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Investment in Affiliates
12 Months Ended
Jun. 01, 2019
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]  
Investment in Affiliates Investment in Unconsolidated Entities

The Company has several investments in unconsolidated entities that are accounted for using the equity method of accounting. Red River Valley Egg Farm, LLC ("Red River") operates a cage-free shell egg production complex near Bogota, Texas. Specialty Eggs, LLC ("Specialty Eggs") owns the Egg-Land's Best franchise for most of Georgia and South Carolina, as well as a portion of western North Carolina and eastern Alabama. Southwest Specialty Eggs, LLC ("Southwest Specialty Eggs") owns the Egg-Land's Best franchise for Arizona, southern California and Clark County, Nevada (including Las Vegas). As of June 1, 2019, the Company owns 50% of each of Red River, Specialty Eggs, and Southwest Specialty Eggs. Equity method investments are included in “Investments in unconsolidated entities” in the accompanying Consolidated Balance Sheets and totaled $60.7 million and $64.2 million at June 1, 2019 and at June 2, 2018, respectively. 

Equity in income of unconsolidated entities of $4.8 million, $3.5 million, and $1.4 million from these entities has been included in the Consolidated Statements of Operations for fiscal 2019,  2018, and 2017, respectively.

The condensed consolidated financial information for the Company's unconsolidated joint ventures was as follows (in thousands):
 
 
For the fiscal year ended
 
 
June 1, 2019
 
June 2, 2018
 
June 3, 2017
Net sales
 
$
112,396

 
$
107,705

 
$
86,072

Net income
 
9,490

 
7,071

 
2,804

Total assets
 
128,470

 
134,056

 
131,871

Total liabilities
 
7,600

 
5,859

 
6,543

Total equity
 
120,870

 
128,197

 
125,328



The Company is a member of Eggland’s Best, Inc. (“EB”), which is a cooperative.  At June 1, 2019 and June 2, 2018, “Other long-term assets” as shown on the Company’s Consolidated Balance Sheet includes the cost of the Company’s investment in EB plus any qualified written allocations.  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 June 1, 2019 and June 2, 2018 was $2.6 million and $2.6 million, respectively.
The Company regularly transacts business with its cost and equity method affiliates. The following relates to the Company’s transactions with these unconsolidated affiliates (in thousands):  
໿
 
 
For the fiscal year ended
 
 
June 1, 2019
 
June 2, 2018
 
June 3, 2017
Sales to affiliates
 
$
58,093

 
$
59,295

 
$
59,073

Purchases from affiliates
 
81,685

 
81,043

 
73,713

Dividends from affiliates
 
8,300

 
4,664

 
6,581

 
 
June 1, 2019
 
June 2, 2018
Accounts receivable from affiliates
 
$
4,307

 
$
4,603

Accounts payable to affiliates
 
3,324

 
3,525