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Investment in Unconsolidated Entities
 12 Months Ended
May 28, 2022
Investment in Unconsolidated Entities [Abstract]  
Investment in Unconsolidated Entities
Note 7 - Investment in Unconsolidated Entities
As of
 
May 28,
 
2022 and
 
May 29,
 
2021, the
 
Company owned
50
% in
 
Specialty Eggs,
 
LLC ("Specialty
 
Eggs") and
 
Southwest
Specialty Eggs,
 
LLC ("Southwest
 
Specialty Eggs"),
 
which are
 
accounted for
 
using the
 
equity method
 
of accounting.
 
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 owns the Egg-Land's Best franchise
 
for Arizona, southern California
 
and Clark
County, Nevada (including
 
Las Vegas).
 
As of May
 
29, 2021, the
 
Company owned
50
% in Red
 
River which was
 
acquired at the
 
beginning of
 
fiscal 2022 (see
). The Company accounted for Red River using the equity method of
 
accounting in fiscal 2021.
Equity method investments are included
 
in “Investments in unconsolidated entities”
 
in the accompanying Consolidated Balance
Sheets and totaled $
10.5
 
million and $
49.9
 
million at May 28, 2022 and May 29, 2021, respectively.
 
Equity
 
in
 
income
 
of
 
unconsolidated
 
entities
 
of
 
$
1.9
 
million,
 
$
622
 
thousand,
 
and
 
$
534
 
thousand
 
from
 
these
 
entities
 
has
 
been
included in the Consolidated Statements of Income for fiscal 2022
 
,
 
2021, and 2020, respectively.
The condensed consolidated financial
 
information for the
 
Company's unconsolidated joint
 
ventures was as
 
follows (in thousands):
For the fiscal year ended
May 28, 2022
May 29, 2021
May 30, 2020
Net sales
$
145,281
$
119,853
$
188,922
Net income
3,942
1,596
1,064
Total assets
42,971
106,592
113,513
Total liabilities
21,892
5,850
4,655
Total equity
21,079
100,742
108,858
The
 
Company
 
is
 
a
 
member
 
of
 
Eggland’s
 
Best,
 
Inc.
 
(“EB”),
 
which
 
is
 
a
 
cooperative. At
 
May
 
28,
 
2022
 
and
 
May
 
29,
 
2021,
“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.
 
As of
 
May 28,
2022 and May 29, 2021, the carrying value of this investment was $
768
 
thousand.
The following relates to the Company’s
 
transactions with these unconsolidated affiliates (in thousands):
For the fiscal year ended
May 28, 2022
May 29, 2021
May 30, 2020
Sales to unconsolidated entities
$
94,311
$
56,765
$
54,559
Purchases from unconsolidated entities
60,016
76,059
71,475
Distributions from unconsolidated entities
400
6,663
7,114
May 28, 2022
May 29, 2021
Accounts receivable from unconsolidated entities
10,815
$
2,404
Accounts payable to unconsolidated entities
4,678
4,161