Note 26 - Related Party Transactions

6 Months Ended

Dec. 23, 2012

26. Related Party Transactions

On November 19, 2012, the Company entered into a capital lease with Salem Leasing Corporation for certain transportation equipment. The amount due under the fifteen year term of the lease is $1,234 and payments are made monthly. The implicit annual interest rate under the lease is 4.64%.

On August 30, 2012, a foreign subsidiary of the Company entered into an unsecured loan agreement with its unconsolidated affiliate U.N.F. Industries Ltd. (“UNF”) and borrowed $1,250. The loan bears interest at 3% with interest payable semi-annually. The loan does not amortize and has a maturity date of August 30, 2014 at which time the entire principal balance is due.

For a further discussion of the nature of certain 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 24, 2012.

Related party receivables and payables consist of the following:

	December 23, 2012			June 24, 2012
Dillon Yarn Corporation	$	1		$	7
Cupron, Inc.		7			—
American Drawtech Company, Inc.		39			104
Total related party receivables (included within receivables, net)	$	47		$	111

Dillon Yarn Corporation	$	163		$	206
American Drawtech Company, Inc.		(6	)		20
Salem Leasing Corporation		271			270
Total related party payables (included within accounts payable)	$	428		$	496

Related party transactions consist of the following:

		For the Three Months Ended
Affiliated Entity	Transaction Type	December 23, 2012			December 25, 2011
Dillon Yarn Corporation	Sales and Service Agreement	$	141		$	288
Dillon Yarn Corporation	Sales		2			82
Dillon Yarn Corporation	Yarn Purchases		505			659
American Drawtech Company, Inc.	Sales		137			844
American Drawtech Company, Inc.	Yarn Purchases		(6	)		20
Salem Leasing Corporation	Transportation Equipment Costs		744			778
Cupron, Inc.	Sales		13			—

		For the Six Months Ended
Affiliated Entity	Transaction Type	December 23, 2012		December 25, 2011
Dillon Yarn Corporation	Sales and Service Agreement	$	267	$	569
Dillon Yarn Corporation	Sales		6		103
Dillon Yarn Corporation	Yarn Purchases		1,269		1,249
American Drawtech Company, Inc.	Sales		234		2,045
American Drawtech Company, Inc.	Yarn Purchases		37		42
Salem Leasing Corporation	Transportation Equipment Costs		1,530		1,531
Cupron, Inc.	Sales		15		96