Equity Loss of Joint Ventures

9 Months Ended

Mar. 31, 2013

Equity Loss of Joint Ventures

Equity Loss of Joint Ventures

We hold a one-third interest in a joint venture company, Vehicle Access Systems Technology LLC (“VAST LLC”), with WITTE Automotive of Velbert, Germany (“WITTE”), and ADAC Automotive of Grand Rapids, Michigan (“ADAC”). VAST LLC exists to seek opportunities to manufacture and sell all three companies’ products in areas of the world outside of North America and Europe. VAST LLC consists primarily of three wholly owned subsidiaries in China and one joint venture in Brazil. Our investment in VAST LLC, for which we exercise significant influence but do not control and are not the primary beneficiary, is accounted for using the equity method.

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

	Three Months Ended			Nine Months Ended
	March31,	April1,	March31,		April1,
	2013	2012	2013		2012
Net Sales	$23,767	$20,882	$67,732		$59,290
Cost of Goods Sold	20,611	17,545	56,514		50,678
Gross Profit	3,156	3,337	11,218		8,612
Engineering, Selling and Administrative Expenses	4,268	3,840	12,989		10,231
Loss from Operations	(1,112)	(503)	(1,771)		(1,619)
Other Income (Loss), net	173	(23)	472		42
Loss Before Income
Tax Benefit	(939)	(526)	(1,299)		(1,577)
Income Tax Benefit	(69)	(108)	(83)		(205)
Net Loss	$(870)	$(418)	$(1,216)		$(1,372)
STRATTEC’s Share of VAST LLC
Net Loss	$(290)	$(139)	$(405)		$(457)
Intercompany Profit Eliminations	(1)	(1)	3		5
STRATTEC’s Equity Loss of Joint Ventures	$(291)	$(140)	$(402)		$(452)