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Contingencies and Commitments
8 Months Ended
Jul. 13, 2018
Commitments and Contingencies Disclosure [Abstract]  
Contingencies and Commitments

Note 3 – Contingencies and Commitments:

 

We invested in OTR (over-the-road) tractors financed by a capital lease obligation in the amount of $1,060 during fiscal year 2012. The total capital lease obligation remaining for transportation equipment as of July 13, 2018 is $341 for a contractual purchase obligation. The lease arrangement also contains a variable component of seven cents per mile based on miles driven over the lease life. As of July 13, 2018, the capital lease has expired and converted to a month-to-month rental. The specifics in the final stage of the capital lease program or any renewal are currently being negotiated.

 

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 thirty-six weeks ended July 13, 2018.

 

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 July 13, 2018. The Company does not participate in the commodity futures market or hedging to limit commodity exposure.

 

Expenditures for additions to property, plant and equipment during the thirty-six weeks ended July 13, 2018 include initial payments of $4,800 on the purchase of smokehouses and chillers which will cost approximately $5,700.