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Equity (Loss) Earnings of Joint Ventures

6 Months Ended

Jan. 01, 2012

Equity (Loss) Earnings of Joint Ventures [Abstract]

Equity (Loss) Earnings of Joint Ventures

Equity (Loss) Earnings of Joint Ventures

We hold a one-third interest in a joint venture company, Vehicle Access Systems Technology LLC (“VAST LLC”), with WITTE Automotive of Velbert, Germany, and ADAC Automotive of Grand Rapids, Michigan. 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. VAST LLC consists primarily of three wholly owned subsidiaries in China and one joint venture in Brazil. 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 (thousands of dollars):

			September 30,				September 30,				September 30,				September 30,
		Three Months Ended								Six Months Ended
		January 1, 2012				December 26, 2010				January 1, 2012				December 26, 2010
Net Sales		$	17,009			$	21,038			$	38,412			$	37,653
Cost of Goods Sold			13,918				16,911				33,136				30,308

Gross Profit			3,091				4,127				5,276				7,345
Engineering, Selling and Administrative Expenses			3,874				2,632				6,623				4,527

(Loss) Income from Operations			(783	)			1,495				(1,347	)			2,818
Other Income (Expense), net			100				(57	)			297				71

(Loss) Income Before Provision for Income Taxes			(683	)			1,438				(1,050	)			2,889
(Benefit) Provision for Income Taxes			(96	)			285				(96	)			477

Net (Loss) Income		$	(587	)		$	1,153			$	(954	)		$	2,412

STRATTEC’s Share of VAST LLC
Net (Loss) Income		$	(196	)		$	384			$	(318	)		$	804
Intercompany Profit Eliminations			4				(3	)			6				(1	)

STRATTEC’s Equity (Loss) Earnings of Joint Ventures		$	(192	)		$	381			$	(312	)		$	803

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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