10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

Form 10-Q/A

(Amendment No. 1)

QUARTERLY REPORT UNDER SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarter Ended December 30, 2017 Commission File Number 0-01989

Seneca Foods Corporation

(Exact name of Company as specified in its charter)

New York	16-0733425
(State or other jurisdiction of	(I. R. S. Employer
incorporation or organization)	Identification No.)

3736 South Main Street, Marion, New York	14505
(Address of principal executive offices)	(Zip Code)

Company's telephone number, including area code        315/926-8100

Not Applicable

Former name, former address and former fiscal year,

if changed since last report

Indicate by check mark whether the Company (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Company was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ☑ No ☐

Indicate by check mark whether the Company is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and an emerging growth company in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ☐ Accelerated filer ☑ Non-accelerated filer ☐ Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by checkmark if the Company has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the Company is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No  ☑

The number of shares outstanding of each of the issuer's classes of common stock at the latest practical date are:

Class	Shares Outstanding at January 19, 2018
Common Stock Class A, $.25 Par	7,854,451
Common Stock Class B, $.25 Par	1,884,439

Explanatory Note

Restatement of Consolidated Condensed Financial Statements

Seneca Foods Corporation ("the "Company") is filing this Amendment No. 1 ("Form 10-Q/A") to our Form 10-Q for the quarterly period ended December 30, 2017, which was originally filed on January 25, 2018 ("Original Filing"), to restate our Consolidated Condensed Financial Statements and the related notes for the three and nine months ended December 30, 2017 and December 31, 2016, including the financial information included in Management's Discussion and Analysis of Financial Condition and Results of Operations. We are also providing an update in our disclosures regarding the material weakness in Item 4 of this amended Form 10-Q/A.

As previously disclosed in the Form 10-K for March 31, 2018, on June 28, 2018, the Company’s Audit Committee, in consultation with the Board of Directors, concluded that the Company’s previously issued financial statements for the three and nine months ended December 30, 2017 and December 31, 2016 (among other periods, see below) could no longer be relied upon. This decision was reached after discussions with the Company’s senior management and outside advisers.

In reviewing the accounting for certain transactions related to the Company’s contract packing agreement with Green Giant, our management identified a deficiency in the effectiveness of a control intended to properly document and review relevant facts in connection with our revenue recognition policy with respect to bill and hold transactions. The Company has determined that (1) the audited consolidated financial statements as of and for the years ended March 31, 2016 and 2017 and the independent registered public accounting firm’s reports thereon and (2) the unaudited condensed consolidated financial statements as of and for each of the interim periods within the years ended March 31, 2017 and 2018 should be restated to correct inadvertent errors in the application of generally accepted accounting principles dealing with complex and technical accounting issues relating to “bill and hold” revenue recognition. For more information, see footnote 2 of the Company’s March 31, 2018 10-K filed on June 29, 2018.

To correct this misstatement and to address matters related to the foregoing with respect to our disclosure controls and procedures and our internal control over financial reporting, we have restated our Consolidated Condensed Financial Statements and the related notes as of and for the three and nine months ended December 30, 2017 and December 31, 2016, including the financial information included in Management's Discussion and Analysis of Financial Condition and Results of Operations.

See Note 2 - Restatement of Consolidated Condensed Financial Statements, which is included in the "Financial Statements" in Item 1 of this amended Form 10-Q/A for more detail.

Amended Items in this Form 10Q/A

The following items in the Original Filing have been amended:

Part I, Item 1. Financial Statements

Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Part I, Item 4. Controls and Procedures

Part II, Item 6. Exhibits

We are also filing currently dated certifications from our Chief Executive Officer and Chief Financial Officer as Exhibits 31.1, 31.2, 32, as well as various exhibits related to XBRL.

This amended Form 10-Q/A does not reflect events occurring after the Original Filing on January 25, 2018, or modify or update those disclosures affected by subsequent events, except for the effects of the restatement. Disclosures not affected by the restatement are unchanged and reflect the disclosures made at the time of the Original Filing.

