Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions

v3.5.0.2
Related Party Transactions
3 Months Ended
Sep. 30, 2016
Related Party Transactions [Abstract]  
Related Party Transactions
RELATED PARTY TRANSACTIONS
Sales and Purchases Made to Affiliated Companies
During the three months ended September 30, 2016 and 2015 , the Company made sales and purchases to various companies, which have been deemed to be related parties.
in thousands
 
 
 
 
 
 
 
Three Months Ended
 
 
 
September 30, 2016
 
September 30, 2015
 
 
Sales
 
Purchases
 
Sales
 
Purchases
 
Former Parent
 
$
6,668

 
$
11,199

 
$
10,482

 
$
27,004

 
Equity method investee
 
129,076

 
89

 
246,869

 
3,311

 
Silver Towne
 
6,789

 
2,612

 
3,109

 
10,983

 
 
 
$
142,533

 
$
13,900

 
$
260,460

 
$
41,298

 
Balances with Affiliated Companies
As of September 30, 2016 and June 30, 2016, the Company had related party receivables and payables balances as set forth below:
 in thousands
 
 
 
 
 
 
 
 
 
 
 
September 30, 2016
 
June 30, 2016
 
 
 
Receivables
 
Payable
 
Receivables
 
Payable
 
Former Parent
 
$
684

 
$
45

 
$
1,913

 
$
138

 
Equity method investee
 
294

 

 
2,396

 

 
Silver Towne
 
81

 
2,023

(1) 

 
282

 
 
 
$
1,059

 
$
2,068

 
$
4,309

 
$
420

 
 
 
 
 
 
 
 
 
 
 
_________________________________
 
1) Includes a short-term earn-out liability of $0.4 million and a payable of $0.5 million recorded in accrued liabilities, and a long-term earn-out liability $1.1 million recorded in other long-term liabilities.
 

Secured Loans Made to Affiliated Companies
On July 23, 2015, CFC entered into a loan agreement with Former Parent providing a secured line of credit in the maximum principal amount of up to $2.5 million, bearing interest at a competitive rate per annum. The loan is secured by numismatic and semi-numismatic products. As of September 30, 2016 and June 30, 2016, the aggregate carrying value of this loan was $0.0 million and $1.4 million, respectively.
Interest Income Earned from Affiliated Companies
During the three months ended September 30, 2016 and 2015, the Company earned interest income related to loans made to Former Parent and related to financing products sold to Former Parent and to the equity method investee, as set forth below:
in thousands
 
 
 
 
 
Three Months Ended
 
 
 
September 30, 2016
 
September 30, 2015
 
Interest income from loan receivables
 
$
10

 
$
21

 
Interest income from finance products
 
668

 
494

 
 
 
$
678

 
$
515

 
 
 
 
 
 
 

Other Income Earned from Equity Method Investee
During the three months ended September 30, 2016 and 2015, the Company recorded its proportional share of its equity method investee's net (loss) income as other income that total $(14,000) and $412,000, respectively. As of September 30, 2016 and June 30, 2016 the carrying balance of the equity method investment was $7.4 million and $7.4 million, respectively.
Income Tax Sharing Obligations
The amount receivable under the Company's income tax sharing obligation due from our Former Parent totaled $0.0 million, and $0.2 million as of September 30, 2016 and June 30, 2016 respectively, and is shown on the face of the condensed consolidated balance sheets as "income taxes receivable from Former Parent" (see Note 12.)
Transaction with Affiliate of Board Member
In February 2015, A-M Global Logistics, LLC ("Logistics"), a wholly owned subsidiary of the Company that was formed to operate the Company's logistics fulfillment center in Las Vegas, Nevada, entered into various agreements with W. A. Richardson Builders, LLC ("WAR"), for the buildout of and improvements to the Las Vegas premises. The spouse of the Chairman of the Company's Audit Committee, Ellis Landau, is an owner and a managing member of WAR. The agreements were amended in January 2016. The amounts involved under the WAR contract, as amended, were approximately $1.5 million. WAR is entitled to a fee equal to 5.0% of the contract work.