Equity (Loss) Earnings of Joint Ventures

12 Months Ended

Jun. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

Equity (Loss) Earnings of Joint Ventures

EQUITY (LOSS) EARNINGS OF JOINT VENTURES

As discussed above within Investment in Joint Ventures and Majority Owned Subsidiaries, effective June 30, 2023, we sold our one-third ownership interest in VAST LLC, for which we exercised significant influence but did not control. VAST LLC was not a variable interest entity of STRATTEC. Until the effective date of the sale, our investment in VAST LLC was accounted for using the equity method. The results of the VAST LLC foreign subsidiaries and joint venture were reported on a one-month lag basis.

As a result of the Restructuring Agreement, STRATTEC no longer held an ownership interest in VAST LLC as of July 2, 2023. The following are summarized statements of operations for VAST LLC (thousands of dollars):


	Years Ended
	June 30, 2024			July 2, 2023
Net sales	$	—		$	207,362
Cost of goods sold		—			171,851
Gross profit		—			35,511
Engineering, selling and administrative expense		—			31,302
Income from operations		—			4,209
Other income, net		—			2,304
Loss on disposal of investment in Brazil		—			(1,592	)
Income before provision for income taxes		—			4,921
Provision for income taxes		—			672
Net income	$	—		$	4,249
STRATTEC’s share of VAST LLC net income	$	—		$	1,416
Intercompany profit eliminations		—			33
STRATTEC’s equity earnings of VAST LLC prior to loss on sale		—			1,449
(Loss) gain on sale of VAST LLC		(331	)		110
STRATTEC's equity (loss) earnings of VAST LLC	$	(331	)	$	1,559

We had 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. As a result of the Restructuring Agreement, STRATTEC no longer held an ownership interest in VAST LLC as of July, 2, 2023. The following tables summarize the related party transactions with VAST LLC for the periods indicated (thousands of dollars):


	Years Ended
	June 30, 2024		July 2, 2023
Sales to VAST LLC	$	—	$	64
Purchases from VAST LLC	$	—	$	49
Expenses charged to VAST LLC	$	—	$	382
Expenses charged from VAST LLC	$	—	$	761