10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

Form 10-Q

(Mark one)

☑ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarter Ended July 3, 2021

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File Number 0-01989

Seneca Foods Corporation

(Exact name of Registrant as specified in its charter)

New York	16-0733425
(State or other jurisdiction of	(I. R. S. Employer
incorporation or organization)	Identification No.)

3736 South Main Street, Marion, New York	14505
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code            (315) 926-8100

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Exchange on Which Registered
Common Stock Class A, $.25 Par	SENEA	NASDAQ Global Select Market
Common Stock Class B, $.25 Par	SENEB	NASDAQ Global Select Market

Indicate by check mark whether the Company (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Company was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the Company is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer ☐          Accelerated filer ☑         Non-accelerated filer ☐       Smaller reporting company ☑

Emerging growth company ☐

If an emerging growth company, indicate by checkmark if the Company has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the Company is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No  ☑

The number of shares outstanding of each of the registrant’s classes of common stock at the latest practical date are:

Class	Shares Outstanding at July 30, 2021
Common Stock Class A, $.25 Par	7,185,269
Common Stock Class B, $.25 Par	1,705,938

Seneca Foods Corporation

Quarterly Report on Form 10-Q

Table of Contents

		Page
PART 1	FINANCIAL INFORMATION
Item 1	Financial Statements:
	Condensed Consolidated Balance Sheets-As of July 3, 2021, June 27, 2020 and March 31, 2021	1
	Condensed Consolidated Statements of Net Earnings-Three Months Ended July 3, 2021 and June 27, 2020	2
	Condensed Consolidated Statements of Comprehensive Income-Three Months Ended July 3, 2021 and June 27, 2020	2
	Condensed Consolidated Statements of Cash Flows-Three Months Ended July 3, 2021 and June 27, 2020	3
	Condensed Consolidated Statements of Stockholders' Equity-Three Months Ended July 3, 2021 and June 27, 2020	4
	Notes to Condensed Consolidated Financial Statements	5
Item 2	Management's Discussion and Analysis of Financial Condition and Results of Operations	12
Item 3	Quantitative and Qualitative Disclosures about Market Risk	17
Item 4	Controls and Procedures	18
PART II	OTHER INFORMATION
Item 1	Legal Proceedings	19
Item 1A	Risk Factors	19
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	19
Item 3	Defaults Upon Senior Securities	19
Item 4	Mine Safety Disclosures	19
Item 5	Other Information	19
Item 6	Exhibits	19
SIGNATURES		20

SENECA FOODS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Per Share Data)

	Unaudited			Unaudited
	July 3, 2021			June 27, 2020			March 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	59,834		$	11,607		$	59,837
Accounts receivable, net		66,743			62,860			92,221
Contracts receivable		742			6,059			911
Current assets held for sale		8,535			11,989			8,656
Inventories		414,690			423,844			343,144
Refundable income taxes		4,621			-			8,385
Other current assets		4,745			7,545			3,145
Total current assets		559,910			523,904			516,299
Property, plant and equipment, net		254,012			239,524			248,583
Right-of-use assets operating, net		45,935			57,349			42,193
Right-of-use assets financing, net		35,814			32,222			30,611
Pension assets		62,667			-			62,851
Deferred income tax asset, net		-			9,185			-
Other assets		9,938			20,777			8,811
Total assets	$	968,276		$	882,961		$	909,348
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	125,571		$	99,615		$	74,089
Deferred revenue		3,079			3,594			4,287
Accrued vacation		11,879			12,147			11,660
Accrued payroll		8,346			8,796			15,366
Other accrued expenses		24,224			17,182			24,403
Income taxes payable		-			8,463			-
Current portion of operating lease obligations		16,842			21,311			17,047
Current portion of financing lease obligations		7,716			6,232			6,778
Current portion of long-term debt		4,000			500			4,500
Total current liabilities		201,657			177,840			158,130
Long-term debt, less current portion		93,092			144,467			94,085
Operating lease obligations, less current portion		30,035			38,634			27,769
Financing lease obligations, less current portion		23,046			22,613			19,232
Deferred income tax liability, net		28,803			-			28,306
Pension liabilities		-			79,321			-
Other long-term liabilities		4,231			5,000			4,011
Total liabilities		380,864			467,875			331,533
Commitments and contingencies
Stockholders' equity:
Preferred stock		663			681			663
Common stock, $.25 par value per share		3,041			3,041			3,041
Additional paid-in capital		98,527			98,412			98,502
Treasury stock, at cost		(95,750	)		(88,319	)		(91,198	)
Accumulated other comprehensive loss		(19,067	)		(79,220	)		(19,067	)
Retained earnings		599,998			480,491			585,874
Total stockholders' equity		587,412			415,086			577,815
Total liabilities and stockholders’ equity	$	968,276		$	882,961		$	909,348

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

1

SENECA FOODS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF NET EARNINGS
(Unaudited)
(In Thousands, Except Per Share Data)

	Three Months Ended
	July 3,			June 27,
	2021			2020
Net sales	$	235,042		$	288,165
Costs and expenses:
Cost of product sold		201,419			239,603
Selling, general and administrative		17,274			18,145
Plant restructuring charge		66			263
Other operating income		(1,444	)		(145	)
Total costs and expenses		217,315			257,866
Operating income		17,727			30,299
Loss from equity investment		156			676
Other (income) loss		(2,376	)		931
Interest expense, net		1,342			1,651
Earnings before income taxes		18,605			27,041
Income taxes		4,469			6,335
Net earnings	$	14,136		$	20,706
Basic earnings per common share	$	1.56		$	2.26
Diluted earnings per common share	$	1.55		$	2.24

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

SENECA FOODS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In Thousands)

	Three Months Ended
	July 3,		June 27,
	2021		2020
Comprehensive income:
Net earnings	$	14,136	$	20,706
Total	$	14,136	$	20,706

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2

SENECA FOODS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In Thousands)

	Three Months Ended
	July 3,			June 27,
	2021			2020
Cash flows from operating activities:
Net earnings	$	14,136		$	20,706
Adjustments to reconcile net earnings to net cash provided by operations:
Depreciation & amortization		8,581			7,881
Gain on the sale of assets		(1,166	)		(315	)
Provision for restructuring		66			263
Loss From equity investment		156			676
Deferred income taxes		497			(1,313	)
Changes in operating assets and liabilities:
Accounts receivable		25,647			48,493
Inventories		(71,546	)		(12,213	)
Other current assets		(494	)		(94	)
Income taxes		3,764			12,813
Accounts payable, accrued expenses and other		41,979			23,424
Net cash provided by operations		21,620			100,321
Cash flows from investing activities:
Additions to property, plant and equipment		(13,221	)		(19,230	)
Proceeds from the sale of assets		1,400			914
Net cash used in investing activities		(11,821	)		(18,316	)
Cash flows from financing activities:
Long-term debt borrowings		21,539			91,896
Payments on long-term debt		(22,532	)		(164,510	)
Other assets		(2,500	)		(6,950	)
Payments on financing leases		(1,745	)		(1,536	)
Purchase of treasury stock		(4,552	)		-
Dividends		(12	)		-
Net cash used in financing activities		(9,802	)		(81,100	)
Net (decrease) increase in cash and cash equivalents		(3	)		905
Cash and cash equivalents, beginning of the period		59,837			10,702
Cash and cash equivalents, end of the period	$	59,834		$	11,607
Supplemental disclosures of cash flow information:
Noncash transactions:
Property, plant and equipment purchased under lease obligations	$	14,550		$	2,375
Property, plant and equipment purchased on account		382			1,145

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3

SENECA FOODS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(Unaudited)
(In Thousands)

										Accumulated
					Additional					Other
	Preferred		Common		Paid-In		Treasury			Comprehensive			Retained
	Stock		Stock		Capital		Stock			Loss			Earnings
First Quarter FY 2022:
Balance March 31, 2021	$	663	$	3,041	$	98,502	$	(91,198	)	$	(19,067	)	$	585,874
Net earnings		-		-		-		-			-			14,136
Cash dividends declared on preferred stock		-		-		-		-			-			(12	)
Equity incentive program		-		-		25		-			-			-
Purchase treasury stock		-		-		-		(4,552	)		-			-
Balance July 3, 2021	$	663	$	3,041	$	98,527	$	(95,750	)	$	(19,067	)	$	599,998
First Quarter FY 2021:
Balance March 31, 2020	$	681	$	3,041	$	98,384	$	(88,319	)	$	(79,220	)	$	459,797
Net earnings		-		-		-		-			-			20,706
Cash dividends declared on preferred stock		-		-		-		-			-			(12	)
Equity incentive program		-		-		28		-			-			-
Purchase treasury stock		-		-		-		-			-			-
Balance June 27, 2020	$	681	$	3,041	$	98,412	$	(88,319	)	$	(79,220	)	$	480,491

Preferred Stock

Common Stock

6%

10%

Cumulative Par

Cumulative Par

2003 Series

Value $.25

Value $.025

Participating

Participating

Class A

Class B

Callable at Par

Convertible

Convertible Par

Convertible Par

Common Stock

Common Stock

Voting

Voting

Value $.025

Value $.025

Par Value $.25

Par Value $.25

Shares authorized and designated:

July 3, 2021

200,000

1,400,000

33,855

500

20,000,000

10,000,000

Shares outstanding:

July 3, 2021

200,000

807,240

33,855

500

7,268,432

1,705,938

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

SENECA FOODS CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

July 3, 2021

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 July 3, 2021 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, 2021 balance sheet was derived from the audited consolidated financial statements.

The results of operations for the three month period ended July 3, 2021 are not necessarily indicative of the results to be expected for the full year.

For the three months ended July 3, 2021 and June 27, 2020 the Company sold certain finished goods inventory for cash on a bill and hold basis. The terms of the bill and hold agreement(s) provide that title to the specified inventory is transferred to the customer(s) prior to shipment and the Company has the right to payment (prior to physical delivery) which results in recorded revenue as determined under the revenue recognition standard.

The accounting policies followed by the Company are set forth in Note 1 to the Company's Consolidated Financial Statements in the Company’s 2021 Annual Report on Form 10-K.

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 2021 Annual Report on Form 10-K.

All references to years are fiscal years ended or ending March 31 unless otherwise indicated. Certain percentage tables may not foot due to rounding.

Reclassifications—Certain previously reported amounts have been reclassified to conform to the current period classification.

