| Price | 31.28 | EPS | 1 | |
| Shares | 9 | P/E | 27 | |
| MCap | 295 | P/FCF | 3 | |
| Net Debt | 226 | EBIT | 17 | |
| TEV | 522 | TEV/EBIT | 31 | TTM 2019-09-28, in MM, except price, ratios |
| 10-Q | 2020-12-26 | Filed 2021-02-03 |
| 10-Q | 2020-09-26 | Filed 2020-11-04 |
| 10-Q | 2020-06-27 | Filed 2020-08-05 |
| 10-K | 2020-03-31 | Filed 2020-07-02 |
| 10-Q | 2019-12-28 | Filed 2020-02-05 |
| 10-Q | 2019-09-28 | Filed 2019-11-06 |
| 10-Q | 2019-06-29 | Filed 2019-08-07 |
| 10-K | 2019-03-31 | Filed 2019-06-13 |
| 10-Q | 2018-12-29 | Filed 2019-02-01 |
| 10-Q | 2018-09-29 | Filed 2018-11-09 |
| 10-Q | 2018-06-30 | Filed 2018-07-31 |
| 10-K | 2018-03-31 | Filed 2018-06-29 |
| 10-Q | 2017-12-30 | Filed 2018-01-25 |
| 10-Q | 2017-09-30 | Filed 2017-10-26 |
| 10-Q | 2017-07-01 | Filed 2017-07-31 |
| 10-K | 2017-03-31 | Filed 2017-05-25 |
| 10-Q | 2016-12-31 | Filed 2017-01-25 |
| 10-Q | 2016-10-01 | Filed 2016-11-07 |
| 10-Q | 2016-07-02 | Filed 2016-07-29 |
| 10-K | 2016-03-31 | Filed 2016-06-08 |
| 10-Q | 2015-12-26 | Filed 2016-02-02 |
| 10-Q | 2015-09-26 | Filed 2015-11-02 |
| 10-Q | 2015-06-27 | Filed 2015-07-31 |
| 10-K | 2015-03-31 | Filed 2015-06-09 |
| 10-Q | 2014-12-27 | Filed 2015-02-02 |
| 10-Q | 2014-09-27 | Filed 2014-10-23 |
| 10-Q | 2014-06-28 | Filed 2014-08-06 |
| 10-K | 2014-03-31 | Filed 2014-05-22 |
| 10-Q | 2013-12-28 | Filed 2014-01-29 |
| 10-Q | 2013-09-28 | Filed 2013-10-23 |
| 10-Q | 2013-06-29 | Filed 2013-08-01 |
| 10-K | 2013-03-31 | Filed 2013-05-23 |
| 10-Q | 2012-12-29 | Filed 2013-01-31 |
| 10-Q | 2012-09-29 | Filed 2012-10-25 |
| 10-Q | 2012-06-30 | Filed 2012-08-03 |
| 10-K | 2012-03-31 | Filed 2012-06-08 |
| 10-Q | 2011-12-31 | Filed 2012-01-27 |
| 10-Q | 2011-10-01 | Filed 2011-10-27 |
| 10-Q | 2011-07-02 | Filed 2011-08-03 |
| 10-K | 2011-03-31 | Filed 2011-05-26 |
| 10-Q | 2011-01-01 | Filed 2011-01-27 |
| 10-Q | 2010-10-02 | Filed 2010-10-28 |
| 10-Q | 2010-07-03 | Filed 2010-08-04 |
| 10-K | 2010-03-31 | Filed 2010-05-26 |
| 10-Q | 2009-12-26 | Filed 2010-02-02 |
| 8-K | 2020-11-04 | |
| 8-K | 2020-11-04 | |
| 8-K | 2020-10-27 | |
| 8-K | 2020-09-15 | |
| 8-K | 2020-08-31 | |
| 8-K | 2020-08-18 | |
| 8-K | 2020-08-05 | |
| 8-K | 2020-06-12 | |
| 8-K | 2020-05-28 | |
| 8-K | 2020-03-31 | |
| 8-K | 2020-02-05 | |
| 8-K | 2019-11-06 | |
| 8-K | 2019-08-22 | |
| 8-K | 2019-08-07 | |
| 8-K | 2019-08-07 | |
| 8-K | 2019-06-13 | |
| 8-K | 2019-05-09 | |
| 8-K | 2018-12-29 | |
| 8-K | 2018-12-07 | |
| 8-K | 2018-11-09 | |
| 8-K | 2018-08-10 | |
| 8-K | 2018-07-31 | |
| 8-K | 2018-07-27 | |
| 8-K | 2018-06-29 | |
| 8-K | 2018-06-28 | |
| 8-K | 2018-02-16 | |
| 8-K | 2018-01-25 |
| Item 2 Managements Discussion and Analysis |
| EX-31.1 | ex_222318.htm |
| EX-31.2 | ex_222319.htm |
| EX-32 | ex_222320.htm |
| Balance Sheet | Income Statement | Cash Flow |
|---|---|---|
|
Assets, Equity
|
Rev, G Profit, Net Income
|
Ops, Inv, Fin
|
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Form
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended
OF THE SECURITIES EXCHANGE ACT OF 1934
| Commission File Number |
Seneca Foods Corporation
(Exact name of Company as specified in its charter)
| (State or other jurisdiction of | (I. R. S. Employer | |||
| incorporation or organization) | Identification No.) | |||
| (Address of principal executive offices) | (Zip Code) | |||
| Company's telephone number, including area code |
Not Applicable
Former name, former address and former fiscal year,
if changed since last report
Securities registered pursuant to Section 12(b) of the Act:
| Name of Exchange on | |||||
| Title of Each Class | Trading Symbol | Which Registered | |||
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.
