Equity Earnings of Joint Ventures

3 Months Ended

Sep. 29, 2019

Equity Method Investments And Joint Ventures [Abstract]

We hold a one-third interest in a joint venture company, VAST LLC, with WITTE and 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. 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 (in thousands):

	Three Months Ended
	September 29, 2019		September 30, 2018
Net Sales	$	42,567	$	40,056
Cost of Goods Sold		34,658		31,102
Gross Profit		7,909		8,954
Engineering, Selling and Administrative Expenses		6,681		6,150
Income From Operations		1,228		2,804
Other Income, net		860		397
Income before Provision for Income Taxes		2,088		3,201
Provision for Income Taxes		628		467
Net Income	$	1,460	$	2,734
STRATTEC’s Share of VAST LLC Net Income	$	487	$	911
Intercompany Profit Elimination		—		4
STRATTEC’s Equity Earnings of VAST LLC	$	487	$	915

The business of our joint venture company, SAL LLC, has been wound down to sell only commercial biometric locks. STRATTEC’s equity loss of SAL LLC totaled $3,000 for the three month period ended September 29, 2019 and $6,000 for the three month period ended September 30, 2018.

We have 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. The following table summarizes these related party transactions with VAST LLC for the periods indicated below (in thousands):

	Three Months Ended
	September 29, 2019		September 30, 2018
Sales to VAST LLC	$	891	$	498
Purchases from VAST LLC	$	97	$	42
Expenses Charged to VAST LLC	$	831	$	345
Expenses Charged from VAST LLC	$	226	$	207