2028 ...................................................................................................................................................
1,127
Thereafter...........................................................................................................................................
558
Total Future Minimum Lease Payments ...........................................................................................
4,765
Less: Imputed Interest ...................................................................................................................
(631)
Total Lease Obligations.....................................................................................................................
$
4,134

39
Cash flow information related to the operating leases is shown below (thousands of dollars):
Years Ended
June 30, 2024
July 2, 2023
Operating Cash Flows:
Cash Paid Related to Operating Lease Obligation.............................................. $
769
$
497
The weighted average remaining lease term and discount rate for our operating leases are shown below:
June 30, 2024
July 2, 2023
Weighted Average Remaining Lease Term, (in years)............................................
4.5
5.5
Weighted Average Discount Rate............................................................................
6.2%
6.2%
Operating lease expense for the years ended June 30, 2024 and July 2, 2023 totaled $989,000 and $497,000, respectively.
Supplier Concentrations: The following inventory purchases were made from major suppliers with purchases in excess of 2.5
percent of total purchases during each fiscal year noted:
Fiscal Year
Percentage of
Inventory
Purchases
Number of
Suppliers
2024 .........................................................................................................................
30%
4
2023 .........................................................................................................................
39%
6
We have long-term contracts or arrangements with most of our suppliers to assist in guaranteeing the availability of raw
materials and component parts.
Labor Concentrations: We had approximately 3,365 full-time associates as of June 30, 2024. Approximately 170 or 5.1
percent of our full time associates were represented by a labor union at June 30, 2024 at our Milwaukee facility, which associates
account for all production associates at our Milwaukee, WI facility. The current contract with our Milwaukee unionized associates is
effective through November 1, 2025. Additionally, approximately 152 or 4.5 percent of our full time associates were represented by a
labor union at our Leon, Mexico facility. The current contract with our Leon unionized associates is effective through April 8, 2025.
Revenue Recognition: 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 are 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 periods referenced in our
accompanying financial statements and significant changes to our estimates of variable consideration are not expected in future
periods.

40
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
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss). Shipping and handling costs are accounted for as
fulfillment costs and are included in Cost of Goods Sold in the accompanying Consolidated Statements of Income (Loss) and
Comprehensive Income (Loss).
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 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 credit losses 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 had no material contract assets or contract liabilities as of June 30, 2024 or July 2, 2023.
Product Sales and Sales and Receivable Concentration:
Refer to Product Sales and Sales and Receivable Concentration included herein for revenue by product group and revenue by
customer.
Research and Development Costs: Expenditures relating to the development of new products and processes, including
significant improvements and refinements to existing products, are expensed as incurred. Research and development expenditures
were approximately $14.8 million in 2024 and $15.9 million in 2023.
Other Income (Expense), Net: Net other income (expense) included in the accompanying Consolidated Statements of Income
(Loss) and Comprehensive Income (Loss) primarily included foreign currency transaction gains and losses, realized and unrealized
gains and losses on our Mexican peso currency forward contracts, the components of net periodic benefit cost other than the service
cost component related to our pension and postretirement plans and Rabbi Trust gains and losses. Foreign currency transaction gains
and losses resulted from activity associated with foreign denominated assets and liabilities held by our Mexican subsidiaries. The
Rabbi Trust assets fund our amended and restated supplemental executive retirement plan. The investments held in the Trust are
considered trading securities. We entered into the Mexican peso currency forward contracts during fiscal 2024 and 2023 to reduce
earnings volatility resulting from changes in exchange rates affecting the U.S. dollar cost of our Mexican operations. Pension and
postretirement plan costs include the components of net periodic benefit cost other than the service cost component. The impact of
these items for the periods presented was as follows (thousands of dollars):
Years Ended
June 30, 2024
July 2, 2023
Foreign currency transaction gain (loss).................................................................. $
2,153
$
(2,935)
Rabbi Trust Assets gain ...........................................................................................
211
202
Realized and unrealized gain on Mexican peso forward contracts, net...................
885
1,022
Pension and postretirement plans cost.....................................................................
(395)
(722)
Other ........................................................................................................................
194
255
$
3,048
$
(2,178)

41
Warranty Reserve: We have a warranty reserve recorded related to our known and potential exposure to warranty claims in the
event our products fail to perform as expected, and in the event we may be required to participate in the repair costs incurred by our
customers for such products. The recorded warranty reserve balance involves judgment and estimates. Our reserve estimate is based
on an analysis of historical warranty data as well as current trends and information received from our customers. During 2024 and
2023, we recorded warranty provisions associated with customer-specific warranty claims involving our product. As additional
information becomes available, actual results may differ from recorded estimates, which may require us to adjust the amount of our
warranty provision.
Changes in the warranty reserve were as follows (thousands of dollars):
Balance,
Beginning
of Year
Provision
Charged
to Expense
Payments
Balance,
End of Year
Year ended June 30, 2024....................................................... $
9,725
$
2,608
$
1,638
$
10,695
Year ended July 2, 2023.......................................................... $
8,100
$
2,405
$
780
$
9,725
Foreign Currency Translation: The financial statements of our foreign subsidiaries are translated into U.S. dollars using the
exchange rate at each balance sheet date for assets and liabilities and the average exchange rate for each applicable period for sales,
costs and expenses. Foreign currency translation adjustments are included as a component of accumulated other comprehensive loss.
Foreign currency transaction gains and losses are included in other income (expense), net in the accompanying Consolidated
Statements of Income (Loss) and Comprehensive Income (Loss).
Accumulated Other Comprehensive Loss (“AOCL”): The following tables summarize the changes in AOCL for the years
ended June 30, 2024 and July 2, 2023 (thousands of dollars):
Year Ended June 30, 2024
Foreign
Currency
Translation
Adjustments
Retirement
and
Postretirement
Plans
Total
Balance July 2, 2023 ............................................................... $
13,028
$
1,166
$
14,194
Other comprehensive loss before reclassifications .............
2,794
(10)
2,784
Income Tax..................................................................
—
2
2
Net other comprehensive loss before
reclassifications............................................................
2,794
(8)
2,786
Reclassifications:
Actuarial losses (A).........................................................
—
(242)
(242)
Total reclassifications before tax.....................................
—
(242)
(242)
Income Tax..................................................................
—
57
57
Net reclassifications ........................................................
-
(185)
(185)
Other comprehensive loss ...................................................
2,794
(193)
2,601
Other comprehensive loss attributable
to non-controlling interest...........................................
1,106
—
1,106
Balance June 30, 2024............................................................. $
14,716
$
973
$
15,689

42
Year Ended July 2, 2023
Foreign
Currency
Translation
Adjustments
Retirement
and
Postretirement
Plans
Total
Balance July 3, 2022 ............................................................... $
16,733
$
1,855
$
18,588
Other comprehensive income before reclassifications........
(4,698)
(559)
(5,257)
Income Tax..................................................................
(636)
132
(504)
Net other comprehensive income before
reclassifications............................................................
(5,334)
(427)
(5,761)
Reclassifications:
Sale of interest in VAST LLC.........................................
(830)
—
(830)
Actuarial losses (A).........................................................
—
(342)
(342)
Total reclassifications before tax ....................................
(830)
(342)
(1,172)
Income Tax..................................................................
—
80
80
Net reclassifications ........................................................
(830)
(262)
(1,092)
Other comprehensive income..............................................
(6,164)
(689)
(6,853)
Other comprehensive income attributable
to non-controlling interest...........................................
(2,459)
—
(2,459)
Balance July 2, 2023 ............................................................... $
13,028
$
1,166
$
14,194
(A)
Amounts reclassified are included in the computation of net periodic benefit cost, which is included in Other Income (Expense),
net in the accompanying Consolidated Statements of Income (Loss) and Comprehensive Income (Loss). See Retirement Plans
and Postretirement Costs note to these Notes to Financial Statements below.
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. The Board of Directors has designated 2,250,000 shares of common
stock available for the grant of awards under the plan. Remaining shares available to be granted under the plan as of June 30, 2024
were 361,085. Awards that expire or are cancelled 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 the 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 our 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. Shares of restricted stock granted
under the plan are subject to vesting criteria determined by the Compensation Committee of our Board of Directors at the time the
shares are granted and have a minimum vesting period of one year from the date of grant. 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 issued vest 1 to 3 years after the date of grant.
No stock options were granted during 2024 or 2023, and all compensation cost related to previously granted options was
recognized prior to 2023. Accordingly, no compensation cost related to stock options was recorded during 2024 or 2023. 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 is amortized on a straight-line basis over the vesting period. We record stock based compensation only for
those awards that are expected to vest.
Unrecognized compensation cost as of June 30, 2024 related to restricted stock granted under the plan was as follows (thousands
of dollars):
Compensation
Cost
Weighted Average
Period over
which Cost is to be
Recognized
(in years)
Restricted stock granted.......................................................................... $
930
0.9
Unrecognized compensation cost will be adjusted for any future changes in estimated and actual forfeitures.

