Exhibit 13




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##### 








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##### 



2011 ANNUAL REPORTSTRATTEC SECURITY CORPORATION designs, develops, manufactures and markets
automotive access control products including mechanical locks and keys, electronically enhanced
locks and keys, steering column and instrument panel ignition lock housings, latches, power sliding
side door systems, power lift gate systems, power deck lid systems, door handles and related
products for North American automotive customers. We also supply global automotive manufacturers
through a unique strategic relationship with WITTE Automotive of Velbert, Germany and ADAC
Automotive of Grand Rapids, Michigan. Under this relationship STRATTEC, WITTE and ADAC market our
products to global customers under the VAST brand name. Our products are shipped to customer
locations in the United States, Canada, Mexico, Europe, South America, Korea and China, and we
provide full service and aftermarket support. CONTENTS LETTER TO THE SHAREHOLDERS 2 FINANCIAL
HIGHLIGHTS 4 COMPANY DESCRIPTION 5 STRATTEC EQUIPPED VEHICLE LIST 12 MANAGEMENTS DISCUSSION AND
ANALYSIS 13 FINANCIAL STATEMENTS 27 REPORT OF MANAGEMENT 47 REPORTS OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM 48 FINANCIAL SUMMARY 50 FINANCIAL SUMMARY / PERFORMANCE GRAPH 51
DIRECTORS / OFFICERS / SHAREHOLDERS INFORMATION 52 PROSPECTIVE INFORMATIONA number of the
matters and subject areas discussed in this Annual Report (see above Contents section) 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. These 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 in the Letter to the
Shareholders, Companys Managements Discussion and Analysis, and other sections of this Annual
Report. 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,
customer demand for the Companys and its customers products, competitive and technological
developments, customer purchasing actions, foreign currency fluctuations, costs of operations and
other matters described under Risk Factors in the Managements Discussion and Analysis section of
this report. In addition, such uncertainties and other operational matters are discussed further in
the Companys quarterly and annual report filings with the Securities and Exchange Commission.
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 Annual Report 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 Annual Report.




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LETTER TO THE SHAREHOLDERS
 SEPTEMBER, 2011
       2011 STRATTEC Annual Report
    
    2




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##### 



LETTER TO THE SHAREHOLDERS
        -s- Harold M. Stratton
    
    -s- Frank J. KrejciHarold M. Stratton II
    
    Frank J. KrejciChairman and Chief Executive Officer
    
    President and Chief Operating Officer
 2011 STRATTEC Annual Report
    
    3




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##### 



FINANCIAL HIGHLIGHTS  (IN MILLIONS)
 2011
    
    
    2010
    
    
    2009Net Sales
    
    $
    260.9
    
    
    $
    208.0
    
    
    $
    126.1Gross Profit
    
    
    42.2
    
    
    
    33.0
    
    
    
    13.2Income (Loss) from Operations
    
    
    8.7
    
    
    
    4.4
    
    
    
    (12.7
    )Net Income (Loss)
    
    
    5.4
    
    
    
    3.4
    
    
    
    (6.1
    )Total Assets
    
    
    148.1
    
    
    
    145.0
    
    
    
    128.2Total Debt
    
    
    
    
    
    
    
    
    
    
    Shareholders Equity
    
    
    86.2
    
    
    
    74.1
    
    
    
    71.4
 ECONOMIC VALUE ADDED (EVA ® )
 ® ® ® ® ® ®
 Net Operating Profit After Cash-Basis Taxes
    
    
    
    
    
    $
    4.2Average Monthly Net Capital Employed
    
    $
    79.1Cost of Capital
    
    
    10
    %Capital Charge
    
    
    
    
    
    
    7.9Economic Value Added
    
    
    
    
    
    $
    (3.7
    )
 ® ® ® ®
 Net Operating Profit After Cash-Basis Taxes:
 2011 Net Income as Reported
    
    $
    5.4Deferred Tax Provision
    
    
    (.2
    )Other
    
    
    (1.0
    )Net Operating Profit After
Cash-Basis Taxes
    
    $
    4.2
 Average Monthly Net Capital Employed:
 Total Shareholders Equity as Reported at July 3, 2011
    
    $
    86.2Long-Term Liabilities
    
    
    7.0Deferred Tax Asset
    
    
    (7.7
    )Other
    
    
    (5.8
    )Net Capital Employed at July 3, 2011
    
    $
    79.7Impact of 12 Month Average
    
    
    (.6
    )Average Monthly Net Capital Employed
    
    $
    79.1
 ®
 2011 STRATTEC Annual Report
    
    4




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COMPANY DESCRIPTION
 BASIC BUSINESS
  
 HISTORY
   PRODUCTS
  
 
 
   2011 STRATTEC Annual Report
    
    5




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##### 



COMPANY DESCRIPTION
 
 
 
   MARKETS
  
     2011 STRATTEC Annual Report
    
    6




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##### 



COMPANY DESCRIPTION
  
 CUSTOMER FOCUS
     
 2011 STRATTEC Annual Report
    
    7




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##### 



COMPANY DESCRIPTION
  OPERATIONS
  
 
 ADVANCED DEVELOPMENT
  VAST (VEHICLE ACCESS SYSTEMS TECHNOLOGY)
  2011 STRATTEC Annual Report
    
    8




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##### 



COMPANY DESCRIPTION
      
 
 2011 STRATTEC Annual Report
    
    9




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##### 



COMPANY DESCRIPTION
  ADAC-STRATTEC de MEXICO
  
 STRATTEC has just introduced BOLT, the worlds first codeable padlock. In a simple one-step
process, users can code the padlock to their vehicle key. This provides significant convenience by
reducing the number of keys users need to secure their lockers, storage sheds and vehicle
accessories such as tool boxes, trailer hitches, etc. You can buy this product direct at www.boltlock.com
 STRATTEC POWER ACCESS LLC
  
 SEASONAL NATURE OF THE BUSINESS
  2011 STRATTEC Annual Report
    
    10




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##### 



COMPANY DESCRIPTION
  GLOBAL PRESENCE
 
 1. STRATTEC  Milwaukee, Wisconsin12. STRATTEC de Mexico  Juarez, Mexico13. STRATTEC de Mexico  Key Finishing  Juarez, Mexico14. ADAC-STRATTEC de Mexico  Juarez, Mexico5. STRATTEC Power Access de Mexico  Juarez, Mexico6. ADAC Automotive  Grand Rapids and Muskegan, Michigan17. ADAC Automotive, STRATTEC and STRATTEC POWER ACCESS(Sales/Engineering Offices  Detroit, Michigan)18. WITTE Automotive  Velbert, Germany19. WITTE Automotive  Nejdek, Czech Republic110. VAST do Brasil  Sao Paulo, Brazil211. VAST Fuzhou  Fuzhou, China212. VAST Great Shanghai Co.  Shanghai, China213. VAST Shanghai Co. Ltd.  Taicang, China214. VAST Japan  Tokyo, Japan (Branch Office)215. VAST Korea  Anyang, Korea (Branch Office)2
 1
    
    Members of VAST.2
    
    Units of VAST LLC joint venture. ECONOMIC VALUE COMMITMENT
 ® ® ®
  2011 STRATTEC Annual Report
    
    11




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##### 



2011 STRATTEC Annual Report
    
    12




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##### 



MANAGEMENTS DISCUSSION AND ANALYSIS
  Purchase of Delphi Power Products Business
     EXECUTIVE OVERVIEW
    2011 STRATTEC Annual Report
    
    13




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##### 



MANAGEMENTS DISCUSSION AND ANALYSIS
 Focus and Strategy Going Forward
  
    
    Streamline and standardize processes to increase productivity
    
    Maintain a disciplined and flexible cost structure to leverage scale and optimize
asset utilization and procurement
    
    Maintain our strong financial position by deploying capital spending targeted for
growth and productivity improvement
    
    Leverage the VAST Brand with customer relationships to generate organic growth
from global programs
    
    Offer our customers innovative products and cost savings solutions to meet
their changing demands
    
    Explore and execute targeted mergers and acquisitions with a disciplined due
diligence approach and critical financial analysis to drive shareholder value
  RESULTS OF OPERATIONS
  2011 Compared to 2010
  ®
 2011 STRATTEC Annual Report
    
    14




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##### 



MANAGEMENTS DISCUSSION AND ANALYSIS
        2010 Compared to 2009
  2011 STRATTEC Annual Report
    
    15




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##### 



MANAGEMENTS DISCUSSION AND ANALYSIS
  ®
 ® ®
   2011 STRATTEC Annual Report
    
    16




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##### 



MANAGEMENTS DISCUSSION AND ANALYSIS
       LIQUIDITY AND CAPITAL RESOURCES
  General Motors
    
    $
    9,208Ford
    
    $
    4,372Chrysler
    
    $
    12,103
    2011 STRATTEC Annual Report
    
    17




---



##### 



MANAGEMENTS DISCUSSION AND ANALYSIS
         2011 STRATTEC Annual Report
    
    18




---



##### 



MANAGEMENTS DISCUSSION AND ANALYSIS
  Foreign ExchangeGain/Loss) From:Notional
    
    
    Option Contractual
    
    
    
