v3.22.4
Related Party Transactions
3 Months Ended
Dec. 24, 2022
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
Insurance Coverage
Prior to the fiscal quarter ended December 24, 2022, the Company was covered under the C&S Wholesale Grocers, Inc. (“C&S”) workers’ compensation, general liability, auto liability risk, and technology errors and omissions insurance which C&S managed through the utilization of high deductible insurance policies. C&S is an affiliate of the Company as the same individual, certain of his family members and certain affiliated entities and trusts of the individual and his family members, in the aggregate, control both entities. The Company paid $0.5 million to C&S related to this insurance coverage during the three months ended December 25, 2021. The amounts were expensed to operations as incurred.
Aircraft Time Sharing Agreement
In December 2021 and May 2022, the Company entered into aircraft time-sharing agreements with C&S whereby the Company’s officials, employees, and guests are permitted to use the two C&S aircrafts on an as-needed and as-available basis, with no minimum usage being required. As there is no defined period of time stated within these aircraft time-sharing agreements, the Company does not consider these to meet the definition of a lease, and as such, records payments in the period in which the obligation for the payment is incurred. The Company incurred expense of $0.1 million related to usage of the aircrafts for the three months ended December 24, 2022. No expense was recorded for the three months ended December 25, 2021 related to these aircraft time-sharing agreements.
Usage of Facility and Employee Services
In the fourth quarter of fiscal year 2022, the Company entered into a license arrangement with C&S whereby C&S is providing receiving and logistics services for the Company within a C&S distribution facility. The arrangement also provides for C&S employees assisting with certain of the Company’s operations. The Company incurred $0.3 million of expense related to this arrangement for the three months ended December 24, 2022.
Customer Contracts
The Company has customer contracts with C&S relating to systems implementation, software maintenance services and the operations of a warehouse automation system. Revenue of $5.5 million and $0.8 million was recognized for the three months ended December 24, 2022 and December 25, 2021, respectively, relating to these customer contracts. There were no accounts receivable due from C&S at December 24, 2022 and September 24, 2022. There was $15.5 million of deferred revenue relating to contracts with C&S at December 24, 2022 and $0.5 million of deferred revenue relating to contracts with C&S at September 24, 2022.