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Note 14 - Contingencies
6 Months Ended
Mar. 30, 2019
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]
(
14
) Contingencies
 
Insurance recoveries.
We maintain general liability, business interruption and replacement cost property insurance coverage on our facilities.
 
In
August 2018,
a transformer outage and electrical fire occurred at our Dayton, Texas manufacturing facility, which resulted in the temporary curtailment of operations. Alternative power arrangements for the facility were subsequently made, allowing for operations to continue until permanent repairs were completed during the
first
quarter. We are in the process of finalizing the insurance claim relating to the business interruption and property damage resulting from the fire. We believe the coverage provided for under our insurance policies is sufficient to cover the losses incurred from this claim. During the
three
months ended
March 30, 2019,
we received
$1.4
million of insurance proceeds related to the claim that was partially applied against the
December 29, 2018
receivable of
$263,000
with the remainder recorded in other income (
$950,000
), cost of sales (
$120,000
) and selling, general and administrative expense (“SG&A expense”) (
$40,000
) on the consolidated statement of operations and comprehensive income. During the
six
-month period ended
March 30, 2019,
we received
$1.8
million of insurance proceeds related to the claim that was partially applied against the
September 29, 2018
receivable of
$462,000
with the remainder recorded in other income (
$950,000
), cost of sales (
$306,000
) and SG&A expense (
$45,000
) on the consolidated statements of operations and comprehensive income. The insurance proceeds attributable to the property and equipment damaged are reported in cash flows from investing activities and all other insurance proceeds received are reported in cash flows from operating activities on the consolidated statement of cash flows.
 
In
August 2017,
operations at our manufacturing facility located in Dayton, Texas were adversely affected by hurricane Harvey. We reached a final settlement on the property damage and business interruption claim with our insurance carrier in the
first
quarter of this year. During the
six
-month period ended
March 30, 2019,
we received
$150,000
of proceeds related to this claim of which
$98,000
was recorded in other income on the consolidated statements of operations and comprehensive income. During the
three
- and
six
-month periods ended
March 31, 2018,
the Company received
$439,000
of insurance proceeds related to the expenses that were incurred and business interruption losses resulting from the storm. During the
six
-month period ended
March 31, 2018,
the insurance proceeds were recorded in cost of sales (
$418,000
) and SG&A expense (
$21,000
) on the consolidated statement of operations and comprehensive income, and in cash flows from operating activities on the consolidated statement of cash flows.
 
Legal proceedings
.
We are involved in lawsuits, claims, investigations and proceedings, including commercial, environmental and employment matters, which arise in the ordinary course of business. We do
not
expect the ultimate outcome or cost to resolve these matters will have a material adverse effect on our financial position, results of operations or cash flows.