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Equity Earnings (Loss) of Joint Ventures | 12 Months Ended
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Jun. 29, 2014
Equity Earnings (Loss) of Joint Ventures | EQUITY EARNINGS (LOSS) 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 following are summarized statements of operations and summarized balance sheet data for VAST LLC (thousands of dollars):
|  | Years Ended |
|  | June 29, 2014 |  |  | June 30, 2013 |  |  | July 1, 2012 |
Net sales |  | $ | 111,844 |  |  | $ | 92,388 |  |  | $ | 76,373 |
Cost of goods sold |  |  | 94,701 |  |  |  | 76,759 |  |  |  | 65,211 |
Gross profit |  |  | 17,143 |  |  |  | 15,629 |  |  |  | 11,162 |
Engineering, selling and administrative expense |  |  | 14,169 |  |  |  | 17,270 |  |  |  | 14,930 |
Income (loss) from operations |  |  | 2,974 |  |  |  | (1,641 | ) |  |  | (3,768 | )
Other income, net |  |  | 1,809 |  |  |  | 497 |  |  |  | 246 |
Income (loss) before provision for Income taxes |  |  | 4,783 |  |  |  | (1,144 | ) |  |  | (3,522 | )
Provision (benefit) for income taxes |  |  | 810 |  |  |  | (690 | ) |  |  | (297 | )
Net income (loss) |  | $ | 3,973 |  |  | $ | (454 | ) |  | $ | (3,225 | )
STRATTEC’s share of VAST LLC net Income (loss) |  | $ | 1,324 |  |  | $ | (151 | ) |  | $ | (1,075 | )
Intercompany profit eliminations |  |  | — |  |  |  | 4 |  |  |  | 4 |
STRATTEC’s equity earnings (loss) of VAST LLC |  | $ | 1,324 |  |  | $ | (147 | ) |  | $ | (1,071 | )
|  | June 29, 2014 |  |  | June 30, 2013 |
Cash and cash equivalents |  | $ | 8,267 |  |  | $ | 3,801 |
Receivables, net |  |  | 24,907 |  |  |  | 23,594 |
Inventories, net |  |  | 12,649 |  |  |  | 10,693 |
Other current assets |  |  | 7,720 |  |  |  | 7,892 |
Total current assets |  |  | 53,543 |  |  |  | 45,980 |
Property, plant and equipment, net |  |  | 23,949 |  |  |  | 23,470 |
Other long-term assets |  |  | 2,779 |  |  |  | 4,218 |
Total assets |  | $ | 80,271 |  |  | $ | 73,668 |
Current liabilities |  | $ | 44,436 |  |  | $ | 36,128 |
Long-term liabilities |  |  | 6,571 |  |  |  | 11,808 |
Total liabilities |  | $ | 51,007 |  |  | $ | 47,936 |
Net assets |  | $ | 29,264 |  |  | $ | 25,732 |
STRATTEC’s share of VAST LLC net assets |  | $ | 9,755 |  |  | $ | 8,577 |
As discussed above under the note Investment in Joint Ventures and Majority Owned Subsidiaries, during 2013 we acquired a 51 percent ownership interest in NextLock LLC, for which we exercise significant influence but do not control and are not the primary beneficiary. Our investment in NextLock LLC is accounted for using the equity method. The following are summarized statements of operations and summarized balance sheet data for NextLock LLC (thousands of dollars):
|  | June 29, 2014 |  |  | June 30, 2013 |
Engineering, selling and administrative expense |  | $ | 720 |  |  | $ | 153 |
Loss from operations |  |  | (720 | ) |  |  | (153 | )
Net (loss) |  | $ | (720 | ) |  | $ | (153 | )
STRATTEC’s equity loss of NextLock LLC |  | $ | (367 | ) |  | $ | (78 | )
|  | June 29, 2014 |  |  | June 30, 2013 |
Cash and cash equivalents |  | $ | 611 |  |  | $ | 1,370 |
Property, plant and equipment, net |  |  | 20 |  |  |  | — |
Total assets |  | $ | 631 |  |  | $ | 1,370 |
Current liabilities |  | $ | 4 |  |  | $ | 23 |
Net assets |  | $ | 627 |  |  | $ | 1,347 |
STRATTEC’s share of NextLock LLC net assets |  | $ | 320 |  |  | $ | 687 |
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 for general headquarter expenses. The following tables summarize the related party transactions with VAST LLC for the periods indicated (thousands of dollars):
|  | 2014 |  |  | 2013 |  |  | 2012 |
Sales to VAST LLC |  | $ | 231 |  |  | $ | 141 |  |  | $ | 170 |
Purchases from VAST LLC |  | $ | 233 |  |  | $ | 219 |  |  | $ | 207 |
Expenses charged to VAST LLC |  | $ | 743 |  |  | $ | 517 |  |  | $ | 286 |
Expenses charged from VAST LLC |  | $ | 1,261 |  |  | $ | 729 |  |  | $ | 699 |
|  | June 29, 2014 |  |  | June 30, 2013 |
Accounts receivable from VAST LLC |  | $ | 119 |  |  | $ | 143 |
Long-term loan receivable from VAST LLC |  | $ | 285 |  |  | $ | — |
Accounts payable to VAST LLC |  | $ | 98 |  |  | $ | 128 |

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=7658923&loc=d3e32847-111569 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=7658923&loc=d3e32787-111569 + Details
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