2. Assets Held For Sale

The Company classifies its assets as held for sale at the time management commits to a plan to sell the asset, the asset is actively marketed and available for immediate sale, and the sale is expected to be completed within one year. Due to market conditions, certain assets may be classified as held for sale for more than one year as the Company continues to actively market the assets. The Company has certain non-operating assets in the Midwest that meet the criteria to be classified as held for sale and are recorded at the lower of carrying value or fair value less costs to sell. The following table presents information related to the major classes of assets that were classified as held for sale in our Condensed Consolidated Balance Sheets (in thousands):

	July 3,		June 27,		March 31,
	2021		2020		2021
Property, Plant and Equipment (net)	$	8,535	$	11,989	$	8,656
Current Assets Held For Sale	$	8,535	$	11,989	$	8,656

5

SENECA FOODS CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

July 3, 2021

3. Revenue Recognition

In the following table, revenue is disaggregated by product category groups (in thousands):

	Three Months Ended
	July 3,		June 27,
	2021		2020
Canned Vegetables	$	187,944	$	221,018
Frozen Vegetables		22,584		17,833
Fruit Products		15,873		18,861
Snack Products		3,412		2,364
Prepared Foods		-		24,224
Other		5,229		3,865
	$	235,042	$	288,165

4. Inventories

First-In, First-Out (“FIFO”) based inventory costs exceeded Last-In, First-Out (“LIFO”) based inventory costs, resulting in a LIFO reserve of $131.5 million and $142.1 million as of July 3, 2021 and June 27, 2020, respectively. The LIFO reserve increased by $2.8 million during the three months ended July 3, 2021 as a compared to a decrease of $2.1 million for the three months ended June 27, 2020. The increase in the LIFO reserve during the first quarter of fiscal 2022 reflects the projected impact of expected cost increases and an overall inventory quantity increase as compared to fiscal 2021. The following table shows inventory by category and the related LIFO balance (in thousands):

	July 3,		June 27,		March 31,
	2021		2020		2021
Finished products	$	340,468	$	330,071		317,654
In process		17,070		29,875		25,175
Raw materials and supplies		188,661		206,024		128,987
FIFO inventories		546,199		565,970		471,816
Less excess of FIFO cost over LIFO cost		131,509		142,126		128,672
Total LIFO inventories	$	414,690	$	423,844	$	343,144

5. Leases

The Company determines whether an arrangement is a lease at inception of the agreement. Presently, the Company leases land, machinery and equipment under various operating and financing leases.

Right-of-Use, or ROU, assets represent the Company’s right to use the underlying assets for the lease term and lease obligations represent the net present value of the Company’s obligation to make payments arising from these leases. ROU assets and lease obligations are recognized at commencement date based on the present value of lease payments over the lease term using the implicit lease interest rate or, when unknown, an incremental borrowing rate based on the information available at commencement date or April 1, 2019 for leases that commenced prior to that date.

Lease terms may include options to extend or terminate the lease, and the impact of these options are included in the calculation of the ROU asset and lease obligation only when the exercise of the option is at the Company’s sole discretion and it is reasonably certain that the Company will exercise that option. The Company will not separate lease and nonlease components for its leases when it is impractical to separate the two. In addition, the Company has certain leases that have variable payments based solely on output or usage of the leased asset. These variable operating lease assets are excluded from the Company’s balance sheet presentation and expensed as incurred. Leases with an initial term of 12 months or less, or short-term leases, are not recorded on the accompanying Condensed Consolidated Balance Sheets

6

SENECA FOODS CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

July 3, 2021

ROU assets and lease obligations for the Company’s operating and financing leases are disclosed separately in the Company’s Condensed Consolidated Balance Sheets.

The components of lease cost were as follows (in thousands):

	Three Months Ended
	July 3,		June 27,
	2021		2020
Lease cost:
Amortization of right of use asset	$	1,295	$	1,186
Interest on lease liabilities		257		294
Finance lease cost		1,552		1,480
Operating lease cost		5,000		6,407
Total lease cost	$	6,552	$	7,887
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	257	$	294
Operating cash flows from operating leases		6,498		7,278
Financing cash flows from finance leases		1,745		1,536
	$	8,500	$	9,108
Right-of-use assets obtained in exchange for new finance lease liabilities	$	6,498	$	35
Right-of-use assets obtained in exchange for new operating lease liabilities	$	8,052	$	2,340
Weighted-average lease term (years):
Financing leases		4.9		5.1
Operating leases		4.4		3.7
Weighted-average discount rate (percentage):
Financing leases		3.5		4.1
Operating leases		4.3		4.4

Undiscounted future lease payments under non-cancelable operating and financing leases, along with a reconciliation of undiscounted cash flows to operating and financing lease obligations, respectively, as of July 3, 2021 were as follows (in thousands):

Years ending March 31:	Operating		Financing
Balance of 2022	$	12,891	$	6,499
2023		15,315		8,665
2024		8,396		7,096
2025		4,636		3,713
2026		2,618		2,625
2027-2033		7,436		4,941
Total minimum payment required	$	51,292	$	33,539
Less interest		4,415		2,777
Present value of minimum lease payments		46,877		30,762
Amount due within one year		16,842		7,716
Long-term lease obligations	$	30,035	$	23,046

7

SENECA FOODS CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

July 3, 2021

6. Revolving Credit Facility

On March 24, 2021, the Company entered into a Fourth Amended and Restated Loan and Security Agreement that provides for a senior revolving credit facility of up to $400.0 million that is seasonally adjusted (the “Revolver”). Maximum borrowings under the Revolver total $300.0 million from April through July and $400.0 million from August through March. The Revolver balance is included in Long-Term Debt in the accompanying Consolidated Balance Sheet due to the Revolver’s March 24, 2026 maturity. In order to maintain availability of funds under the facility, the Company pays a commitment fee on the unused portion of the Revolver. The Revolver is secured by substantially all of the Company’s accounts receivable and inventories and contains borrowing base requirements as well as a financial covenant, if certain circumstances apply. The Company utilizes its Revolver for general corporate purposes, including seasonal working capital needs, to pay debt principal and interest obligations, and to fund capital expenditures and acquisitions. Seasonal working capital needs are affected by the growing cycles of the vegetables the Company packages. The majority of vegetable inventories are produced during the months of June through November and are then sold over the following year. Payment terms for vegetable produce are generally three months but can vary from a few days to seven months. Accordingly, the Company’s need to draw on the Revolver may fluctuate significantly throughout the year.

General terms of the Revolver include payment of interest at LIBOR plus a defined spread.

The following table documents the quantitative data for Revolver borrowings during the first quarter of fiscal 2022 and fiscal 2021 (in thousands):

	As of:
	July 3,			June 27,
	2021			2020
Reported end of period:
Outstanding borrowings	$	1,000		$	34,406
Weighted average interest rate		1.35	%		1.75	%
	Three Months Ended:
	July 3,			June 27,
	2021			2020
Reported during the period:
Maximum amount of borrowings	$	1,071		$	107,967
Average outstanding borrowings	$	938		$	57,281
Weighted average interest rate		1.35	%		2.03	%

7. Stockholders’ Equity

During the three month period ended July 3, 2021, the Company repurchased $4.6 million of its Class A Common Stock and none of its Class B Common Stock as Treasury Stock. There were no repurchases of stock during the three-month period ended June 27, 2020. As of July 3, 2021, there are 3.2 million shares or $95.8 million of repurchased stock being held as Treasury Stock. These shares are not considered outstanding.

8

SENECA FOODS CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

July 3, 2021

8. Retirement Plans

The net periodic benefit cost for the Company’s pension plan consisted of (in thousands):

	Three Months Ended
	July 3,			June 27,
	2021			2020
Service Cost Including Administration	$	2,560		$	2,574
Interest Cost		1,878			2,251
Expected Return on Plan Assets		(4,276	)		(3,567	)
Amortization of Prior Service Cost		23			23
Amortization of Net Loss		0			2,224
Net Periodic Benefit Cost	$	185		$	3,505

There were no contributions made during the three month periods ended July 3, 2021 and June 27, 2020.

9. Plant Restructuring

The following table summarizes the rollforward of restructuring charges and related asset impairment charges recorded and the accruals established (in thousands):

	Restructuring Payable
	Severance		Other Costs			Total
Balance March 31, 2021	$	-	$	-		$	-
First quarter charge		-		66			66
Cash payments/write offs		-		(66	)		(66	)
Balance July 03, 2021	$	-	$	-		$	-

	Severance			Other Costs			Total
Balance March 31, 2020	$	202		$	-		$	202
First quarter charge		219			44			263
Cash payments/write offs		(203	)		(44	)		(247	)
Balance June 27, 2020	$	218		$	-		$	218

During the three months ended July 3, 2021, the Company recorded a restructuring charge of $0.1 million mostly related to health cost from a closed plant.

During the three months ended June 27, 2020, the Company recorded a restructuring charge of $0.3 million related to the closing of plants in the Northwest, of which $0.2 million was related to severance and $0.1 million was for lease impairments.

10. Other Operating Income and Expense

During the three months ended July 3, 2021 the Company recorded a gain from the sale of an aircraft of $1.2 million, a gain from debt forgiveness of $0.5 million on an economic development loan in which the Company met all required milestones and a charge of $0.3 million for a supplemental early retirement plan. The Company also recorded miscellaneous income $0.5 million, partially offset by miscellaneous expenses of $0.4 million. During the three months ended June 27, 2020 the Company recorded a gain on the sale of unused fixed assets of $0.5 million. The Company also recorded a loss of $0.4 million on the disposal of equipment from a sold Northwest plant. These items are included in Other Operating Income in the Unaudited Condensed Consolidated Statements of Net Earnings.

9

SENECA FOODS CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

July 3, 2021

11. Recently Issued Accounting Standards

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which was subsequently amended in November 2018 through ASU No. 2018-19, "Codification Improvements to Topic 326, Financial Instruments – Credit Losses." ASU No. 2016-13 will require entities to estimate lifetime expected credit losses for trade and other receivables along with other financial instruments which will result in earlier recognition of credit losses. Further, the new credit loss model will affect how entities in all industries estimate their allowance for losses for receivables that are current with respect to their payment terms. In November 2019, the FASB issued ASU No. 2019-10, which, among other things, deferred the application of the new guidance on credit losses for smaller reporting companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. This guidance will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., a modified-retrospective approach). Under the above-mentioned deferral, the Company expects to adopt ASU No. 2016-03, and the related ASU No. 2018-19 amendments, beginning as of April 1, 2023 and is in the process of assessing the impact, if any, that this new guidance is expected to have on the Company’s results of operations, financial condition and/or financial statement disclosures.