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).
Indicate by check mark whether the Company is a large accelerated filer, an accelerated filer, a non-accelerated filer or 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 ☐
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
The number of shares outstanding of each of the issuer's classes of common stock at the latest practical date are:
| Class | Shares Outstanding at January 22, 2021 | ||
| Common Stock Class A, $.25 Par | | ||
| Common Stock Class B, $.25 Par | |
| Quarterly Report on Form 10-Q | ||
| Table of Contents | ||
| Page | ||
| PART 1 | FINANCIAL INFORMATION | |
| Item 1 | Financial Statements: | |
| Condensed Consolidated Balance Sheets-December 26, 2020, December 28, 2019 and March 31, 2020 | 1 | |
| Item 2 | Management's Discussion and Analysis of Financial Condition and Results of Operations | |
| Item 3 | ||
| Item 4 | ||
| PART II | OTHER INFORMATION | |
| Item 1 | ||
| Item 1A | ||
| Item 2 | ||
| Item 3 | ||
| Item 4 | ||
| Item 5 | ||
| Item 6 | ||
SENECA FOODS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Per Share Data)
| Unaudited | Unaudited | |||||||||||
| December 26, 2020 | December 28, 2019 | March 31, 2020 | ||||||||||
| ASSETS | ||||||||||||
| Current Assets: | ||||||||||||
| Cash and Cash Equivalents | $ | $ | $ | |||||||||
| Accounts Receivable, Net | ||||||||||||
| Contracts Receivable | ||||||||||||
| Current Assets Held For Sale | ||||||||||||
| Current Assets Held For Sale-Discontinued Operations | ||||||||||||
| Inventories | ||||||||||||
| Refundable Income Taxes | ||||||||||||
| Other Current Assets | ||||||||||||
| Total Current Assets | ||||||||||||
| Property, Plant and Equipment, Net | ||||||||||||
| Right-of-Use Assets Operating, Net | ||||||||||||
| Right-of-Use Assets Financing, Net | ||||||||||||
| Deferred Income Taxes, Net | ||||||||||||
| Noncurrent Assets Held For Sale-Discontinued Operations | ||||||||||||
| Other Assets | ||||||||||||
| Total Assets | $ | $ | $ | |||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
| Current Liabilities: | ||||||||||||
| Accounts Payable | $ | $ | $ | |||||||||
| Deferred Revenue | ||||||||||||
| Accrued Vacation | ||||||||||||
| Accrued Payroll | ||||||||||||
| Other Accrued Expenses | ||||||||||||
| Income Taxes Payable | ||||||||||||
| Current Liabilities Held For Sale-Discontinued Operations | ||||||||||||
| Current Portion of Operating Lease Obligations | ||||||||||||
| Current Portion of Financing Lease Obligations | ||||||||||||
| Current Portion of Long-Term Debt | ||||||||||||
| Total Current Liabilities | ||||||||||||
| Long-Term Debt, Less Current Portion | ||||||||||||
| Operating Lease Obligations, Less Current Portion | ||||||||||||
| Financing Lease Obligations, Less Current Portion | ||||||||||||
| Pension Liabilities | ||||||||||||
| Deferred Income Taxes, Net | ||||||||||||
| Other Long-Term Liabilities | ||||||||||||
| Total Liabilities | ||||||||||||
| Commitments and Contingencies | ||||||||||||
| Stockholders' Equity: | ||||||||||||
| Preferred Stock | ||||||||||||
| Common Stock, Par Value Per Share | ||||||||||||
| Additional Paid-in Capital | ||||||||||||
| Treasury Stock, at Cost | ( | ) | ( | ) | ( | ) | ||||||
| Accumulated Other Comprehensive Loss | ( | ) | ( | ) | ( | ) | ||||||
| Retained Earnings | ||||||||||||
| Total Stockholders' Equity | ||||||||||||
| Total Liabilities and Stockholders’ Equity | $ | $ | $ | |||||||||
| The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. | ||||||||||||
SENECA FOODS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF NET EARNINGS
(Unaudited)
(In Thousands, Except Per Share Data)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| December 26, 2020 | December 28, 2019 | December 26, 2020 | December 28, 2019 | |||||||||||||
