Note 27 - Related Party Transactions

6 Months Ended

Dec. 25, 2011

27. Related Party Transactions

During fiscal year 2012, the Company has had sales to Cupron Medical, Inc. (“Cupron”). Mr. William J. Armfield, IV, is a member of the Company’s Board and is a current shareholder of Cupron. On December 19, 2011, the Company and Dillon entered into an amendment of an existing sales and service agreement. The amendment provides for a one year term and consideration of $106 paid quarterly. Mr. Mitchel Weinberger is a member of the Company’s Board and the President and Chief Operating Officer of Dillon. For a discussion of the nature of all other related party relationships see “Footnote 27. Related Party Transactions” included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 26, 2011.

Related party receivables and payables consist of the following:

	December 25, 2011			June 26, 2011
Related Party Receivables:
Dillon Yarn Corporation	$	9		$	6
Cupron Medical, Inc.		(2	)		—
American Drawtech Company, Inc.		302			506
Total related party receivables (included within receivables, net)	$	309		$	512
Related Party Payables:
Dillon Yarn Corporation	$	162		$	276
American Drawtech Company, Inc.		—			11
Salem Leasing Corporation		241			280
Total related party payables (included within accounts payable)	$	403		$	567

Related party transactions were as follows:

		For the Three Months Ended
Affiliated Entity	Transaction Type	December 25, 2011		December 26, 2010
Dillon Yarn Corporation	Costs under Sales Service Agreement	$	288	$	398
Dillon Yarn Corporation	Sales		82		16
Dillon Yarn Corporation	Yarn Purchases		659		488
American Drawtech Company	Sales		844		703
American Drawtech Company	Yarn Purchases		20		41
Salem Leasing Corporation	Transportation Equipment Costs		778		979
Cupron Medical, Inc.	Sales		—		10

		For the Six Months Ended
Affiliated Entity	Transaction Type	December 25, 2011		December 26, 2010
Dillon Yarn Corporation	Costs under Sales Service Agreement	$	569	$	766
Dillon Yarn Corporation	Sales		103		21
Dillon Yarn Corporation	Yarn Purchases		1,249		1,081
American Drawtech Company	Sales		2,045		1,241
American Drawtech Company	Yarn Purchases		42		69
Salem Leasing Corporation	Transportation Equipment Costs		1,531		1,763
Cupron Medical, Inc.	Sales		96		10

- Definition

The entire disclosure for related party transactions, including the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

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+ Details