In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2019-12 to simplify the accounting for income taxes by removing certain exceptions to the general principles and simplify areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enacted tax laws or rate changes. The new standard became effective for the Company during the first quarter of fiscal year 2022. The adoption of this ASU did not impact the Company’s consolidated financial statements and related disclosures.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting which provides optional guidance for a limited time to ease the potential accounting burden associated with the expected market transition away from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. LIBOR is used to determine interest expense related to the Company’s Revolver, which matures in 2026. This update was effective starting March 12, 2020 and the Company may elect to apply the amendments prospectively through December 31, 2022. We are currently evaluating the effect that ASU 2020-04 will have on our consolidated financial statements and related disclosures.

There were no 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 July 3, 2021.

10

SENECA FOODS CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

July 3, 2021

12. Earnings per Common Share

Earnings per share for the three months ended July 3, 2021 and June 27, 2020 are as follows (in thousands, except per share amounts):

	Three Months Ended
	July 3,		June 27,
	2021		2020
Basic
Net earnings	$	14,136	$	20,706
Deduct preferred stock dividends paid		6		6
Undistributed net earnings		14,130		20,700
Earnings attributable to participating preferred		54		81
Earnings attributable to common shareholders	$	14,076	$	20,619
Weighted average common shares outstanding		9,025		9,118
Basic earnings per common share	$	1.56	$	2.26
Diluted
Earnings attributable to common shareholders	$	14,076	$	20,619
Add dividends on convertible preferred stock		5		5
Earnings attributable to common stock on a diluted basis	$	14,081	$	20,624
Weighted average common shares outstanding-basic		9,025		9,118
Additional shares issued related to the equity compensation plan		5		3
Additional shares to be issued under full conversion of preferred stock		67		67
Total shares for diluted		9,097		9,188
Diluted earnings per common share	$	1.55	$	2.24

13. Fair Value of Financial Instruments

On a quarterly basis, the Company estimates the fair values for financial instruments that are recorded at carrying value on the Consolidated Condensed Balance Sheets. The estimated fair value for long-term debt (classified as Level 2 in the fair value hierarchy) is determined by the quoted market prices for similar debt (comparable to the Company’s financial strength) or current rates offered to the Company for debt with the same maturities. Long-term debt, including current portion had a carrying amount of $97.1 million and an estimated fair value of $96.7 million as of July 3, 2021. Long-term debt, including current portion had a carrying amount of $145.0 million and an estimated fair value of $145.3 million as of June 27, 2020. As of March 31, 2021, the carrying amount was $98.6 million and the estimated fair value was $97.2 million. The fair values of all the other financial instruments approximate their carrying value due to their short-term nature.

14. Income Taxes

The effective tax rate was 24.0% and 23.4% for the three month period ended July 3, 2021 and June 27, 2020 respectively. In fiscal 2021, the effective tax rate was decreased by 1.0% as a result of the accrual of interest income related to a federal refund for the NOL carryback claim filed as a result of the CARES Act. Because a similar amount of interest has not been accrued for in the current year, the rate is effectively increased by 1.0% in fiscal 2022 when compared to the same period of the prior year.  This increase was offset by various insignificant decreases including 0.2% from permanent differences and 0.2% from state income tax rate changes.

11

ITEM 2 MANAGEMENTS DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OPERATIONS

July 3, 2021

Seneca Foods Corporation (the “Company”) is a leading provider of packaged fruits and vegetables, with facilities located throughout the United States. The Company’s product offerings include canned, frozen and bottled produce and snack chips. Its products are sold under private label as well as national and regional brands that the Company owns or licenses, including Seneca®, Libby’s®, Aunt Nellie’s®, Cherryman®, Green Valley® and READ®. The Company’s canned fruits and vegetables are sold nationwide by major grocery outlets, including supermarkets, mass merchandisers, limited assortment stores, club stores and dollar stores. The Company also sells its products to foodservice distributors, industrial markets, other food processors, export customers in over 90 countries and federal, state and local governments for school and other food programs. The Company also packs canned and frozen vegetables under contract packing agreements.

The Company’s raw product is harvested mainly between June through November.

Impact of the COVID-19 Pandemic:

Business Impact – Commencing at the onset of the pandemic, we implemented a wide range of precautionary measures at our manufacturing facilities and other work locations in response to COVID-19. We have also been working closely with our supply chain partners to ensure that we can continue to provide uninterrupted service. To date, there has been minimal disruption in our supply chain network, including the supply of fruits and vegetables, packaging or other sourced materials. We also continue to work closely with our customers to meet their needs and ensure a consistent supply across our retail partners during this period of high demand.

We continue to monitor the latest guidance from the CDC, FDA and other federal, state and local authorities regarding COVID-19 to ensure our safety protocols remain current to protect our employees, customers, suppliers and other business partners.

Financial Impact to Date – As previously disclosed, the pandemic has to date had a positive impact on our operating results, and significantly improved our net sales, net income, and net cash provided by operating activities in fiscal 2021. For the three months ended July 3, 2021, our net sales decreased when compared to the three months ended June 27, 2020 due to the extraordinary demand for our products that began in March 2020 and carried into the first quarter of fiscal 2021 as the COVID-19 pandemic reached the United States and consumers began pantry loading and increasing their at-home consumption as a result of increased social distancing and stay-at-home and work-from-home mandates and recommendations. However, demand for our products remains strong and base business net sales are expected to be in line with pre-pandemic levels, prior to the extraordinary demand and pantry loading at the height of the pandemic.

We continue to incur incremental costs to take the precautionary health and safety measures described above. Most of the incremental costs impact our costs of goods sold and the remaining portion impacts our selling, general and administrative expenses.

Expectations and Risk Factors in Light of the COVID-19 Pandemic –The ultimate impact of the COVID-19 pandemic on our business will depend on many factors, including, among others: how long social distancing and stay-at-home and work-from home policies and recommendations remain in effect; whether additional waves of COVID-19 will affect the United States and the rest of North America; our ability to continue to operate our manufacturing facilities, retain a sufficient seasonal workforce, fill open full time positions, maintain our supply chain without material disruption, procure ingredients, packaging and other raw materials when needed despite unprecedented demand in the food industry; the extent to which macroeconomic conditions resulting from the pandemic and the pace of the subsequent recovery may impact consumer eating and shopping habits; and the extent to which consumers continue to work remotely even after the pandemic subsides and how that may impact consumer habits. We have also seen and expect to continue to see cost inflation for various inputs, including steel, commodities, ingredients, packaging and transportation.

Internal controls over financial reporting have not been impacted by COVID-19. Management is continuously monitoring to ensure controls are effective and properly maintained.

12

ITEM 2 MANAGEMENTS DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OPERATIONS

July 3, 2021

Results of Operations:

Sales:

The following table presents net sales by product category (in thousands):

	Three Months Ended
	July 3,		June 27,
	2021		2020
Canned Vegetables	$	187,944	$	221,018
Frozen Vegetables		22,584		17,833
Fruit Products		15,873		18,861
Snack Products		3,412		2,364
Prepared Foods		-		24,224
Other		5,229		3,865
	$	235,042	$	288,165

Net sales amounted to $235.0 million for the three months ended July 3, 2021 as compared with $288.2 million for the three months ended June 27, 2020. The overall net sales decrease of $53.2 million, or 18.5%, was primarily due to lower sales volumes, which equated to a $52.7 million decrease and lower selling prices/sales mix representing the remaining $0.5 million of the total decrease.

Canned vegetable sales decreased $33.1 million, as there was extraordinary sales demand during the three months ended June 27, 2020 due to consumer pantry loading that was experienced at the onset of the pandemic. Prepared foods decreased $24.2 million due to exiting the segment in fiscal 2021 after the sale of the prepared foods business. Additionally, there was a $3.0 million decrease in fruit product sales. The decreases to net sales were partially offset by a $4.8 million increase in frozen vegetable sales, a $1.0 million increase in snack product sales, and a $1.3 million increase in other sales.

Operating Income:

The following table presents components of operating income as a percentage of net sales:

	Three Months Ended
	July 3,			June 27,
	2021			2020
Gross Margin		14.3	%		16.9	%
Selling		3.0	%		2.8	%
Administrative		4.4	%		3.5	%
Plant Restructuring		0.0	%		0.1	%
Other Operating Income		-0.6	%		-0.1	%
Operating Income		7.5	%		10.5	%
Interest Expense, Net		0.6	%		0.6	%

Gross margin for the three months ended July 3, 2021 was 14.3% as compared with 16.9% for the three months ended June 27, 2020. The decrease in gross margin for the three months ended July 3, 2021 was due primarily to cost inflation for various inputs, including steel, commodities, ingredients, packaging and transportation as well as a LIFO charge in fiscal 2022 as compared to a LIFO credit in fiscal 2021. The Company’s LIFO charge for the three months ended July 3, 2021 was $2.8 million as compared to a credit of $2.1 million for the three months ended June 27, 2020. The increase in the LIFO reserve over the three months ended July 3, 2021 reflects the projected impact of expected cost increases and an overall inventory quantity increase as compared to fiscal 2021. On an after-tax basis, LIFO decreased net earnings by $2.1 million for the three months ended July 3, 2021 and increased net earnings by $1.6 million for the three months ended June 27, 2020, based on the historical statutory federal income tax rate.

Selling costs as a percentage of net sales for the three months ended July 3, 2021 were 3.0% as compared with 2.8% for the three months ended June 27, 2020. Despite an 18.4% decrease in net sales, selling costs as a percentage of net sales remained relatively consistent given the direct correlation of most of the selling costs with net sales.

13

ITEM 2 MANAGEMENTS DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OPERATIONS

July 3, 2021

Administrative costs as a percentage of net sales for the three months ended July 3, 2021 were 4.4% as compared with 3.5% for the three months ended June 27, 2020. The increase in administrative costs as a percentage of net sales for the three months ended July 3, 2021 is primarily due to decreased sales and the fixed nature of certain administrative expenses.

During the three months ended July 3, 2021 the Company recorded a gain from the sale of an aircraft of $1.2 million, a gain from debt forgiveness of $0.5 million on an economic development loan in which the Company met all required milestones and a charge of $0.3 million for a supplemental early retirement plan. The Company also recorded miscellaneous income $0.5 million, partially offset by miscellaneous expenses of $0.4 million. During the three months ended June 27, 2020 the Company recorded a gain on the sale of unused fixed assets of $0.5 million. The Company also recorded a loss of $0.4 million on the disposal of equipment from a sold Northwest plant. These items are included in Other Operating Income in the Unaudited Condensed Consolidated Statements of Net Earnings.

Interest expense as a percentage of net sales was 0.6% for the three months ended July 3, 2021 and June 27, 2020. During the three months ended July 3, 2021, overall borrowings and interest rates were lower than the previous year’s resulting in lower interest expense, however, net sales also decreased year over year which contributed to interest expenses as a percentage of net sales remaining flat when comparing fiscal 2022 to fiscal 2021.