43
Cash received from stock option exercises and the related income tax benefit were as follows (thousands of dollars):
Fiscal Year
Cash Received
from
Stock Option
Exercises
Income Tax
Benefit
2024......................................................................................................... $
—
$
—
2023......................................................................................................... $
109
$
—
The intrinsic value of stock options exercised and the fair value of options vested were as follows (thousands of dollars):
Years Ended
June 30, 2024
July 2, 2023
Intrinsic value of options exercised .......................................................... $
—
$
31
Fair value of stock options vested............................................................. $
—
$
—
Options outstanding as of June 30, 2024 were as follows:
Number of
Options
Outstanding and
Exercisable
Weighted
Average
Exercise Price
Outstanding and
Exercisable
Weighted
Average
Remaining
Contractual
Life Outstanding
(In Years)
$79.73.................................................................................
8,070
$
79.73
0.13
Income Taxes: Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are
recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and
liabilities and their respective tax bases and operating loss carry-forwards. Deferred tax assets and liabilities are measured using
enacted tax rates expected to apply to taxable income in years in which those temporary differences are expected to be recovered,
settled or utilized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that
includes the enactment date. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax
benefit will not be realized. We recognize the benefit of an income tax position only if it is more likely than not (greater than 50
percent) that the tax position will be sustained upon tax examination, based solely on the technical merits of the tax position.
Otherwise, no benefit is recognized. The tax benefits recognized are measured based on the largest benefit that has a greater than 50
percent likelihood of being realized upon ultimate settlement. Additionally, we accrue interest and related penalties, if applicable, on
all tax exposures for which reserves have been established consistent with jurisdictional tax laws. Interest and penalties on uncertain
tax positions are classified in the (Benefit) Provision for Income Taxes in the accompanying Consolidated Statements of Income
(Loss) and Comprehensive Income (Loss).
INVESTMENT IN JOINT VENTURES AND MAJORITY OWNED SUBSIDIARIES
ADAC-STRATTEC LLC, a Delaware limited liability company, was formed in fiscal year 2007 to support injection molding
and door handle assembly operations in Mexico. For all periods presented in this report, ADAC-STRATTEC LLC was 51 percent
owned by STRATTEC and 49 percent owned by ADAC Automotive (“ADAC”). ADAC, of Grand Rapids, Michigan, is a privately
held automotive supplier and manufactures engineered products, including door handles and other automotive trim parts, utilizing
plastic injection molding, automated painting and various assembly processes. An additional Mexican entity, ADAC-STRATTEC de
Mexico, is wholly owned by ADAC-STRATTEC LLC. ADAC-STRATTEC LLC’s financial results are consolidated with the
financial results of STRATTEC. ADAC-STRATTEC LLC net sales and net income to STRATTEC totaled approximately $135.9
million and $147,000, respectively, in 2024. ADAC-STRATTEC LLC net sales and net loss to STRATTEC totaled approximately
$121.9 million and $2.1 million, respectively, in 2023.

44
ADAC charges ADAC STRATTEC LLC an engineering, research and design fee as well as a sales fee. Such fees are calculated
as a percentage of net sales and are included in the consolidated results of STRATTEC. Additionally, ADAC-STRATTEC LLC sells
production parts to ADAC. Sales to ADAC are included in the consolidated results of STRATTEC. The following table summarizes
these related party transactions for the periods indicated below (in thousands):
Years Ended
June 30, 2024
July 2, 2023
Engineering, research and design fee charged to
ADAC-STRATTEC LLC.........................................$
9,511
$
8,533
Sales to ADAC ............................................................$
9,718
$
12,198
Years Ended
June 30, 2024
July 2, 2023
Accounts receivable due from ADAC.........................$
833
$
3,903
Accounts payable to ADAC ........................................$
1,679
$
4,928
STRATTEC POWER ACCESS LLC (“SPA”) was formed in fiscal year 2009 to supply the North American portion of the
power sliding door, lift gate, tail gate and deck lid system access control products which were acquired from Delphi Corporation. Prior
to June 30, 2023, SPA was 80 percent owned by STRATTEC and 20 percent owned by WITTE. WITTE, of Velbert, Germany, is a
privately held automotive supplier that designs, manufactures and markets automotive components, including locks and keys, hood
latches, rear compartment latches, seat back latches, door handles and specialty fasteners. Effective June 30, 2023, we entered into and
completed transactions contemplated by an Equity Restructuring Agreement ("Restructuring Agreement") between STRATTEC and
WITTE. As a result, STRATTEC purchased the remaining 20 percent interest in SPA, and SPA became a wholly owned subsidiary of
STRATTEC. The restructuring agreement is discussed further below. An additional Mexican entity, STRATTEC POWER ACCESS
de Mexico, is wholly owned by SPA. The financial results of SPA are consolidated with the financial results of STRATTEC.
Prior to June 30, 2023, we participated in certain Alliance Agreements with WITTE and ADAC. Additionally, a joint venture
company, Vehicle Access Systems Technology LLC (“VAST LLC”), in which WITTE, STRATTEC and ADAC each held a one-third
equity interest, existed to seek opportunities to manufacture and sell each company’s products in areas of the world outside of North
America and Europe. VAST LLC had investments in China, Brazil, and India with sales and engineering branch offices in South
Korea and Japan. Due to these relationships, STRATTEC purchased $839,000 of component parts from WITTE in 2023. STRATTEC
also paid WITTE a royalty of $528,000 in 2023 related to certain latch product sales. WITTE was no longer a related party as of June
30, 2023.
As a result of the Restructuring Agreement, STRATTEC sold its one-third interest in VAST LLC to WITTE and STRATTEC
purchased WITTE's 20 percent non-controlling interest in SPA along with the net assets of VAST LLC's Korea branch office. The net
purchase price payable from WITTE to STRATTEC was $18.5 million, of which $16.5 million was paid on June 30, 2023 and $2
million was paid in July 2023. The $2 million paid in July 2023 was included in other current assets in the accompanying
Consolidated Balance Sheet as of July 2, 2023. The allocation of the $18.5 million net purchase price was as follows (millions of
dollars):
Cash Received (Paid)
Sale of STRATTEC's one-third ownership interest in VAST LLC............................
$
28.2
Purchase of 20 percent non-controlling interest in SPA.............................................
(9.0)
Purchase of net assets of VAST LLC's Korean branch office....................................
(0.7)
Net purchase price received by STRATTEC..............................................................
$
18.5
The Restructuring Agreement positions STRATTEC to redeploy assets, both financial and technical, to create greater focus on
STRATTEC-specific strategic growth opportunities in North America and around the world. This transaction allows STRATTEC to
be well-positioned to take advantage of new opportunities, including more of our product applications on Electric Vehicles, growing
consumer demand for Power Access products, expansion of electronics capabilities and other new automotive products. It also gives
us greater resources to further explore diversification of markets, complimentary technology and regions outside of North America. As
part of the Restructuring Agreement, STRATTEC also entered into a cooperation framework agreement with WITTE related to VAST
LLC which provides a framework for the parties to collaborate on global programs related to product development and manufacturing.

