XML 20 R8.htm IDEA: XBRL DOCUMENT v3.7.0.1
Commitments and Contingencies
6 Months Ended
Apr. 14, 2017
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 3 - Commitments and Contingencies:

 

We invested in OTR (over-the-road) tractors financed by a capital lease obligation in the amount of $1,060 during fiscal 2012. The total capital lease obligation remaining for transportation equipment as of April 14, 2017 is $485. The lease arrangement also contains a variable component of seven cents per mile based on miles driven over the lease life.

 

The Company also leases warehouse and/or office facilities throughout the United States through month-to-month rental agreements. No material changes have been made to these agreements during the first twenty-four weeks of fiscal 2017.

 

The Company is involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters is not expected to have a material adverse effect on the Company’s consolidated financial position or results of operations.

 

Most flour purchases are made at market price without contracts. However, the Company may purchase bulk flour at current market prices under short-term (30 - 120 days) fixed price contracts during the normal course of business. Under these arrangements, the Company is obligated to purchase specific quantities at fixed prices, within the specified contract period. These contracts provide for automatic price increases if agreed quantities are not purchased within the specified contract period. The contracts are not material. These contracts are typically settled within a month’s time and no significant contracts remain open at the close of the quarterly or annual reporting period. No significant contracts remained unfulfilled at April 14, 2017. The Company does not participate in the commodity futures market or hedging to limit commodity exposure.

 

The Company obtained Chicago City Council approval on January 25, 2017 for a zoning change to its Chicago production plant property which management believes increases its value and flexibility going forward. The Company has purchased an existing facility in the Chicago area for approximately $5.6 million cash. The Company expects to invest approximately $2.0 million on building improvements before occupying the facility in the later part of fiscal year 2017.