Income Taxes:

The effective tax rate was 24.0% and 23.4% for the three month period ended July 3, 2021 and June 27, 2020 respectively. In fiscal 2021, the effective tax rate was decreased by 1.0% as a result of the accrual of interest income related to a federal refund for the NOL carryback claim filed as a result of the CARES Act. Because a similar amount of interest has not been accrued for in the current year, the rate is effectively increased by 1.0% in fiscal 2022 when compared to the same period of the prior year.  This increase was offset by various insignificant decreases including 0.2% from permanent differences and 0.2% from state income tax rate changes.

Earnings per Share:

Basic earnings per share were $1.56 and $2.26 for the three months ended July 3, 2021 and June 27, 2020, respectively. Diluted earnings per share were $1.55 and $2.24 for the three months ended July 3, 2021 and June 27, 2020, respectively. For details of the calculation of these amounts, refer to footnote 12 of the Notes to Condensed Consolidated Financial Statements.

Liquidity and Capital Resources:

The financial condition of the Company is summarized in the following table and explanatory review (dollar amounts in thousands, except per share data):

	July 3,		June 27,			March 31,		March 31,
	2021		2020			2021		2020
Working Capital:
Balance	$	358,253	$	346,064		$	358,169	$	401,946
Change in Quarter		84		(55,882	)
Long-Term Debt, Less Current Portion		93,092		144,467			94,085		217,081
Operating Lease Obligations, Less Current Portion		30,035		38,634			27,769		42,760
Financing Lease Obligations, Less Current Portion		23,046		22,613			19,232		24,366
Total Stockholders' Equity Per Equivalent
Common Share (see Note below)		64.72		45.01			63.05		42.77
Stockholders' Equity Per Common Share		65.38		45.45			63.68		43.17
Current Ratio		2.78		2.95			3.27		3.69

Note: Equivalent common shares are either common shares or, for convertible preferred shares, the number of common shares that the preferred shares are convertible into. See Note 9 of the Notes to Consolidated Financial Statements of the Company’s 2021 Annual Report on Form 10-K for conversion details.

As shown in the Condensed Consolidated Statements of Cash Flows, net cash provided by operating activities was $21.6 million for the three months ended July 3, 2021, compared to $100.3 million for the same period of the prior year, a decrease of $78.7 million. For the first three months of fiscal 2022 as compared to the first three months of fiscal 2021, the reduction in cash provided by operating activities is primarily comprised of decreases in cash provided by inventories, $59.3 million, accounts receivable, $22.8 million, income taxes, $9.0 million, and net earnings, $6.6 million. The increase in cash provided by accounts payable, accrued expenses and other of $18.6 million for the first three months of fiscal 2022 as compared to the first three months of fiscal 2021 partially offset the decreases to cash provided by operating activities.

14

ITEM 2 MANAGEMENTS DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OPERATIONS

July 3, 2021

Cash used in investing activities was $11.8 million for the three months ended July 3, 2021 as compared to $18.3 million for the three months ended June 27, 2020. Additions to property, plant and equipment decreased $6.0 million from $19.2 million during the first quarter of fiscal 2021 to $13.2 million during the first quarter of fiscal 2022. Proceeds from the sale of assets increased $0.5 million from $0.9 million during the first three months of fiscal 2021 to $1.4 million during the first quarter of fiscal 2022.

Cash used in financing activities was $9.8 million for the three months ended July 3, 2021, a decrease of $71.3 million compared to cash used in financing activities for the three months ended June 27, 2020 of $81.1 million. The decrease in cash used in financing activities was primarily driven by the Company paying down substantially all of its Revolver during fiscal 2021. The Company borrowed $21.5 million and paid down $22.5 million of long-term debt during the three months ended July 3, 2021, a net use of cash in financing activities of $1.0 million. By comparison, the Company borrowed $91.9 million and paid down $164.5 million of long-term debt during the three months ended June 27, 2020, a net use of cash in financing activities of $72.6 million. Other than borrowings under the Revolver, there was no new long-term debt during the first three months of fiscal 2022.

On March 24, 2021, the Company entered into a Fourth Amended and Restated Loan and Security Agreement that provides for a senior revolving credit facility of up to $400.0 million that is seasonally adjusted (the “Revolver”). Maximum borrowings under the Revolver total $300.0 million from April through July and $400.0 million from August through March. The Revolver balance is included in Long-Term Debt in the accompanying Consolidated Balance Sheet due to the Revolver’s March 24, 2026 maturity. In order to maintain availability of funds under the facility, the Company pays a commitment fee on the unused portion of the Revolver. The Revolver is secured by substantially all of the Company’s accounts receivable and inventories and contains borrowing base requirements as well as a financial covenant, if certain circumstances apply. The Company utilizes its Revolver for general corporate purposes, including seasonal working capital needs, to pay debt principal and interest obligations, and to fund capital expenditures and acquisitions. Seasonal working capital needs are affected by the growing cycles of the vegetables the Company packages. The majority of vegetable inventories are produced during the months of June through November and are then sold over the following year. Payment terms for vegetable produce are generally three months but can vary from a few days to seven months. Accordingly, the Company’s need to draw on the Revolver may fluctuate significantly throughout the year.

The Company’s credit facilities contain standard representations and warranties, events of default, and certain affirmative and negative covenants, including various financial covenants. At July 3, 2021, the Company was in compliance with all such financial covenants.

New Accounting Standards

Refer to footnote 11 of the Notes to Condensed Consolidated Financial Statements.

Seasonality

The Company’s revenues typically are highest in the second and third fiscal quarters. This is due, in part, because the Company sells canned and frozen vegetables to a co-pack customer on a bill and hold basis at the end of each pack cycle, which typically occurs during these quarters. In addition, the Company’s other fruit and vegetable sales exhibit seasonal increases in the third fiscal quarter due to increased retail demand during the holiday season.

Forward-Looking Information

The information contained in this report contains, or may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this report and include statements regarding the intent, belief or current expectations of the Company or its officers (including statements preceded by, followed by or that include the words “believes,” “expects,” “anticipates” or similar expressions) with respect to various matters, including (i) the Company’s anticipated needs for, and the availability of, cash, (ii) the Company’s liquidity and financing plans, (iii) the Company’s ability to successfully integrate acquisitions into its operations, (iv) trends affecting the Company’s financial condition or results of operations, including anticipated sales price levels and anticipated expense levels, in particular higher production, fuel and transportation costs, (v) the Company’s plans for expansion of its business (including through acquisitions) and cost savings, (vi) the impact of competition, and (vii) the potential impact of COVID-19 on our facilities.

15

ITEM 2 MANAGEMENTS DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OPERATIONS

July 3, 2021

Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Investors are cautioned not to place undue reliance on such statements, which speak only to events as of the date the statements were made. Among the factors that could cause actual results to differ materially are:

● general economic and business conditions;

● cost and availability of commodities and other raw materials such as vegetables, steel and packaging materials;

● transportation costs;

● climate and weather affecting growing conditions and crop yields;

● the availability of financing;

● leverage and the Company’s ability to service and reduce its debt;

● Potential impact of COVID-19 related issues at our facilities;

● foreign currency exchange and interest rate fluctuations;

● effectiveness of the Company’s marketing and trade promotion programs;

● changing consumer preferences;

● competition;

● product liability claims;

● the loss of significant customers or a substantial reduction in orders from these customers;

● changes in, or the failure or inability to comply with, U.S., foreign and local governmental regulations, including environmental and health and safety regulations; and

● other risks detailed from time to time in the reports filed by the Company with the SEC.

Except for ongoing obligations to disclose material information as required by the federal securities laws, the Company does not undertake any obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of the filing of this report or to reflect the occurrence of unanticipated events.

Critical Accounting Policies

For the three months ended July 3, 2021 and June 27, 2020 the Company sold certain finished goods inventory for cash on a bill and hold basis. The terms of the bill and hold agreement(s) provide that title to the specified inventory is transferred to the customer(s) prior to shipment and the Company has the right to payment (prior to physical delivery) which results in recorded revenue as determined under the revenue recognition standard.

Trade promotions are an important component of the sales and marketing of the Company’s branded products, and are critical to the support of the business. Trade promotion costs, which are recorded as a reduction of net sales, include amounts paid to encourage retailers to offer temporary price reductions for the sale of our products to consumers, amounts paid to obtain favorable display positions in retailers’ stores, and amounts paid to retailers for shelf space in retail stores. Accruals for trade promotions are recorded primarily at the time of sale of product to the retailer based on expected levels of performance. Settlement of these liabilities typically occurs in subsequent periods primarily through an authorized process for deductions taken by a retailer from amounts otherwise due to us. As a result, the ultimate cost of a trade promotion program is dependent on the relative success of the events and the actions and level of deductions taken by retailers for amounts they consider due to them. Final determination of the permissible deductions may take extended periods of time.

The Company uses the lower of cost, determined under the LIFO (last-in, first out) method, or market, to value substantially all of its inventories. In a high inflation environment that the Company is experiencing, the Company believes that the LIFO method was preferable over the FIFO method because it better compares the cost of current production to current revenue.

The Company assesses its long-lived assets for impairment whenever there is an indicator of impairment. Property, plant, and equipment are depreciated over their assigned lives. The assigned lives and the projected cash flows used to test impairment are subjective. If actual lives are shorter than anticipated or if future cash flows are less than anticipated, a future impairment charge or a loss on disposal of the assets could be incurred. Impairment losses are evaluated if the estimated undiscounted value of the cash flows is less than the carrying value. If such is the case, a loss is recognized when the carrying value of an asset exceeds its fair value.

16

ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

In the ordinary course of business, the Company is exposed to various market risk factors, including changes in general economic conditions, competition and raw material pricing and availability. In addition, the Company is exposed to fluctuations in interest rates, primarily related to its revolving credit facility. To manage interest rate risk, the Company uses both fixed and variable interest rate debt plus fixed interest rate lease obligations. There have been no material changes to the Company’s exposure to market risk since March 31, 2021.

17

ITEM 4 CONTROLS AND PROCEDURES

The Company maintains a system of internal and disclosure controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported on a timely basis. The Company’s Board of Directors, operating through its Audit Committee, which is composed entirely of independent outside directors, provides oversight to the financial reporting process.

An evaluation was performed under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities and Exchange Act of 1934, as amended) as of the end of the period covered by this report. Based upon that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that, as of July 3, 2021, our disclosure controls and procedures were effective. The Company continues to examine, refine and formalize its disclosure controls and procedures and to monitor ongoing developments in this area.

There have been no changes during the period covered by this report to the Company's internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

18

PART II – OTHER INFORMATION

Item 1. Legal Proceedings   Refer to footnote 15 to the Consolidated Financial Statements included in Part II Item 8 of the Annual Report on Form 10-K.

