ACCOUNTS RECEIVABLE

9 Months Ended

Oct. 01, 2016

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE

5. ACCOUNTS RECEIVABLE

Accounts receivable consisted of the following:

	October 1,			January 2,
	2016			2016
Trade accounts receivable	$	91,196		$	72,161
Other receivables	5,377			11,577
Reserves for discounts and allowances	(1,164		)	(1,120		)
	$	95,409		$	82,618

Other receivables at October 1, 2016 and January 2, 2016 includes $4,436 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, 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 $17,943, of which $1,000 is subject to self-insurance retention. Also included in the amount claimed is $4,512 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	1,642
Payments received	(6,604		)
Balance at October 1, 2016	$	4,436

Of the $1,642 recorded as claim additions, $417, $30, $1,001 and $194 were recorded to cost of goods sold, distribution expenses, selling, general and administrative expenses and other expense, net, respectively.