    
    
    
    10% Appreciation
    
    
    10% DepreciationAmount
    
    
    Exchange Rate
    
    
    Fair Value
    
    
    of U.S. Dollar
    
    
    of U.S. DollarBuy MXP/Sell USD
    
    $
    14,061
    
    
    
    11.85
    
    
    $
    414
    
    
    $
    (389
    )
    
    $
    1,586Buy MXP/Sell USD
    
    $
    14,061
    
    
    
    12.85
    
    
    $
    (169
    )
    
    $
    (281
    )
    
    $
    169
  Other Current AssetsJuly 3, 2011
    
    
    June 27, 2010Not Designated as Hedging Instruments:Mexican Peso Option Contracts
    
    $
    245
    
    
    $
    
  Other Income, netJuly 3, 2011
    
    
    June 27, 2010Not Designated as Hedging Instruments:Mexican Peso Option Contracts  Unrealized Gain
    
    $
    414
    
    
    $
    Mexican Peso Option Contracts  Realized Gain
    
    $
    33
    
    
    $
    Mexican Peso Option Contracts  Unrealized Loss
    
    $
    (169
    )
    
    $
    Mexican Peso Option Contracts  Realized Loss
    
    $
    
    
    
    $
    
  CONTRACTUAL OBLIGATIONS AND COMMITMENTS
  Payments Due By PeriodLess Than
    
    
    
    
    
    
    
    
    
    
    More ThanContractual Obligation
    
    Total
    
    
    1 Year
    
    
    1-3 Years
    
    
    3-5 Years
    
    
    5 YearsOperating Leases
    
    $
    1,953
    
    
    $
    625
    
    
    $
    1,048
    
    
    $
    280
    
    
    $
    Other Purchase Obligations
    
    
    29,091
    
    
    
    10,484
    
    
    
    15,604
    
    
    
    3,003
    
    
    
    Pension and
Postretirement
Obligations(a)
    
    
    6,134
    
    
    
    6,134
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    $
    37,178
    
    
    $
    17,243
    
    
    $
    16,652
    
    
    $
    3,283
    
    
    $
    
 (a)
    
    As disclosed in our Notes to Financial Statements, estimated cash funding related to
our pension and postretirement benefit plans is expected to total $6.1 million in 2012. Because the
timing of funding related to these plans beyond 2012 is uncertain, and is dependent on future
movements in interest rates and investment returns, changes in laws and regulations, and other
variables, pension and postretirement outflows beyond 2012 have not been included in the table
above. 2011 STRATTEC Annual Report
    
    19




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##### 



MANAGEMENTS DISCUSSION AND ANALYSIS
  JOINT VENTURES
       OTHER MATTERS
  RECENTLY ISSUED ACCOUNTING STANDARDS
  2011 STRATTEC Annual Report
    
    20




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##### 



MANAGEMENTS DISCUSSION AND ANALYSIS
 CRITICAL ACCOUNTING POLICIES
  Pension and Postretirement Health Benefits 
         2011 STRATTEC Annual Report
    
    21




---



##### 



MANAGEMENTS DISCUSSION AND ANALYSIS
    Liability for Uncertain Tax Positions
 Other Reserves
     2011 STRATTEC Annual Report
    
    22




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##### 



MANAGEMENTS DISCUSSION AND ANALYSIS
     Stock-Based Compensation
 RISK FACTORS
  Loss of Significant Customers, Vehicle Content, Vehicle Models and Market Share 
 2011 STRATTEC Annual Report
    
    23




---



##### 



MANAGEMENTS DISCUSSION AND ANALYSIS
    Production Slowdowns by Customers
 Financial Distress of Automotive Supply Base 
 Shortage of Raw Materials or Components Supply 
  2011 STRATTEC Annual Report
    
    24




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##### 



MANAGEMENTS DISCUSSION AND ANALYSIS
  Cost Reduction
 Cyclicality and Seasonality in the Automotive Market 
 Foreign Operations
 Currency Exchange Rate Fluctuations
 Sources of and Fluctuations in Market Prices of Raw Materials 
  Disruptions Due to Work Stoppages and Other Labor Matters 
 Environmental and Safety Regulations
 2011 STRATTEC Annual Report
    
    25




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##### 



MANAGEMENTS DISCUSSION AND ANALYSIS
  Highly Competitive Automotive Supply Industry 
  Program Volume and Pricing Fluctuations 
 Investments in Customer Program Specific Assets 
 Financial Industry / Credit Market Risk
 Warranty Claims
 2011 STRATTEC Annual Report
    
    26




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##### 



CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)  (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
 Years EndedJuly 3, 2011
    
    
    June 27, 2010
    
    
    June 28, 2009NET SALES
    
    $
    260,933
    
    
    $
    207,964
    
    
    $
    126,097Cost of goods sold
    
    
    218,770
    
    
    
    174,922
    
    
    
    112,857GROSS PROFIT
    
    
    42,163
    
    
    
    33,042
    
    
    
    13,240Engineering, selling, and administrative expenses
    
    
    33,443
    
    
    
    29,939
    
    
    
    25,480Impairment charge
    
    
    
    
    
    
    223
    
    
    
    Environmental Reserve Adjustment
    
    
    
    
    
    
    (1,125
    )
    
    
    (Recovery of) Provision for doubtful accounts
    
    
    
    
    
    
    (421
    )
    
    
    500INCOME (LOSS) FROM OPERATIONS
    
    
    8,720
    
    
    
    4,426
    
    
    
    (12,740
    )Interest income
    
    
    119
    
    
    
    86
    
    
    
    731Equity earnings of joint ventures
    
    
    1,246
    
    
    
    1,008
    
    
    
    245Interest expense-related parties
    
    
    (175
    )
    
    
    (225
    )
    
    
    (164
    )Other income, net
    
    
    220
    
    
    
    312
    
    
    
    804INCOME (LOSS) BEFORE PROVISION FOR INCOME
TAXES AND NON-CONTROLLING INTEREST
    
    
    10,130
    
    
    
    5,607
    
    
    
    (11,124
    )Provision (benefit) for income taxes
    
    
    2,540
    
    
    
    1,666
    
    
    
    (4,222
    )NET INCOME (LOSS)
    
    
    7,590
    
    
    
    3,941
    
    
    
    (6,902
    )Net (income) loss attributable to non-controlling
interest
    
    
    (2,172
    )
    
    
    (520
    )
    
    
    780NET INCOME (LOSS) ATTRIBUTABLE TO
STRATTEC SECURITY CORPORATION
    
    $
    5,418
    
    
    $
    3,421
    
    
    $
    (6,122
    )COMPREHENSIVE INCOME (LOSS):NET INCOME (LOSS)
    
    $
    7,590
    
    
    $
    3,941
    
    
    $
    (6,902
    )Change in cumulative translation adjustments
    
    
    1,777
    
    
    
    503
    
    
    
    (2,505
    )Pension funded status adjustment, net of tax
    
    
    8,450
    
    
    
    (1,346
    )
    
    
    (11,114
    )TOTAL OTHER COMPREHENSIVE INCOME (LOSS)
    
    
    10,227
    
    
    
    (843
    )
    
    
    (13,619
    )COMPREHENSIVE INCOME (LOSS)
    
    
    17,817
    
    
    
    3,098
    
    
    
    (20,521
    )Comprehensive (income) loss attributed to
non controlling interest
    
    
    (2,208
    )
    
    
    (525
    )
    
    
    800COMPREHENSIVE INCOME (LOSS)
ATTRIBUTABLE TO STRATTEC
SECURITY CORPORATION
    
    $
    15,609
    
    
    $
    2,573
    
    
    $
    (19,721
    )EARNINGS (LOSS) PER SHARE:BASIC
    
    $
    1.65
    
    
    $
    1.05
    
    
    $
    (1.87
    )DILUTED
    
    $
    1.63
    
    
    $
    1.04
    
    
    $
    (1.86
    )AVERAGE SHARES OUTSTANDING:BASIC
    
    
    3,285
    
    
    
    3,271
    
    
    
    3,280DILUTED
    
    
    3,323
    
    
    
    3,280
    
    
    
    3,284
  2011 STRATTEC Annual Report
    
    27




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##### 



CONSOLIDATED BALANCE SHEETS  (IN THOUSANDS, EXCEPT SHARE AMOUNTS AND PER SHARE AMOUNTS)
 July 3, 2011
    
    
    June 27, 2010ASSETSCURRENT ASSETS:Cash and cash equivalents
    
    $
    17,250
    
    
    $
    21,867Receivables, less allowance for doubtful accounts
of $400 at July 3, 2011 and June 27, 2010
    
    
    39,649
    
    
    
    36,084Restricted cash
    
    
    
    
    
    
    2,100Inventories, net
    
    
    22,135
    
    
    
    17,086Customer tooling in progress, net
    
    
    2,788
    
    
    
    3,439Deferred income taxes
    
    
    4,026
    
    
    
    2,133Other current assets
    
    
    8,554
    
    
    
    7,299Total current assets
    
    
    94,402
    
    
    
    90,008DEFERRED INCOME TAXES
    
    
    3,639
    
    
    