45
Prior to the Restructuring Agreement, VAST LLC investments were accounted for using the equity method of accounting. The
activities of VAST LLC resulted in equity loss of joint ventures to STRATTEC of $331,000 during 2024, which loss was the result of
additional professional fees incurred related to the Restructuring Agreement. The current year loss is an adjustment to our 2023 gain
on sale of VAST LLC of $110,000. Our accumulated loss on sale of VAST LLC totals $221,000 as of June 30, 2024. The activities of
VAST LLC resulted in equity earnings of joint ventures to STRATTEC of approximately $1.6 million during 2023. STRATTEC's
2023 equity earnings also includes STRATTEC's one-third share of a loss on disposal of Brazil, which totaled $531,000. During 2023,
capital contributions totaling $834,000 were made to VAST LLC for purposes of funding operations in Brazil with STRATTEC's
portion of such capital contributions totaling $278,000. As of June 30, 2023, STRATTEC had no continuing involvement in VAST
LLC. See further discussion under Equity (Loss) Earnings of Joint Ventures included in Notes to Financial Statements herein.
EQUITY (LOSS) EARNINGS OF JOINT VENTURES
As discussed above within Investment in Joint Ventures and Majority Owned Subsidiaries, effective June 30, 2023, we sold our
one-third ownership interest in VAST LLC, for which we exercised significant influence but did not control. VAST LLC was not a
variable interest entity of STRATTEC. Until the effective date of the sale, our investment in VAST LLC was accounted for using the
equity method. The results of the VAST LLC foreign subsidiaries and joint venture were reported on a one-month lag basis.
As a result of the Restructuring Agreement, STRATTEC no longer held an ownership interest in VAST LLC as of July 2, 2023.
The following are summarized statements of operations for VAST LLC (thousands of dollars):
Years Ended
June 30, 2024
July 2, 2023
Net sales................................................................................................................... $
—
$
207,362
Cost of goods sold....................................................................................................
—
171,851
Gross profit ..........................................................................................................
—
35,511
Engineering, selling and administrative expense.....................................................
—
31,302
Income from operations.......................................................................................
—
4,209
Other income, net.....................................................................................................
—
2,304
Loss on disposal of investment in Brazil.................................................................
—
(1,592)
Income before provision for income taxes ..........................................................
—
4,921
Provision for income taxes ......................................................................................
—
672
Net income........................................................................................................... $
—
$
4,249
STRATTEC’s share of VAST LLC net income...................................................... $
—
$
1,416
Intercompany profit eliminations.............................................................................
—
33
STRATTEC’s equity earnings of VAST LLC
prior to loss on sale ..............................................................................................
—
1,449
(Loss) gain on sale of VAST LLC .....................................................................
(331)
110
STRATTEC's equity (loss) earnings of VAST LLC....................................... $
(331)
$
1,559
We had sales of component parts to VAST LLC, purchases of component parts from VAST LLC, expenses charged to VAST
LLC for engineering and accounting services and expenses charged from VAST LLC to STRATTEC for general headquarter
expenses. As a result of the Restructuring Agreement, STRATTEC no longer held an ownership interest in VAST LLC as of July, 2,
2023. The following tables summarize the related party transactions with VAST LLC for the periods indicated (thousands of dollars):
Years Ended
June 30, 2024
July 2, 2023
Sales to VAST LLC ................................................................................. $
—
$
64
Purchases from VAST LLC ..................................................................... $
—
$
49
Expenses charged to VAST LLC ............................................................. $
—
$
382
Expenses charged from VAST LLC ........................................................ $
—
$
761

46
CREDIT FACILITIES
STRATTEC has a $40 million secured revolving credit facility (the “STRATTEC Credit Facility”) with BMO Harris Bank N.A.
ADAC-STRATTEC LLC has a $20 million secured revolving credit facility (the “ADAC-STRATTEC Credit Facility”) with BMO
Harris Bank N.A., which is guaranteed by STRATTEC. The ADAC-STRATTEC Credit Facility borrowing limit decreases to $18
million on August 1, 2025. The credit facilities both expire August 1, 2026. Borrowings under either credit facility are secured by our
U.S. cash balances, accounts receivable, inventory, and fixed assets located in the U.S. Interest on borrowings under the STRATTEC
Credit Facility were at varying rates based, at our option, on the bank's prime rate or LIBOR plus 1.25 percent through February 22,
2023, SOFR plus 1.35 percent for the period February 23, 2023 through September 5, 2023, and SOFR plus 1.85 percent subsequent
to September 5, 2023. Interest on borrowings under the ADAC-STRATTEC Credit Facility were at varying rates based, at our option,
on the bank's prime rate with no interest rate margin through May 30, 2024 and a 2 percent interest rate margin subsequent to May 30,
2024 or LIBOR plus 1.25 percent through February 6, 2023, SOFR plus 1.35 percent for the period February 7, 2023 through May 30,
2024, and SOFR plus 3.10 percent subsequent to May 30, 2024. 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 June 30, 2024,
we were in compliance with all financial covenants required by these credit facilities.
Outstanding borrowings under the credit facilities referenced in the above paragraph as of the end of 2024 and 2023 were as
follows (thousands of dollars):
June 30, 2024
July 2, 2023
STRATTEC Credit Facility..................................................................................... $
—
$
—
ADAC-STRATTEC Credit Facility ........................................................................
13,000
13,000
$
13,000
$
13,000
Average outstanding borrowings and the weighted average interest rate under each such credit facility during 2024 and 2023
were as follows (thousands of dollars):
Average Outstanding
Borrowings
Weighted Average
Interest Rate
Years Ended
Years Ended
June 30, 2024
July 2, 2023
June 30, 2024
July 2, 2023
STRATTEC Credit Facility..................................................... $
33
$
5,365
8.5%
5.7%
ADAC-STRATTEC Credit Facility........................................ $
13,000
$
12,426
6.8%
5.3%
We believe that the credit facilities referenced above are adequate, along with existing cash balances and cash flow from
operations, to meet our anticipated capital expenditure, working capital, dividend and operating expenditure requirements.
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 the consolidated financial position, results of
operations or cash flows of STRATTEC. With respect to warranty matters, although we cannot ensure that the future costs of warranty
claims by customers will not be material, we believe our established reserves are adequate to cover potential warranty settlements.
In 1995, we recorded a provision for estimated costs to remediate an environmental contamination site at our Milwaukee
facility. The facility was contaminated by a solvent spill, which occurred in 1985, from a former above ground solvent storage tank
located on the east side of the facility. The reserve was originally established based on third party estimates to adequately cover the
cost for active remediation of the contamination. Due to changing technology and related costs associated with active remediation of
the contamination, in fiscal years 2010, 2016, and 2021, we obtained updated third party estimates of projected costs to adequately
cover the cost for active remediation of this contamination and adjusted the reserve as needed. We monitor and evaluate the site with
the use of these groundwater monitoring wells. An environmental consultant samples these wells one or two times a year to determine
the status of the contamination and the potential for remediation of the contamination by natural attenuation, the dissipation of the
contamination over time to concentrations below applicable standards. If such sampling evidences a sufficient degree of and trend
toward natural attenuation of the contamination at the site, we may be able to obtain a closure letter from the regulatory authorities
resolving the issue without the need for active remediation. If a sufficient degree and trend toward natural attenuation is not evidenced
by sampling, a more active form of remediation beyond natural attenuation may be required. The sampling has not yet satisfied all of
the requirements for closure by natural attenuation. As a result, sampling continues and the reserve remains at an amount to reflect our

47
estimated cost of active remediation. The reserve is not measured on a discounted basis. We believe, based on findings-to-date and
known environmental regulations, that the environmental reserve of $1.4 million at June 30, 2024 is adequate.
At June 30, 2024, we had purchase commitments related to zinc. We also had minimum rental commitments under non-
cancelable operating leases with a term in excess of one year. The purchase and minimum rental commitments are payable as follows
(thousands of dollars):
Purchase
Minimum Rental
Fiscal Year
Commitments
Commitments
2025........................................................................................................................ $
3,669
$
979
2026........................................................................................................................ $
—
$
1,026
2027........................................................................................................................ $
—
$
1,075
2028........................................................................................................................ $
—
$
1,127
Thereafter............................................................................................................... $
—
$
558
INCOME TAXES
The provision for income taxes consisted of the following (thousands of dollars):
Years Ended
June 30, 2024
July 2, 2023
Currently payable (recoverable):
Federal ................................................................................................................. $
4,466
$
1,035
State .....................................................................................................................
619
401
Foreign.................................................................................................................
3,401
4,782
8,486
6,218
Deferred tax provision .............................................................................................
(4,711)
(4,937)
$
3,775
$
1,281
The 2024 and 2023 federal provisions for income taxes excluded deductions of $16.7 million and $22.0 million, respectively, in
research and development costs that are deductible in future periods as the costs were included in the deferred tax provisions of the
respective periods. The 2023 federal provision also included $6.0 million of capital losses on the sale of our interest in VAST LLC.
The 2023 foreign provision for income taxes included $2.2 million of China non-resident capital gain tax related to the sale of our
interest in VAST LLC. Foreign income before the provision for income taxes was $8.4 million in 2024 and $3.1 million in 2023.
The items accounting for the difference between income taxes computed at the federal statutory tax rate and the provision for
income taxes were as follows:
Years Ended
June 30, 2024
July 2, 2023
U.S. statutory rate ...................................................................................................
21.0%
21.0%
State taxes, net of federal tax benefit .......................................................................
2.7
4.7
Foreign subsidiaries ................................................................................................
5.4
—
China non-resident capital gain tax..........................................................................
(1.6)
(28.7)
U.S. tax impact on sale of VAST LLC....................................................................
—
(9.7)
Valuation allowance................................................................................................
2.6
(18.8)
Return to provision adjustment................................................................................
(6.1)
2.1
Global intangible low-taxed income........................................................................
—
(8.0)
Research and development tax credit.......................................................................
(8.1)
19.4
Non-controlling interest ..........................................................................................
2.3
4.0
Uncertain tax positions............................................................................................
—
(1.7)
Stock-based compensation ......................................................................................
0.7
0.3
Other ......................................................................................................................
(0.2)
(1.3)
18.7%
(16.7%)

