Financial Statement Impact Of Fires

3 Months Ended

Aug. 30, 2014

Financial Statement Impact Of Fires [Abstract]

Financial Statement Impact Of Fires

10.   Financial Statement Impact of Fires

In the second quarter of fiscal 2014, a contract producer owned pullet complex in Florida was damaged by fire.  The fire destroyed two contract producer owned pullet houses that contained the Company’s flocks.  In the third quarter of fiscal 2014, the Company’s Shady Dale, Georgia complex was damaged by fire.  The fire destroyed two pullet houses.  The Company expects to receive a net of $2.0 million from insurance carriers as full settlement of these claims, after payment of $720,000 in deductibles and coinsurance.  During the thirteen weeks ended August 30, 2014, the Company recorded proceeds received for business interruption losses of $60,000 as a reduction to “Cost of sales” and a gain on the property damage claim of $886,000 which was recorded in “Other income (expense)”.  The remainder of the insurance proceeds, $1.0 million, was used to reimburse the Company for the book value of damaged property written off and other out of pocket expenses. As of August 30, 2014, the Company had received $1.4 million and had recorded a receivable for the remaining $599,000.