Commitments and Contingencies

9 Months Ended

Jan. 23, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

We are subject to various claims and contingencies related to lawsuits and other matters arising out of the normal course of business. We are of the opinion that there are no matters pending or threatened that are expected to have a material adverse effect, individually or in the aggregate, on our consolidated financial condition or results of operations. The Company establishes a reserve for the outcome of litigation where it deems appropriate to do so under applicable accounting rules.

In August 2012, a former Bob Evans Restaurant employee filed an action against the Company in the United States District Court for the Southern District of Ohio (the “Ohio District Court”) in David Snodgrass v. Bob Evans Farms, Inc. The lead plaintiff alleged that the Company violated the Fair Labor Standards Act by failing to pay overtime compensation during the period of time the employee worked as an assistant manager.  The plaintiff seeks an unspecified amount of alleged back wages, liquidated damages, statutory damages and attorneys’ fees.  The lead plaintiff sought to maintain the suit as a collective action on behalf of other similarly situated assistant managers employed at Bob Evans Restaurants between August 2009 and present. Unlike a class action, a collective action requires potential class members to “opt in” rather than “opt out.”  In December 2013, the Ohio District Court granted conditional certification of the class. The Company intends to seek to have the class decertified and/or seek to have the case dismissed on the merits. The proceedings, including any attempts to resolve the claims through mediation, remain in the early stages with significant uncertainty as to factual issues, outcome of legal proceedings, and/or damages claimed.  We believe we have meritorious defenses to the claims and intend to vigorously contest the action. At this time, the likelihood of an unfavorable outcome cannot be determined with any certainty. An amount or range of a reasonably possible loss cannot be estimated. We do not believe based on currently available information, that the outcome of this matter will have a material effect on our financial condition, although an adverse outcome could be material to our results of operations for a particular period.