Investments Investments

6 Months Ended

Jan. 01, 2017

Investments, Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

Investments

Investments represent the Company’s investments in unconsolidated affiliated companies.

The Company concluded that its equity method investments are integral to its business. The equity method investments provide manufacturing and distribution functions, which are important parts of its operations. Since the third quarter of fiscal 2016, the Company has prospectively classified its equity in earnings of unconsolidated affiliates as a separate line item within Income (Loss) from Operations. For periods prior to the third quarter of fiscal 2016, equity in earnings from unconsolidated affiliates is classified in Other Income, Net.

Financial information of the unconsolidated affiliated companies is accounted for by the equity method, generally on a lag of one month or less. The following table sets forth the unaudited results of operations of unconsolidated affiliated companies for the three and six months ended January 1, 2017 and December 27, 2015 (in thousands):

	Three Months Ended				Six Months Ended
	January 1, 2017		December 27, 2015		January 1, 2017		December 27, 2015
Results of Operations:
Sales	$	74,487	$	60,274	$	150,748	$	121,763
Cost of Goods Sold	55,097		47,066		113,408		95,024
Gross Profit	$	19,390	$	13,208	$	37,340	$	26,739
Net Income	$	5,541	$	2,900	$	8,940	$	7,476

The following table sets forth the unaudited balance sheets of unconsolidated affiliated companies as of January 1, 2017 and July 3, 2016 (in thousands):

	January 1, 2017		July 3, 2016
Financial Position:
Assets:
Current Assets	$	131,918	$	139,673
Noncurrent Assets	57,449		59,837
	189,367		199,510
Liabilities:
Current Liabilities	$	45,436	$	43,442
Noncurrent Liabilities	28,566		29,178
	74,002		72,620
Equity	$	115,365	$	126,890

Net sales to equity method investees were approximately $50.0 million and $40.9 million for the six months ended January 1, 2017 and December 27, 2015, respectively. Purchases of finished products from equity method investees were approximately $54.1 million and $54.1 million for the six months ended January 1, 2017 and December 27, 2015, respectively.

During the fourth quarter of fiscal 2016, the Company sold its investment in marketable securities related to its ownership of common stock of a publicly-traded company and recognized a gain in the Condensed Consolidated Statements of Operations. The Company received proceeds of $3.3 million related to the sale in the first quarter of fiscal 2017.