48
Impacts of the sale of our one-third interest in VAST LLC on our 2023 effective rate included the China non-resident capital
gain tax, the U.S. tax impact on the sale of VAST LLC, and the capital loss carryforward valuation allowance. As discussed above, the
2023 foreign provision for income taxes includes $2.2 million of China non-resident capital gain tax related to the sale of our interest
in VAST LLC. The U.S. tax impact of the sale of VAST LLC was the result of the tax gain recognized. The valuation allowance, as
discussed further below, was generated by our assessment of the future realization of the capital losses realized on the VAST LLC
sale. The change in the research and development tax credit on the effective rate between periods is due to book pre-tax income in the
current year as compared to book pre-tax loss in the prior year.
The components of deferred tax (liabilities) assets were as follows (thousands of dollars):
June 30, 2024
July 2, 2023
Unrecognized pension and postretirement benefit
plan liabilities........................................................................................................ $
296
$
368
Accrued warranty.....................................................................................................
2,319
2,255
Payroll-related accruals............................................................................................
4,769
4,094
Research and development costs .............................................................................
8,598
5,541
Capital loss carryforward related to sale of interest in VAST LLC ........................
1,677
1,403
Stock-based compensation.......................................................................................
281
414
Inventory reserve .....................................................................................................
1,712
1,633
Environmental reserve .............................................................................................
313
327
Repair and maintenance supply parts reserve..........................................................
215
222
Allowance for credit losses......................................................................................
113
118
Lease Liability .........................................................................................................
931
1,049
Right of Use Assets..................................................................................................
(856)
(1,049)
Credit carry-forwards...............................................................................................
1,899
1,628
Postretirement obligations .......................................................................................
104
64
Accumulated depreciation .......................................................................................
(3,455)
(4,387)
Accrued pension obligations....................................................................................
444
415
Joint ventures ...........................................................................................................
440
47
Other ........................................................................................................................
362
1,078
20,162
15,220
Valuation allowance ................................................................................................
(2,569)
(1,601)
Net deferred tax assets ............................................................................................. $
17,593
$
13,619
Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities
and their tax basis and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered.
Foreign tax credit carry-forwards at June 30, 2024 resulted in future benefits of approximately $1.4 million and expire between
2031 and 2041. A valuation allowance related to the federal credit carry-forwards of $692,000 has been recorded as of June 30, 2024
as we currently do not anticipate having sufficient foreign sourced income to utilize these credit carry-forwards. State credit carry-
forwards at June 30, 2024 resulted in future benefits of approximately $541,000 and expire at varying times between 2025 and 2032.
A valuation allowance of $155,000 has been recorded as of June 30, 2024, due to our assessment of the future realization of certain
state credit carry-forward benefits. We do not currently anticipate having sufficient state taxable income to offset these credit carry-
forwards. A valuation allowance of $1.7 million has been recorded as of June 30, 2024 due to our assessment of the future realization
of the capital loss carryforward related to the sale of VAST LLC. We do not currently anticipate having capital gains in future taxable
years to offset the capital loss carryforward.
The total liability for unrecognized tax benefits was $1.6 million as of both June 30, 2024 and July 2, 2023 and was included in
Other Long-term Liabilities in the accompanying Consolidated Balance Sheets. This liability includes $1.4 million of unrecognized
tax benefits at both June 30, 2024 and July 2, 2023. The liability includes $150,000 of accrued interest at June 30, 2024 and $162,000
at July 2, 2023. This liability does not include an amount for accrued penalties. The amount of unrecognized tax benefits that, if
recognized, would affect the effective tax rate was approximately $1.2 million at June 30, 2024 and $1.1 million at July 2, 2023. We
recognize interest and penalties related to unrecognized tax benefits in the provision for income taxes.

49
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years ended June 30,
2024 and July 2, 2023 (thousands of dollars):
Years Ended
June 30, 2024
July 2, 2023
Unrecognized tax benefits, beginning of year ......................................................... $
1,395
$
1,314
Gross increases – tax positions in prior years..........................................................
41
50
Gross decreases – tax positions in prior years .........................................................
(59)
—
Gross increases – current period tax positions.........................................................
427
385
Tax years closed.......................................................................................................
(387)
(354)
Unrecognized tax benefits, end of year ................................................................... $
1,417
$
1,395
We or one of our subsidiaries files income tax returns in the United States (federal), Wisconsin (state), Michigan (state) and
various other states, Mexico and other foreign jurisdictions. Tax years open to examination by tax authorities under the statute of
limitations include fiscal 2021 through 2024 for federal, fiscal 2020 through 2024 for most states and calendar 2019 through 2023 for
foreign jurisdictions.
RETIREMENT PLANS AND POSTRETIREMENT COSTS
We have a noncontributory Supplemental Executive Retirement Plan (“SERP”), which is a nonqualified defined benefit plan.
The SERP is funded through a Rabbi Trust with TMI Trust Company. Under the SERP, as amended December 31, 2013, participants
received an accrued lump-sum benefit as of December 31, 2013 which was credited to each participant’s account. Subsequent to
December 31, 2013, each eligible participant receives a supplemental retirement benefit equal to the foregoing lump-sum benefit, plus
an annual benefit accrual equal to 8 percent of the participant’s base salary and cash bonus, plus annual credited interest on the
participant’s account balance. All then current participants as of December 31, 2013 are fully vested in their account balances with any
new individuals participating in the SERP effective on or after January 1, 2014 being subject to a five year vesting period. The SERP,
which is considered a nonqualified defined benefit plan under applicable rules and regulations of the Internal Revenue Code, will
continue to be funded through use of a Rabbi Trust to hold investment assets to be used in part to fund any future required lump sum
benefit payments to participants.
During 2023, SERP benefits of $863,000 were cash settled using Rabbi trust assets. We incurred a related settlement charge to
operations of $217,000 pre-tax in 2023 as a result of the requirement to expense a portion of the unrealized actuarial losses due to the
settlement of the SERP obligation. The Rabbi Trust assets had a value of $1.6 million and $2.6 million at June 30, 2024 and July 2,
2023, respectively, and were included in Other Long-Term Assets in the accompany Consolidated Balance Sheets. Refer to Fair Value
of Financial Instruments discussion included in Notes to Financial Statements herein for further discussion of Rabbi Trust assets. The
Rabbi Trust assets are excluded from the SERP tables below as they do not qualify as plan assets. The reduction in Rabbi trust assets
between periods resulted from $1.2 million in assets being moved from the trust in June 2024 related to a July 2024 settlement
payment. The projected benefit obligation under the SERP, which is included in the SERP tables below, was $2.6 million at June 30,
2024 and $2.3 million at July 2, 2023. The SERP has a separately determined accumulated benefit obligation, which is the actuarial
present value of benefits based on service rendered and current and past compensation levels. This differs from the projected benefit
obligation in that it includes no assumptions about future compensation levels. The accumulated benefit obligation under the SERP
was $2.4 million at June 30, 2024 and $2.2 million at July 2, 2023.
We also sponsor a postretirement health care plan for all current and future eligible U.S. retirees 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. Additionally, we sponsor a postretirement life plan for all U.S. salaried
retirees who retired prior to October 1, 2001 and all U.S. hourly retirees who were hired prior to June 27, 2005 and retired prior to
January 1, 2010. The benefit provides for a death benefit of $8,000, which is increased to $70,000 for disability retirees until reaching
the age of 65, in which case the death benefit decreased to $8,000. The postretirement life plan is unfunded. See "Organization and
Summary of Significant Accounting Policies" above for additional information regarding certain matters related to recording a
liability adjustment for the death benefit owed to eligible participants under the postretirement life plan.

