Equity Earnings (Loss) of Joint Ventures

9 Months Ended

Mar. 31, 2024

Equity Method Investments and Joint Ventures [Abstract]

Equity Earnings (Loss) of Joint Ventures

Equity Earnings (Loss) 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				Nine Months Ended
	March 31, 2024		April 2, 2023		March 31, 2024			April 2, 2023
Net sales	$	—	$	44,989	$	—		$	168,088
Cost of goods sold		—		36,471		—			138,222
Gross profit		—		8,518		—			29,866
Engineering, selling and administrative expenses		—		6,872		—			24,631
Income from operations		—		1,646		—			5,235
Other income, net		—		1,167		—			1,625
Income before provision for income taxes		—		2,813		—			6,860
Provision for income taxes		—		360		—			1,110
Net income	$	—	$	2,453	$	—		$	5,750
STRATTEC's share of VAST LLC net income		—		818		—			1,917
Intercompany profit elimination		—		1		—			17
STRATTEC’s equity earnings of VAST LLC      prior to impact of sale of VAST LLC		—		819		—			1,934
Loss on sale of VAST LLC		—		—		(269	)		—
STRATTEC’s equity earnings (loss) of VAST LLC	$	—	$	819	$	(269	)	$	1,934

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 sale 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				Nine Months Ended
	March 31, 2024		April 2, 2023		March 31, 2024		April 2, 2023
Sales to VAST LLC	$	—	$	6	$	—	$	33
Purchases from VAST LLC	$	—	$	12	$	—	$	39
Expenses charged to VAST LLC	$	—	$	59	$	—	$	301
Expenses charged from VAST LLC	$	—	$	191	$	—	$	643