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Note P - Related Parties
 12 Months Ended
Sep. 27, 2025
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]

NOTE P – RELATED PARTIES

 

NFI Industries, Inc.

 

We have related party expenses for distribution and shipping related costs with NFI Industries, Inc. and its affiliated entities (“NFI”). Our director, Sidney R. Brown, is CEO and an owner of NFI Industries, Inc.

 

The payments to NFI were as follows:

 

 

   

Fiscal year ended

  
   

September 27,

    

September 28,

    

September 30,

  
   

2025

    

2024

    

2023

  
   

(in millions)

 
                         

Transportation management services payments (1)

   $ 0.9     $ 1.0     $ 0.8  

Labor management services payments (2)

     16.2       10.5       0.8  

Lease payments (3)

     1.9       1.8       0.2  

Pass through payments to third parties (4)

     52.4       55.7       54.1  

Total payment amount distributed to NFI

   $ 71.4     $ 69.0     $ 55.9  

 

 

(1)

The Company is contracted with NFI for transportation management services, which involves the arrangement for the distribution of the Company's goods. This amount represents the payments for management fees associated with this service.

 

 

(2)

The Company is entered into a master service agreement with NFI for the operations and labor management of our three regional distribution centers. This amount represents the payments to NFI for services rendered under this contract.

 

 

(3)

In June 2023, the Company began leasing a regional distribution center in Terrell, Texas that was constructed by, and is owned by, a subsidiary of NFI. This amount represents the lease payments associated with the lease arrangement. At the lease commencement date, $28.7 million was recorded as an operating right-of-use asset, $0.2 million was recorded as a current operating lease liability, and $28.5 million was recorded as a non-current operating lease liability. As of September 27, 2025, $26.5 million was recorded as an operating right-of-use asset, $0.7 million was recorded as a current operating lease liability, and $27.4 million was recorded as a non-current operating lease liability. As of September 28, 2024, $27.4 million was recorded as an operating right-of-use asset, $0.6 million was recorded as a current operating lease liability, and $28.0 million was recorded as a non-current operating lease liability.

 

 

(4)

This amount represents passed through payments to third-party distribution and shipping vendors that are managed on the Company's behalf by NFI.

 

 

As of September 27, 2025, and September 28, 2024, related party trade payables of approximately $3.2 million and $0.6 million, respectively, were recorded as accounts payable.

 

All agreements with NFI include terms that are consistent with those that we believe would have been negotiated at an arm’s length with an independent party.

 

 

AMC Global

 

We incur related party expenses for attitudinal and research services with AMC Global, a global marketing research company. The husband of our director, Marjorie Roshkoff, is CEO and owner of AMC Global. In the fiscal year ended September 27, 2025, the Company did not incur any expenses with AMC Global, and in the fiscal years ended September 28, 2024 and September 30, 2023, the Company paid AMC Global $76,500 and $113,500, respectively, for services.

 

Additionally, the Company pays board advisory consulting fees to the husband of our director, Marjorie Roshkoff. In each of the fiscal years 2025, 2024, and 2023, the Company paid $50,000 for these board advisory consulting fees.