Equity Earnings of Joint Ventures

3 Months Ended

Sep. 27, 2020

Equity Method Investments And Joint Ventures [Abstract]

As discussed above under Investment in Joint Ventures and Majority Owned Subsidiaries, we hold a one-third interest in a joint venture company, VAST LLC. Our investment in VAST LLC, for which we exercise significant influence but do not control and is not a variable interest entity of STRATTEC, is accounted for using the equity method. The results of the VAST LLC foreign subsidiaries and joint ventures are reported on a one-month lag basis. We assess the impairment of equity investments whenever events or changes in circumstances indicate that a decrease in value of the investment has occurred that is other than temporary.

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

	Three Months Ended
	September 27, 2020			September 29, 2019
Net Sales	$	50,411		$	42,567
Cost of Goods Sold		40,591			34,658
Gross Profit		9,820			7,909
Engineering, Selling and Administrative Expenses		6,603			6,681
Income From Operations		3,217			1,228
Other (Expense) Income, net		(149	)		860
Income before Provision for Income Taxes		3,068			2,088
Provision for Income Taxes		592			628
Net Income	$	2,476		$	1,460
STRATTEC’s Equity Earnings of VAST LLC	$	825		$	487

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 27, 2020		September 29, 2019
Sales to VAST LLC	$	1,216	$	891
Purchases from VAST LLC	$	187	$	97
Expenses Charged to VAST LLC	$	507	$	831
Expenses Charged from VAST LLC	$	292	$	226