    10,534INVESTMENT IN JOINT VENTURES
    
    
    7,276
    
    
    
    5,176LOAN TO JOINT VENTURE
    
    
    1,500
    
    
    
    1,500OTHER LONG-TERM ASSETS
    
    
    635
    
    
    
    733PROPERTY, PLANT AND EQUIPMENT, NET
    
    
    40,636
    
    
    
    37,051$
    148,088
    
    
    $
    145,002LIABILITIES AND SHAREHOLDERS EQUITYCURRENT LIABILITIES:Accounts payable
    
    $
    22,851
    
    
    $
    21,192Loans from related parties
    
    
    1,850
    
    
    
    3,000Accrued liabilities:Payroll and benefits
    
    
    15,546
    
    
    
    15,496Environmental
    
    
    1,478
    
    
    
    1,497Warranty
    
    
    3,856
    
    
    
    1,718Income taxes
    
    
    1,734
    
    
    
    63Other
    
    
    3,673
    
    
    
    3,265Total current liabilities
    
    
    50,988
    
    
    
    46,231COMMITMENTS AND CONTINGENCIES see note on page 40BORROWINGS UNDER LINE OF CREDIT
    
    
    
    
    
    
    ACCRUED PENSION OBLIGATIONS
    
    
    3,447
    
    
    
    18,492ACCRUED POSTRETIREMENT OBLIGATIONS
    
    
    3,589
    
    
    
    4,490SHAREHOLDERS EQUITY:Common stock, authorized 12,000,000 shares, $.01 par value,
issued 6,920,557 shares at July 3, 2011 and
6,909,357 shares at June 27, 2010
    
    
    69
    
    
    
    69Capital in excess of par value
    
    
    79,767
    
    
    
    79,339Retained earnings
    
    
    164,138
    
    
    
    162,706Accumulated other comprehensive loss
    
    
    (21,750
    )
    
    
    (31,941
    )Less: Treasury stock at cost (3,631,079 shares at
July 3, 2011 and 3,633,402 shares at June 27, 2010)
    
    
    (136,009
    )
    
    
    (136,047
    )Total STRATTEC SECURITY CORPORATION shareholders equity
    
    
    86,215
    
    
    
    74,126Non-controlling interest
    
    
    3,849
    
    
    
    1,663Total shareholders equity
    
    
    90,064
    
    
    
    75,789$
    148,088
    
    
    $
    145,002
  2011 STRATTEC Annual Report
    
    28




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##### 



CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY  (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
 AccumulatedCapital in
    
    
    
    
    
    
    OtherCommon
    
    
    Excess of
    
    
    Retained
    
    
    Comprehensive
    
    
    Treasury
    
    
    Non-controllingTotal
    
    
    Stock
    
    
    Par Value
    
    
    Earnings
    
    
    Loss
    
    
    Stock
    
    
    InterestBALANCE JUNE 29, 2008
    
    $
    98,893
    
    
    $
    69
    
    
    $
    78,885
    
    
    $
    166,397
    
    
    $
    (17,495
    )
    
    $
    (129,916
    )
    
    $
    953Net loss
    
    
    (6,902
    )
    
    
    
    
    
    
    
    
    
    
    (6,122
    )
    
    
    
    
    
    
    
    
    
    
    (780
    )Translation adjustments
    
    
    (2,505
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,485
    )
    
    
    
    
    
    
    (20
    )Contribution from
non-controlling interest
    
    
    986
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    986Pension and postretirement
funded status adjustment,
net of tax of $6,812
    
    
    (11,114
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (11,114
    )
    
    
    
    
    
    
    Purchase of common stock
    
    
    (6,214
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6,214
    )
    
    
    Cash dividends declared
($0.30 per share)
    
    
    (990
    )
    
    
    
    
    
    
    
    
    
    
    (990
    )
    
    
    
    
    
    
    
    
    
    
    Stock-based compensation
and shortfall tax benefit,
including tax benefit on
restricted stock
dividends
of $5
    
    
    363
    
    
    
    
    
    
    
    363
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Employee stock purchases
    
    
    40
    
    
    
    
    
    
    
    (1
    )
    
    
    
    
    
    
    
    
    
    
    41
    
    
    
    BALANCE June 28, 2009
    
    $
    72,557
    
    
    $
    69
    
    
    $
    79,247
    
    
    $
    159,285
    
    
    $
    (31,094
    )
    
    $
    (136,089
    )
    
    $
    1,139Net income
    
    
    3,941
    
    
    
    
    
    
    
    
    
    
    
    3,421
    
    
    
    
    
    
    
    
    
    
    
    520Translation adjustments
    
    
    503
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    499
    
    
    
    
    
    
    
    4Pension and postretirement
funded status adjustment,
net of tax of $825
    
    
    (1,346
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,346
    )
    
    
    
    
    
    
    Share of premium on
equity method ownership
    
    
    (409
    )
    
    
    
    
    
    
    (409
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Stock-based compensation
and shortfall tax benefit
    
    
    464
    
    
    
    
    
    
    
    464
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Stock Option Exercises
    
    
    35
    
    
    
    
    
    
    
    35
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Employee stock purchases
    
    
    44
    
    
    
    
    
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    42
    
    
    
    BALANCE JUNE 27, 2010
    
    $
    75,789
    
    
    $
    69
    
    
    $
    79,339
    
    
    $
    162,706
    
    
    $
    (31,941
    )
    
    $
    (136,047
    )
    
    $
    1,663Net income
    
    
    7,590
    
    
    
    
    
    
    
    
    
    
    
    5,418
    
    
    
    
    
    
    
    
    
    
    
    2,172Translation adjustments
    
    
    1,777
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,741
    
    
    
    
    
    
    
    36Pension and postretirement
funded status adjustment,
net of tax of $5,179
    
    
    8,450
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,450
    
    
    
    
    
    
    
    Cash dividends declared
($1.20 per share)
    
    
    (3,986
    )
    
    
    
    
    
    
    
    
    
    
    (3,986
    )
    
    
    
    
    
    
    
    
    
    
    Purchase of Additional
Interest
in Majority Owned
Subsidiary
    
    
    (22
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (22
    )Stock-Based Compensation
and
shortfall tax benefit,
including
tax benefit on restricted
stock
dividends of $15
    
    
    364
    
    
    
    
    
    
    
    364
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Stock Option Exercises
    
    
    40
    
    
    
    
    
    
    
    40
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Employee stock purchases
    
    
    62
    
    
    
    
    
    
    
    24
    
    
    
    
    
    
    
    
    
    
    
    38
    
    
    
    BALANCE July 3, 2011
    
    $
    90,064
    
    
    $
    69
    
    
    $
    79,767
    
    
    $
    164,138
    
    
    $
    (21,750
    )
    
    $
    (136,009
    )
    
    $
    3,849
  2011 STRATTEC Annual Report
    
    29




---



##### 



CONSOLIDATED STATEMENTS OF CASH FLOWS  (IN THOUSANDS)
 Years EndedJuly 3, 2011
    
    
    June 27, 2010
    
    
    June 28, 2009CASH FLOWS FROM OPERATING ACTIVITIESNet Income (Loss)
    
    $
    7,590
    
    
    $
    3,941
    
    
    $
    (6,902
    )Adjustments to reconcile net income (loss) to
net cash provided by operating activities:Equity earnings in joint ventures
    
    
    (1,246
    )
    
    
    (1,008
    )
    
    
    (245
    )Depreciation and amortization
    
    
    6,619
    
    
    
    7,143
    
    
    
    6,264Foreign currency transaction loss (gain)
    
    
    836
    
    
    
    283
    
    
    
    (918
    )Unrealized gain on peso option contracts
    
    
    (245
    )
    
    
    
    
    
    
    (Gain) loss on disposition of property, plant and
equipment
    
    
    (6
    )
    
    
    50
    
    
    
    39Deferred income taxes
    
    
    (177
    )
    
    
    3,428
    
    
    
    (2,986
    )Stock based compensation expense
    
    
    621
    
    
    
    468
    
    
    
    419(Recovery) provision for doubtful accounts
    
    
    
    
    
    
    (421
    )
    
    
    500Impairment charge
    
    
    
    
    
    
    223
    
    
    
    Environmental reserve adjustment
    
    
    
    
    
    
    (1,125
    )
    
    
    Loss on curtailment of employee benefits
    
    
    
    
    
    
    505
    
    
    
    Change in operating assets and liabilities:Receivables
    
    
    (3,309
    )
    
    
    (18,301
    )
    
    
    5,235Inventories
    
    
    (5,049
    )
    
    
    (497
    )
    
    
    1,033Other assets
    
    
    (183
    )
    
    
    3,181
    
    
    
    (1,966
    )Accounts payable and accrued liabilities
    
    
    2,902
    
    
    
    12,192
    
    
    
    (7,326
    )Other, net
    
    
    18
    
    
    
    3
    
    
    
    17Net cash provided (used) by operating activities
    
    
    8,371
    
    
    
    10,065
    
    
    
    (6,836
    )CASH FLOWS FROM INVESTING ACTIVITIESInvestment in joint ventures
    
    
    (450
    )
    
    
    (100
    )
    
    
    (551
    )Restricted cash
    
    
    2,100
    
    
    