Seneca Foods Corporation

Quarterly Report on Form 10-Q

Table of Contents

		Page
PART 1	FINANCIAL INFORMATION
Item 1	Financial Statements:
	Condensed Consolidated Balance Sheets-December 30, 2017, December 31, 2016 and March 31, 2017	1
	Condensed Consolidated Statements of Net Earnings-Three and Nine Months Ended December 30, 2017 and December 31, 2016	2
	Condensed Consolidated Statements of Comprehensive Income-Three and Nine Months Ended December 30, 2017 and December 31, 2016	2
	Condensed Consolidated Statements of Cash Flows-Nine Months Ended December 30, 2017 and December 31, 2016	3
	Condensed Consolidated Statement of Stockholders' Equity-Nine Months Ended December 30, 2017	4
	Notes to Condensed Consolidated Financial Statements	5
Item 2	Management's Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3	Quantitative and Qualitative Disclosures about Market Risk	20
Item 4	Controls and Procedures	21
PART II	OTHER INFORMATION
Item 1	Legal Proceedings	22
Item 1A	Risk Factors	22
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	22
Item 3	Defaults Upon Senior Securities	22
Item 4	Mine Safety Disclosures	22
Item 5	Other Information	22
Item 6	Exhibits	23
SIGNATURES		24

SENECA FOODS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Per Share Data)

	Unaudited			Unaudited
	December 30, 2017			December 31, 2016			March 31, 2017
	(Restated)			(Restated)			(Restated)
ASSETS
Current Assets:
Cash and Cash Equivalents	$	13,122		$	10,260		$	11,992
Accounts Receivable, Net		66,233			67,357			72,080
Assets Held For Sale		-			5,025			-
Inventories:
Finished Goods		637,480			554,915			466,126
Work in Process		39,542			24,642			32,528
Raw Materials and Supplies		93,680			119,888			130,281
Total Inventories		770,702			699,445			628,935
Refundable Income Taxes		2,222			-			2,471
Other Current Assets		2,815			11,146			3,671
Total Current Assets		855,094			793,233			719,149
Property, Plant and Equipment, Net		272,363			217,983			237,476
Deferred Income Taxes, Net		1,650			22,492			1,370
Other Assets		5,130			20,038			20,273
Total Assets	$	1,134,237		$	1,053,746		$	978,268
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Notes Payable	$	-		$	1,255		$	166
Accounts Payable		102,020			98,170			72,824
Deferred Revenue		80,151			60,553			46,100
Accrued Vacation		12,428			11,702			11,867
Accrued Payroll		5,468			5,843			6,593
Other Accrued Expenses		32,263			41,312			31,880
Income Taxes Payable		-			8,830			-
Current Portion of Long-Term Debt and Capital Lease Obligations		9,703			11,106			8,334
Total Current Liabilities		242,033			238,771			177,764
Long-Term Debt, Less Current Portion		411,799			343,634			329,138
Capital Lease Obligations, Less Current Portion		37,447			25,992			34,194
Pension Liabilities		7,106			35,230			8,193
Other Long-Term Liabilities		13,447			3,509			3,775
Total Liabilities		711,832			647,136			553,064
Commitments and Contingencies
Stockholders' Equity:
Preferred Stock		707			1,324			1,324
Common Stock, $.25 Par Value Per Share		3,038			3,024			3,024
Additional Paid-in Capital		98,136			97,433			97,458
Treasury Stock, at Cost		(69,941	)		(67,550	)		(66,499	)
Accumulated Other Comprehensive Loss		(11,023	)		(28,396	)		(11,175	)
Retained Earnings		401,488			400,775			401,072
Total Stockholders' Equity		422,405			406,610			425,204
Total Liabilities and Stockholders’ Equity	$	1,134,237		$	1,053,746		$	978,268

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

1

SENECA FOODS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF NET EARNINGS

(Unaudited)

(In Thousands, Except Per Share Data)

