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Basis Of Presentation Policies
6 Months Ended
Oct. 01, 2011
Basis Of Presentation Policies [Abstract] 
Basis Of Presentation

1.              Unaudited Condensed Consolidated Financial Statements

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, which are normal and recurring in nature, necessary to present fairly the financial position of Seneca Foods Corporation (the “Company”) as of October 1, 2011 and results of its operations and its cash flows for the interim periods presented. All significant intercompany transactions and accounts have been eliminated in consolidation. The March 31, 2011 balance sheet was derived from the audited consolidated financial statements. Certain previously reported amounts for the period ended October 2, 2010 have been reclassified to conform to the current period classification.

The results of operations for the three and six month periods ended October 1, 2011 are not necessarily indicative of the results to be expected for the full year.


In the six months ended October 1, 2011, the Company sold $32,897,000 of Green Giant finished goods inventory to General Mills Operations, LLC (“GMOL”) for cash, on a bill and hold basis, as compared to $39,247,000 for the six months ended October 2, 2010. Under the terms of the bill and hold agreement, title to the specified inventory transferred to GMOL. The Company believes it has met the criteria required for bill and hold treatment. In addition, during the quarter ended October 2, 2010, the Company received a cash advance from GMOL of $50 million against the corn mandatory purchase which was completed in October 2010 (subsequent to the closing of the second quarter ended October 2, 2010). This advance is included in Prepaid Revenue on the October 2, 2010 Condensed Consolidated Balance Sheet and did not impact the Condensed Consolidated Statement of Earnings.

 

The accounting policies followed by the Company are set forth in Note 1 to the Company's Consolidated Financial Statements in the Company's 2011 Annual Report on Form 10-K. In addition, the following accounting policy is new to this fiscal year based on an asset acquired during fiscal year 2012:

Loan Receivable - Loan Receivable is stated as the sum of (i) the unpaid principal balance owing to the Company under the Allens Credit Facility described in footnote 3 below, plus (ii) any remaining balance of the Company's total $10.0 million Loan Commitment which has been pre-funded by the Company's deposit of such remaining balance in an account maintained by the administrative agent for the Allens Credit Facility. Interest income is recognized in the period in which it is earned. The Company assesses impairment of the Loan Receivable whenever there is an indicator of impairment.

 

       Other footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes included in the Company's 2011 Annual Report on Form 10-K.

 

       All references to years are fiscal years ended or ending March 31 unless otherwise indicated.