    (2,100
    )
    
    
    Loan to joint venture
    
    
    
    
    
    
    (2,500
    )
    
    
    Proceeds from repayment of loan to joint venture
    
    
    
    
    
    
    1,000
    
    
    
    Additions to property, plant and equipment
    
    
    (9,531
    )
    
    
    (6,903
    )
    
    
    (12,492
    )Purchase of Delphi Power Products
    
    
    
    
    
    
    
    
    
    
    (4,931
    )Purchase of additional interest in majority owned
subsidiary
    
    
    (22
    )
    
    
    
    
    
    
    Proceeds received on sale of property,
plant and equipment
    
    
    111
    
    
    
    21
    
    
    
    8Net cash used in investing activities
    
    
    (7,792
    )
    
    
    (10,582
    )
    
    
    (17,966
    )CASH FLOWS FROM FINANCING ACTIVITIESPurchase of common stock
    
    
    
    
    
    
    
    
    
    
    (6,214
    )Exercise of stock options and employee stock purchases
    
    
    90
    
    
    
    72
    
    
    
    40Excess tax benefits from stock-based compensation
    
    
    12
    
    
    
    9
    
    
    
    Dividends paid
    
    
    (3,989
    )
    
    
    
    
    
    
    (1,511
    )Loan from related parties
    
    
    
    
    
    
    
    
    
    
    2,175Repayment of loan from related parties
    
    
    (1,150
    )
    
    
    (225
    )
    
    
    Contribution from non-controlling interest
    
    
    
    
    
    
    
    
    
    
    986Net cash used in financing activities
    
    
    (5,037
    )
    
    
    (144
    )
    
    
    (4,524
    )FOREIGN CURRENCY IMPACT ON CASH
    
    
    (159
    )
    
    
    (236
    )
    
    
    589NET DECREASE IN CASH
AND CASH EQUIVALENTS
    
    
    (4,617
    )
    
    
    (897
    )
    
    
    (28,737
    )CASH AND CASH EQUIVALENTSBeginning of year
    
    
    21,867
    
    
    
    22,764
    
    
    
    51,501End of year
    
    $
    17,250
    
    
    $
    21,867
    
    
    $
    22,764SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATIONIncome taxes paid (recovered)
    
    $
    1,394
    
    
    $
    (2,963
    )
    
    $
    (1,869
    )Interest paid  related parties
    
    
    188
    
    
    
    250
    
    
    
    107
  2011 STRATTEC Annual Report
    
    30




---



##### 



NOTES TO FINANCIAL STATEMENTS
 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
    Purchase of Delphi Power Products Business:
    Principles of Consolidation and Presentation:
 Reclassifications and Other Adjustments:
 Fiscal Year:
 2011 STRATTEC Annual Report
    
    31




---



##### 



NOTES TO FINANCIAL STATEMENTS
 Use of Estimates:
 Cash and Cash Equivalents:
 Restricted Cash:
 Derivative Instruments:
 Foreign ExchangeGain/(Loss) From:Notional
    
    
    Option Contractual
    
    
    
    
    
    
    10% Appreciation
    
    
    10% DepreciationAmount
    
    
    Exchange Rate
    
    
    Fair Value
    
    
    of U.S. Dollar
    
    
    of U.S. DollarBuy MXP/Sell USD
    
    $
    14,061
    
    
    
    11.85
    
    
    $
    414
    
    
    $
    (389
    )
    
    $
    1,586Buy MXP/Sell USD
    
    $
    14,061
    
    
    
    12.85
    
    
    $
    (169
    )
    
    $
    (281
    )
    
    $
    169
  Other Current AssetsJuly 3, 2011
    
    
    June 27, 2010Not Designated as Hedging Instruments:Mexican Peso Option Contracts
    
    $
    245
    
    
    $
    
  Other Income, netJuly 3, 2011
    
    
    June 27, 2010Not Designated as
Hedging Instruments:Mexican Peso Option
Contracts  Unrealized
Gain
    
    $
    414
    
    
    $
    Mexican Peso
Option Contracts 
Realized Gain
    
    $
    33
    
    
    $
    Mexican
Peso Option Contracts 
Unrealized Loss
    
    $
    (169
    )
    
    $
    Mexican
Peso Option Contracts 
Realized Loss
    
    $
    
    
    
    $
    
  2011 STRATTEC Annual Report
    
    32




---



##### 



NOTES TO FINANCIAL STATEMENTS
  Fair Value of Financial Instruments:
 July 3, 2011
    
    
    June 27, 2010Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    Total
    
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    TotalAssets:Rabbi Trust assets
    
    $
    4,349
    
    
    $
    
    
    
    $
    
    
    
    $
    4,349
    
    
    $
    3,965
    
    
    $
    
    
    
    $
    
    
    
    $
    3,965Mexican peso option
contracts
    
    
    
    
    
    
    414
    
    
    
    
    
    
    
    414
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total assets at fair
value
    
    $
    4,349
    
    
    $
    414
    
    
    $
    
    
    
    $
    4,763
    
    
    $
    3,965
    
    
    $
    
    
    
    $
    
    
    
    $
    3,965Liabilities:Mexican peso option
contracts
    
    $
    
    
    
    $
    169
    
    
    $
    
    
    
    $
    169
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
  Receivables:
 Balance,
    
    
    (Recovery) Provision
    
    
    
    
    
    
    Balance,Beginning
    
    
    for Doubtful
    
    
    Net
    
    
    End ofof Year
    
    
    Accounts
    
    
    Recoveries
    
    
    YearYear ended July 3, 2011
    
    $
    400
    
    
    $
    
    
    
    $
    
    
    
    $
    400Year ended June 27, 2010
    
    $
    750
    
    
    $
    (421
    )
    
    $
    71
    
    
    $
    400Year ended June 28, 2009
    
    $
    250
    
    
    $
    500
    
    
    $
    
    
    
    $
    750
 Inventories:
 2011 STRATTEC Annual Report
    
    33




---



##### 



NOTES TO FINANCIAL STATEMENTS
 July 3, 2011
    
    
    June 27, 2010Finished products
    
    $
    5,899
    
    
    $
    3,880Work in process
    
    
    5,557
    
    
    
    4,637Purchased materials
    
    
    11,879
    
    
    
    9,98723,335
    
    
    
    18,504Excess and obsolete reserve
    
    
    (1,200
    )
    
    
    (1,418
    )Inventories, net
    
    $
    22,135
    
    
    $
    17,086
  Balance,
    
    
    Provision
    
    
    
    
    
    
    Balance,Beginning
    
    
    Charged to
    
    
    Amounts
    
    
    End ofof Year
    
    
    Expense
    
    
    Written Off
    
    
    YearYear ended July 3, 2011
    
    $
    1,418
    
    
    $
    334
    
    
    $
    (552
    )
    
    $
    1,200Year ended June 27, 2010
    
    $
    975
    
    
    $
    643
    
    
    $
    (200
    )
    
    $
    1,418Year ended June 28, 2009
    
    $
    850
    
    
    $
    501
    
    
    $
    (376
    )
    
    $
    975
 Customer Tooling in Progress:
 Repair and Maintenance Supply Parts:
 Balance,
    
    
    Provision
    
    
    
    
    
    
    Balance,Beginning
    
    
    Charged to
    
    
    Amounts
    
    
    End ofof Year
    
    
    Expense
    
    
    Written Off
    
    
    YearYear ended July 3, 2011
    
    $
    680
    
    
    $
    78
    
    
    $
    63
    
    
    $
    695Year ended June 27, 2010
    
    $
    630
    
    
    $
    78
    
    
    $
    28
    
    
    $
    680Year ended June 28, 2009
    
    $
    650
    
    
    $
    80
    
    
    $
    100
    
    
    $
    630
 Goodwill and Other Intangibles:
  July 3, 2011
    
    
    June 27, 2010Patents, engineering drawings and software
    
    $
    890
    
    
    $
    890Less: accumulated amortization
    
    
    (255
    )
    
    
    (157
    )$
    635
    
    
    $
    733
 2011 STRATTEC Annual Report
    
    34




---



##### 



NOTES TO FINANCIAL STATEMENTS
  Property, Plant and Equipment:
 Classification
    
    Expected Useful LivesLand improvements
    
    20 yearsBuildings and
improvements
    
    20 to 35 yearsMachinery and equipment
    
    3 to 10 years
  July 3, 2011
    
    
    June 27, 2010Land and improvements
    
    $
    3,078
    
    
    $
    2,919Buildings and improvements
    
    
    18,983
    
    
    
    18,337Machinery and equipment
    
    
    119,303
    
    
    
    115,472141,364
    
    
    
    136,728Less: accumulated
depreciation
    
    
    (100,728
    )
    
    
    (99,677
    )$
    40,636
    
    
    $
    37,051
    Supplier Concentrations:
 Percentage of
    
    
    Number ofFiscal Year
    
    Inventory Purchases
    
    
    Suppliers2011
    
    
    40
    %
    
    
    112010
    
    
    34
    %
    
    
    82009
    
    
    24
    %
    
    
    4
  Labor Concentrations:
 Revenue Recognition:
 Research and Development Costs:
 2011 STRATTEC Annual Report
    
    35




---



##### 



NOTES TO FINANCIAL STATEMENTS
 Other Income, Net:
 Years EndedJuly 3, 2011
    
    
    June 27, 2010
    
    
    June 28, 2009Foreign currency transaction (loss) gain
    
    $
    (836
    )
    
