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Basis Of Presentation Policies | 12 Months Ended
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Mar. 31, 2016
Accounting Policies [Abstract] |
Significant Accounting Policies | Seneca Foods Corporation and Subsidiaries 1. Summary of Significant Accounting Policies Nature of Operations — Seneca Foods Corporation (the “Parent Company”) and subsidiaries (the “Company”) conducts its business almost entirely in food packaging, operating 28 plants and 3 2 warehouses in ten states. The Company markets private label and branded packag ed foods to retailers and institutional food distributors. Principles of Consolidation — The consolidated financial statement s include the accounts f or the Parent C ompany and all of its wholly-owned subsidiaries after elimination of intercompany transactions, profits, and balances. Revenue Recognition — Sales and related cost of product sold are recognized when legal title passes to the purchaser, wh ich is primarily upon shipment of products. When customers, under the terms of specific orders, request that the Company invoice but hold the goods (“Bill and Hold”) for future shipment, the Company recognizes revenue when legal title to the finished goods inventory passes to the purchaser. Generally, the Company receives cash from the purchaser when legal title pas ses. During the years ended March 31, 2016 and 2015, the Company sold for cash, on a bill and hold basis, $126.1 million and $138.6 million, r espectively, of Green Giant finished goods inventory. At the time of the sale of th e Green Giant vegetables, title of the specifi ed inventory transferred. The Company believes it has met the criteria required by the accounting standards for Bill and Hold t reatment. As of March 31, 2016, $58.8 million of 2016 product remained unshipped. Trade promotions are an important component of the sales and marketing of the Company’s branded products, and are critical to the support of the business. Trade promotion c osts, which are recorded as a reduction of sales, include amounts paid to retailers for shelf space, to obtain favorable display positions and to offer temporary price reductions for the sa le of our products to consumers. Accruals for trade promotions are recorded primarily at the time of sale to the retailer based on expected levels of performance. Settlement of these liabilities typically occurs in subsequent periods primarily through an authorized process for deductions taken by a retailer from amounts o therwise due to the Company. As a result, the ultimate cost of a trade promotion program is dependent on the relative success of the events and the actions and level of deductions taken by retailers. Final determination of the permissible deductions may ta ke extended periods of time. Concentration of Credit Risk — Financial instruments that potentially subject the Company to credit risk consist of trade receivables and interest-bearing investments. Wholesale and retail food distributors comprise a signifi cant portion of the trade receivables; collateral is generally not required. A relatively limited number of customers account for a large percentage of the Company’s total sales. GMOL sales represented 11%, 13% and 13% of net sales in each of 2016, 2015 an d 2014, respectively. The top ten customers, including GMOL, represent ed approximately 4 8%, 49% and 50% of n et sales for 2016, 2015 and 2014, respectively. The Company closely monitors the credit risk associated with its customers. The Company places subst antially all of its interest-bearing investments with financial institutions and monitors credit exposure. Cash and short-term investments in certain accounts exceed the federal insured limit; however, the Company has not experienced any losses in such acc ounts. Cash Equivalents — The Company considers all highly liquid instruments purchased with an original maturity of three months or less as cash equivalents. Fair Value of Financial Instruments — The carrying values of cash and cash equivalents (Level 1), accounts receivable, short-term debt (Level 2) and accounts payable approximate fair value because of the immediate or short-term maturity of these financial instruments. See Note 9, Fair Value of Financial Instruments, for a discussion of the fair va lue of long-term debt. The three-tier value hierarchy is utilized to prioritize the inputs used in measuring fair value. The hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobserved inputs (L evel 3). The three levels are defined as follows: Level 1- Quoted prices for identical instruments in active markets. Level 2- Quoted prices for similar instruments; quoted prices for identical or similar instruments in markets that are not active; and m odel-derived valuations in which all significant inputs or significant value-drivers are observable. Level 3- Model-derived valuations in which one or more inputs or value-drivers are both significant to the fair value measurement and unobservable. Deferred Financing Costs — Deferred financing costs incurred in obtaining debt are amortized on a straight-line basis over the term of the debt, which is not materially different than using the effective interest rate method. As of March 31, 2016, there we re $0.1 million of unamortized financing cost included in other current assets and $0.1 million of unamortized financing costs included in other assets on the Consolidated Balance Sheets. Inventories — S ubstantially all inventories are stated at the lower of cost; determined under the last-in, first-out (“LIFO”) method; or market. Inc ome Taxes — The provision for income taxes includes federal and state income taxes currently payable and those deferred because of temporary differences between the fina ncial statement and tax basis of assets and liabilities and tax credit carryforwards. The Company uses the flow-through method to account for its investment tax credits. The Com pany evaluates the likelihood of realization of its net deferred income tax a ssets by assessing its valuation allowance and by adjusting the amount of such allowance, if necessary. The factors used to assess the likelihood of realization are the Company’s forecast of future taxable income, the projected reversal of temporary differ ences and available tax planning strategies that could be implemented to realize the net deferred income tax assets. Current rules on the accounting for uncertainty on income taxes prescribe a minimum recognition threshold for a tax position taken or expe cted to be taken in a tax return that is required to be met before being recognized in the financial statements. Those rules also provide guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclos ure and transition. The Company recognizes interest and penalties accrued on unrecognized tax benefits as well as interest received from favorable settlements within income tax expense. Shipping and Handling Costs — The Company includes all shipping and handling costs billed to customers in net sales and the corresponding costs in cost of products sold. The shipping and handling costs billed to customers in net sales were $38.3 million, $38.8 million and $41.3 million in 2016, 2015, and 2014, respectiv ely. Advertising Costs — Advertising costs are expensed as incurred. Advertising costs charged to operations were $2.0 million, $1.7 million and $1.5 million in 2016, 2015 and 2014, respectively. Accounts Receivable and Doubtful Accounts — Accounts r ec eivable is stated at invoice value, which is net of any off invoice promotions. A provision for doubtful accounts is recorded based upon an assessment of credit risk within the accounts receivable portfolio, experience of delinquencies (accounts over 15 d ays past due) and charge-offs (accounts removed from accounts receivable for expectation of non-payment), and current market conditions. Management believes these provisions are adequate based upon the relevant information presently available. Earnings p er Common Share — The Company has three series of convertible preferred stock, which are deemed to be participating securities that are entitled to participate in any dividend on Class A common stock as if the preferred stock had been converted into common stock immediately prior to the record date for such dividend. Basic earnings per share for common stock is calculated using the “two-class” method by dividing the earnings attributable to common stockholders by the weighted average of common shares outsta nding during the period. Restricted stock is included in all earnings per share calculations. Diluted earnings per share is calculated by dividing earnings attributable to common stockholders by the sum of the weighted average common shares outstanding p lus the dilutive effect of convertible preferred stock using the “if-converted” method, which treats the contingently-issuable shares of convertible preferred stock as common stock.