50
Amounts included in accumulated other comprehensive loss, net of tax, at June 30, 2024, which have not yet been recognized in
net periodic benefit cost were as follows (thousands of dollars):
SERP
Postretirement
Net actuarial loss..................................................................................... $
465
$
508
Unrecognized net actuarial losses included in accumulated other comprehensive loss at June 30, 2024 which are expected to be
recognized in net periodic benefit cost (credit) in fiscal 2024, net of tax, for the SERP and postretirement plans are as follows
(thousands of dollars):
SERP
Postretirement
Net actuarial loss..................................................................................... $
20
$
127
The following tables summarize the SERP and postretirement plans’ income and expense, funded status and actuarial
assumptions for the years indicated (thousands of dollars). We use a June 30 measurement date for our SERP and postretirement
plans.
SERP Benefits
Postretirement Benefits
Years Ended
Years Ended
June 30, 2024
July 2, 2023
June 30, 2024
July 2, 2023
COMPONENTS OF NET PERIODIC BENEFIT
COST (CREDIT):
Service cost.............................................................................. $
84
$
80
$
9
$
10
Interest cost..............................................................................
90
101
63
62
Plan settlements.......................................................................
—
217
—
—
Amortization of unrecognized net loss....................................
46
99
196
243
Net periodic benefit cost (credit)............................................. $
220
$
497
$
268
$
315
WEIGHTED-AVERAGE ASSUMPTIONS:
Benefit Obligations:
Discount rate (SERP / postretirement life)............................
5.21%
5.07%
5.45%
5.20%
Discount rate (postretirement health) ....................................
5.23%
5.06%
Rate of compensation increases.............................................
5.46%
4.61%
n/a
n/a
Net Periodic Benefit Cost:
Discount rate (SERP / postretirement life)............................
5.07%
4.26%
5.20%
4.57%
Discount rate (postretirement health) ....................................
5.06%
4.23%
Rate of compensation increases.............................................
4.00%
4.00%
n/a
n/a
CHANGE IN PROJECTED BENEFIT
OBLIGATION:
Benefit obligation at beginning of year ................................... $
2,305
$
3,164
$
1,296
$
1,477
Service cost............................................................................
84
80
9
10
Interest cost............................................................................
90
101
63
62
Actuarial loss (gain)...............................................................
118
(163)
(128)
(179)
Plan settlements .....................................................................
—
(863)
—
—
Benefits paid..........................................................................
(14)
(14)
(82)
(74)
Benefit obligation at end of year ............................................. $
2,583
$
2,305
$
1,158
$
1,296
CHANGE IN PLAN ASSETS:
Fair value of plan assets at beginning of year ......................... $
—
$
—
$
—
$
—
Employer contribution...........................................................
14
877
82
74
Benefits paid..........................................................................
(14)
(877)
(82)
(74)
Fair value of plan assets at end of year.................................... $
—
$
—
$
—
$
—
Funded status – accrued benefit obligations............................ $
(2,583)
$
(2,305)
$
(1,158)
$
(1,296)
AMOUNTS RECOGNIZED IN CONSOLIDATED
BALANCE SHEETS:
Accrued payroll and benefits (current liabilities)....................
(1,204)
(1,099)
(108)
(140)
Accrued benefit obligations (long-term liabilities) .................
(1,379)
(1,206)
(1,050)
(1,157)
Net amount recognized............................................................ $
(2,583)
$
(2,305)
$
(1,158)
$
(1,297)

51
SERP Benefits
Postretirement Benefits
Years Ended
Years Ended
June 30, 2024
July 2, 2023
June 30, 2024
July 2, 2023
CHANGES IN PLAN ASSETS AND BENEFIT
OBLIGATIONS RECOGNIZED IN OTHER
COMPREHENSIVE INCOME:
Net periodic benefit cost.......................................................... $
220
$
497
$
268
$
315
Net actuarial loss (gain)...........................................................
118
(163)
(128)
(179)
Plan settlements .......................................................................
—
(217)
—
—
Amortization of unrecognized net loss....................................
(46)
(99)
(196)
(243)
Total recognized in other comprehensive
loss (income), before tax ......................................................
72
(479)
(324)
(422)
Total recognized in net periodic benefit
cost and other comprehensive loss,
before tax .............................................................................. $
292
$
18
$
(56)
$
(107)
An annual rate increase in the per capita cost of covered health care benefits is not applicable as all eligible retirees will be
limited to $4,000 per plan year subject to a maximum five-year coverage period as of June 2024.
We expect to contribute $1.2 million to our SERP and $108,000 to our postretirement health care and life plans in fiscal 2025.
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the fiscal years
noted below (thousands of dollars):
SERP
Benefits
Postretirement
Benefits
2025......................................................................................................... $
1,205
$
108
2026......................................................................................................... $
14
$
87
2027......................................................................................................... $
14
$
91
2028......................................................................................................... $
17
$
92
2029......................................................................................................... $
18
$
99
2030-2034 ............................................................................................... $
2,633
$
509
All U.S. associates may participate in our 401(k) Plan. We contribute 100 percent up to the first 5 percent of eligible
compensation that a participant contributes to the plan. Our contributions to the 401(k) Plan were as follows (thousands of dollars):
Years Ended
June 30, 2024
July 2, 2023
Company contributions............................................................................. $
1,860
$
1,829
SHAREHOLDERS’ EQUITY
We had 18,000,000 shares of authorized common stock, par value $.01 per share, with 3,988,794 and 3,929,046 shares
outstanding at June 30, 2024 and July 2, 2023, respectively. Holders of our common stock are entitled to one vote for each share on all
matters voted on by shareholders.
Our Board of Directors previously authorized a stock repurchase program to buy back up to 3,839,395 outstanding shares of our
common stock as of June 30, 2024. As of June 30, 2024, 3,655,322 shares have been repurchased under this program at a cost of
approximately $136.4 million. No shares were repurchased under this program during 2024 or 2023.

52
EARNINGS (LOSS) PER SHARE
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 (loss) 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):
Years Ended
June 30, 2024
July 2, 2023
Net income (loss) attributable to STRATTEC.......................................... $
16,313
$
(6,670)
Weighted average shares of common stock outstanding ..........................
3,975
3,921
Incremental shares – stock based compensation.......................................
29
—
Diluted weighted average shares of common stock
outstanding.............................................................................................
4,004
3,921
Basic earnings (loss) per share.................................................................. $
4.10
$
(1.70)
Diluted earnings (loss) per share............................................................... $
4.07
$
(1.70)
Potentially dilutive common shares that were excluded from the calculation of diluted earnings per share because their inclusion
would have been antidilutive were as follows:
Years Ended
Number of Shares
Excluded
June 30, 2024 ...................................................................................................................
8,070
July 2, 2023 ......................................................................................................................
63,061
STOCK OPTION AND PURCHASE PLANS
A summary of stock option activity under our stock incentive plan was as follows:
Weighted
Average
Weighted
Average
Remaining
Contractual
Aggregate
Intrinsic
Value
Shares
Exercise Price
Term (in years)
(in thousands)
Balance at July 3, 2022 .........................................................
41,172
$
46.34
Exercised ...............................................................................
(4,251) $
25.64
Forfeited ................................................................................
(4,360) $
47.55
Balance at July 2, 2023 .........................................................
32,561
$
48.88
Forfeited ................................................................................
(24,491) $
38.71
Balance at June 30, 2024.......................................................
8,070
$
79.73
0.1
$
—
Exercisable as of:
June 30, 2024.........................................................................
8,070
$
79.73
0.1
$
—
July 2, 2023 ...........................................................................
32,561
$
48.88
0.4
$
—
No options were granted during fiscal 2024 or 2023.