Item 1A. Risk Factors   There have been no material changes to the risk factors disclosed in the Company’s Form 10-K for the period ended March 31, 2021 except to the extent factual information disclosed elsewhere in this Form 10-Q relates to such risk factors.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

	Total Number of				Average Price Paid				Total Number		Maximum Number
	Shares Purchased				per Share				of Shares		(or Approximate
									Purchased as		Dollar Value) of
									Part of Publicly		Shares that May
									Announced		Yet Be Purchased
	Class A		Class B		Class A		Class B		Plans or		Under the Plans or
Period	Common		Common		Common		Common		Programs		Programs
4/01/2021 –
4/30/2021 (1)		13,500		-		49		-		-
5/01/2021 –
5/31/2021		-		-		-		-		-
6/01/2020 –
6/30/2021		65,853		-	$	49.81		-		65,853
Total		79,353		-	$	49.63		-		65,853		1,434,147

(1) The 13,500 shares were purchased in open market transactions by the trustees under the Seneca Foods Corporation Employees' Savings Plan 401(k) Retirement Savings Plan to provide employee matching contributions under the plan.

Item 3. Defaults Upon Senior Securities   None.

Item 4. Mine Safety Disclosures   None.

Item 5. Other Information   None.

Item 6. Exhibits

10.1 Supplemental Retirement Agreement between Seneca Foods Corporation and Timothy J. Benjamin (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated June 11, 2021)

31.1 Certification of Paul L. Palmby pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

31.2 Certification of Timothy J. Benjamin pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

32    Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)

101.INS Inline XBRL Instance Document (filed herewith).

101.1.SCH Inline XBRL Taxonomy Extension Calculation Schema Document (filed herewith).

101.2.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith).

101.3.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document (filed herewith).

101.4.LAB Inline XBRL Taxonomy Extension Label Linkbase Document (filed herewith).

101.5.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document (filed herewith).

104 Cover page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*)

19

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Seneca Foods Corporation

(Company)

/s/  Paul L. Palmby

Paul L. Palmby

President and Chief Executive Officer

August 11, 2021

/s/Timothy J. Benjamin

Timothy J. Benjamin

Chief Financial Officer

August 11, 2021

20

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Paul L. Palmby, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Seneca Foods Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

/s/ Paul L. Palmby

Paul L. Palmby

President and Chief Executive Officer

August 11, 2021

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Timothy J. Benjamin, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Seneca Foods Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

/s/ Timothy J. Benjamin

Timothy J. Benjamin

Chief Financial Officer

August 11, 2021 

EX-32

EXHIBIT 32

CERTIFICATION PURSUANT TO

18. U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Seneca Foods Corporation (the "Registrant") on Form 10-Q for the period ended July 3, 2021 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), we, Paul L. Palmby, President and Chief Executive Officer, and Timothy J. Benjamin, Chief Financial Officer of the Registrant, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002, that, to our knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

/s/ Paul L. Palmby

Paul L. Palmby

President and Chief Executive Officer

August 11, 2021

/s/ Timothy J. Benjamin

Timothy J. Benjamin

Chief Financial Officer

August 11, 2021

XML

Document And Entity Information - shares	3 Months Ended
	Jul. 03, 2021	Jul. 30, 2021
Document Information [Line Items]
Entity Central Index Key	0000088948
Entity Registrant Name	Seneca Foods Corporation
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2022
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 03, 2021
Document Transition Report	false
Entity File Number	0-01989
Entity Incorporation, State or Country Code	NY
Entity Tax Identification Number	16-0733425
Entity Address, Address Line One	3736 South Main Street
Entity Address, City or Town	Marion
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	14505
City Area Code	315
Local Phone Number	926-8100
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Common Class B [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock Class B, $.25 Par
Trading Symbol	SENEB
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		1,705,938
Common Class A [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock Class A, $.25 Par
Trading Symbol	SENEA
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		7,185,269

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Jul. 03, 2021	Mar. 31, 2021	Jun. 27, 2020
Current assets:
Cash and cash equivalents	$ 59,834	$ 59,837	$ 11,607
Accounts receivable, net	66,743	92,221	62,860
Contracts receivable	742	911	6,059
Current assets held for sale	8,535	8,656	11,989
Inventories	414,690	343,144	423,844
Refundable income taxes	4,621	8,385	0
Other current assets	4,745	3,145	7,545
Total current assets	559,910	516,299	523,904
Property, plant and equipment, net	254,012	248,583	239,524
Right-of-use assets operating, net	45,935	42,193	57,349
Right-of-use assets financing, net	35,814	30,611	32,222
Pension assets	62,667	62,851	0
Deferred income tax asset, net	0	0	9,185
Other assets	9,938	8,811	20,777
Total assets	968,276	909,348	882,961
Current liabilities:
Accounts payable	125,571	74,089	99,615
Deferred revenue	3,079	4,287	3,594
Accrued vacation	11,879	11,660	12,147
Accrued payroll	8,346	15,366	8,796
Other accrued expenses	24,224	24,403	17,182
Income taxes payable	0	0	8,463
Current portion of operating lease obligations	16,842	17,047	21,311
Current portion of financing lease obligations	7,716	6,778	6,232
Current portion of long-term debt	4,000	4,500	500
Total current liabilities	201,657	158,130	177,840
Long-term debt, less current portion	93,092	94,085	144,467
Operating lease obligations, less current portion	30,035	27,769	38,634
Financing lease obligations, less current portion	23,046	19,232	22,613
Deferred income tax liability, net	28,803	28,306	0
Pension liabilities	0	0	79,321
Other long-term liabilities	4,231	4,011	5,000
Total liabilities	380,864	331,533	467,875
Commitments and contingencies
Stockholders' equity:
Preferred stock	663	663	681
Common stock, $.25 par value per share	3,041	3,041	3,041
Additional paid-in capital	98,527	98,502	98,412
Treasury stock, at cost	(95,750)	(91,198)	(88,319)
Accumulated other comprehensive loss	(19,067)	(19,067)	(79,220)
Retained earnings	599,998	585,874	480,491
Total stockholders' equity	587,412	577,815	415,086
Total liabilities and stockholders’ equity	$ 968,276	$ 909,348	$ 882,961

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Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Jul. 03, 2021	Mar. 31, 2021	Jun. 27, 2020
Common Stock, Par Value (in dollars per share)	$ 0.25	$ 0.25	$ 0.25

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Condensed Consolidated Statements of Net Earnings (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Net sales	$ 235,042	$ 288,165
Costs and expenses:
Cost of product sold	201,419	239,603
Selling, general and administrative	17,274	18,145
Plant restructuring charge	66	263
Other operating income	(1,444)	(145)
Total costs and expenses	217,315	257,866
Operating income	17,727	30,299
Loss From equity investment	156	676
Other (income) loss	(2,376)	931
Interest expense, net	1,342	1,651
Earnings before income taxes	18,605	27,041
Income taxes	4,469	6,335
Net earnings	$ 14,136	$ 20,706
Basic earnings per common share (in dollars per share)	$ 1.56	$ 2.26
Diluted earnings per common share (in dollars per share)	$ 1.55	$ 2.24

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Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Comprehensive income:
Net earnings	$ 14,136	$ 20,706
Total	$ 14,136	$ 20,706

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Cash flows from operating activities:
Net earnings	$ 14,136	$ 20,706
Adjustments to reconcile net earnings to net cash provided by operations:
Depreciation & amortization	8,581	7,881
Gain on the sale of assets	(1,166)	(315)
Provision for restructuring	66	263
Loss From equity investment	156	676
Deferred income taxes	497	(1,313)
Changes in operating assets and liabilities:
Accounts receivable	25,647	48,493
Inventories	(71,546)	(12,213)
Other current assets	(494)	(94)
Income taxes	3,764	12,813
Accounts payable, accrued expenses and other	41,979	23,424
Net cash provided by operations	21,620	100,321
Cash flows from investing activities:
Additions to property, plant and equipment	(13,221)	(19,230)
Proceeds from the sale of assets	1,400	914
Net cash used in investing activities	(11,821)	(18,316)
Cash flows from financing activities:
Long-term debt borrowings	21,539	91,896
Payments on long-term debt	(22,532)	(164,510)
Other assets	(2,500)	(6,950)
Payments on financing leases	(1,745)	(1,536)
Purchase of treasury stock	(4,552)	0
Dividends	(12)	0
Net cash used in financing activities	(9,802)	(81,100)
Net (decrease) increase in cash and cash equivalents	(3)	905
Cash and cash equivalents, beginning of the period	59,837	10,702
Cash and cash equivalents, end of the period	59,834	11,607
Supplemental disclosures of cash flow information:
Property, plant and equipment purchased under lease obligations	14,550	2,375
Property, plant and equipment purchased on account	$ 382	$ 1,145

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Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Cumulative Preferred Stock [Member]	Cumulative Convertible Preferred Stock [Member]	Participating Convertible Preferred Stock [Member]	Series 2003 Convertible Preferred Stock [Member]	Common Class A [Member]	Common Class B [Member]	Retained Earnings [Member]	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	AOCI Attributable to Parent [Member]	Total
Balance at Mar. 31, 2020							$ 459,797	$ 681	$ 3,041	$ 98,384	$ (88,319)	$ (79,220)
Net earnings							20,706	0	0	0	0	0	$ 20,706
Cash dividends declared on preferred stock							(12)	0	0	0	0	0
Equity incentive program							0	0	0	28	0	0
Purchase treasury stock							0	0	0	0	0	0	0
Cash dividends declared on preferred stock							(12)	0	0	0	0	0
Balance at Jun. 27, 2020							480,491	681	3,041	98,412	(88,319)	(79,220)	415,086
Balance at Mar. 31, 2021							585,874	663	3,041	98,502	(91,198)	(19,067)	577,815
Net earnings							14,136	0	0	0	0	0	14,136
Cash dividends declared on preferred stock							(12)	0	0	0	0	0
Equity incentive program							0	0	0	25	0	0
Purchase treasury stock					$ (4,600)		0	0	0	0	(4,552)	0
Cash dividends declared on preferred stock							(12)	0	0	0	0	0
Balance at Jul. 03, 2021							$ 599,998	$ 663	$ 3,041	$ 98,527	$ (95,750)	$ (19,067)	$ 587,412
Preferred stock, shares authorized (in shares)	200,000	1,400,000	33,855	500
Common stock, shares authorized (in shares)					20,000,000	10,000,000
Preferred stock, shares outstanding (in shares)	200,000	807,240	33,855	500
Common stock, shares outstanding (in shares)					7,268,432	1,705,938

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Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (Parentheticals)	3 Months Ended
	Jul. 03, 2021 $ / shares
Cumulative Preferred Stock [Member]
Preferred stock, dividend rate	6.00%
Preferred stock, par value (in dollars per share)	$ 0.25
Cumulative Convertible Preferred Stock [Member]
Preferred stock, dividend rate	10.00%
Preferred stock, par value (in dollars per share)	$ 0.025
Participating Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	0.025
Series 2003 Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	0.025
Common Class A [Member]
Common Stock, Par Value (in dollars per share)	0.25
Common Class B [Member]
Common Stock, Par Value (in dollars per share)	0.25
Common Stock, Par Value (in dollars per share)	$ 0.25

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Note 1 - Unaudited Condensed Consolidated Financial Statements

3 Months Ended

Jul. 03, 2021

Notes to Financial Statements

Significant Accounting Policies [Text Block]

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 July 3, 2021 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, 2021 balance sheet was derived from the audited consolidated financial statements.