Years ended March 31, |  | 2016 |  | 2015 |  | 2014
|  | (In thousands, except per share amounts)
Basic |  |  |  |  |  |
Net earnings | $ | 54,458 | $ | 9,899 | $ | 13,779
Deduct preferred stock dividends |  | 23 |  | 23 |  | 23
Undistributed earnings |  | 54,435 |  | 9,876 |  | 13,756
Earnings attributable to participating |  |  |  |  |  |
preferred shareholders |  | 544 |  | 160 |  | 438
Earnings attributable to common |  |  |  |  |  |
shareholders | $ | 53,891 | $ | 9,716 | $ | 13,318
Weighted average common shares |  |  |  |  |  |
outstanding |  | 9,878 |  | 10,690 |  | 10,747
Basic earnings per common share | $ | 5.46 | $ | 0.91 | $ | 1.24
Diluted |  |  |  |  |  |
Earnings attributable to common |  |  |  |  |  |
shareholders | $ | 53,891 | $ | 9,716 | $ | 13,318
Add dividends on convertible |  |  |  |  |  |
preferred stock |  | 20 |  | 20 |  | 20
Earnings attributable to common |  |  |  |  |  |
stock on a diluted basis | $ | 53,911 | $ | 9,736 | $ | 13,338
Weighted average common shares |  |  |  |  |  |
outstanding-basic |  | 9,878 |  | 10,690 |  | 10,747
Additional shares to be issued related to |  |  |  |  |  |
the equity compensation plan |  | 3 |  | 5 |  | 5
Additional shares to be issued under |  |  |  |  |  |
full conversion of preferred stock |  | 67 |  | 67 |  | 67
Total shares for diluted |  | 9,948 |  | 10,762 |  | 10,819
Diluted earnings per share | $ | 5.42 | $ | 0.90 | $ | 1.23
Depreciation and Valuation — Property, plant, and equipment are stated at cost. Interest incurred during the construction of major projects is capitalized. For financial reporting, the Company provides for depreciation on the straight-line method at rates based upon the estimated useful lives of the various assets. Deprec iation was $21.4 million, $21.5 million, and $22.9 million in 2016, 2015, and 2014, respectively. The estimated useful lives are as follows: buildings and improvements — 30 years; machiner y and equipment — 10-15 years; computer software — 3-5 years; vehicles — 3-7 years; and land improvements — 10-20 years. The Company assesses its long-lived assets for impairment whenever there is an indicator of impairment. Impairment losses a re evaluated if the estimated undiscounted cash flows from using the assets are less than carrying value. A loss is recognized when the carrying value of an asset exceeds its fair value. There were $5.1 million of impairment losses in 2016 included in Plant Restructur ing (see Note 14, Plant Restructuring). There were no sign ificant impairment losses in 2015 and 2014. Use of Estimates in the Preparation of Financial Statements — The preparation of financial statements in confo rmity with accounting principles generall y accepted in the United States ("GAAP") requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as wel l as the related revenues and expenses during the reporting period. Actual amounts could differ from those estimated. Recently Issued Accounting Standards — In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which requires a n entity to recogni ze the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard will be effective fo r the Company on April 1, 2018 (beginning of fiscal 2019). Early adoption is permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. The Company does not anticipate a material impact on the Co mpany's financial position, results of operations or cash flows as a result of this change. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes which requires that all deferred tax liabilities and assets of the sa me tax jurisdiction or a tax filing group, as well as any related valuation allowance, be offset and be presented as a single noncurrent amount in a classified balance sheet. This standard is effective for the Company for fiscal years beginning after Dece mber 15, 2017 (beginning of fiscal 2019). Early adoption is permitted. The Company adopted this standard during 2016 on a prospective basis. Prior periods were not retrospectively adjusted. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 1 5, 2018 (beginning fiscal 2020), including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest co mparative period presented in the financial statements, with certain practical expedients available. While we are still evaluating the impact of our pending adoption of the new standard on our consolidated financial statements, we expect that upon adoptio n we will recognize ROU assets and lease liabilities and that the amounts could be material. Reclassifications — Certain previously reported amounts have been reclassified to conform to the current period classification

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