53
A summary of restricted stock activity under our stock incentive plan was as follows:
Weighted Average
Grant Date
Shares
Fair Value
Nonvested Balance at July 3, 2022...........................................................
85,100
$
31.89
Granted......................................................................................................
49,050
$
29.91
Vested........................................................................................................
(44,750) $
29.00
Forfeited....................................................................................................
(1,500) $
32.03
Nonvested Balance at July 2, 2023...........................................................
87,900
$
32.09
Granted......................................................................................................
51,675
$
22.16
Vested........................................................................................................
(56,750) $
30.12
Forfeited....................................................................................................
(3,500) $
29.79
Nonvested Balance at June 30, 2024 ........................................................
79,325
$
27.21
We have an Employee Stock Purchase Plan to provide substantially all U.S. full-time associates an opportunity to purchase
shares of STRATTEC common stock through payroll deductions. A participant may contribute a maximum of $5,200 per calendar
year to the plan. On the last day of each month or if such date is not a trading day on the most recent previous trading day, participant
account balances are used to purchase shares of our common stock at the average of the highest and lowest reported sales prices of a
share of STRATTEC common stock on the NASDAQ Global Market on such date. A total of 100,000 shares may be issued under the
plan. Shares issued from treasury stock under the plan totaled 2,998 at an average price of $24.08 during 2024 and 3,342 at an average
price of $22.24 during 2023. A total of 42,804 shares remain available for purchase under the plan as of June 30, 2024.
EXPORT SALES
Total export sales, sales from the United States to locations outside of the United States, are summarized as follows (thousands
of dollars and percent of total net sales):
Years Ended
June 30, 2024
July 2, 2023
Net Sales
%
Net Sales
%
Export sales.............................................................................. $
137,214
26%
$
135,637
28%
During the years ended June 30, 2024 and July 2, 2023, sales to Canada totaled $57.1 million or 11 percent of total net sales and
$51.3 million or 10 percent of total net sales, respectively.
PRODUCT SALES
Sales by product group were as follows (thousands of dollars and percent of total net sales):
Years Ended
June 30, 2024
July 2, 2023
Net Sales
%
Net Sales
%
Door handles & exterior trim................................................... $
135,864
25% $
121,908
25%
Power access............................................................................
130,258
24
114,053
23
Keys & locksets.......................................................................
106,373
20
108,878
22
Latches.....................................................................................
67,844
13
57,797
11
Aftermarket & OE service.......................................................
38,646
7
43,131
9
User Interface Controls............................................................
47,637
9
38,437
8
Other ........................................................................................
11,144
2
8,742
2
$
537,766
100% $
492,946
100%

54
SALES AND RECEIVABLE CONCENTRATION
Sales to our largest customers were as follows (thousands of dollars and percent of total net sales):
Years Ended
June 30, 2024
July 2, 2023
Net Sales
%
Net Sales
%
General Motors Company ....................................................... $
163,097
30% $
150,331
30%
Ford Motor Company ..............................................................
114,937
21
96,593
20
Stellantis ..................................................................................
77,665
15
78,061
16
$
355,699
66% $
324,985
66%
Receivables from our largest customers were as follows (thousands of dollars and percent of gross receivables):
June 30, 2024
July 2, 2023
Receivables
%
Receivables
%
General Motors Company....................................................... $
28,645
29% $
27,532
30%
Ford Motor Company..............................................................
24,832
25
17,371
19
Stellantis..................................................................................
12,213
12
14,103
16
$
65,690
66% $
59,006
65%

55
ITEM 9.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
None
ITEM 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”)), that are designed to ensure that information required to be disclosed by STRATTEC
in reports that it files or submits under the Exchange Act, is recorded, processed, summarized and reported within the time periods
specified in the U.S. Securities and Exchange Commission’s rules and forms, and that the information required to be disclosed by
STRATTEC in reports that it files or submits under the Exchange Act is accumulated and communicated to its management, including
its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. We
carried out an evaluation as of the end of the period covered by this report, under the supervision and with the participation of our
management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of
STRATTEC’s disclosure controls and procedures. Based on such evaluation, the Chief Executive Officer and Chief Financial Officer
concluded that the disclosure controls and procedures were effective as of the end of the period covered by this report at reaching a
level of reasonable assurance. It should be noted that in designing and evaluating the disclosure controls and procedures,
management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable
assurance of achieving the desired control objectives, and management was necessarily required to apply its judgment in evaluating
the cost-benefit relationship of possible controls and procedures. We have designed our disclosure controls and procedures to reach a
level of reasonable assurance of achieving the desired control objectives.
There was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the
Exchange Act) that occurred during the quarter ended June 30, 2024 that has materially affected, or is reasonably likely to materially
affect, our internal control over financial reporting.

56
Management’s Annual Report on Internal Controls over Financial Reporting
STRATTEC SECURITY CORPORATION is responsible for the preparation, integrity, and fair presentation of the consolidated
financial statements included in this annual report. The consolidated financial statements and notes included in this annual report have
been prepared in conformity with accounting principles generally accepted in the United States of America and necessarily include
some amounts that are based on management’s best estimates and judgments.
We, as management of STRATTEC SECURITY CORPORATION, are responsible for establishing and maintaining effective
internal control over financial reporting that is designed to produce reliable financial statements in conformity with United States
generally accepted accounting principles. The system of internal control over financial reporting as it relates to the financial
statements is evaluated for effectiveness by management and tested for reliability through a program of internal audits. Actions are
taken to correct potential deficiencies as they are identified. Any system of internal control, no matter how well designed, has inherent
limitations, including the possibility that a control can be circumvented or overridden and misstatements due to error or fraud may
occur and not be detected. Also, because of changes in conditions, internal control effectiveness may vary over time. Accordingly,
even an effective system of internal control will provide only reasonable assurance with respect to financial statement preparation.
The Audit Committee of the Company’s Board of Directors, consisting entirely of independent directors, meets regularly with
management and the independent registered public accounting firm, and reviews audit plans and results, as well as management’s
actions taken in discharging responsibilities for accounting, financial reporting, and internal control. Deloitte & Touche LLP,
independent registered public accounting firm, has direct and confidential access to the Audit Committee at all times to discuss the
results of their audits.
Management assessed the Corporation’s system of internal control over financial reporting as of June 30, 2024, in relation to
criteria for effective internal control over financial reporting as described in Internal Control – Integrated Framework (2013), issued
by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on the assessment, management
concluded that, as of June 30, 2024, its system of internal control over financial reporting was effective and met the criteria of the
Internal Control – Integrated Framework. Deloitte & Touche LLP, independent registered public accounting firm, has issued an
attestation report on the Corporation’s internal control over financial reporting, which is included herein.
/s/ Jennifer L. Slater
/s/ Dennis Bowe
Jennifer L. Slater
Dennis Bowe
President and Chief Executive Officer
Vice President and Chief Financial Officer

57
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of STRATTEC SECURITY CORPORATION
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of STRATTEC SECURITY CORPORATION and subsidiaries (the
“Company”) as of June 30, 2024, based on criteria established in Internal Control —Integrated Framework (2013) issued by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all
material respects, effective internal control over financial reporting as of June 30, 2024, based on criteria established in Internal
Control — Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the consolidated financial statements as of and for the year ended June 30, 2024, of the Company and our report dated
September 5, 2024, expressed an unqualified opinion on those financial statements.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of
the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal
Controls over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial
reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with
respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities
and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.
Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness
exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such
other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our
opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the
company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect
on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Deloitte & Touche LLP
Milwaukee, Wisconsin
September 5, 2024

58
ITEM 9B. OTHER INFORMATION
Not applicable.
ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
Not applicable.

59
PART III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
The information included in our Proxy Statement, dated on or about September 20, 2024, under “Proposal 1: Election of
Directors,” “Corporate Governance Matters-Code of Business Ethics,” “Audit Committee Matters-Audit Committee Financial
Expert,” “Executive Officers,” “Delinquent Section 16(a) Reports,” “Director’s Meetings and Committees – Nominating and
Corporate Governance Committee,” and “Corporate Governance Matters-Director Nominations” is incorporated herein by reference.
The Audit Committee of our Board of Directors is an “audit committee” for purposes of Section 3(a)(58)(A) of the Securities
Exchange Act of 1934. The members of the Audit Committee consist of five outside independent directors, David R. Zimmer, Audit
Committee Chairman, Frederic Jack Liebau, Jr., Bruce Lisman, Harold M. Stratton II, and Tina Chang.
ITEM 11. EXECUTIVE COMPENSATION
The information included in our Proxy Statement, dated on or about September 20, 2024, under “Director Compensation” and
“Executive Compensation” is incorporated herein by reference.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
SHAREHOLDER MATTERS
The information included in our Proxy Statement, dated on or about September 20, 2024, under “Security Ownership” is
incorporated herein by reference.
Equity Compensation Plan Information
The following table summarizes share information, as of June 30, 2024, for our Amended and Restated Stock Incentive Plan.
Plan Category
Number of
common shares to
be issued
upon exercise
of outstanding
options,
warrants, and
rights
Weighted-average
exercise price of
outstanding
options,
warrants, and
rights
Number of
common shares
available for future
issuance under
equity
compensation plans
Equity compensation plans
approved by shareholders ................................
8,070
$
79.73
361,085
Equity compensation plans not
approved by shareholders ................................
—
—
—
Total....................................................................
8,070
$
79.73
361,085
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
The information included in our Proxy Statement, dated on or about September 20, 2024, under “Transactions With Related
Persons” and “Corporate Governance Matters-Director Independence” is incorporated herein by reference.
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
The information included in our Proxy Statement, dated on or about September 20, 2024, under “Audit Committee Matters-Fees
of Independent Registered Public Accounting Firm” is incorporated herein by reference.