    $
    (283
    )
    
    $
    918Rabbi Trust gain (loss)
    
    
    384
    
    
    
    431
    
    
    
    (393
    )Unrealized gain on Mexican peso option contracts
    
    
    245
    
    
    
    
    
    
    
    Other
    
    
    427
    
    
    
    164
    
    
    
    279$
    220
    
    
    $
    312
    
    
    $
    804
 Self Insurance and Loss Sensitive Plans:
    Balance,
    
    
    Provision
    
    
    
    
    
    
    Balance,Beginning
    
    
    Charged to
    
    
    
    
    
    
    End ofof Year
    
    
    Expense
    
    
    Payments
    
    
    YearYear ended July 3, 2011Incurred but not reported claims
reserve for self insured plans
    
    $
    320
    
    
    $
    3,077
    
    
    $
    3,077
    
    
    $
    320Workers Compensation
    
    $
    (185
    )
    
    $
    398
    
    
    $
    491
    
    
    $
    (278
    )Year ended June 27, 2010Incurred but not reported claims
reserve for self insured plans
    
    $
    300
    
    
    $
    3,041
    
    
    $
    3,021
    
    
    $
    320Workers Compensation
    
    $
    (78
    )
    
    $
    259
    
    
    $
    366
    
    
    $
    (185
    )Year ended June 28, 2009Incurred but not reported claims
reserve for self insured plans
    
    $
    300
    
    
    $
    2,468
    
    
    $
    2,468
    
    
    $
    300Workers Compensation
    
    $
    (140
    )
    
    $
    208
    
    
    $
    146
    
    
    $
    (78
    )
 2011 STRATTEC Annual Report
    
    36




---



##### 



NOTES TO FINANCIAL STATEMENTS
 Warranty Reserve:
  Balance,
    
    
    Provision
    
    
    
    
    
    
    Balance,Beginning
    
    
    Charged to
    
    
    
    
    
    
    End ofof Year
    
    
    Expense
    
    
    Payments
    
    
    YearYear ended July 3, 2011
    
    $
    1,718
    
    
    $
    2,807
    
    
    $
    669
    
    
    $
    3,856Year ended June 27, 2010
    
    $
    221
    
    
    $
    2,560
    
    
    $
    1,063
    
    
    $
    1,718Year ended June 28, 2009
    
    $
    390
    
    
    $
    362
    
    
    $
    531
    
    
    $
    221
 Foreign Currency Translation:
 Accumulated Other Comprehensive Loss:
 July 3, 2011
    
    
    June 27, 2010
    
    
    June 28, 2009Unrecognized pension and
postretirement benefit liabilities,
net of tax
    
    $
    19,772
    
    
    $
    28,222
    
    
    $
    26,876Foreign currency translation
    
    
    1,978
    
    
    
    3,719
    
    
    
    4,218$
    21,750
    
    
    $
    31,941
    
    
    $
    31,094
  Accounting For Stock-Based Compensation:
   2011 STRATTEC Annual Report
    
    37




---



##### 



NOTES TO FINANCIAL STATEMENTS
     Years EndedJuly 3, 2011
    
    
    June 27, 2010
    
    
    June 28, 2009Intrinsic value of options exercised
    
    $
    44
    
    
    $
    35
    
    
    $
    Fair value of stock options vested
    
    $
    293
    
    
    $
    114
    
    
    $
    469
  Options Granted During
    
    2011
    
    
    2010
    
    
    2009Weighted average grant date fair value:Options issued at grant date market value
    
    
    n/a
    
    
    $
    8.95
    
    
    $
    3.80Options issued above grant date market value
    
    $
    7.48
    
    
    
    n/a
    
    
    
    n/aAssumptions:Risk free interest rates
    
    
    1.08
    %
    
    
    3.14
    %
    
    
    2.22
    %Expected volatility
    
    
    59.89
    %
    
    
    49.73
    %
    
    
    32.96
    %Expected dividend yield
    
    
    1.54
    %
    
    
    
    
    
    
    1.67
    %Expected term (in years)
    
    
    4.0
    
    
    
    6.0
    
    
    
    5.5
   Weighted Average RemainingNumber of Options
    
    Weighted Average Exercise
    
    Contractual Life OutstandingOutstanding/Exercisable
    
    Price Outstanding/Exercisable
    
    (In Years)$10.92-$22.47
    
    207,400/65,800
    
    $16.18/$13.85
    
    7.3$37.58-$44.93
    
    4,000/4,000
    
    $41.26/$41.26
    
    .9$53.07-$63.25
    
    86,000/86,000
    
    $56.99/$56.99
    
    2.6$28.32/$38.37
 Recent Accounting Pronouncements:
 SUBSEQUENT EVENTS
    INVESTMENT IN JOINT VENTURES
  2011 STRATTEC Annual Report
    
    38




---



##### 



NOTES TO FINANCIAL STATEMENTS
       LOANS FROM RELATED PARTIES
  CREDIT FACILITY
  2011 STRATTEC Annual Report
    
    39




---



##### 



NOTES TO FINANCIAL STATEMENTS
  COMMITMENTS AND CONTINGENCIES
   INCOME TAXES
   2011
    
    
    2010
    
    
    2009Currently payable (refundable):Federal
    
    $
    1,181
    
    
    $
    (2,745
    )
    
    $
    (1,747
    )State
    
    
    167
    
    
    
    230
    
    
    
    150Foreign
    
    
    1,369
    
    
    
    753
    
    
    
    3612,717
    
    
    
    (1,762
    )
    
    
    (1,236
    )Deferred tax (benefit) provision
    
    
    (177
    )
    
    
    3,428
    
    
    
    (2,986
    )$
    2,540
    
    
    $
    1,666
    
    
    $
    (4,222
    )
  2011
    
    
    2010
    
    
    2009U.S. statutory rate
    
    
    34.0
    %
    
    
    34.0
    %
    
    
    34.0
    %State taxes, net of Federal tax benefit
    
    
    0.4
    
    
    
    4.1
    
    
    
    1.2Foreign subsidiaries
    
    
    (1.9
    )
    
    
    (4.1
    )
    
    
    4.3Non-controlling interest
    
    
    (7.2
    )
    
    
    (3.5
    )
    
    
    (2.3
    )Valuation allowance
    
    
    0.5
    
    
    
    2.8
    
    
    
    Other
    
    
    (0.7
    )
    
    
    (3.6
    )
    
    
    .825.1
    %
    
    
    29.7
    %
    
    
    38.0
    %
 2011 STRATTEC Annual Report
    
    40




---



##### 



NOTES TO FINANCIAL STATEMENTS
  July 3, 2011
    
    
    June 27, 2010Deferred income taxescurrent:Repair and maintenance supply parts reserve
    
    $
    264
    
    
    $
    258Payroll-related accruals
    
    
    1,504
    
    
    
    1,028Environmental reserve
    
    
    562
    
    
    
    569Inventory reserve
    
    
    401
    
    
    
    475Allowance for Doubtful Accounts
    
    
    152
    
    
    
    152Accrued Warranty
    
    
    1,169
    
    
    
    436Method change for inventory valuation
    
    
    (460
    )
    
    
    (919
    )Other
    
    
    588
    
    
    
    2884,180
    
    
    
    2,287Valuation allowance
    
    
    (154
    )
    
    
    (154
    )$
    4,026
    
    
    $
    2,133Deferred income taxesnoncurrent:Accrued pension obligations
    
    $
    (9,080
    )
    
    $
    (8,634
    )Unrecognized pension and postretirement
benefit plan liabilities
    
    
    12,118
    
    
    
    17,297Accumulated depreciation
    
    
    (1,968
    )
    
    
    (2,001
    )Stock-based compensation
    
    
    693
    
    
    
    740Postretirement obligations
    
    
    1,153
    
    
    
    1,651NOL/credit carry-forwards
    
    
    216
    
    
    
    273Other
    
    
    562
    
    
    
    1,2083,694
    
    
    
    10,534Valuation allowance
    
    
    (55
    )
    
    
    $
    3,639
    
    
    $
    10,534
      Year EndedJuly 3, 2011
    
    
    June 27, 2010Unrecognized tax benefits, beginning of year
    
    $
    1,125
    
    
    $
    1,103Gross increases  tax positions in prior years
    
    
    26
    
    
    
    Gross decreases  tax positions in prior years
    
    
    
    
    
    
    (29
    )Gross increases  current period tax positions
    
    
    349
    
    
    
    115Tax Years Closed
    
    
    
    
    
    
    (64
    )Unrecognized tax benefits, end of year
    
    $
    1,500
    
    
    $
    1,125
 2011 STRATTEC Annual Report
    
    41




---



##### 



NOTES TO FINANCIAL STATEMENTS
  RETIREMENT PLANS AND POSTRETIREMENT COSTS
     Pension and SERP Benefits
    
    
    Postretirement BenefitsPrior service cost (credit)
    
