XML 32 R18.htm IDEA: XBRL DOCUMENT v3.5.0.2
RELATED-PARTY TRANSACTIONS
12 Months Ended
Jun. 30, 2016
RELATED-PARTY TRANSACTIONS  
RELATED-PARTY TRANSACTIONS

11.    RELATED-PARTY TRANSACTIONS

        In 1994, the Company, together with an unrelated company, formed ECIL-Rapiscan Security Products Limited, a joint venture organized under the laws of India. The Company owns a 36% interest in the joint venture, the Company's Chairman and Chief Executive Officer owns a 10.5% interest, and the Company's Executive Vice President of OSI Solutions Business and Director owns a 4.5% ownership interest. The Company's initial investment was approximately $0.1 million. For each of the years ended June 30, 2015 and 2016, the Company's equity earnings in the joint venture were less than $0.1 million. There was no equity earnings in the joint venture recognized for the year ended June 30, 2014. The Company, its Chairman and Chief Executive Officer and the Company's Executive Vice President of OSI Solutions Business and Director collectively control less than 50% of the board of directors voting power in the joint venture. As a result, the Company accounts for the investment under the equity method of accounting. The joint venture was formed for the purpose of the manufacture, assembly, service and testing of security and inspection systems and other products. Some of the Company's subsidiaries are suppliers to the joint venture partner, which in turn manufactures and sells the resulting products. Sales to the joint venture partner for fiscal 2014, 2015 and 2016 were approximately $5.2 million, $7.3 million and $9.1 million, respectively. Receivables from the joint venture were $2.7 million and $3.6 million as of June 30, 2015 and 2016, respectively.

        The Company has contracted with entities owned by its Chief Executive Officer and/or his family members to provide auto rental, printing, warehousing and consulting services. Such expenses for 2014 and 2016 were approximately $31,000 and $34,000, respectively; there were no expenses during 2015.