The results of operations for the three month period ended July 3, 2021 are not necessarily indicative of the results to be expected for the full year.

For the three months ended July 3, 2021 and June 27, 2020 the Company sold certain finished goods inventory for cash on a bill and hold basis. The terms of the bill and hold agreement(s) provide that title to the specified inventory is transferred to the customer(s) prior to shipment and the Company has the right to payment (prior to physical delivery) which results in recorded revenue as determined under the revenue recognition standard.

The accounting policies followed by the Company are set forth in Note 1 to the Company's Consolidated Financial Statements in the Company’s 2021 Annual Report on Form 10-K.

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 2021 Annual Report on Form 10-K.

All references to years are fiscal years ended or ending March 31 unless otherwise indicated. Certain percentage tables may not foot due to rounding.

Reclassifications—Certain previously reported amounts have been reclassified to conform to the current period classification.

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Note 2 - Assets Held For Sale

3 Months Ended

Jul. 03, 2021

Disposal Group, Held-for-sale, Not Discontinued Operations [Member]

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

2. Assets Held For Sale

The Company classifies its assets as held for sale at the time management commits to a plan to sell the asset, the asset is actively marketed and available for immediate sale, and the sale is expected to be completed within one year. Due to market conditions, certain assets may be classified as held for sale for more than one year as the Company continues to actively market the assets. The Company has certain non-operating assets in the Midwest that meet the criteria to be classified as held for sale and are recorded at the lower of carrying value or fair value less costs to sell. The following table presents information related to the major classes of assets that were classified as held for sale in our Condensed Consolidated Balance Sheets (in thousands):

	July 3,		June 27,		March 31,
	2021		2020		2021
Property, Plant and Equipment (net)	$	8,535	$	11,989	$	8,656
Current Assets Held For Sale	$	8,535	$	11,989	$	8,656

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Note 3 - Revenue Recognition

3 Months Ended

Jul. 03, 2021

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

3. Revenue Recognition

In the following table, revenue is disaggregated by product category groups (in thousands):

	Three Months Ended
	July 3,		June 27,
	2021		2020
Canned Vegetables	$	187,944	$	221,018
Frozen Vegetables		22,584		17,833
Fruit Products		15,873		18,861
Snack Products		3,412		2,364
Prepared Foods		-		24,224
Other		5,229		3,865
	$	235,042	$	288,165

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Note 4 - Inventories

3 Months Ended

Jul. 03, 2021

Notes to Financial Statements

Inventory Disclosure [Text Block]

4. Inventories

First-In, First-Out (“FIFO”) based inventory costs exceeded Last-In, First-Out (“LIFO”) based inventory costs, resulting in a LIFO reserve of $131.5 million and $142.1 million as of July 3, 2021 and June 27, 2020, respectively. The LIFO reserve increased by $2.8 million during the three months ended July 3, 2021 as a compared to a decrease of $2.1 million for the three months ended June 27, 2020. The increase in the LIFO reserve during the first quarter of fiscal 2022 reflects the projected impact of expected cost increases and an overall inventory quantity increase as compared to fiscal 2021. The following table shows inventory by category and the related LIFO balance (in thousands):

	July 3,		June 27,		March 31,
	2021		2020		2021
Finished products	$	340,468	$	330,071		317,654
In process		17,070		29,875		25,175
Raw materials and supplies		188,661		206,024		128,987
FIFO inventories		546,199		565,970		471,816
Less excess of FIFO cost over LIFO cost		131,509		142,126		128,672
Total LIFO inventories	$	414,690	$	423,844	$	343,144

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Note 5 - Leases

3 Months Ended

Jul. 03, 2021

Notes to Financial Statements

Lessee, Operating and Finance Leases [Text Block]

5. Leases

The Company determines whether an arrangement is a lease at inception of the agreement. Presently, the Company leases land, machinery and equipment under various operating and financing leases.

Right-of-Use, or ROU, assets represent the Company’s right to use the underlying assets for the lease term and lease obligations represent the net present value of the Company’s obligation to make payments arising from these leases. ROU assets and lease obligations are recognized at commencement date based on the present value of lease payments over the lease term using the implicit lease interest rate or, when unknown, an incremental borrowing rate based on the information available at commencement date or April 1, 2019 for leases that commenced prior to that date.

Lease terms may include options to extend or terminate the lease, and the impact of these options are included in the calculation of the ROU asset and lease obligation only when the exercise of the option is at the Company’s sole discretion and it is reasonably certain that the Company will exercise that option. The Company will not separate lease and nonlease components for its leases when it is impractical to separate the two. In addition, the Company has certain leases that have variable payments based solely on output or usage of the leased asset. These variable operating lease assets are excluded from the Company’s balance sheet presentation and expensed as incurred. Leases with an initial term of 12 months or less, or short-term leases, are not recorded on the accompanying Condensed Consolidated Balance Sheets

ROU assets and lease obligations for the Company’s operating and financing leases are disclosed separately in the Company’s Condensed Consolidated Balance Sheets.

The components of lease cost were as follows (in thousands):

	Three Months Ended
	July 3,		June 27,
	2021		2020
Lease cost:
Amortization of right of use asset	$	1,295	$	1,186
Interest on lease liabilities		257		294
Finance lease cost		1,552		1,480
Operating lease cost		5,000		6,407
Total lease cost	$	6,552	$	7,887
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	257	$	294
Operating cash flows from operating leases		6,498		7,278
Financing cash flows from finance leases		1,745		1,536
	$	8,500	$	9,108
Right-of-use assets obtained in exchange for new finance lease liabilities	$	6,498	$	35
Right-of-use assets obtained in exchange for new operating lease liabilities	$	8,052	$	2,340
Weighted-average lease term (years):
Financing leases		4.9		5.1
Operating leases		4.4		3.7
Weighted-average discount rate (percentage):
Financing leases		3.5		4.1
Operating leases		4.3		4.4

Undiscounted future lease payments under non-cancelable operating and financing leases, along with a reconciliation of undiscounted cash flows to operating and financing lease obligations, respectively, as of July 3, 2021 were as follows (in thousands):

Years ending March 31:	Operating		Financing
Balance of 2022	$	12,891	$	6,499
2023		15,315		8,665
2024		8,396		7,096
2025		4,636		3,713
2026		2,618		2,625
2027-2033		7,436		4,941
Total minimum payment required	$	51,292	$	33,539
Less interest		4,415		2,777
Present value of minimum lease payments		46,877		30,762
Amount due within one year		16,842		7,716
Long-term lease obligations	$	30,035	$	23,046

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Note 6 - Revolving Credit Facility

3 Months Ended

Jul. 03, 2021

Notes to Financial Statements

Debt Disclosure [Text Block]

6. Revolving Credit Facility

On March 24, 2021, the Company entered into a Fourth Amended and Restated Loan and Security Agreement that provides for a senior revolving credit facility of up to $400.0 million that is seasonally adjusted (the “Revolver”). Maximum borrowings under the Revolver total $300.0 million from April through July and $400.0 million from August through March. The Revolver balance is included in Long-Term Debt in the accompanying Consolidated Balance Sheet due to the Revolver’s March 24, 2026 maturity. In order to maintain availability of funds under the facility, the Company pays a commitment fee on the unused portion of the Revolver. The Revolver is secured by substantially all of the Company’s accounts receivable and inventories and contains borrowing base requirements as well as a financial covenant, if certain circumstances apply. The Company utilizes its Revolver for general corporate purposes, including seasonal working capital needs, to pay debt principal and interest obligations, and to fund capital expenditures and acquisitions. Seasonal working capital needs are affected by the growing cycles of the vegetables the Company packages. The majority of vegetable inventories are produced during the months of June through November and are then sold over the following year. Payment terms for vegetable produce are generally three months but can vary from a few days to seven months. Accordingly, the Company’s need to draw on the Revolver may fluctuate significantly throughout the year.

General terms of the Revolver include payment of interest at LIBOR plus a defined spread.

The following table documents the quantitative data for Revolver borrowings during the first quarter of fiscal 2022 and fiscal 2021 (in thousands):

	As of:
	July 3,			June 27,
	2021			2020
Reported end of period:
Outstanding borrowings	$	1,000		$	34,406
Weighted average interest rate		1.35	%		1.75	%
	Three Months Ended:
	July 3,			June 27,
	2021			2020
Reported during the period:
Maximum amount of borrowings	$	1,071		$	107,967
Average outstanding borrowings	$	938		$	57,281
Weighted average interest rate		1.35	%		2.03	%

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Note 7 - Stockholders' Equity

3 Months Ended

Jul. 03, 2021

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

7. Stockholders’ Equity

During the three month period ended July 3, 2021, the Company repurchased $4.6 million of its Class A Common Stock and none of its Class B Common Stock as Treasury Stock. There were no repurchases of stock during the three-month period ended June 27, 2020. As of July 3, 2021, there are 3.2 million shares or $95.8 million of repurchased stock being held as Treasury Stock. These shares are not considered outstanding.

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Note 8 - Retirement Plans

3 Months Ended

Jul. 03, 2021

Notes to Financial Statements

Retirement Benefits [Text Block]

8. Retirement Plans

The net periodic benefit cost for the Company’s pension plan consisted of (in thousands):

	Three Months Ended
	July 3,			June 27,
	2021			2020
Service Cost Including Administration	$	2,560		$	2,574
Interest Cost		1,878			2,251
Expected Return on Plan Assets		(4,276	)		(3,567	)
Amortization of Prior Service Cost		23			23
Amortization of Net Loss		0			2,224
Net Periodic Benefit Cost	$	185		$	3,505

There were no contributions made during the three month periods ended July 3, 2021 and June 27, 2020.