    $
    52
    
    
    $
    (3,610
    )Net actuarial loss
    
    
    18,759
    
    
    
    4,571$
    18,811
    
    
    $
    961
    2011 STRATTEC Annual Report
    
    42




---



##### 



NOTES TO FINANCIAL STATEMENTS
 Pension and SERP Benefits
    
    
    Postretirement Benefits2011
    
    
    2010
    
    
    2009
    
    
    2011
    
    
    2010
    
    
    2009COMPONENTS OF NET PERIODIC BENEFIT COST:Service cost
    
    $
    70
    
    
    $
    1,006
    
    
    $
    1,935
    
    
    $
    10
    
    
    $
    124
    
    
    $
    191Interest cost
    
    
    4,692
    
    
    
    5,047
    
    
    
    5,083
    
    
    
    275
    
    
    
    701
    
    
    
    737Expected return on plan assets
    
    
    (6,445
    )
    
    
    (6,351
    )
    
    
    (6,562
    )
    
    
    
    
    
    
    
    
    
    
    Amortization of prior service cost
    
    
    12
    
    
    
    45
    
    
    
    79
    
    
    
    (764
    )
    
    
    (388
    )
    
    
    (388
    )Amortization of unrecognized net loss
    
    
    2,504
    
    
    
    727
    
    
    
    255
    
    
    
    645
    
    
    
    685
    
    
    
    695Net periodic benefit cost
    
    
    833
    
    
    
    474
    
    
    
    790
    
    
    
    166
    
    
    
    1,122
    
    
    
    1,235Curtailment loss
    
    
    
    
    
    
    505
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net benefit cost
    
    $
    833
    
    
    $
    979
    
    
    $
    790
    
    
    $
    166
    
    
    $
    1,122
    
    
    $
    1,235
 Pension and SERP Benefits
    
    
    Postretirement BenefitsJuly 3,
    
    
    June 27,
    
    
    July 3,
    
    
    June 27,2011
    
    
    2010
    
    
    2011
    
    
    2010WEIGHTED-AVERAGE ASSUMPTIONSBenefit Obligations:Discount rate
    
    
    5.57
    %
    
    
    5.41
    %
    
    
    5.57
    %
    
    
    5.41
    %Expected return on plan assets
    
    
    7.8
    %
    
    
    8.0
    %
    
    
    n/a
    
    
    
    n/aRate of compensation increases  SERP
    
    
    3.0
    %
    
    
    3.0
    %
    
    
    n/a
    
    
    
    n/aNet Periodic Benefit Cost:Discount rate
    
    
    5.41
    %
    
    
    6.86
    %
    
    
    5.41
    %
    
    
    6.86
    %Expected return on plan assets
    
    
    8.0
    %
    
    
    8.0
    %
    
    
    n/a
    
    
    
    n/aRate of compensation increases  SERP
    
    
    3.0
    %
    
    
    3.0
    %
    
    
    n/a
    
    
    
    n/a
 2011
    
    
    2010
    
    
    2011
    
    
    2010CHANGE IN PROJECTED BENEFIT OBLIGATION:Benefit obligation at beginning of year
    
    $
    90,402
    
    
    $
    78,058
    
    
    $
    5,642
    
    
    $
    10,812Service cost
    
    
    70
    
    
    
    1,006
    
    
    
    10
    
    
    
    124Interest cost
    
    
    4,692
    
    
    
    5,047
    
    
    
    275
    
    
    
    701Plan amendments
    
    
    
    
    
    
    (3,982
    )
    
    
    
    
    
    
    (3,399
    )Actuarial (gain) loss
    
    
    (1,829
    )
    
    
    14,101
    
    
    
    134
    
    
    
    (1,543
    )Benefits paid
    
    
    (3,726
    )
    
    
    (3,828
    )
    
    
    (1,475
    )
    
    
    (1,053
    )Benefit obligation at end of year
    
    $
    89,609
    
    
    $
    90,402
    
    
    $
    4,586
    
    
    $
    5,642CHANGE IN PLAN ASSETS:Fair value of plan assets at beginning of year
    
    $
    68,768
    
    
    $
    60,594
    
    
    $
    
    
    
    $
    Actual return on plan assets
    
    
    15,981
    
    
    
    7,783
    
    
    
    
    
    
    
    Employer contribution
    
    
    2,000
    
    
    
    4,219
    
    
    
    1,475
    
    
    
    1,053Benefits paid
    
    
    (3,726
    )
    
    
    (3,828
    )
    
    
    (1,475
    )
    
    
    (1,053
    )Fair value of plan assets at end of year
    
    
    83,023
    
    
    
    68,768
    
    
    
    
    
    
    
    Funded status-accrued benefit obligations
    
    $
    (6,586
    )
    
    $
    (21,634
    )
    
    $
    (4,586
    )
    
    $
    (5,642
    )AMOUNTS RECOGNIZED IN CONSOLIDATED BALANCE
SHEETS:Accrued payroll and benefits
(current liabilities)
    
    $
    (3,139
    )
    
    $
    (3,142
    )
    
    $
    (997
    )
    
    $
    (1,152
    )Accrued benefit obligations
(long-term liabilities)
    
    
    (3,447
    )
    
    
    (18,492
    )
    
    
    (3,589
    )
    
    
    (4,490
    )Net amount recognized
    
    $
    (6,586
    )
    
    $
    (21,634
    )
    
    $
    (4,586
    )
    
    $
    (5,642
    )CHANGES IN PLAN ASSETS AND BENEFIT
OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE
INCOME:Net benefit cost
    
    $
    833
    
    
    $
    979
    
    
    $
    166
    
    
    $
    1,122Net actuarial loss (gain)
    
    
    (11,365
    )
    
    
    8,686
    
    
    
    135
    
    
    
    (1,543
    )Prior service cost
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,399
    )Amortization of prior service (cost) credits
    
    
    (12
    )
    
    
    (550
    )
    
    
    764
    
    
    
    388Amortization of unrecognized net loss
    
    
    (2,504
    )
    
    
    (727
    )
    
    
    (645
    )
    
    
    (685
    )Total recognized in other comprehensive income, before tax
    
    
    (13,881
    )
    
    
    7,409
    
    
    
    254
    
    
    
    (5,239
    )Total recognized in net periodic benefit cost and other comprehensive income
    
    $
    (13,048
    )
    
    $
    8,388
    
    
    $
    420
    
    
    $
    (4,117
    )
 2011 STRATTEC Annual Report
    
    43




---



##### 



NOTES TO FINANCIAL STATEMENTS
  Pension
    
    
    SERPJuly 3, 2011
    
    
    June 27, 2010
    
    
    July 3, 2011
    
    
    June 27, 2010Accumulated benefit obligation
    
    $
    84,902
    
    
    $
    86,658
    
    
    $
    4,158
    
    
    $
    3,682Projected benefit obligation
    
    $
    84,902
    
    
    $
    86,658
    
    
    $
    4,707
    
    
    $
    3,744
   1% Increase
    
    
    1% DecreaseEffect on total of service and interest cost components in fiscal
2011
    
    $
    5
    
    
    $
    (5
    )Effect on postretirement benefit obligation as of July 3, 2011
    
    $
    92
    
    
    $
    (89
    )
  Target Allocation
    
    
    July 3, 2011
    
    
    June 27, 2010Equity investments
    
    
    70
    %
    
    
    70
    %
    
    
    56
    %Fixed-income investments
    
    
    30
    %
    
    
    26
    %
    
    
    44
    %Other
    
    
    
    %
    
    
    4
    %
    
    
    
    %Total
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
  June 30, 2011
    
    
    June 30, 2010Asset Category
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    Total
    
    
    Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    TotalCash and cash
equivalents
    
    $
    630
    
    
    $
    
    
    
    $
    
    
    
    $
    630
    
    
    $
    1,508
    
    
    $
    
    
    
    $
    
    
    
    $
    1,508Equity
Securities/Funds:Small Cap
    
    
    13,770
    
    
    
    
    
    
    
    
    
    
    
    13,770
    
    
    
    6,392
    
    
    
    
    
    
    
    
    
    
    
    6,392Mid Cap
    
    
    9,139
    
    
    
    
    
    
    
    
    
    
    
    9,139
    
    
    
    8,973
    
    
    
    
    
    
    
    
    
    
    
    8,973Large Cap
    
    
    19,234
    
    
    
    
    
    
    
    
    
    
    
    19,234
    
    
    
    17,060
    
    
    
    
    
    
    
    
    
    
    
    17,060International
    
    
    15,398
    
    
    
    
    
    
    
    
    
    
    
    15,398
    
    
    
    5,970
    
    
    
    
    
    
    
    
    
    
    
    5,970Taxable/Fixed Income
Bond Funds
    
    
    21,157
    
    
    
    
    
    
    
    
    
    
    
    21,157
    
    
    
    28,865
    
    
    
    
    
    
    
    
    
    
    
    28,865Hedge funds
    
    
    
    
    
    
    
    
    
    
    3,695
    
    
    
    3,695
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    $
    79,328
    
    
    $
    
    
    