60
PART IV
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
10
(a)
Financial Statements
See Item 8 for the Consolidated Financial Statements included in this Form 10-K
(b)
Exhibits
See the following List of Exhibits:
Exhibit
3.1 (13)
Amended and Restated Articles of Incorporation of the Company
*
3.2 (19)
Amendment to Amended and Restated Articles of Incorporation of the Company
*
3.3 (26)
Amendment to Amended and Restated Articles of Incorporation of the Company
*
3.4 (1)
Amended By-laws of the Company
*
4.1 (20)
Description of Registrants’ Securities
*
4.2 (2)
Credit Agreement, dated as of August 1, 2011, between STRATTEC SECURITY CORPORATION and BMO Harris
Bank N.A., as lender
*
4.3 (12)
Amendment No. 1 to Amended and Restated Security Agreement, dated as of June 26, 2017, between STRATTEC
SECURITY CORPORATION and BMO Harris Bank N.A., as lender
*
4.4 (13)
Amended and Restated Security Agreement, dated as of June 28, 2012, made by STRATTEC SECURITY
CORPORATION in favor of BMO Harris Bank N.A., as lender
*
4.5 (5)
Amendment No. 1 to Credit Agreement, dated as of December 27, 2013, between STRATTEC SECURITY
CORPORATION and BMO Harris Bank N.A., as lender
*
4.6 (6)
Amendment No. 2 to Credit Agreement, dated as of June 25, 2015, between STRATTEC SECURITY CORPORATION
and BMO Harris Bank N.A., as lender
*
4.7 (10)
Amendment No. 3 to Credit Agreement, dated as of June 24, 2016, between STRATTEC SECURITY CORPORATION
and BMO Harris Bank N.A., as lender
*
4.8 (12)
Amendment No. 4 to Credit Agreement, dated as of June 26, 2017, between STRATTEC SECURITY CORPORATION
and BMO Harris Bank N.A., as lender
*
4.9 (15)
Amendment No. 5 to Credit Agreement, dated as of September 28, 2018, between STRATTEC SECURITY
CORPORATION and BMO Harris Bank N.A., as lender
*
4.10 (18)
Amendment No. 6 to Credit Agreement, dated as of October 28, 2019, between STRATTEC SECURITY
CORPORATION and BMO Harris Bank N.A., as lender
*
4.11 (24)
Amendment No. 7 to Credit Agreement, dated as of June 1, 2021, between STRATTEC SECURITY CORPORATION
and BMO Harris Bank N.A., as lender
*
4.12 (27)
Amendment No. 8 to Credit Agreement, dated as of February 22, 2023, between STRATTEC SECURITY
CORPORATION and BMO Harris Bank N.A., as lender
*
4.13 (31)
Amendment No. 9 to Credit Agreement, dated as of August 22, 2023 and effective as of September 6, 2023,
between STRATTEC SECURITY CORPORATION and BMO Harris Bank N.A. as lender
*
4.14 (6)
Credit Agreement, dated as of June 28, 2012, between ADAC-STRATTEC LLC and BMO Harris Bank N.A., as lender
*
4.15 (6)
Amendment No. 1 to Credit Agreement, dated as of January 22, 2014, between ADAC-STRATTEC LLC and BMO
Harris Bank N.A., as lender
*
4.16 (6)
Amendment No. 2 to Credit Agreement, dated as of June 25, 2015, between ADAC-STRATTEC LLC and BMO Harris
Bank N.A., as lender
*
4.17 (9)
Amendment No. 3 to Credit Agreement, dated as of April 27, 2016, between ADAC-STRATTEC LLC and BMO Harris
Bank N.A., as lender
*
4.18 (12)
Amendment No. 4 to Credit Agreement, dated as of June 26, 2017, between ADAC-STRATTEC LLC and BMO Harris
Bank N.A., as lender
*
4.19 (14)
Amendment No. 5 to Credit Agreement, dated as of March 27, 2018, between ADAC-STRATTEC LLC and BMO Harris
Bank N.A., as lender
*
4.20 (16)
Amendment No. 6 to Credit Agreement, dated as of December 30, 2018, between ADAC-STRATTEC LLC and BMO
Harris Bank N.A., as lender
*
4.21 (18)
Amendment No. 7 to Credit Agreement, dated as of October 28, 2019, between ADAC-STRATTEC LLC and BMO
Harris Bank N.A., as lender
*
4.22 (24)
Amendment No. 8 to Credit Agreement, dated as of June 1, 2021, between ADAC-STRATTEC LLC and BMO Harris
Bank N.A., as lender
*
4.23 (28)
Amendment No. 9 to Credit Agreement, dated as of February 6, 2023, between ADAC-STRATTEC LLC and
BMO Harris Bank N.A., as lender
*
4.24 (32)
Amendment No. 10 to Credit Agreement, dated as of May 31, 2024, between ADAC-STRATTEC LLC and
BMO Harris Bank N.A., as lender
*

61
10.1 (21)**
Amended and Restated STRATTEC SECURITY CORPORATION Stock Incentive Plan (Incorporated by reference from
Appendix B to the Company’s Proxy Statement on Schedule 14A filed with the Securities and Exchange Commission on
September 7,2023.)
*
10.2 (22)**
Form of Restricted Stock Grant Agreement with Employees to be used under the Amended and Restated STRATTEC
SECURITY CORPORATION Stock Incentive Plan
*
10.3 (30)**
STRATTEC SECURITY CORPORATION Amended and Restated Team Incentive Plan for STRATTEC: Bonus Plan for
Executive Officers and Senior Managers
*
10.4 (17)**
STRATTEC SECURITY CORPORATION Team Incentive Plan for STRATTEC: Bonus Plan for Non-employee
Members of the Board of Directors
*
10.5 (17)**
STRATTEC SECURITY CORPORATION Team Incentive Plan for STRATTEC: Bonus Plan for Salaried Employees
and Represented Employees
*
10.6 (7) **
Amended and Restated STRATTEC SECURITY CORPORATION Supplemental Executive Retirement Plan
*
10.7 (3)**
Employment Agreement between the Company and Rolando J. Guillot made as of May 5, 2010
*
10.8 (3)**
Employment Agreement between the Company and Richard P. Messina made as of May 5, 2010
*
10.9 (13) **
Employment Agreement between the Company and Al Hamdan made as of May 4, 2017
*
10.10 (29)**
Employment Agreement between the Company and Dennis Bowe entered into on May 5, 2023 and made effective as of
September 9, 2022
*
10.11 (33)**
Employment Agreement between the Company and Jennifer L. Slater made as of June 11, 2024
*
10.12 (11) **
Change of Control Employment Agreement between the Company and Rolando J. Guillot made as of July 1, 2016
*
10.13 (11) **
Change of Control Employment Agreement between the Company and Richard P. Messina made as of July 1, 2016
*
10.14 (13)**
Change of Control Employment Agreement between the Company and Al Hamdan made as of May 4, 2017
*
10.15 (29)**
Change of Control Employment Agreement between the Company and Dennis Bowe entered into on May 5, 2023 and
made effective as of September 9, 2022
*
10.16 (8)**
Form of Restricted Stock Grant Agreement with non-employee directors
*
10.17 (23)**
STRATTEC SECURITY CORPORATION EMPLOYEE STOCK PURCHASE PLAN (Amended effective as of
November 1, 2023) (Incorporated by reference from Exhibit 10.1 to the Form 10-Q filed on February 8, 2024)
*
10.18 (4)**
Letter Agreement between the Company and Harold M. Stratton II made as of September 1, 2012
*
10.19 (25)**
Equity Restructuring Agreement between the Company and WITTE Automotive GmbH dated as of June 29, 2023
*
10.20 (34)**
Retirement Agreement and General Release by and between the Company and Frank J. Krejci dated November 21, 2023
*
10.21 (35)**
Retention Agreement by and between the Company and Dennis P. Bowe dated November 22, 2023
*
10.22 (35)**
Retention Agreement by and between the Company and Richard P. Messina dated November 22, 2023
*
10.23 (36)**
Retention Agreement by and between the Company and Rolando J. Guillot dated June 24, 2024
*
21
Subsidiaries of the Company
*
23.1
Consent of Independent Registered Public Accounting Firm dated September 5, 2024
31.1
Rule 13a-14(a) Certification for Jennifer L. Slater, Chief Executive Officer
31.2
Rule 13a-14(a) Certification for Dennis Bowe, Chief Financial Officer
32 (37)
18 U.S.C. Section 1350 Certifications
101
Interactive Data Files pursuant to Rule 405 of Regulation S-T. XBRL Instance Document – the XBRL Instance
Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL
document.
104
The cover page from the Company’s Annual Report on Form 10-K for the year ended June 30, 2024 has been formatted
in Inline XBRL.
* Previously filed
** Management contract or compensatory plan or arrangement
(1)
Incorporated by reference from the exhibit to the Form 8-K filed on October 7, 2005.
(2)
Incorporated by reference from the exhibit to the Form 8-K filed on August 4, 2011.
(3)
Incorporated by reference from the exhibit to the March 28, 2010 Form 10-Q filed on May 6, 2010.
(4)
Incorporated by reference from the exhibit to the July 1, 2012 Form 10-K filed on September 6, 2012.
(5)
Incorporated by reference from the exhibit to the Form 8-K filed on December 27, 2013.
(6)
Incorporated by reference from the exhibit to the Form 8-K filed on June 25, 2015.
(7)
Incorporated by reference from the exhibit to the Form 8-K filed on October 10, 2013.
(8)
Incorporated by reference from the exhibit to the Form 10-K filed on September 5, 2014.
(9)
Incorporated by reference from the exhibit to the Form 8-K filed on April 29, 2016.
(10)
Incorporated by reference from the exhibit to the Form 8-K filed on June 24, 2016.
(11)
Incorporated by reference from the exhibit to the Form 10-K filed on September 8, 2016.
(12)
Incorporated by reference from the exhibit to the Form 8-K filed on June 27, 2017.
(13)
Incorporated by reference from the exhibit to the Form 10-K filed on September 7, 2017.
(14)
Incorporated by reference from the exhibit to the Form 8-K filed on March 27, 2018.
(15)
Incorporated by reference from the exhibit to the Form 8-K filed on September 28, 2018.
(16)
Incorporated by reference from the exhibit to the Form 8-K filed on December 31, 2018.
(17)
Incorporated by reference from the exhibit to the Form 10-K filed on September 5, 2019.
(18)
Incorporated by reference from the exhibit to the Form 8-K filed on October 28, 2019.
(19)
Incorporated by reference from the exhibit to the Form 10-Q filed on November 7, 2019.
(20)
Incorporated by reference from the exhibit to the Form 10-K filed on September 3, 2020.