	Three Months Ended					Nine Months Ended
	December 30, 2017		December 31, 2016			December 30, 2017			December 31, 2016
	(Restated)		(Restated)			(Restated)			(Restated)
Net Sales	$	387,689	$	356,767		$	1,015,086		$	981,508
Costs and Expenses:
Cost of Product Sold		357,188		318,841			951,639			890,602
Selling, General and Administrative		20,112		21,116			56,430			57,023
Plant Restructuring Charge		101		1,316			157			2,778
Other Operating (Income) Loss		17		1,153			(2,615	)		1,172
Total Costs and Expenses		377,418		342,426			1,005,611			951,575
Operating Income		10,271		14,341			9,475			29,933
Earnings From Equity Investment		-		(333	)		(21	)		(500	)
Interest Expense, Net		4,012		2,414			10,662			6,709
Earnings (Loss) Before Income Taxes		6,259		12,260			(1,166	)		23,724
Income Taxes (Benefit) Expense		1,882		4,471			(1,605	)		8,149
Net Earnings	$	4,377	$	7,789		$	439		$	15,575
Earnings Applicable to Common Stock	$	4,354	$	7,712		$	420		$	15,416
Basic Earnings per Common Share	$	0.45	$	0.79		$	0.04		$	1.58
Diluted Earnings per Common Share	$	0.44	$	0.78		$	0.04		$	1.57

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

SENECA FOODS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In Thousands)

	Three Months Ended				Nine Months Ended
	December 30, 2017		December 31, 2016		December 30, 2017		December 31, 2016
	(Restated)		(Restated)		(Restated)		(Restated)
Comprehensive income:
Net earnings	$	4,377	$	7,789	$	439	$	15,575
Change in pension, post retirement benefits and other (net of tax of $30 and $93)		50		-		152		-
Total	$	4,427	$	7,789	$	591	$	15,575

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2

SENECA FOODS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In Thousands)

	Nine Months Ended
	December 30, 2017			December 31, 2016
	(Restated)			(Restated)
Cash Flows from Operating Activities:
Net Earnings	$	439		$	15,575
Adjustments to Reconcile Net Earnings to
Net Cash Used In Operations (Net of Acquisition):
Depreciation & Amortization		23,112			18,209
(Gain) Loss on the Sale of Assets		(1,590	)		149
Bargain Purchase Gain		(1,078	)		-
Provision for Restructuring and Impairment		157			3,830
Earnings From Equity Investment		(21	)		(500	)
Deferred Income Tax Benefit		16			(1,705	)
Changes in Operating Assets and Liabilities:
Accounts Receivable		11,891			9,431
Inventories		(125,691	)		(89,964	)
Other Current Assets		954			4,619
Income Taxes		240			5,856
Accounts Payable, Deferred Revenue, Accrued Expenses and Other Liabilities		64,823			24,791
Net Cash Used in Operations		(26,748	)		(9,709	)
Cash Flows from Investing Activities:
Additions to Property, Plant and Equipment		(21,120	)		(23,389	)
Cash Paid for Acquisition (Net of Cash Acquired)		(14,420	)		-
Proceeds from the Sale of Assets		1,841			123
Net Cash Used In Investing Activities		(33,699	)		(23,266	)
Cash Flow from Financing Activities:
Long-Term Borrowing		438,730			411,483
Payments on Long-Term Debt and Capital Lease Obligations		(373,298	)		(374,577	)
(Payments) Borrowings on Notes Payable		(166	)		853
Other Assets		(235	)		(1,273	)
Purchase of Treasury Stock		(3,442	)		(1,841	)
Dividends		(12	)		(12	)
Net Cash Provided by Financing Activities		61,577			34,633
Net Increase in Cash and Cash Equivalents		1,130			1,658
Cash and Cash Equivalents, Beginning of the Period		11,992			8,602
Cash and Cash Equivalents, End of the Period	$	13,122		$	10,260
Supplemental Disclosures of Cash Flow Information:
Noncash Transactions:
Property, Plant and Equipment Purchased Under Capital Lease Obligations	$	8,381		$	23,056
Silgan Payable	$	8,000		$	-

3

SENECA FOODS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY

(Unaudited)

(In Thousands)

