Investment in Unconsolidated Entities

12 Months Ended

May 30, 2020

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

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 May 30, 2020, the Company owns 50% in 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 $54.7 million and $60.7 million at May 30, 2020 and June 1, 2019, respectively.

Equity in income of unconsolidated entities of $534 thousand, $4.8 million, and $3.5 million from these entities has been included in the Consolidated Statements of Income for fiscal 2020, 2019, and 2018, respectively.

The condensed consolidated financial information for the Company's unconsolidated joint ventures was as follows (in thousands):


	For the fiscal year ended
	May 30, 2020		June 1, 2019		June 2, 2018
Net sales	$	188,922	$	112,396	$	107,705
Net income	1,064		9,490		7,071
Total assets	113,513		128,470		134,056
Total liabilities	4,655		7,600		5,859
Total equity	108,858		120,870		128,197

The Company is a member of Eggland’s Best, Inc. (“EB”), which is a cooperative. At May 30, 2020 and June 1, 2019, “Investments in unconsolidated entities” 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 May 30, 2020 and June 1, 2019 was $2.0 million and $2.6 million, respectively.

The following relates to the Company’s transactions with these unconsolidated affiliates (in thousands):

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	For the fiscal year ended
	May 30, 2020		June 1, 2019		June 2, 2018
Sales to unconsolidated entities	$	54,559	$	58,093	$	59,295
Purchases from unconsolidated entities	71,475		81,685		81,043
Dividends from unconsolidated entities	7,106		8,300		4,664


	May 30, 2020	June 1, 2019
Accounts receivable from unconsolidated entities	4,935	$	4,307
Accounts payable to unconsolidated entities	5,706	3,324