Equity (Loss) Earnings of Joint Ventures

3 Months Ended

Sep. 26, 2021

Equity Method Investments And Joint Ventures [Abstract]

Equity (Loss) Earnings of Joint Ventures

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
	September 26, 2021			September 27, 2020
Net Sales	$	42,617		$	50,411
Cost of Goods Sold		34,892			40,591
Gross Profit		7,725			9,820
Engineering, Selling and Administrative Expenses		8,551			6,603
(Loss) Income From Operations		(826	)		3,217
Other Income (Expense), net		89			(149	)
(Loss) Income before Provision for Income Taxes		(737	)		3,068
Provision for Income Taxes		21			592
Net (Loss) Income	$	(758	)	$	2,476
STRATTEC's Share of VAST LLC Net (Loss) Income		(253	)		825
Intercompany Profit Elimination		2			—
STRATTEC’s Equity (Loss) Earnings of VAST LLC	$	(251	)	$	825

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 26, 2021		September 27, 2020
Sales to VAST LLC	$	515	$	1,216
Purchases from VAST LLC	$	132	$	187
Expenses Charged to VAST LLC	$	174	$	507
Expenses Charged from VAST LLC	$	253	$	292