62
(21)
Incorporated by reference from Appendix B to the Company’s Proxy Statement on Schedule 14A filed with the Securities and
Exchange Commission on September 7, 2023.
(22)
Incorporated by reference from the exhibit to the Form 10-Q filed on November 5, 2020.
(23)
Incorporated by reference from the exhibit to the Form 10-Q filed on February 8, 2024.
(24)
Incorporated by reference from the exhibit to the Form 8-K filed on June 2, 2021.
(25)
Incorporated by reference from the exhibit to the July 1, 2023 Form 10-K filed on September 7, 2023.
(26)
Incorporated by reference from the exhibit to the Form 8-K filed on October 21, 2021.
(27)
Incorporated by reference from the exhibit to the Form 8-K filed on February 27, 2023.
(28)
Incorporated by reference from the exhibit to the Form 8-K filed on February 7, 2023.
(29)
Incorporated by reference from the exhibit to the Form 8-K filed on May 8, 2023.
(30)
Incorporated by reference from the exhibit to the Form 10-Q filed on November 10, 2022.
(31)
Incorporated by reference from the exhibit to the Form 8-K filed on August 25, 2023.
(32)
Incorporated by reference from the exhibit to the Form 8-K filed on May 31, 2024.
(33)
Incorporated by reference from the exhibit to the Form 8-K filed on June 14, 2024.
(34)
Incorporated by reference from the exhibit to the Form 8-K/A filed on November 21, 2023.
(35)
Incorporated by reference from the exhibit to the Form 8-K filed on November 28, 2023.
(36)
Incorporated by reference from the exhibit to the Form 8-K filed on June 24, 2024.
(37)
This certification is not "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or incorporated by
reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.
ITEM 16. FORM 10-K SUMMARY
None

63
SIGNATURES
Pursuant to the requirements of Section 13 of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
STRATTEC SECURITY CORPORATION
By: /s/ Jennifer L. Slater
Jennifer L. Slater
President and Chief Executive Officer
Date: September 5, 2024
Pursuant to the requirement of the Securities Exchange Act of 1934, this report has been signed below by the following persons on
behalf of the Registrant and in the capacities and on the dates indicated.
Signature
Title
Date
/s/ Jennifer L. Slater
President, Chief Executive Officer,
September 5, 2024
Jennifer L. Slater
and Director
(Principal Executive Officer)
/s/ Frederic Jack Liebau, Jr.
Chairman and Director
August 21, 2024
Frederic Jack Liebau, Jr.
/s/ Harold M. Stratton II
Director
August 21, 2024
Harold M. Stratton II
/s/ Tina Chang
Director
August 21, 2024
Tina Chang
/s/ Thomas W. Florsheim, Jr.
Director
August 21, 2024
Thomas W. Florsheim, Jr.
/s/ Bruce Lisman
Director
August 21, 2024
Bruce Lisman
/s/ David R. Zimmer
Director
August 21, 2024
David R. Zimmer
/s/ Dennis Bowe
Vice President, Chief
September 5, 2024
Dennis Bowe
Financial Officer,
Secretary and Treasurer
(Principal Financial and
Accounting Officer)


SHAREHOLDER INFORMATION
Corporate Headquarters
STRATTEC SECURITY CORPORATION
3333 West Good Hope Rd.
Milwaukee, Wisconsin 53209
414.247.3333
Stock Exchange Listing
The Company’s stock is traded on the
Nasdaq Global Market tier of the Nasdaq
Stock Market under the symbol STRT.
Annual Meeting
The Annual Meeting will be held at the
Holiday Inn Milwaukee Riverfront Hotel,
4700 North Port Washington Road,
Milwaukee, Wisconsin 53212, on Wednesday,
October 23, 2024, at 8:00 a.m. Central Time.
Investor Relations
Investors, stockbrokers, security analysts and
others seeking information about STRATTEC
should contact:
Deborah K. Pawlowski / Craig P. Mychajluk
Kei Advisors LLC
716.843.3908 / 716.843.3832
dpawlowski@keiadvisors.com
cmychajluk@keiadvisors.com
Independent Auditors
Deloitte & Touche LLP
Milwaukee, WI
Transfer Agent
For information on ownership, lost/missing
shares or other information regarding STRATTEC
stock certificates, please contact our transfer
agent. For additional assistance, please contact
STRATTEC directly.
EQ Shareowner Services
P.O. Box 64854
St. Paul, MN 55164-0854
Phone: 800.468.9716
Corporate Leadership
Jennifer L. Slater
President and Chief Executive Officer
Rolando J. Guillot
Senior Vice President and Chief Operating Officer
Dennis P. Bowe
Vice President and Chief Financial Officer
Richard P. Messina
Vice President and Chief Technology Officer
Board of Directors
F. Jack Liebau, Jr. 1, 2, 3
Chair of the Board, STRATTEC
Managing Director,
Beach Investment Counsel, Inc.
Tina Chang 1, 3C
Chair of the Board and Chief Executive Officer,
SysLogic, Inc.
Thomas W. Florsheim, Jr. 2C, 3
Chair of the Board and Chief Executive Officer,
Weyco Group, Inc.
Bruce M. Lisman 1, 2, 3
Private Investor
Retired Chairman, JP Morgan Global Equity
Division
Jennifer L. Slater
President and Chief Executive Officer, STRATTEC
Harold M. Stratton II *
David R. Zimmer *
1 Audit Committee
2 Compensation Committee
3 Corporate Governance and Nominating Committee
C Committee Chair
* Messrs. Stratton and Zimmer are retiring from the Board
of Directors at the 2024 Annual Meeting

Nasdaq: STRT
3333 West Good Hope Rd. • Milwaukee, WI 53209
414.247.3333 • www.strattec.com