Related Party Transactions

6 Months Ended

May 27, 2012

Related Party Transactions

Related Party Transactions

Note 17: Related Party Transactions

        During the three and six months ended May 27, 2012 and May 29, 2011, the Company incurred costs for consulting services rendered by KKR and Capstone Consulting LLC (a consulting company that works exclusively with KKR's portfolio companies) of $0.1 million and $0.3 million, respectively for fiscal 2012 and $0.3 million and $0.7 million, respectively for fiscal 2011. As of May 27, 2012 and November 27, 2011, an insignificant amount and $0.2 million, respectively, of the costs incurred for these services were accrued as a component of other accrued liabilities in the accompanying Condensed Consolidated Balance Sheets. The Company also participates in a lease arrangement with a KKR affiliate for our Clarion facility for a six month initial term with two six month renewal options available. The Company has received lease income on this property of an insignificant amount during the three months ended May 27, 2012 and May 29, 2011.

        Sealy Holding LLC, an affiliate of KKR, holds an aggregate amount of $109.8 million of the Company's Convertible Notes. In connection with the PIK interest payment on the Convertible Notes on January 15, 2012, the par value of the notes held by KKR was increased by $4.4 million.

        During the six months ended May 27, 2012 and May 29, 2011, the Company's joint ventures made a distribution to the Company of $1.0 million. These amounts have been reflected as a reduction of the investment in these joint ventures in the accompanying Condensed Consolidated Balance Sheets as of May 27, 2012 and November 27, 2011.