COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jul. 02, 2016

COMMITMENTS AND CONTINGENCIES.

COMMITMENTS AND CONTINGENCIES

20.COMMITMENTS AND CONTINGENCIES

We evaluate contingencies based on the best available information and believe we have recorded appropriate liabilities to the extent necessary in cases where the outcome of such liabilities is considered probable and reasonably estimable. We also believe that our assessment of contingencies is reasonable. To the extent that resolution of contingencies results in amounts that vary from managements’ estimates, future earnings will be charged or credited accordingly.

As part of our ongoing operations in the food processing industry, we are subject to extensive federal, state, and local regulations, and our food processing facilities and food products are subject to frequent inspection, audits and inquiries by the USDA, the FDA, and various local health and agricultural agencies. We are also subject to federal, state, and local agencies responsible for the enforcement of environmental, labor, and other laws and regulations. In addition, we are involved in various legal actions arising in the normal course of business. These matters are continuously being evaluated and, in some cases, are being contested by us and, in many cases, the outcomes are not predictable. Consequently, an estimate of the possible loss or range of loss associated with these actions cannot be made.