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Note 9 - Plant Restructuring

3 Months Ended

Jul. 03, 2021

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

9. Plant Restructuring

The following table summarizes the rollforward of restructuring charges and related asset impairment charges recorded and the accruals established (in thousands):

	Restructuring Payable
	Severance		Other Costs			Total
Balance March 31, 2021	$	-	$	-		$	-
First quarter charge		-		66			66
Cash payments/write offs		-		(66	)		(66	)
Balance July 03, 2021	$	-	$	-		$	-

	Severance			Other Costs			Total
Balance March 31, 2020	$	202		$	-		$	202
First quarter charge		219			44			263
Cash payments/write offs		(203	)		(44	)		(247	)
Balance June 27, 2020	$	218		$	-		$	218

During the three months ended July 3, 2021, the Company recorded a restructuring charge of $0.1 million mostly related to health cost from a closed plant.

During the three months ended June 27, 2020, the Company recorded a restructuring charge of $0.3 million related to the closing of plants in the Northwest, of which $0.2 million was related to severance and $0.1 million was for lease impairments.

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Note 10 - Other Operating Income and Expense

3 Months Ended

Jul. 03, 2021

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

10. Other Operating Income and Expense

During the three months ended July 3, 2021 the Company recorded a gain from the sale of an aircraft of $1.2 million, a gain from debt forgiveness of $0.5 million on an economic development loan in which the Company met all required milestones and a charge of $0.3 million for a supplemental early retirement plan. The Company also recorded miscellaneous income $0.5 million, partially offset by miscellaneous expenses of $0.4 million. During the three months ended June 27, 2020 the Company recorded a gain on the sale of unused fixed assets of $0.5 million. The Company also recorded a loss of $0.4 million on the disposal of equipment from a sold Northwest plant. These items are included in Other Operating Income in the Unaudited Condensed Consolidated Statements of Net Earnings.

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Note 11 - Recently Issued Accounting Standards

3 Months Ended

Jul. 03, 2021

Notes to Financial Statements

Accounting Standards Update and Change in Accounting Principle [Text Block]

11. Recently Issued Accounting Standards

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which was subsequently amended in November 2018 through ASU No. 2018-19, "Codification Improvements to Topic 326, Financial Instruments – Credit Losses." ASU No. 2016-13 will require entities to estimate lifetime expected credit losses for trade and other receivables along with other financial instruments which will result in earlier recognition of credit losses. Further, the new credit loss model will affect how entities in all industries estimate their allowance for losses for receivables that are current with respect to their payment terms. In November 2019, the FASB issued ASU No. 2019-10, which, among other things, deferred the application of the new guidance on credit losses for smaller reporting companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. This guidance will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., a modified-retrospective approach). Under the above-mentioned deferral, the Company expects to adopt ASU No. 2016-03, and the related ASU No. 2018-19 amendments, beginning as of April 1, 2023 and is in the process of assessing the impact, if any, that this new guidance is expected to have on the Company’s results of operations, financial condition and/or financial statement disclosures.

In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2019-12 to simplify the accounting for income taxes by removing certain exceptions to the general principles and simplify areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enacted tax laws or rate changes. The new standard became effective for the Company during the first quarter of fiscal year 2022. The adoption of this ASU did not impact the Company’s consolidated financial statements and related disclosures.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting which provides optional guidance for a limited time to ease the potential accounting burden associated with the expected market transition away from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. LIBOR is used to determine interest expense related to the Company’s Revolver, which matures in 2026. This update was effective starting March 12, 2020 and the Company may elect to apply the amendments prospectively through December 31, 2022. We are currently evaluating the effect that ASU 2020-04 will have on our consolidated financial statements and related disclosures.

There were no 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 July 3, 2021.

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Note 12 - Earnings Per Common Share

3 Months Ended

Jul. 03, 2021

Notes to Financial Statements

Earnings Per Share [Text Block]

12. Earnings per Common Share

Earnings per share for the three months ended July 3, 2021 and June 27, 2020 are as follows (in thousands, except per share amounts):

	Three Months Ended
	July 3,		June 27,
	2021		2020
Basic
Net earnings	$	14,136	$	20,706
Deduct preferred stock dividends paid		6		6
Undistributed net earnings		14,130		20,700
Earnings attributable to participating preferred		54		81
Earnings attributable to common shareholders	$	14,076	$	20,619
Weighted average common shares outstanding		9,025		9,118
Basic earnings per common share	$	1.56	$	2.26
Diluted
Earnings attributable to common shareholders	$	14,076	$	20,619
Add dividends on convertible preferred stock		5		5
Earnings attributable to common stock on a diluted basis	$	14,081	$	20,624
Weighted average common shares outstanding-basic		9,025		9,118
Additional shares issued related to the equity compensation plan		5		3
Additional shares to be issued under full conversion of preferred stock		67		67
Total shares for diluted		9,097		9,188
Diluted earnings per common share	$	1.55	$	2.24

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Note 13 - Fair Value of Financial Instruments

3 Months Ended

Jul. 03, 2021

Notes to Financial Statements

Fair Value Disclosures [Text Block]

13. Fair Value of Financial Instruments

On a quarterly basis, the Company estimates the fair values for financial instruments that are recorded at carrying value on the Consolidated Condensed Balance Sheets. The estimated fair value for long-term debt (classified as Level 2 in the fair value hierarchy) is determined by the quoted market prices for similar debt (comparable to the Company’s financial strength) or current rates offered to the Company for debt with the same maturities. Long-term debt, including current portion had a carrying amount of $97.1 million and an estimated fair value of $96.7 million as of July 3, 2021. Long-term debt, including current portion had a carrying amount of $145.0 million and an estimated fair value of $145.3 million as of June 27, 2020. As of March 31, 2021, the carrying amount was $98.6 million and the estimated fair value was $97.2 million. The fair values of all the other financial instruments approximate their carrying value due to their short-term nature.

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Note 14 - Income Taxes

3 Months Ended

Jul. 03, 2021

Notes to Financial Statements

Income Tax Disclosure [Text Block]

14. Income Taxes

The effective tax rate was 24.0% and 23.4% for the three month period ended July 3, 2021 and June 27, 2020 respectively. In fiscal 2021, the effective tax rate was decreased by 1.0% as a result of the accrual of interest income related to a federal refund for the NOL carryback claim filed as a result of the CARES Act. Because a similar amount of interest has not been accrued for in the current year, the rate is effectively increased by 1.0% in fiscal 2022 when compared to the same period of the prior year.  This increase was offset by various insignificant decreases including 0.2% from permanent differences and 0.2% from state income tax rate changes.

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Note 2 - Assets Held For Sale (Tables)

3 Months Ended

Jul. 03, 2021

Disposal Group, Held-for-sale, Not Discontinued Operations [Member]

Notes Tables

Disposal Groups, Including Discontinued Operations [Table Text Block]

	July 3,		June 27,		March 31,
	2021		2020		2021
Property, Plant and Equipment (net)	$	8,535	$	11,989	$	8,656
Current Assets Held For Sale	$	8,535	$	11,989	$	8,656

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Note 3 - Revenue Recognition (Tables)

3 Months Ended

Jul. 03, 2021

Notes Tables

Disaggregation of Revenue [Table Text Block]

	Three Months Ended
	July 3,		June 27,
	2021		2020
Canned Vegetables	$	187,944	$	221,018
Frozen Vegetables		22,584		17,833
Fruit Products		15,873		18,861
Snack Products		3,412		2,364
Prepared Foods		-		24,224
Other		5,229		3,865
	$	235,042	$	288,165

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Note 4 - Inventories (Tables)

3 Months Ended

Jul. 03, 2021

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	July 3,		June 27,		March 31,
	2021		2020		2021
Finished products	$	340,468	$	330,071		317,654
In process		17,070		29,875		25,175
Raw materials and supplies		188,661		206,024		128,987
FIFO inventories		546,199		565,970		471,816
Less excess of FIFO cost over LIFO cost		131,509		142,126		128,672
Total LIFO inventories	$	414,690	$	423,844	$	343,144

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Note 5 - Leases (Tables)

3 Months Ended

Jul. 03, 2021

Notes Tables

Lease, Cost [Table Text Block]

	Three Months Ended
	July 3,		June 27,
	2021		2020
Lease cost:
Amortization of right of use asset	$	1,295	$	1,186
Interest on lease liabilities		257		294
Finance lease cost		1,552		1,480
Operating lease cost		5,000		6,407
Total lease cost	$	6,552	$	7,887
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	257	$	294
Operating cash flows from operating leases		6,498		7,278
Financing cash flows from finance leases		1,745		1,536
	$	8,500	$	9,108
Right-of-use assets obtained in exchange for new finance lease liabilities	$	6,498	$	35
Right-of-use assets obtained in exchange for new operating lease liabilities	$	8,052	$	2,340
Weighted-average lease term (years):
Financing leases		4.9		5.1
Operating leases		4.4		3.7
Weighted-average discount rate (percentage):
Financing leases		3.5		4.1
Operating leases		4.3		4.4

Lessee, Lease Liability, Maturity [Table Text Block]

Years ending March 31:	Operating		Financing
Balance of 2022	$	12,891	$	6,499
2023		15,315		8,665
2024		8,396		7,096
2025		4,636		3,713
2026		2,618		2,625
2027-2033		7,436		4,941
Total minimum payment required	$	51,292	$	33,539
Less interest		4,415		2,777
Present value of minimum lease payments		46,877		30,762
Amount due within one year		16,842		7,716
Long-term lease obligations	$	30,035	$	23,046

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Note 6 - Revolving Credit Facility (Tables)

3 Months Ended

Jul. 03, 2021

Notes Tables

Schedule of Line of Credit Facilities [Table Text Block]

	As of:
	July 3,			June 27,
	2021			2020
Reported end of period:
Outstanding borrowings	$	1,000		$	34,406
Weighted average interest rate		1.35	%		1.75	%
	Three Months Ended:
	July 3,			June 27,
	2021			2020
Reported during the period:
Maximum amount of borrowings	$	1,071		$	107,967
Average outstanding borrowings	$	938		$	57,281
Weighted average interest rate		1.35	%		2.03	%

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Note 8 - Retirement Plans (Tables)

3 Months Ended

Jul. 03, 2021

Notes Tables

Schedule of Defined Benefit Plans Disclosures [Table Text Block]

	Three Months Ended
	July 3,			June 27,
	2021			2020
Service Cost Including Administration	$	2,560		$	2,574
Interest Cost		1,878			2,251
Expected Return on Plan Assets		(4,276	)		(3,567	)
Amortization of Prior Service Cost		23			23
Amortization of Net Loss		0			2,224
Net Periodic Benefit Cost	$	185		$	3,505

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Note 9 - Plant Restructuring (Tables)

