TRADE ACCOUNTS RECEIVABLE SALE PROGRAM TRADE ACCOUNTS RECEIVABLE SALE PROGRAM

12 Months Ended

Jun. 27, 2015

Receivables [Abstract]

TRADE ACCOUNTS RECEIVABLE SALE PROGRAM

TRADE ACCOUNTS RECEIVABLE PURCHASE PROGRAM

Transfer Program

On June 25, 2014, the Company entered into an Account Purchase Agreement with Wells Fargo Bank, N.A. ("WFB") which provides that the Company may sell and assign to WFB and WFB may purchase from Company the accounts receivable of certain Company customers in a maximum aggregate amount of $50.0 million. The initial term of the agreement is 36 months with successive 12 month renewal terms. For the year ended June 27, 2015, no accounts receivables were transferred under this original transfer agreement. For the year ended June 28, 2014, total accounts receivables transferred was approximately $9.0 million. The receivables that were transferred under the transfer purchase program remained on our consolidated balance sheet.

As of June 27, 2015, the Company had no remaining liability to WFB for transferred accounts receivables. As of June 28, 2014, the Company’s net liability to WFB for accounts receivables transferred was approximately $7.9 million classified as current portion of debt.

Sale Program

On December 18, 2014, the Company modified the original Account Purchase Agreement with WFB to allow the Company to account for the factored receivables as a true-sale. The Company also has an Account Purchase Agreement with Orbian Financial Services ("Orbian") which allows the Company to account for factored receivables as a true-sale. As of June 27, 2015, total accounts receivables sold was approximately $8.2 million with cash proceeds of approximately $7.3 million. The remaining outstanding balance of accounts receivables sold and not yet collected was approximately $0.9 million as of June 27, 2015 and is recorded on the Consolidated Balance Sheet in other current assets. No accounts receivables were sold during the twelve months ended June 28, 2014. The receivables that were sold during the twelve months ended June 27, 2015, were removed from the Consolidated Balance Sheet and the cash received is reflected as cash provided by operating activities in the Consolidated Statements of Cash Flows.

Subsequent to June 27, 2015, the Company modified the Account Purchase Agreement with WFB to decrease the maximum aggregate amount of receivables available to factor from $50.0 million to $20.0 million. The decrease in the aggregate amount available was due to a change in customer mix and to reduce fees related to the program.