9.	Recently Issued Accounting Standards

May 2014,

the FASB issued Accounting Standards Update

2014

09,

Revenue from Contracts with Customers

, now commonly referred to as Accounting Standards Codification Topic

606

(“ASC

606”

). The FASB issued ASC

606

to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP. The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes the most current revenue recognition guidance. ASC

606

requires the recognition of revenue when control of performance obligations as stipulated in the contracts, is transferred to a customer for an amount that reflects the consideration the entity expects to receive in exchange promised goods and services.

The Company adopted ASC

606

as of

April 1, 2018,

utilizing the full retrospective method of transition, which requires a restatement of each prior reporting period presented. In adopting ASC

606,

the Company used the practical expedient where the transaction price allocated to the remaining performance obligations before the date of the initial application is

not

disclosed. The Company implemented new policies, processes and systems to enable both the preparation of financial information and internal controls over financial reporting in connection with its adoption of ASC

606.

The primary impact of adopting ASC

606

on the Company’s

2019

and

2018

revenue was to report the product sales to B&G as bill and hold sales, but deferring a small portion of the sale for future case and labeling services along with storage services.

February 2016,

the FASB issued ASU

No.

2016

02,

Leases.

The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than

months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after

December 15, 2018 (

beginning fiscal

2020

for the Company), including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. While we are still evaluating the impact of our pending adoption of the new standard on our consolidated financial statements, we expect that upon adoption we will recognize ROU assets and lease liabilities and that the amounts could be material.

January 2017,

the FASB issued ASU

No.

2017

Business Combinations (Topic

805

): Clarifying the Definition of a Business

("ASU

2017

01"

), with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU

2017

is effective for fiscal years beginning after

December 15, 2017

and interim periods within those fiscal years, and early adoption is permitted for transactions which occur before the issuance or effective date of the amendments, but only when the transaction has

not

been reported in the financial statements that have been issued or made available for issuance. ASU

2017

is to be applied on a prospective basis. The Company adopted ASU

2017

effective

April 1, 2018.

The Company adoption of ASU

2017

did

not

have a material impact on its consolidated financial statements.

March 2017,

the FASB issued ASU

2017

07,

“Compensation – Retirement Benefits (Topic

715

): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” ASU

2017

requires that the service cost component of net periodic benefit costs from defined benefit and other postretirement benefit plans be included in the same statement of earnings captions as other compensation costs arising from services rendered by the covered employees during the period. The other components of net benefit cost will be presented in the statement of earnings separately from service costs. ASU

2017

is effective for fiscal years beginning after

December 31, 2017 (

fiscal year

2019

for the Company). Following adoption, only service costs will be eligible for capitalization into manufactured inventories, which should reduce diversity in practice. The amendments of ASU

2017

should be applied retrospectively for the presentation of the service cost component and the other components of net periodic benefit costs from defined benefit and other postretirement benefit plans in the statement of earnings and prospectively, on and after the effective date, for the capitalization of the service cost component into manufactured inventories. The Company adopted the new guidance in

first

quarter of fiscal year

2019,

and the changes to earnings before income taxes were immaterial in the year of adoption.

There were

other recently issued accounting pronouncements that impacted the Company’s condensed consolidated financial statements. In addition, the Company did

not

adopt any other new accounting pronouncements during the quarter ended

June 30, 2018.