    $
    3,695
    
    
    $
    83,023
    
    
    $
    68,768
    
    
    $
    
    
    
    $
    
    
    
    $
    68,768
  RealizedFair Value
    
    
    Net Purchases
    
    
    and Unrealized
    
    
    Fair ValueJune
30, 2010
    
    
    and Sales
    
    
    Gain (loss)
    
    

June
30, 2011Hedge Funds
    
    $
    
    
    
    $
    3,500
    
    
    $
    195
    
    
    $
    3,695
    2011 STRATTEC Annual Report
    
    44




---



##### 



NOTES TO FINANCIAL STATEMENTS
 Pension and SERP Benefits
    
    
    Postretirement Benefits2012
    
    $
    7,544
    
    
    $
    9962013
    
    
    4,758
    
    
    
    9052014
    
    
    5,186
    
    
    
    7932015
    
    
    5,529
    
    
    
    6152016
    
    
    5,380
    
    
    
    4372017-2021
    
    
    31,014
    
    
    
    907
  SHAREHOLDERS EQUITY
   EARNINGS (LOSS) PER SHARE (EPS) (LPS)
  2011
    
    
    2010
    
    
    2009Net
    
    
    
    
    
    
    Per Share
    
    
    Net
    
    
    
    
    
    
    Per Share
    
    
    Net
    
    
    
    
    
    
    Per ShareIncome
    
    
    Shares
    
    
    Amount
    
    
    Income
    
    
    Shares
    
    
    Amount
    
    
    Loss
    
    
    Shares
    
    
    AmountBasic EPS (LPS)
    
    $
    5,418
    
    
    
    3,285
    
    
    $
    1.65
    
    
    $
    3,421
    
    
    
    3,271
    
    
    $
    1.05
    
    
    $
    (6,122
    )
    
    
    3,280
    
    
    $
    (1.87
    )Stock-based compensation
    
    
    
    
    
    
    38
    
    
    
    
    
    
    
    
    
    
    
    9
    
    
    
    
    
    
    
    
    
    
    
    4Diluted EPS (LPS)
    
    $
    5,418
    
    
    
    3,323
    
    
    $
    1.63
    
    
    $
    3,421
    
    
    
    3,280
    
    
    $
    1.04
    
    
    $
    (6,122
    )
    
    
    3,284
    
    
    $
    (1.86
    )
   STOCK OPTION AND PURCHASE PLANS
  Weighted AverageWeighted
    
    
    Remaining
    
    
    AggregateAverage
    
    
    Contractual Term
    
    
    Intrinsic ValueShares
    
    
    Exercise Price
    
    
    (in years)
    
    
    (in thousands)Balance at June 29, 2008
    
    
    187,780
    
    
    $
    58.74Granted
    
    
    96,800
    
    
    $
    11.80Exercised
    
    
    
    
    
    $
    Expired
    
    
    (52,340
    )
    
    $
    61.68Terminated
    
    
    (5,000
    )
    
    $
    58.55Balance at June 28, 2009
    
    
    227,240
    
    
    $
    38.07Granted
    
    
    80,000
    
    
    $
    17.73Exercised
    
    
    (2,400
    )
    
    $
    10.92Expired
    
    
    (2,790
    )
    
    $
    61.22Terminated
    
    
    (4,400
    )
    
    $
    10.92Balance at June 27, 2010
    
    
    297,650
    
    
    $
    33.01Granted
    
    
    40,000
    
    
    $
    22.47Exercised
    
    
    (2,600
    )
    
    $
    10.92Expired
    
    
    (37,650
    )
    
    $
    60.36Terminated
    
    
    
    
    
    $
    Balance at July 3, 2011
    
    
    297,400
    
    
    $
    28.32
    
    
    
    5.8
    
    
    $
    1,080Exercisable as of:July 3, 2011
    
    
    155,800
    
    
    $
    38.37
    
    
    
    4.8
    
    
    $
    479June 27, 2010
    
    
    149,350
    
    
    $
    50.92
    
    
    
    3.4
    
    
    $
    212June 28, 2009
    
    
    130,440
    
    
    $
    57.57
    
    
    
    3.5
    
    
    $
    Available for grant as
of July 3, 2011
    
    
    228,543
 2011 STRATTEC Annual Report
    
    45




---



##### 



NOTES TO FINANCIAL STATEMENTS
   Weighted AverageGrant DateShares
    
    
    Fair ValueNonvested Balance at June 29,
2008
    
    
    29,400
    
    
    $
    46.32Granted
    
    
    10,000
    
    
    $
    29.00Vested
    
    
    (10,200
    )
    
    $
    50.58Forfeited
    
    
    (1,000
    )
    
    $
    46.22Nonvested Balance at June 28,
2009
    
    
    28,200
    
    
    $
    38.64Granted
    
    
    10,000
    
    
    $
    14.75Vested
    
    
    (9,000
    )
    
    $
    40.00Forfeited
    
    
    (1,700
    )
    
    $
    32.28Nonvested Balance at June 27,
2010
    
    
    27,500
    
    
    $
    29.90Granted
    
    
    20,000
    
    
    $
    20.66Vested
    
    
    (8,600
    )
    
    $
    47.78Forfeited
    
    
    
    
    
    $
    Nonvested Balance at July 3, 2011
    
    
    38,900
    
    
    $
    21.19
  EXPORT SALES
  2011
    
    
    2010
    
    
    2009Export Sales
    
    $
    103,232
    
    
    $
    79,144
    
    
    $
    28,050Percent of Net Sales
    
    
    40
    %
    
    
    38
    %
    
    
    22
    %
  SALES AND RECEIVABLE CONCENTRATION
  2011
    
    
    2010
    
    
    2009Sales
    
    
    %
    
    
    Sales
    
    
    %
    
    
    Sales
    
    
    %General Motors Company
    
    $
    63,617
    
    
    
    24
    %
    
    $
    51,673
    
    
    
    25
    %
    
    $
    39,156
    
    
    
    31
    %Ford Motor Company
    
    
    26,930
    
    
    
    10
    %
    
    
    18,435
    
    
    
    9
    %
    
    
    12,575
    
    
    
    10
    %Chrysler Group LLC
    
    
    80,889
    
    
    
    31
    %
    
    
    68,216
    
    
    
    33
    %
    
    
    31,864
    
    
    
    25
    %$
    171,436
    
    
    
    66
    %
    
    $
    138,324
    
    
    
    67
    %
    
    $
    83,595
    
    
    
    66
    %
  July 3, 2011
    
    
    June 27, 2010Receivables
    
    
    %
    
    
    Receivables
    
    
    %General Motors Company
    
    $
    9,208
    
    
    
    23
    %
    
    $
    8,125
    
    
    
    22
    %Ford Motor Company
    
    
    4,372
    
    
    
    11
    %
    
    
    2,718
    
    
    
    7
    %Chrysler Group LLC
    
    
    12,103
    
    
    
    30
    %
    
    
    12,231
    
    
    
    34
    %$
    25,683
    
    
    
    64
    %
    
    $
    23,074
    
    
    
    63
    %
 2011 STRATTEC Annual Report
    
    46




---



##### 



REPORTS
 REPORT ON MANAGEMENTS ASSESSMENT OF INTERNAL CONTROL OVER FINANCIAL REPORTING
     -s- Harold M. Stratton II
    
    -s- Patrick J. HansenHarold M. Stratton II
    
    Patrick J. HansenChairman and
    
    Senior Vice President andChief Executive Officer
    
    Chief Financial Officer
 2011 STRATTEC Annual Report
    
    47




---



##### 



REPORTS
 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
  Internal
Control Integrated Framework
    Internal Control Integrated Framework
  
 2011 STRATTEC Annual Report
    
    48




---



##### 



REPORTS
 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
     Internal Control Integrated Framework
 
 2011 STRATTEC Annual Report
    
    49




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##### 



FINANCIAL SUMMARY
 FIVE-YEAR FINANCIAL SUMMARY
  Fiscal Years2011
    
    
    2010
    
    
    2009
    
    
    2008
    
    
    2007INCOME STATEMENT DATANet sales
    
    $
    260,933
    
    
    $
    207,964
    
    
    $
    126,097
    
    
    $
    159,642
    
    
    $
    167,707Gross profit
    
    
    42,163
    
    
    
    33,042
    
    
    
    13,240
    
    
    
    24,767
    
    
    
    26,520Engineering, selling, and administrative expenses
    
    
    33,443
    
    
    
    29,939
    
    
    
    25,480
    
    
    
    23,962
    
    
    
    20,189Impairment charge
    
    
    
    
    
    
    223
    
    
    
    
    
    
    
    
    
    
    
    Environmental reserve
adjustment
    
    
    
    
    
    
    (1,125
    )
    
    
    
    
    
    
    
    
    
    
    (Recovery of) provision for
doubtful accounts
    
    
    
    
    
    
    (421
    )
    
    
    500
    
    
    
    
    
    
    
    Income (loss) from operations
    
    
    8,720
    
    
    
    4,426
    
    
    
    (12,740
    )
    
    
    805
    
    
    
    6,331Interest income
    
    
    119
    
    
    
    86
    
    
    
    731
    
    
    
    2,749
    
    
    
