Equity (Loss) Earnings of Joint Ventures

12 Months Ended

Jun. 28, 2020

Equity Method Investments And Joint Ventures [Abstract]

Equity (Loss) Earnings of Joint Ventures

EQUITY (LOSS) EARNINGS OF JOINT VENTURES

As discussed above under the note Investment in Joint Ventures and Majority Owned Subsidiaries, we hold a one-third ownership interest in VAST LLC, for which we exercise significant influence but do not control and are not the primary beneficiary. Our investment in VAST LLC 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. The following are summarized statements of operations and summarized balance sheet data for VAST LLC (thousands of dollars):

	Years Ended
	June 28, 2020			June 30, 2019
Net sales	$	153,006		$	161,660
Cost of goods sold		125,012			128,375
Gross profit		27,994			33,285
Engineering, selling and administrative expense		28,812			27,624
Impairment charge		2,000			—
(Loss) income from operations		(2,818	)		5,661
Other income, net		1,556			3,559
(Loss) income before provision for income taxes		(1,262	)		9,220
Provision for income taxes		466			1,292
Net (loss) income	$	(1,728	)	$	7,928
STRATTEC’s share of VAST LLC net
(loss) income	$	(576	)	$	2,643
Intercompany profit eliminations		11			12
STRATTEC’s equity (loss) earnings of VAST LLC	$	(565	)	$	2,655

	June 28, 2020		June 30, 2019
Cash and cash equivalents	$	8,549	$	6,854
Receivables, net		40,983		35,639
Inventories, net		22,285		20,465
Other current assets		17,674		19,701
Total current assets		89,491		82,659
Property, plant and equipment, net		63,574		49,953
Other long-term assets		14,387		16,868
Total assets	$	167,452	$	149,480
Current debt	$	13,072	$	7,240
Other current liabilities		72,878		63,799
Long-term debt		12,778		5,015
Other long-term liabilities		2,228		2,512
Total liabilities	$	100,956	$	78,566
Net assets	$	66,496	$	70,914
STRATTEC’s share of VAST LLC net assets	$	22,165	$	23,638

Our joint venture company, SAL LLC, was dissolved during 2020. STRATTEC’s equity earnings of SAL LLC totaled $356,000 in 2020 and $128,000 in 2019.  

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 from VAST LLC to STRATTEC for general headquarter expenses. The following tables summarize the related party transactions with VAST LLC for the periods indicated (thousands of dollars):

	Years Ended
	June 28, 2020		June 30, 2019
Sales to VAST LLC	$	4,041	$	3,731
Purchases from VAST LLC	$	469	$	221
Expenses charged to VAST LLC	$	2,299	$	1,594
Expenses charged from VAST LLC	$	935	$	834

	June 28, 2020		June 30, 2019
Accounts receivable from VAST LLC	$	1,115	$	264
Accounts payable to VAST LLC	$	239	$	127