| Net Sales | $ | $ | $ | $ | ||||||||||||
| Costs and Expenses: | ||||||||||||||||
| Cost of Product Sold | ||||||||||||||||
| Selling, General and Administrative | ||||||||||||||||
| Plant Restructuring (Credit)/Charge | ( | ) | ||||||||||||||
| Other Operating Income | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Total Costs and Expenses | ||||||||||||||||
| Operating Income | ||||||||||||||||
| (Income)/Loss From Equity Investment | ( | ) | ||||||||||||||
| Other (Income)/Loss | ( | ) | ( | ) | ( | ) | ||||||||||
| Interest Expense, Net | ||||||||||||||||
| Earnings From Continuing Operations Before Income Taxes | ||||||||||||||||
| Income Taxes From Continuing Operations | ||||||||||||||||
| Earnings From Continuing Operations | $ | $ | $ | $ | ||||||||||||
| Earnings From Discontinued Operations (net of income taxes) | ||||||||||||||||
| Net Earnings | $ | $ | $ | $ | ||||||||||||
| Basic Earnings per Common Share | ||||||||||||||||
| Continuing Operations | $ | $ | $ | $ | ||||||||||||
| Discontinued Operations | $ | $ | $ | $ | ||||||||||||
| Net Basic Earnings per Common Share | $ | $ | $ | $ | ||||||||||||
| Diluted Earnings per Common Share: | ||||||||||||||||
| Continuing Operations | $ | $ | $ | $ | ||||||||||||
| Discontinued Operations | $ | $ | $ | $ | ||||||||||||
| Net Diluted Earnings per Common Share | $ | $ | $ | $ | ||||||||||||
SENECA FOODS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(In Thousands)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| December 26, 2020 | December 28, 2019 | December 26, 2020 | December 28, 2019 | |||||||||||||
| Comprehensive income: | ||||||||||||||||
| Net earnings | $ | $ | $ | $ | ||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
SENECA FOODS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In Thousands)
| Nine Months Ended | ||||||||
| December 26, 2020 | December 28, 2019 | |||||||
| Cash Flows from Operating Activities: | ||||||||
| Net Earnings From Continuing Operations | $ | $ | ||||||
| Net Earnings From Discontinued Operations (Net of Tax) | ||||||||
| Adjustments to Reconcile Net Earnings to Net Cash Provided by Operations: | ||||||||
| Depreciation & Amortization | ||||||||
| Gain on the Sale of Assets | ( | ) | ( | ) | ||||
| Provision for Restructuring and Impairment | ||||||||
| Loss From Equity Investment | ||||||||
| Deferred Income Tax Benefit | ||||||||
| Changes in Operating Assets and Liabilities: | ||||||||
| Accounts Receivable | ( | ) | ||||||
| Inventories | ||||||||
| Other Current Assets | ( | ) | ||||||
| Income Taxes | ||||||||
| Accounts Payable, Accrued Expenses and Other | ( | ) | ||||||
| Net Cash Provided by Operations | ||||||||
| Cash Flows from Investing Activities: | ||||||||
| Additions to Property, Plant and Equipment | ( | ) | ( | ) | ||||
| Proceeds from the Sale of Assets | ||||||||
| Net Cash Provided By/(Used In) Investing Activities | ( | ) | ||||||
| Cash Flows from Financing Activities: | ||||||||
| Long-Term Borrowing | ||||||||
| Payments on Long-Term Debt | ( | ) | ( | ) | ||||
| Other Assets | ( | ) | ( | ) | ||||
| Payments on Financing Leases | ( | ) | ( | ) | ||||
| Purchase of Treasury Stock | ( | ) | ( | ) | ||||
| Dividends | ( | ) | ( | ) | ||||
| Net Cash Used In Financing Activities | ( | ) | ( | ) | ||||
| Net Increase in Cash and Cash Equivalents | ||||||||
| Cash and Cash Equivalents, Beginning of the Period | ||||||||
| Cash and Cash Equivalents, End of the Period | $ | $ | ||||||
| Supplemental Disclosures of Cash Flow Information: | ||||||||
| Noncash Transactions: | ||||||||
| Property, Plant and Equipment Purchased Under Lease Obligations | $ | $ | ||||||