    3,611Equity earnings of joint
ventures
    
    
    1,246
    
    
    
    1,008
    
    
    
    245
    
    
    
    561
    
    
    
    394Interest expense 
related parties
    
    
    (175
    )
    
    
    (225
    )
    
    
    (164
    )
    
    
    (31
    )
    
    
    Other income (expense), net
    
    
    220
    
    
    
    312
    
    
    
    804
    
    
    
    (300
    )
    
    
    321Income (loss) before taxes
and
non-controlling interest
    
    
    10,130
    
    
    
    5,607
    
    
    
    (11,124
    )
    
    
    3,784
    
    
    
    10,657Provision (benefit) for income
taxes
    
    
    2,540
    
    
    
    1,666
    
    
    
    (4,222
    )
    
    
    977
    
    
    
    2,533Net income (loss)
    
    
    7,590
    
    
    
    3,941
    
    
    
    (6,902
    )
    
    
    2,807
    
    
    
    8,124Net (income) loss attributable
to
non-controlling interest
    
    
    (2,172
    )
    
    
    (520
    )
    
    
    780
    
    
    
    (26
    )
    
    
    75Net income (loss) attributable
to
STRATTEC SECURITY
CORPORATION
    
    $
    5,418
    
    
    $
    3,421
    
    
    $
    (6,122
    )
    
    $
    2,781
    
    
    $
    8,199Earnings (Loss) per share:Basic
    
    $
    1.65
    
    
    $
    1.05
    
    
    $
    (1.87
    )
    
    $
    0.80
    
    
    $
    2.31Diluted
    
    
    1.63
    
    
    
    1.04
    
    
    
    (1.86
    )
    
    
    0.80
    
    
    
    2.31Cash dividends declared
per share:
    
    $
    1.20
    
    
    $
    
    
    
    $
    0.30
    
    
    $
    1.60
    
    
    $
    BALANCE SHEET DATANet working capital
    
    $
    43,414
    
    
    $
    43,777
    
    
    $
    41,710
    
    
    $
    72,835
    
    
    $
    84,077Total assets
    
    
    148,088
    
    
    
    145,002
    
    
    
    128,189
    
    
    
    144,221
    
    
    
    151,440Long-term liabilities
    
    
    7,036
    
    
    
    22,982
    
    
    
    24,784
    
    
    
    12,389
    
    
    
    13,431Total STRATTEC SECURITY
CORPORATION
Shareholders equity
    
    
    86,215
    
    
    
    74,126
    
    
    
    71,418
    
    
    
    97,940
    
    
    
    105,954
 2011 STRATTEC Annual Report
    
    50




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##### 



FINANCIAL SUMMARY/PERFORMANCE GRAPH
 QUARTERLY FINANCIAL DATA (UNAUDITED)
  CashNet Income
    
    
    Earnings
    
    
    DividendsAttributable to
    
    
    Per Share
    
    
    Declared
    
    
    Market Price Per ShareQuarter
    
    Net Sales
    
    
    Gross Profit
    
    
    STRATTEC
    
    
    Basic
    
    
    Diluted
    
    
    Per Share
    
    
    High
    
    
    Low2011
    
    First
    
    $
    59,849
    
    
    $
    10,153
    
    
    $
    1,418
    
    
    $
    0.43
    
    
    $
    0.43
    
    
    $
    1.20
    
    
    $
    24.56
    
    
    $
    17.94Second
    
    
    61,212
    
    
    
    9,973
    
    
    
    1,247
    
    
    
    0.38
    
    
    
    0.37
    
    
    
    
    
    
    
    35.50
    
    
    
    24.46Third
    
    
    65,650
    
    
    
    9,119
    
    
    
    55
    
    
    
    0.02
    
    
    
    0.02
    
    
    
    
    
    
    
    38.07
    
    
    
    27.12Fourth
    
    
    74,222
    
    
    
    12,918
    
    
    
    2,698
    
    
    
    0.82
    
    
    
    0.81
    
    
    
    
    
    
    
    33.90
    
    
    
    20.01TOTAL
    
    $
    260,933
    
    
    $
    42,163
    
    
    $
    5,418
    
    
    $
    1.65
    
    
    $
    1.63
    
    
    $
    1.202010
    
    First
    
    $
    41,181
    
    
    $
    6,798
    
    
    $
    943
    
    
    $
    0.29
    
    
    $
    0.29
    
    
    $
    
    
    
    $
    15.40
    
    
    $
    13.03Second
    
    
    52,540
    
    
    
    7,653
    
    
    
    844
    
    
    
    0.26
    
    
    
    0.26
    
    
    
    
    
    
    
    18.50
    
    
    
    13.29Third
    
    
    52,883
    
    
    
    8,861
    
    
    
    781
    
    
    
    0.24
    
    
    
    0.24
    
    
    
    
    
    
    
    22.15
    
    
    
    16.75Fourth
    
    
    61,360
    
    
    
    9,730
    
    
    
    853
    
    
    
    0.26
    
    
    
    0.26
    
    
    
    
    
    
    
    27.80
    
    
    
    19.52TOTAL
    
    $
    207,964
    
    
    $
    33,042
    
    
    $
    3,421
    
    
    $
    1.05
    
    
    $
    1.04
    
    
    $
    
   
 6/30/06
    
    
    7/1/07
    
    
    6/29/08
    
    
    6/28/09
    
    
    6/27/10
    
    
    7/3/11STRATTEC**
    
    
    100
    
    
    
    94
    
    
    
    73
    
    
    
    29
    
    
    
    46
    
    
    
    46NASDAQ Composite Index
    
    
    100
    
    
    
    122
    
    
    
    108
    
    
    
    87
    
    
    
    100
    
    
    
    133Dow Jones U.S. Auto Parts Index
    
    
    100
    
    
    
    137
    
    
    
    102
    
    
    
    74
    
    
    
    95
    
    
    
    160
 *
    
    $100 invested on June 30, 2006 in stock or index-including reinvestment of dividends. Indexes
calculated on a month-end basis.**
    
    The fiscal year end closing price of STRATTEC Common Stock on June 30, 2006, was $49.81, the
closing price on June 29, 2007 was $46.97, the closing price on June 27, 2008 was $34.99, the
closing price on June 26, 2009 was $13.90, the closing price on June 25, 2010 was $22.01 and
the closing price on July 3, 2011 was $21.13. 2011 STRATTEC Annual Report
    
    51




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##### 



DIRECTORS/OFFICERS/SHAREHOLDERS INFORMATION STRATTEC Board of Directors: (Left to Right)
Frank J. Krejci, Michael J. Koss, Robert Feitler, Harold M. Stratton II, David R. Zimmer BOARD OF
DIRECTORS Harold M. Stratton II, 63 Chairman and Chief Executive Officer Frank J. Krejci, 61
President and Chief Operating Officer Robert Feitler, 80 Former President and Chief Operating
Officer of Weyco Group, Inc. Chairman of the Executive Committee and Director of Weyco Group, Inc.
Michael J. Koss, 57 President and Chief Executive Officer of Koss Corporation Director of Koss
Corporation David R. Zimmer, 65 Managing Partner of Stonebridge Business Partners CORPORATE
OFFICERS Harold M. Stratton II, 63 Frank J. Krejci, 61 Patrick J. Hansen, 52 Senior Vice
President-Chief Financial Officer, Treasurer and Secretary Dennis A. Kazmierski, 59 Vice
President-Marketing and Sales Kathryn E. Scherbarth, 55 Vice President-Milwaukee Operations Rolando
J. Guillot, 43 Vice President-Mexican Operations Brian J. Reetz, 53 Vice President-Security
Products Richard P. Messina, 45 Vice President-Access Products SHAREHOLDERS INFORMATION Annual
Meeting The Annual Meeting of Shareholders will convene at 8:00 a.m. (CDT) on October 11, 2011, at
the Radisson Hotel, 7065 North Port Washington Road, Milwaukee, Wl 53217 Common Stock STRATTEC
SECURITY CORPORATION common stock is traded on the NASDAQ Global Market under the symbol: STRT.
Form 10-K You may receive a copy of the STRATTEC SECURITY CORPORATION Form 10-K, filed with the
Securities and Exchange Commission, by writing to the Secretary at STRATTEC SECURITY CORPORATION,
3333 W. Good Hope Road, Milwaukee, Wl 53209. Corporate Governance To review the Companys corporate
governance, board committee charters and code of business ethics, please visit the Corporate
Governance section of our Web site at www.strattec.com. Shareholder Inquiries Communications
concerning the transfer of shares, lost certificates or changes of address should be directed to
the Transfer Agent. Transfer Agent and Registrar Wells Fargo Bank, N.A. Shareholder Services P.O.
Box 64854 St. Paul, MN 55164-0854 1.800.468.9716 2011 STRATTEC Annual Report
    
    52




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##### 



BOLT learns your vehicle key! Buy direct at www.boltlock.com A single turn is all it takes to enjoy
single key convenience. STRATTEC STRATTEC SECURITY CORPORATION 3333 WEST GOOD HOPE ROAD MILWAUKEE,
WI 53209 PHONE 414.247.3333 FAX 414.247.3329 www.strattec.com