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Equity Earnings of Joint Ventures | 6 Months Ended
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Dec. 28, 2014
Equity Method Investments And Joint Ventures [Abstract] |
Equity Earnings of Joint Ventures | Equity 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 (“WITTE”), and ADAC Automotive of Grand Rapids, Michigan (“ADAC”). 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 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):
|  | Three Months Ended |  | Six Months Ended |
|  | December 28, 2014 |  |  | December 29, 2013 |  |  | December 28, 2014 |  |  | December 29, 2013 |
Net Sales |  | $ | 35,663 |  |  | $ | 27,135 |  |  | $ | 66,661 |  |  | $ | 51,664 |
Cost of Goods Sold |  |  | 30,469 |  |  |  | 22,943 |  |  |  | 56,552 |  |  |  | 43,358 |
Gross Profit |  |  | 5,194 |  |  |  | 4,192 |  |  |  | 10,109 |  |  |  | 8,306 |
Engineering, Selling and Administrative Expenses |  |  | 4,590 |  |  |  | 2,791 |  |  |  | 8,788 |  |  |  | 6,281 |
Income From Operations |  |  | 604 |  |  |  | 1,401 |  |  |  | 1,321 |  |  |  | 2,025 |
Other Income (Expense), net |  |  | 183 |  |  |  | (19 | ) |  |  | 656 |  |  |  | (21 | )
Income before Provision for Income taxes |  |  | 787 |  |  |  | 1,382 |  |  |  | 1,977 |  |  |  | 2,004 |
Provision for (Benefit from) Income Taxes |  |  | 376 |  |  |  | 219 |  |  |  | 435 |  |  |  | (235 | )
Net Income |  | $ | 411 |  |  | $ | 1,163 |  |  | $ | 1,542 |  |  | $ | 2,239 |
STRATTEC’s Share of VAST LLC Net Income |  | $ | 137 |  |  | $ | 387 |  |  |  | 514 |  |  | $ | 746 |
Intercompany Profit Elimination |  |  | 5 |  |  |  | 2 |  |  |  | 4 |  |  |  | (4 | )
STRATTEC’s Equity Earnings of VAST LLC |  | $ | 142 |  |  | $ | 389 |  |  | $ | 518 |  |  | $ | 742 |
During 2013, we acquired a 51% ownership interest in a newly formed joint venture company, NextLock LLC, which will introduce a new generation of biometric security products based upon designs of Actuator Systems LLC, our partner. We anticipate shipment of the biometric security products to begin during the second half of our 2015 fiscal year through this new joint venture. Our investment in NextLock LLC, for which we exercise significant influence but do not control, is accounted for using the equity method. The following are summarized statements of operations for NextLock LLC (thousands of dollars):
|  | Three Months Ended |  |  | Six Months Ended |
|  | December 28, 2014 |  |  | December 29, 2013 |  |  | December 28, 2014 |  |  | December 29, 2013 |
Engineering, Selling and Administrative Expenses |  | $ | 516 |  |  | $ | 181 |  |  | $ | 880 |  |  | $ | 297 |
Loss From Operations |  |  | (516 | ) |  |  | (181 | ) |  |  | (880 | ) |  |  | (297 | )
Net Loss |  | $ | (516 | ) |  | $ | (181 | ) |  | $ | (880 | ) |  | $ | (297 | )
STRATTEC’s Equity Loss of NextLock LLC |  | $ | (263 | ) |  | $ | (92 | ) |  | $ | (449 | ) |  | $ | (151 | )
We have sales of component parts to VAST LLC and NextLock 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 tables summarize these related party transactions with VAST LLC and NextLock LLC for the periods indicated below (thousands of dollars):
| Three Months Ended |  |  | Six Months Ended |
| December 28, 2014 |  |  | December 29, 2013 |  |  | December 28, 2014 |  |  | December 29, 2013 |
Sales to VAST LLC | $ | 657 |  |  | $ | 55 |  |  | $ | 771 |  |  | $ | 95 |
Sales to NextLock LLC | $ | 27 |  |  | $ | - |  |  | $ | 32 |  |  | $ | - |
Purchases from VAST LLC | $ | 41 |  |  | $ | 43 |  |  | $ | 80 |  |  | $ | 158 |
Expenses Charged to VAST LLC | $ | 245 |  |  | $ | 159 |  |  | $ | 404 |  |  | $ | 399 |
Expenses Charged from VAST LLC | $ | 457 |  |  | $ | 303 |  |  | $ | 940 |  |  | $ | 585 |

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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 32 -URI http://asc.fasb.org/extlink&oid=35687916&loc=d3e32787-111569 Reference 4: 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=35687916&loc=d3e32847-111569 + Details
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