| The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. | ||||||||
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 2021: | ||||||||||||||||||||||||
| Balance March 31, 2020 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||
| Net earnings | ||||||||||||||||||||||||
| Cash dividends declared on preferred stock | ( | ) | ||||||||||||||||||||||
| Equity incentive program | ||||||||||||||||||||||||
| Balance June 27, 2020 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||
| Second Quarter FY 2021: | ||||||||||||||||||||||||
| Net earnings | ||||||||||||||||||||||||
| Equity incentive program | ||||||||||||||||||||||||
| Purchase treasury stock | ( | ) | ||||||||||||||||||||||
| Balance September 26, 2020 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||
| Third Quarter FY 2021: | ||||||||||||||||||||||||
| Net earnings | ||||||||||||||||||||||||
| Cash dividends declared on preferred stock | ( | ) | ||||||||||||||||||||||
| Equity incentive program | ||||||||||||||||||||||||
| Preferred stock conversion | ( | ) | ||||||||||||||||||||||
| Purchase treasury stock | ( | ) | ||||||||||||||||||||||
| Balance December 26, 2020 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||
| First Quarter FY 2020: | ||||||||||||||||||||||||
| Balance March 31, 2019 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||
| Net earnings | ||||||||||||||||||||||||
| Cash dividends declared on preferred stock | ( | ) | ||||||||||||||||||||||
| Equity incentive program | ||||||||||||||||||||||||
| Purchase treasury stock | ( | ) | ||||||||||||||||||||||
| Operating lease impairment adjustment upon the adoption of ASU 2016-02 "Leases" (net of tax) | ( | ) | ||||||||||||||||||||||
| Balance June 29, 2019 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||
| Second Quarter FY 2020: | ||||||||||||||||||||||||
| Net earnings | ||||||||||||||||||||||||
| Equity incentive program | ||||||||||||||||||||||||
| Preferred stock conversion | ( | ) | ||||||||||||||||||||||
| Purchase treasury stock | ( | ) | ||||||||||||||||||||||
| Balance September 28, 2019 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||
| Third Quarter FY 2020: | ||||||||||||||||||||||||
| Net earnings | ||||||||||||||||||||||||
| Cash dividends declared on preferred stock | ( | ) | ||||||||||||||||||||||
| Equity incentive program | ||||||||||||||||||||||||
| Purchase treasury stock | ( | ) | ||||||||||||||||||||||
| Balance December 28, 2019 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||
| 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: | ||||||||||||||||||||||||
| December 26, 2020 | ||||||||||||||||||||||||
| Shares outstanding: | ||||||||||||||||||||||||
| December 26, 2020 | ||||||||||||||||||||||||
SENECA FOODS CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
December 26, 2020
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 December 26, 2020 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, 2020 balance sheet was derived from the audited consolidated financial statements.
The results of operations for the three and nine month periods ended December 26, 2020 are not necessarily indicative of the results to be expected for the full year.
For the nine months ended December 26, 2020 and December 28, 2019 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 2020 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 2020 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. In addition, the Company has adjusted its prior quarter cash flow statement to properly reflect lease payments made on operating leases under Accounting Standards Codification (“ASC”) 842 - Leases. This adjustment reduced net cash provided by operations and reduced net cash used in financing activities.
