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CONTINGENCY
9 Months Ended
Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]  
CONTINGENCY

NOTE 12 – CONTINGENCY

 

Kirnland Food Distribution, Inc., a subsidiary of the Company, is currently under an inquiry by the United States Department of Labor, Wage and Hour Division, Atlanta Regional Office, concerning wage practices and record keeping during the years 2013 through 2016 and continuing through the present time. As of the date of these financial statements, that inquiry remains open and the company has received no final notice of findings or definitive assessment. On July 3, 2018, the Department of Labor has indicated a preliminary determination in its inquiry, and has estimated that in its preliminary analysis the potential back wages, liquidated damages and related costs would be approximately $2.5 million for the period from 2013 through current time, although the final amount has not yet been determined and could differ from the estimate. The $2.5 million has been accrued in distribution, selling and administrative expenses in the unaudited condensed consolidated financial statements for the nine months ended September 30, 2018.

 

The Company believes that it has resolved the past issues raised by the Department of Labor, and also plans on providing the Department of Labor with its actions taken to address the issues raised currently and on an ongoing basis.