ACCOUNTS RECEIVABLE

6 Months Ended

Jul. 02, 2016

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE

4.ACCOUNTS RECEIVABLE

Accounts receivable consisted of the following:

	July 2,			January 2,
	2016			2016
Trade accounts receivable	$	72,194		$	72,161
Other receivables	11,626			11,577
Reserves for discounts and allowances	(1,092		)	(1,120		)
	$	82,728		$	82,618

Other receivables at July 2, 2016 and January 2, 2016 includes $8,703 and $9,398, respectively, for a product contamination insurance policy claim related to the recall of stuffed chicken breast products that occurred in fiscal 2015.  Such amounts were recognized based on a loss contingency model and primarily relate to a claim for net sales reductions due to product returns, marketing expenses to support post-recall sales, and administrative expenses due to professional fees and travel.  The amount recorded represents the amount expected to be collected under the policy. The full amount of the insurance claim is $16,653, of which $1,000 is subject to self-insurance retention. Also included in the amount claimed is $3,175 for business interruption, which was determined to be a gain contingency and hence was not recorded.  The table below summarizes the activity in the recall receivables, which is included in other receivables in the table above:

Balance at January 2, 2016	$	9,398
Claim additions	1,742
Payments received	(2,437		)
Balance at July 2, 2016	$	8,703

Of the $1,742 recorded as claim additions in the table above, $439, $31, $1,068 and $204 were recorded to cost of goods sold, distribution expenses, selling, general and administrative expenses and other expense, net, respectively.