Investment In Affiliates

12 Months Ended

May 31, 2014

Investment In Affiliates [Abstract]

Investment In Affiliates

3.  Investment in Affiliates

The Company owns 50% of each of Specialty Eggs LLC and Dallas Reinsurance, Co., LTD. as of May 31, 2014.  At June 1, 2013, the Company also owned 50% of Delta Egg Farm.  During fiscal 2014 the Company purchased our joint venture partner’s 50% interest in Delta Egg Farm (Refer to Note 2 – Acquisitions).  Investment in affiliates, recorded using the equity method of accounting, are included in “Other Investments” in the accompanying Consolidated Balance Sheets and totaled $3.5 million and $17.7 million at May 31, 2014 and at June 1, 2013, respectively.  Equity in income of $3.5 million, $3.5 million, and $7.5 million from these entities has been included in the Consolidated Statements of Income for fiscal 2014,  2013, and 2012, respectively.

The Company is a member of Eggland’s Best, Inc. (“EB”), which is a cooperative.  At May 31, 2014 and June 1, 2013, “Other Investments” as shown on the Company’s Consolidated Balance Sheet includes the cost of the Company’s investment in EB.  In April 2012, EB formed Eggland’s Best, LLC (“EBLLC”) and contributed substantially all of the assets of EB to EBLLC.  Subsequent to the formation of EBLLC, EB sold to Land O’Lakes, Inc. (“LOL”) a 50% interest in EBLLC.  The Company cannot exert significant influence over EB’s operating and financial activities; therefore, the Company accounts for this investment using the cost method.   The carrying value of this investment at May 31, 2014 and June 1, 2013 was $768,000.

The Company regularly transacts business with its affiliates. The following relates to the Company’s transactions with these unconsolidated affiliates (in thousands):

	For the fiscal year ended
	May 31, 2014		June 1, 2013		June 2, 2012
Sales to affiliates	$	44,798	$	43,270	$	37,930
Purchases from affiliates		74,325		71,325		69,108
Dividends from affiliates		4,650		5,875		4,850

	May 31, 2014		June 1, 2013
Accounts receivable from affiliates	$	2,619	$	3,319
Accounts payable to affiliates		3,720		3,056