Equity (Loss) Earnings of Joint Ventures

9 Months Ended

Mar. 28, 2021

Equity Method Investments And Joint Ventures [Abstract]

Equity (Loss) Earnings of Joint Ventures

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 venture 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						Nine Months Ended
	March 28, 2021			March 29, 2020			March 28, 2021			March 29, 2020
Net Sales	$	51,748		$	30,490		$	160,511		$	117,537
Cost of Goods Sold		44,155			25,679			131,345			96,131
Gross Profit		7,593			4,811			29,166			21,406
Engineering, Selling and Administrative Expenses		7,684			7,524			22,936			21,528
(Loss) Income From Operations		(91	)		(2,713	)		6,230			(122	)
Other Income (Expense), net		327			(424	)		1,363			1,079
Income (Loss) before Provision for Income Taxes		236			(3,137	)		7,593			957
Provision (Benefit) for Income Taxes		348			(294	)		2,011			851
Net (Loss) Income	$	(112	)	$	(2,843	)	$	5,582		$	106
STRATTEC's Share of VAST LLC Net (Loss) Income		(37	)		(947	)		1,861			36
Intercompany Profit Elimination		(19	)		—			(17	)		—
STRATTEC’s Equity (Loss) Earnings of VAST LLC	$	(56	)	$	(947	)	$	1,844		$	36

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				Nine Months Ended
	March 28, 2021		March 29, 2020		March 28, 2021		March 29, 2020
Sales to VAST LLC	$	1,059	$	483	$	3,273	$	3,035
Purchases from VAST LLC	$	139	$	172	$	340	$	351
Expenses Charged to VAST LLC	$	265	$	686	$	1,361	$	2,036
Expenses Charged from VAST LLC	$	302	$	192	$	953	$	636