Summarized Statements of Operations and Balance Sheet Data

The following are summarized statements of operations and summarized balance sheet data for VAST LLC (thousands of dollars):

	Years Ended
	July 2, 2017		July 3, 2016			June 28, 2015
Net sales	$	128,963	$	114,338		$	124,929
Cost of goods sold		101,910		94,060			105,132
Gross profit		27,053		20,278			19,797
Engineering, selling and administrative expense		19,710		15,866			16,155
Impairment charge		—		6,000			—
Income (loss) from operations		7,343		(1,588	)		3,642
Other income (expense), net		1,662		(115	)		123
Income (loss) before provision for income taxes		9,005		(1,703	)		3,765
Provision for income taxes		1,235		168			41
Net income (loss)	$	7,770	$	(1,871	)	$	3,724
STRATTEC’s share of VAST LLC net
income (loss)	$	2,590	$	(624	)	$	1,241
Intercompany profit eliminations		3		(15	)		10
STRATTEC’s equity earnings (loss) of VAST LLC	$	2,593	$	(639	)	$	1,251

	July 2, 2017		July 3, 2016
Cash and cash equivalents	$	11,757	$	6,584
Receivables, net		41,942		24,557
Inventories, net		15,185		13,500
Other current assets		11,782		13,007
Total current assets		80,666		57,648
Property, plant and equipment, net		31,017		26,557
Other long-term assets		12,850		11,086
Total assets	$	124,533	$	95,291
Current liabilities	$	70,753	$	50,462
Long-term liabilities		2,960		2,019
Total liabilities	$	73,713	$	52,481
Net assets	$	50,820	$	42,810
STRATTEC’s share of VAST LLC net assets	$	16,940	$	14,270

Summarized Statements of Operations and Balance Sheet Data

The following are summarized statements of operations and summarized balance sheet data for SAL LLC (thousands of dollars):

	Years Ended
	July 2, 2017			July 3, 2016			June 28, 2015
Net sales	$	369		$	603		$	49
Cost of goods sold		610			382			450
Gross (loss) profit		(241	)		221			(401	)
Engineering, selling and administrative expense		1,534			1,311			1,492
Loss from operations		(1,775	)		(1,090	)		(1,893	)
Other expense, net		(155	)		(34	)		(4	)
Net loss	$	(1,930	)	$	(1,124	)	$	(1,897	)
STRATTEC’s share of SAL LLC loss	$	(1,927	)	$	(1,124	)	$	(1,328	)
Loss on guarantee of SAL LLC vendor contract		—			—			(123	)
Loss on loan to SAL LLC		—			(225	)		(100	)
Loss on guarantee of SAL LLC credit facility		—			(247	)		(488	)
STRATTEC’s equity loss of SAL LLC	$	(1,927	)	$	(1,596	)	$	(2,039	)

	July 2, 2017			July 3, 2016
Cash and cash equivalents	$	11		$	21
Receivables, net		11			60
Inventories, net		345			283
Total assets	$	367		$	364
Current liabilities	$	3,189		$	1,256
Net liabilities	$	(2,822	)	$	(892	)
STRATTEC’s share of SAL LLC net liabilities	$	(1,439	)	$	(455	)

Summarize of Related Party Transaction

We have sales of component parts to VAST LLC and SAL 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. The following tables summarize the related party transactions with VAST LLC and SAL LLC for the periods indicated (thousands of dollars):

	Years Ended
	July 2, 2017		July 3, 2016		June 28, 2015
Sales to VAST LLC	$	1,966	$	304	$	2,298
Sales to SAL LLC	$	234	$	363	$	157
Purchases from VAST LLC	$	245	$	149	$	164
Expenses charged to VAST LLC	$	843	$	1,034	$	832
Expenses charged from VAST LLC	$	1,134	$	1,526	$	1,825

	July 2, 2017		July 3, 2016
Accounts receivable from VAST LLC	$	—	$	55
Accounts receivable from SAL LLC ^(A)	$	—	$	450
Current loan receivable from SAL LLC^(A)	$	—	$	325
Long-term loan receivable from VAST LLC	$	300	$	400
Accounts payable to VAST LLC	$	—	$	213

^(A)

As of July 2, 2017, outstanding loan and accounts receivable balances due from SAL LLC to STRATTEC totaled $2.6 million and $185,000, respectively. As of July 2, 2017, these outstanding balances have been offset against our investment in SAL LLC, which is included in Other Current Liabilities in the Consolidated Balance Sheet. As of July 3, 2016, a valuation allowance was established for the full amount of the outstanding loan balance of $325,000 due from SAL LLC to STRATTEC.