OTHER LONG-TERM LIABILITIES

6 Months Ended

Jul. 02, 2016

OTHER LONG-TERM LIABILITIES.

OTHER LONG-TERM LIABILITIES

13.OTHER LONG-TERM LIABILITIES

As discussed in Note 3, we acquired Landshire and Better Bakery during Fiscal 2015. A component of the purchase price for Landshire related to contingent consideration for earn out payments based on achieving minimum annual volume targets. At July 2, 2016 and January 2, 2016, respectively, the fair value of the liability for the earn out payments was $13,101 and $19,628 respectively, of which $6,624 and $9,956, respectively, were included in other accrued liabilities; the remainder of these amounts were included in other long-term liabilities.

As part of the acquisition of Better Bakery, we assumed an onerous broker contract. At July 2, 2016 and January 2, 2016, the liability for this contract was $6,845 and $6,821, respectively. Of the balance at July 2, 2016, $2,693 is included in other accrued liabilities and $4,152 is included in other long-term liabilities.  At January 2, 2016, the entire amount was included in other long-term liabilities.  During the year to date period ended July 2, 2016, payments made with respect to the earn out agreement and the onerous broker contract were $6,667 and $664, respectively.