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Litigation
9 Months Ended
Jul. 02, 2011
Litigation  
Litigation

NOTE 12 - LITIGATION

 

                In the fiscal fourth quarter of 2010, the Company determined it would incur up to approximately $1.1 million relating to non-conforming inventory received from a supplier.  The Company reached a settlement with the supplier during the fiscal first quarter of 2011 for $0.9 million, which has been received and recorded in selling and administrative expenses in the nine months ended July 2, 2011. 

  

                In the fiscal first quarter of 2010, the Company received settlement funds of approximately $3.2 million related to a court case in which the Company was a plaintiff.  The settlement related to prior purchases of inventory and therefore was recorded in cost of sales. 

 

           The Company is party to certain other lawsuits in the ordinary course of business.  Management does not believe that these proceedings, individually or in the aggregate, will have a material adverse effect on the Company's consolidated financial position, results of operations or cash flows.