Note 7 - Investments

6 Months Ended

Dec. 30, 2018

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

Note

7

– Investments

Equity investments accounted for under the equity method

The Company has certain investments in non-marketable equity instruments of private companies. The Company accounts for these investments using the equity method if they provide the Company the ability to exercise significant influence, but

not

control, over the investee. Significant influence is generally deemed to exist if the Company has an ownership interest in the voting stock of the investee between

20%

and

50%,

although other factors, such as representation on the investee’s Board of Directors, are considered in determining whether the equity method is appropriate. The Company records equity method investments initially at cost and adjusts the carrying amount to reflect the Company’s share of the earnings or losses of the investee.

The Company’s equity method investment is comprised of an interest in Flores Online, a Sao Paulo, Brazil based internet floral and gift retailer, that the Company originally acquired on

May 31, 2012.

The Company currently holds

24.9%

of the outstanding shares of Flores Online. The book value of this investment was

$0.5

million as of

September 30, 2018

and

$0.6

million as of

July 1, 2018,

and is included in the “Other assets” line item within the Company’s consolidated balance sheets. The Company’s equity in the net loss of Flores Online for the

three

and

six

months ended

December 30, 2018

and

December 31, 2017 

was less than

$

0.1

million. During the quarter ended

December 31, 2017,

Flores Online entered into a share exchange agreement with Isabella Flores, whereby among other changes, the Company exchanged

5%

of its interest in Flores Online for a

5%

interest in Isabella Flores. This new investment of approximately

$0.1

million is currently being accounted for as an equity investment without a readily determinable fair value (see below). In conjunction with this share exchange, the Company determined that the fair value of its investment in Flores Online was below its carrying value and that this decline was other-than-temporary. As a result, the Company recorded an impairment charge of

$0.2

million, which is included within “Other (income) expense, net” in the Company’s consolidated statement of income during the quarter ended

December 31, 2017.

Equity investments without a readily determinable fair value

Investments in non-marketable equity instruments of private companies, where the Company does

not

possess the ability to exercise significant influence, are accounted for at cost, less impairment (assessed qualitatively at each reporting period), adjusted for observable price changes from orderly transactions for identical or similar investments of the same issuer. These investments are included within “Other assets” in the Company’s consolidated balance sheets. The aggregate carrying amount of the Company’s cost method investments was

$

1.7

million as of

December 30, 2018

and

July 1, 2018.

Equity investments with a readily determinable fair value

The Company also holds certain trading securities associated with its Non-Qualified Deferred Compensation Plan (“NQDC Plan”). These investments are measured using quoted market prices at the reporting date and are included within the “Other assets” line item in the consolidated balance sheets (see

Note

10

 - Fair Value Measurements

).