Investments in Nonconsolidated Affiliates

12 Months Ended

May 28, 2016

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Joint Ventures Disclosure

Investments in Nonconsolidated Affiliates

The company had an ownership interest in four nonconsolidated affiliates at May 28, 2016. Refer to the company's ownership percentages shown below:



Ownership Interest	May 28, 2016	May 30, 2015
Kvadrat Maharam Arabia DMCC	50.0%	50.0%
Kvadrat Maharam Pty Limited	50.0%	50.0%
Kvadrat Maharam Turkey JSC	50.0%	50.0%
Danskina B.V.	50.0%	50.0%

The Kvadrat Maharam nonconsolidated affiliates are distribution entities that are engaged in selling decorative upholstery, drapery, and wall covering products. Danskina B.V. is a manufacturer and distributor of designer rugs and floor covering products.

At May 28, 2016, the company's investment value in Kvadrat Maharam Pty was $1.8 million more than the company's proportionate share of the underlying net assets ($1.9 million more at May 30, 2015). This difference was driven by a step-up in fair value of the investment in Kvadrat Maharam Pty, stemming from the Maharam business combination. This amount is considered to be a permanent basis difference.

At May 28, 2016 and May 30, 2015 the company's investment value in Danskina B.V. was $1.1 million more than the company's proportionate share of the underlying net assets. This amount represents the difference in value between the capital contribution made to the joint venture by Maharam and the proportionate share of equity received. This amount is considered to be a permanent basis difference.

The company's investment in its nonconsolidated affiliates was $4.2 million at May 28, 2016 and $4.2 million at May 30, 2015. The company's proportionate share of equity earnings from these companies was $0.4 million for the year ended May 28, 2016, $0.1 million for the year ended May 30, 2015 and $0.1 million for the year ended May 31, 2014.

For the year ended May 28, 2016, sales to nonconsolidated affiliates were $2.5 million and purchases from nonconsolidated affiliates were $0.9 million. Receivables from nonconsolidated affiliates were $0.4 million and payables to nonconsolidated affiliates were $0.1 million as of May 28, 2016.

For the year ended May 30, 2015, sales to nonconsolidated affiliates were $2.5 million and purchases from nonconsolidated affiliates were $0.5 million. Receivables from nonconsolidated affiliates were $0.4 million and payables to nonconsolidated affiliates were $0.1 million as of May 30, 2015.

For the year ended May 31, 2014, sales to nonconsolidated affiliates were $1.7 million and purchases from nonconsolidated affiliates were $0.4 million.