3 Months Ended

Jul. 03, 2021

Notes Tables

Restructuring and Related Costs [Table Text Block]

	Restructuring Payable
	Severance		Other Costs			Total
Balance March 31, 2021	$	-	$	-		$	-
First quarter charge		-		66			66
Cash payments/write offs		-		(66	)		(66	)
Balance July 03, 2021	$	-	$	-		$	-

	Severance			Other Costs			Total
Balance March 31, 2020	$	202		$	-		$	202
First quarter charge		219			44			263
Cash payments/write offs		(203	)		(44	)		(247	)
Balance June 27, 2020	$	218		$	-		$	218

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Note 12 - Earnings Per Common Share (Tables)

3 Months Ended

Jul. 03, 2021

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended
	July 3,		June 27,
	2021		2020
Basic
Net earnings	$	14,136	$	20,706
Deduct preferred stock dividends paid		6		6
Undistributed net earnings		14,130		20,700
Earnings attributable to participating preferred		54		81
Earnings attributable to common shareholders	$	14,076	$	20,619
Weighted average common shares outstanding		9,025		9,118
Basic earnings per common share	$	1.56	$	2.26
Diluted
Earnings attributable to common shareholders	$	14,076	$	20,619
Add dividends on convertible preferred stock		5		5
Earnings attributable to common stock on a diluted basis	$	14,081	$	20,624
Weighted average common shares outstanding-basic		9,025		9,118
Additional shares issued related to the equity compensation plan		5		3
Additional shares to be issued under full conversion of preferred stock		67		67
Total shares for diluted		9,097		9,188
Diluted earnings per common share	$	1.55	$	2.24

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Note 2 - Assets Held For Sale - Assets and Liabilities Held For Sale (Details) - USD ($) $ in Thousands	Jul. 03, 2021	Mar. 31, 2021	Jun. 27, 2020
Current Assets Held For Sale	$ 8,535	$ 8,656	$ 11,989
Disposal Group, Held-for-sale, Not Discontinued Operations [Member]
Property, Plant and Equipment (net)	8,535	8,656	11,989
Current Assets Held For Sale	$ 8,535	$ 8,656	$ 11,989

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Note 3 - Revenue Recognition - Segment Revenue Disaggregated by Product Category Groups (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Net sales	$ 235,042	$ 288,165
Canned Vegetables [Member]
Net sales	187,944	221,018
Frozen [Member]
Net sales	22,584	17,833
Fruit [Member]
Net sales	15,873	18,861
Snack [Member]
Net sales	3,412	2,364
Prepared Foods [Member]
Net sales	0	24,224
Manufactured Product, Other [Member]
Net sales	$ 5,229	$ 3,865

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Note 4 - Inventories (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Mar. 31, 2021
Inventory, LIFO Reserve	$ 131,509	$ 142,126	$ 128,672
Inventory, LIFO Reserve, Period Charge	$ 2,800	$ (2,100)

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Note 4 - Inventories - Inventories by Category and Impact of Using LIFO Method (Details) - USD ($) $ in Thousands	Jul. 03, 2021	Mar. 31, 2021	Jun. 27, 2020
Finished products	$ 340,468	$ 317,654	$ 330,071
In process	17,070	25,175	29,875
Raw materials and supplies	188,661	128,987	206,024
FIFO inventories	546,199	471,816	565,970
Less excess of FIFO cost over LIFO cost	131,509	128,672	142,126
Total LIFO inventories	$ 414,690	$ 343,144	$ 423,844

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Note 5 - Leases - Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Amortization of right of use asset	$ 1,295	$ 1,186
Interest on lease liabilities	257	294
Finance lease cost	1,552	1,480
Operating lease cost	5,000	6,407
Total lease cost	6,552	7,887
Operating cash flows from finance leases	257	294
Operating cash flows from operating leases	6,498	7,278
Financing cash flows from finance leases	1,745	1,536
Payments for Amounts Included in the Measurement of Lease Liabilities, Total	8,500	9,108
Right-of-use assets obtained in exchange for new finance lease liabilities	6,498	35
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 8,052	$ 2,340
Financing leases (Year)	4 years 10 months 24 days	5 years 1 month 6 days
Operating leases, lease term (Year)	4 years 4 months 24 days	3 years 8 months 12 days
Financing leases	3.50%	4.10%
Operating leases, discount rate	4.30%	4.40%

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Note 5 - Leases - Undiscounted Future Lease Payments Under Operating Leases and Financial Leases (Details) - USD ($) $ in Thousands	Jul. 03, 2021	Mar. 31, 2021	Jun. 27, 2020
Balance of 2022, operating	$ 12,891
Balance of 2022, financing	6,499
2023, operating	15,315
2023, financing	8,665
2024, operating	8,396
2024, financing	7,096
2025, operating	4,636
2025, financing	3,713
2026, operating	2,618
2026, financing	2,625
2027-2033, operating	7,436
2027-2033, financing	4,941
Total minimum payment required, operating	51,292
Total minimum payment required, financing	33,539
Less interest, operating	4,415
Less interest, financing	2,777
Present value of minimum lease payments, operating	46,877
Present value of minimum lease payments, financing	30,762
Amount due within one year, operating	16,842	$ 17,047	$ 21,311
Amount due within one year, financing	7,716	6,778	6,232
Long-term lease obligations	30,035	27,769	38,634
Long-term lease obligations	23,046	$ 19,232	$ 22,613
Current Portion of Long-term Debt and Lease Obligations [Member]
Amount due within one year, operating	$ 16,842

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Note 6 - Revolving Credit Facility (Details Textual) - USD ($) $ in Billions	3 Months Ended
	Jul. 03, 2021	Mar. 31, 2022	Jul. 31, 2021	Mar. 24, 2021
Accounts Receivable, Vegetable and Fruit Products Sold, Standard Payment Term (Month)	3 months
Accounts Receivable, Vegetable and Fruit Products Sold, Maximum Payment Term (Month)	7 months
Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity During Nonproduction Period				$ 0.4
Revolving Credit Facility [Member] | Forecast [Member]
Line of Credit Facility, Maximum Borrowing Capacity During Nonproduction Period			$ 0.3
Line of Credit Facility, Maximum Borrowing Capacity During Production Period		$ 0.4

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Note 6 - Revolving Credit Facility - Revolving Line of Credit Summary (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Outstanding borrowings	$ 1,000	$ 34,406
Weighted average interest rate	1.35%	1.75%
Maximum amount of borrowings	$ 1,071	$ 107,967
Average outstanding borrowings	$ 938	$ 57,281
Weighted average interest rate	1.35%	2.03%

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Note 7 - Stockholders' Equity (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Jul. 03, 2021	Jun. 27, 2020	Mar. 31, 2021
Treasury Stock, Value, Acquired, Cost Method		$ 0
Treasury Stock, Shares, Ending Balance (in shares)	3.2
Treasury Stock, Value, Ending Balance	$ 95,750	$ 88,319	$ 91,198
Common Class A [Member]
Treasury Stock, Value, Acquired, Cost Method	$ 4,600

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Note 8 - Retirement Plans (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Defined Benefit Plan, Plan Assets, Contributions by Employer	$ 0	$ 0

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Note 8 - Retirement Plans - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Service Cost Including Administration	$ 2,560	$ 2,574
Interest Cost	1,878	2,251
Expected Return on Plan Assets	(4,276)	(3,567)
Amortization of Prior Service Cost	23	23
Amortization of Net Loss	0	2,224
Net Periodic Benefit Cost	$ 185	$ 3,505

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Note 9 - Plant Restructuring (Details Textual) - Closing of Midwest and Northwest Plants [Member] - USD ($) $ in Millions	3 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Restructuring Charges, Total	$ 0.1	$ 0.3
Employee Severance [Member]
Restructuring Charges, Total		0.2
Lease Impairments [Member]
Restructuring Charges, Total		$ 0.1

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Note 9 - Plant Restructuring - Restructuring Reserve (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Balance	$ 0	$ 202
First quarter charge	66	263
Cash payments/write offs	(66)	(247)
Balance	0	218
Employee Severance [Member]
Balance	0	202
First quarter charge	0	219
Cash payments/write offs	0	(203)
Balance	0	218
Other Restructuring [Member]
Balance	0	0
First quarter charge	66	44
Cash payments/write offs	(66)	(44)
Balance	$ 0	$ 0

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Note 10 - Other Operating Income and Expense (Details Textual) - Other Operating Income (Expense) [Member] - USD ($) $ in Millions	3 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Gain (Loss) on Extinguishment of Debt, Total	$ 0.5
Pension and Other Postretirement Benefits Cost (Reversal of Cost), Total	0.3
Other Operating Income	0.5
Other Cost and Expense, Operating, Total	0.4
Air Transportation Equipment [Member]
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property	$ 1.2
Unused Fixed Assets [Member]
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property		$ 0.5
Equipment from Sold Northwest Plant [Member]
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property		$ (0.4)

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Note 12 - Earnings Per Common Share - Earnings per Common Share from Continuing Operations and Discontinued Operations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Net earnings	$ 14,136	$ 20,706
Deduct preferred stock dividends paid	6	6
Undistributed net earnings	14,130	20,700
Earnings attributable to participating preferred	54	81
Earnings attributable to common shareholders	$ 14,076	$ 20,619
Weighted average common shares outstanding-basic (in shares)	9,025	9,118
Basic earnings per common share (in dollars per share)	$ 1.56	$ 2.26
Add dividends on convertible preferred stock	$ 5	$ 5
Earnings attributable to common stock on a diluted basis	$ 14,081	$ 20,624
Weighted average common shares outstanding-basic (in shares)	9,025	9,118
Additional shares issued related to the equity compensation plan (in shares)	5	3
Additional shares to be issued under full conversion of preferred stock (in shares)	67	67
Total shares for diluted (in shares)	9,097	9,188
Diluted earnings per common share (in dollars per share)	$ 1.55	$ 2.24

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Note 13 - Fair Value of Financial Instruments (Details Textual) - USD ($) $ in Millions	Jul. 03, 2021	Mar. 31, 2021	Jun. 27, 2020
Long-term Debt, Gross	$ 97.1	$ 98.6	$ 145.0
Long-term Debt, Fair Value	$ 96.7	$ 97.2	$ 145.3

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Note 14 - Income Taxes (Details Textual)	3 Months Ended
	Jul. 03, 2021	Jun. 27, 2020
Effective Income Tax Rate Reconciliation, Percent, Total	24.00%	23.40%
Effective Income Tax Rate Reconciliation, CARES Act, Percent	1.00%	(1.00%)
Effective Income Tax Rate Reconciliation, Permanent Differences, Percent	(0.20%)
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent	(0.20%)