2. Discontinued Operations
On July 13, 2018, the Company executed a nonbinding letter of intent with a perspective buyer of the Modesto facility. On October 9, 2018, the Company closed on the sale of the facility to this outside buyer with net proceeds of $
SENECA FOODS CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
December 26, 2020
The following table presents information related to the major classes of assets and liabilities of Modesto that are classified as Held For Sale-Discontinued Operations in the Company's Consolidated Balance Sheets (in thousands):
| December 26, | December 28, | March 31, | ||||||||||
| 2020 | 2019 | 2020 | ||||||||||
| Other Current Assets | ||||||||||||
| Current Assets Held For Sale-Discontinued Operations | $ | $ | $ | |||||||||
| Other Assets | ||||||||||||
| Noncurrent Assets Held For Sale-Discontinued Operations | $ | $ | $ | |||||||||
| Accounts Payable and Accrued Expenses | $ | $ | $ | |||||||||
| Current Liabilities Held For Sale-Discontinued Operations | $ | $ | $ | |||||||||
The operating results of the discontinued operations that are reflected in the Unaudited Condensed Consolidated Statements of Net Earnings from discontinued operations are as follows (in thousands):
| Three Months Ended | Nine Months Ended | |||||||||||||||
| December 26, | December 28 | December 26, | December 28 | |||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Net Sales | $ | $ | $ | $ | ||||||||||||
| Cost of Product Sold | ||||||||||||||||
| Plant Restructuring Credit (a) | ( | ) | ( | ) | ||||||||||||
| Earnings From Discontinuned Operations Before Income Taxes | ( | ) | ( | ) | ||||||||||||
| Gain on the Sale of Assets Before Income Taxes | ( | ) | ( | ) | ||||||||||||
| Income Tax Expense | ||||||||||||||||
| Net Earnings From Discontinued Operations, Net of Tax | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
| (a) Includes $ |
SENECA FOODS CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
December 26, 2020
3. Assets Held For Sale
As of December 26, 2020, the Company has certain non-operating units in the Midwest that met the criteria to be classified as held for sale, which requires the Company to present the related assets and liabilities as separate line items in our Condensed Consolidated Balance Sheet. The Company is required to record the assets held for sale 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 and liabilities that were held for sale in our Condensed Consolidated Balance sheets (in thousands):
| December 26, | ||||
| 2020 | ||||
| Property, Plant and Equipment (net) | $ | |||
| Current Assets Held For Sale | $ | |||
4. Revenue Recognition
In the following table, revenue is disaggregated by product category groups (in millions):
| Three Months Ended | Nine Months Ended | |||||||||||||||
| December 26, 2020 | December 28, 2019 | December 26, 2020 | December 28, 2019 | |||||||||||||
| Canned Vegetables | $ | $ | $ | $ | ||||||||||||
| Frozen | ||||||||||||||||
| Fruit Products | ||||||||||||||||
| Chip Products | ||||||||||||||||
| Prepared Foods | ||||||||||||||||
| Other | ||||||||||||||||
| $ | $ | $ | $ | |||||||||||||
SENECA FOODS CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
December 26, 2020
| 5. | Inventories |
The change in the LIFO Reserve for the nine months ended December 26, 2020 was a decrease of $
| December 26, 2020 | December 28, 2019 | March 31, 2020 | ||||||||||
| Finished products | $ | $ | ||||||||||
| In process | ||||||||||||
| Raw materials and supplies | ||||||||||||
| Less excess of FIFO cost over LIFO cost | ||||||||||||
| Total inventories | $ | $ | $ | |||||||||
| 6. | Leases |
The Company determines if an arrangement is a lease at inception of the agreement. Operating leases are included in right-of-use operating assets, and current and noncurrent operating lease obligations in the Company’s Condensed Consolidated Balance Sheets. Lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Lease assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. If the lease does not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The right-of-use operating lease assets also include in its calculation any prepaid lease payments made and excludes any lease incentives received from the arrangement. The Company’s lease terms may include options to extend or terminate the lease, and the impact of these options are included in the lease liability and lease asset calculations 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, such as leases with variable payment arrangements. Leases with an initial term of 12 months or less are not recorded on the balance sheet.
SENECA FOODS CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
December 26, 2020
The Company has operating leases for land, machinery and equipment. The Company also has finance leases for machinery and equipment. The commencement date used for the calculation of the lease obligation is the latter of the commencement date of the new standard ( April 1, 2019) or the lease start date. Certain of the leases have options to extend the life of the lease, which are included in the liability calculation when the option is at the sole discretion of the Company and it is reasonably certain that the Company will exercise the option. 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 are not material.
Upon adoption of Accounting Standards Update (“ASU”) No. 2016-02, the Company determined its right-of-use assets related to the operating leases for its plant equipment in Sunnyside, Washington were partially impaired and therefore were reduced with a corresponding charge to retained earnings of $
Lease expense for lease payments is recognized on a straight-line basis over the lease term. The components of lease expense were as follows (in thousands):
| Three Months Ended | Nine Months Ended | |||||||||||||||
| December 26, 2020 | December 28, 2019 | December 26, 2020 | December 28, 2019 | |||||||||||||
| Lease cost: | ||||||||||||||||
| Amortization of right of use asset | $ | $ | $ | $ | ||||||||||||
| Interest on lease liabilities | ||||||||||||||||
| Finance lease cost | ||||||||||||||||
| Operating lease cost | ||||||||||||||||
| Total lease cost | $ | $ | $ | $ | ||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities | ||||||||||||||||
| Operating cash flows from finance leases | $ | $ | ||||||||||||||
| Operating cash flows from operating leases | ||||||||||||||||
| Financing cash flows from finance leases | ||||||||||||||||
| $ | $ | |||||||||||||||
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