											Accumulated
						Additional					Other
	Preferred			Common		Paid-In		Treasury			Comprehensive			Retained
	Stock			Stock		Capital		Stock			Loss			Earnings
Balance March 31, 2017 (Restated)	$	1,324		$	3,024	$	97,458	$	(66,499	)	$	(11,175	)	$	401,072
Net earnings		-			-		-		-			-			439
Cash dividends paid on preferred stock		-			-		-		-			-			(23	)
Equity incentive program		-			-		75		-			-			-
Preferred stock conversion		(617	)		14		603		-			-			-
Purchase treasury stock		-			-		-		(3,442	)		-			-
Change in pension, post retirement benefits, other adjustment (net of tax of $93)		-			-		-		-			152			-
Balance December 30, 2017 (Restated)	$	707		$	3,038	$	98,136	$	(69,941	)	$	(11,023	)	$	401,488

Preferred Stock

Common Stock

6%

10%

Cumulative Par

Cumulative Par

2003 Series

Value $.25

Value $.025

Participating

Participating

Class A

Class B

Callable at Par

Convertible

Convertible Par

Convertible Par

Common Stock

Common Stock

Voting

Voting

Value $.025

Value $.025

Par Value $.25

Par Value $.25

Shares authorized and designated:

December 30, 2017

200,000

1,400,000

37,529

500

20,000,000

10,000,000

Shares outstanding:

December 30, 2017

200,000

807,240

37,529

500

7,854,451

1,884,439

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

SENECA FOODS CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

December 30, 2017

1. Unaudited Condensed Consolidated Financial Statements

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, which are normal and recurring in nature, necessary to present fairly the financial position of Seneca Foods Corporation (the “Company”) as of December 30, 2017 and results of its operations and its cash flows for the interim periods presented. All significant intercompany transactions and accounts have been eliminated in consolidation. The March 31, 2017 balance sheet was derived from the audited consolidated financial statements.

The results of operations for the three and nine month periods ended December 30, 2017 are not necessarily indicative of the results to be expected for the full year.

The accounting policies followed by the Company are set forth in Note 1 to the Company's Consolidated Financial Statements in the Company’s 2017 Annual Report on Form 10-K.

Other footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes included in the Company's 2017 Annual Report on Form 10-K.

All references to years are fiscal years ended or ending March 31 unless otherwise indicated. Certain percentage tables may not foot due to rounding.

Reclassifications—Certain previously reported amounts have been reclassified to conform to the current period classification.

2. Restatement of Previously Issued Financial Statements—On June 28, 2018, the Company concluded that it did not meet all of the criteria for bill and hold treatment under Staff Accounting Bulletin Topic 13 for the Green Giant contract. In particular, the Company determined that performance obligations were not complete at the time title transferred to the customer as the unlabeled products under this contract were not ready for shipment. The Company has determined that the audited consolidated financial statements as of and for the years ended March 31, 2016 and 2017 and the unaudited condensed consolidated financial statements as of and for each of the interim periods within the years ended March 31, 2017 and 2018 should be restated to correct these inadvertent errors in the application of generally accepted accounting principles dealing with complex and technical accounting issues relating to “bill and hold” revenue recognition.  For more information, see footnote 2 of the Company’s March 31, 2018 10-K filed on June 29, 2018.

The Consolidated Statements of Cash Flows for the three and nine month periods ended December 30, 2017 and December 31, 2016 are not presented in the following tables because there is no impact on total cash flows from operating activities, investing activities and financing activities. The impact from the restatements within the operating activities section of the cash flow statement is illustrated in the balance sheet and income statement corrections presented below.

5

SENECA FOODS CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

December 30, 2017

The following tables present a summary of the effects of these restatements: 

	Consolidated Statements of Earnings (Loss)
	Three Months Ended
	December 30, 2017 (Unaudited)								December 31, 2016 (Unaudited)
	As						As		As					As
	Reported			Correction			Restated		Reported		Correction			Restated
Net Sales	$	392,714		$	(5,025	)	$	387,689	$	369,705	$	(12,938	)	$	356,767
Cost of Products Sold		361,013			(3,825	)		357,188		332,230		(13,389	)		318,841
Gross Profit		31,701			(1,200	)		30,501		37,475		451			37,926
Operating Income/(Loss)		11,471			(1,200	)		10,271		13,890		451			14,341
Earnings/(Loss) Before Income Taxes		7,459			(1,200	)		6,259		11,809		451			12,260
Income Tax (Benefit) Expense		(268	)		2,150			1,882		3,628		843			4,471
Net Earnings (Loss)		7,727			(3,350	)		4,377		8,181		(392	)		7,789
Earnings Per Common Share-Basic	$	0.79		$	(0.34	)	$	0.45	$	0.83	$	(0.04	)	$	0.79
Earnings Per Common Share-Diluted	$	0.78		$	(0.34	)	$	0.44	$	0.82	$	(0.04	)	$	0.78

