Equity (Loss) Earnings of Joint Ventures

6 Months Ended

Dec. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

Equity (Loss) Earnings of Joint Ventures

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. Prior to the effective date of the sale, the results of the VAST LLC foreign subsidiaries and joint venture were reported on a one-month lag basis.

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

	Three Months Ended					Six Months Ended
	December 31, 2023			January 1, 2023		December 31, 2023			January 1, 2023
Net sales	$	—		$	56,953	$	—		$	123,099
Cost of goods sold		—			45,969		—			101,751
Gross profit		—			10,984		—			21,348
Engineering, selling and administrative expenses		—			9,227		—			17,759
Income from operations		—			1,757		—			3,589
Other income, net		—			386		—			458
Income before provision for income taxes		—			2,143		—			4,047
Provision for income taxes		—			382		—			750
Net income	$	—		$	1,761	$	—		$	3,297
STRATTEC's share of VAST LLC net income		—			587		—			1,099
Intercompany profit elimination		—			1		—			16
STRATTEC’s equity earnings of VAST LLC      prior to impact of sale of VAST LLC		—			588		—			1,115
Loss on sale of VAST LLC		(4	)		—		(269	)		—
STRATTEC’s equity (loss) earnings of VAST LLC	$	(4	)	$	588	$	(269	)	$	1,115

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 to us from VAST LLC for general headquarters expenses. As a result of the sales of our VAST LLC ownership interest to WITTE, VAST LLC was no longer a related party as of June 30, 2023. The following table summarizes these related party transactions with VAST LLC for the periods indicated below (in thousands):

	Three Months Ended				Six Months Ended
	December 31, 2023		January 1, 2023		December 31, 2023		January 1, 2023
Sales to VAST LLC	$	—	$	17	$	—	$	27
Purchases from VAST LLC	$	—	$	13	$	—	$	27
Expenses charged to VAST LLC	$	—	$	161	$	—	$	242
Expenses charged from VAST LLC	$	—	$	209	$	—	$	452