	Nine Months Ended
	December 30, 2017 (Unaudited)									December 31, 2016 (Unaudited)
	As						As			As					As
	Reported			Correction			Restated			Reported		Correction			Restated
Net Sales	$	1,049,209		$	(34,123	)	$	1,015,086		$	979,566	$	1,942		$	981,508
Cost of Products Sold		981,344			(29,705	)		951,639			891,904		(1,302	)		890,602
Gross Profit		67,865			(4,418	)		63,447			87,662		3,244			90,906
Operating Income/(Loss)		13,893			(4,418	)		9,475			26,689		3,244			29,933
Earnings/(Loss) Before Income Taxes		3,252			(4,418	)		(1,166	)		20,480		3,244			23,724
Income Tax (Benefit) Expense		(2,524	)		919			(1,605	)		6,217		1,932			8,149
Net Earnings (Loss)		5,776			(5,337	)		439			14,263		1,312			15,575
Earnings Per Common Share-Basic	$	0.59		$	(0.55	)	$	0.04		$	1.44	$	0.14		$	1.58
Earnings Per Common Share-Diluted	$	0.58		$	(0.54	)	$	0.04		$	1.43	$	0.14		$	1.57

	Consolidated Balance Sheets
	As of December 30, 2017 (Unaudited)							As of March 31, 2017 (Audited)
	As					As		As					As
	Reported		Correction			Restated		Reported		Correction			Restated
Assets
Inventory	$	710,118	$	60,584		$	770,702	$	598,056	$	30,879		$	628,935
Total Current Assets		794,510		60,584			855,094		688,270		30,879			719,149
Total Assets		1,072,003		62,234			1,134,237		946,019		32,249			978,268
Liabilities and Stockholders' Equity
Deferred Revenue	$	545	$	79,606		$	80,151	$	545	$	45,555		$	46,100
Total Current Liabilities		162,423		79,610			242,033		132,277		45,487			177,764
Total Liabilities		635,204		76,628			711,832		511,758		41,306			553,064
Stockholders' Equity		436,799		(14,394	)		422,405		434,261		(9,057	)		425,204
Total Liabilities and Stockholders' Equity		1,072,003		62,234			1,134,237		946,019		32,249			978,268

6

SENECA FOODS CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

December 30, 2017

	As of December 31, 2016 (Unaudited)
	As					As
	Reported		Correction			Restated
Assets
Inventory	$	656,368	$	43,077		$	699,445
Total Current Assets		750,156		43,077			793,233
Total Assets		1,004,711		49,035			1,053,746
Liabilities and Stockholders' Equity
Deferred Revenue	$	473	$	60,080		$	60,553
Total Current Liabilities		178,732		60,039			238,771
Total Liabilities		587,097		60,039			647,136
Stockholders' Equity		417,614		(11,004	)		406,610
Total Liabilities and Stockholders' Equity		1,004,711		49,035			1,053,746

3. Acquisition

In April 2014, the Company purchased a 50% equity interest in Truitt Bros. Inc. ("Truitt") for $16,242,000 which was accounted for as an equity investment. The purchase agreement granted the Company the right to acquire the remaining 50% ownership of Truitt in the future under certain conditions. On April 3, 2017, the Company purchased the remaining 50% equity interest in Truitt. This was considered a step acquisition, whereby the Company remeasured the previously held investment to fair value during the first quarter of 2018. As a result, the Company’s first quarter 2018 net loss includes a non-taxable bargain purchase gain of $1,096,000 of which $562,000 was related to the remeasurement of the previously held investment. Gross profit in the first quarter of fiscal 2018 included a charge of $542,000 related to the recognition of the Truitt inventory step-up through cost of sales for the portion of acquired inventory that was sold during the period. The business, based in Salem, Oregon, has two state-of-the-art plants located in Oregon and Kentucky. The purchase price for the more recent 50% was $14,420,000 (net of cash acquired of $3,030,000) plus the assumption of certain liabilities. The Company had an equity method investment of $17,422,000, so the total investment was $34,872,000. In conjunction with the closing, the Company paid off $3,608,000 of liabilities acquired. The rationale for the acquisition was twofold: (1) the business is a complementary fit with our existing business and (2) Truitt is known for its industry innovation related to packing shelf stable foods in trays, pouches and bowls. This acquisition was financed with proceeds from the Company's revolving credit facility. The purchase price to acquire Truitt Bros., Inc. was allocated based on the internally developed fair value of the assets acquired and liabilities assumed and the independent valuation of inventory, intangibles, and property, plant, and equipment. The total purchase price of $31,842,000 has been allocated as follows (in thousands):

Purchase Price (net of cash received)	$	31,842
Approximate fair values of assets acquired and liabilities assumed:
Current assets	$	22,823
Other long-term assets		1,744
Property, plant and equipment		28,696
Current liabilities		(5,068	)
Deferred taxes		389
Other long-term liabilities		(15,664	)
Bargain purchase gain		(1,078	)
Total	$	31,842

7

SENECA FOODS CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

December 30, 2017

The Company is continuing to evaluate the purchase price allocation and these preliminary estimates could change. Proforma results of operations for the Truitt acquisition are not presented because the effects are not material to the consolidated financial statements.

4. Inventories

First-In, First-Out (“FIFO”) based inventory costs exceeded LIFO based inventory costs by $165,114,000 as of the end of the third quarter of fiscal 2018 as compared to $151,269,000 as of the end of the third quarter of fiscal 2017. The change in the LIFO Reserve for the three months ended December 30, 2017 was an increase of $1,921,000 as compared to a decrease of $5,082,000 for the three months ended December 31, 2016. The LIFO Reserve increased by $21,275,000 in the first nine months of fiscal 2018 compared to a decrease of $2,669,000 in the first nine months of fiscal 2017. This reflects the projected impact of an overall cost increase expected in fiscal 2018 versus fiscal 2017.

5. Revolving Credit Facility

The Company completed the closing of a new five-year revolving credit facility (“Revolver”) on July 5, 2016. Maximum borrowings under the Revolver total $400,000,000 from April through July and $500,000,000 from August through March.   The Revolver balance as of December 30, 2017 was $290,196,000 and is included in Long-Term Debt in the accompanying Condensed Consolidated Balance Sheet since the Revolver matures on July 5, 2021. The Company utilizes its Revolver for general corporate purposes, including seasonal working capital needs, to pay debt principal and interest obligations, and to fund capital expenditures and acquisitions. Seasonal working capital needs are affected by the growing cycles of the vegetables and fruits the Company processes. The majority of vegetable and fruit inventories are produced during the months of June through November and are then sold over the following year. Payment terms for vegetable and fruit produce are generally three months but can vary from a few days to seven months. Accordingly, the Company’s need to draw on the Revolver may fluctuate significantly throughout the year.

The decrease in average amount of Revolver borrowings during the first nine months of fiscal 2018 compared to the first nine months of fiscal 2017 was attributable to the $100,000,000 term loan from Farm Credit which was obtained in December 2016 less the cash paid for the Truitt acquisition of $14,420,000 made during the first nine months of fiscal 2018, Accounts Receivable which are $7,168,000 lower than the same period last year (excluding the amount from the acquisition), and total Inventories, excluding the inventories of the acquisition, which are $55,181,000 higher than the same period last year, and net earnings in the last twelve months ended December 30, 2017 of $759,000.

General terms of the Revolver include payment of interest at LIBOR plus a defined spread.

8

SENECA FOODS CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

December 30, 2017

The following table documents the quantitative data for Revolver borrowings during the third quarter and year-to-date periods of fiscal 2018 and fiscal 2017:

	Third Quarter						Year-to-Date
	2018			2017			2018			2017
	(In thousands)						(In thousands)
Reported end of period:
Outstanding borrowings	$	290,196		$	232,586		$	290,196		$	232,586
Weighted average interest rate		3.04	%		2.00	%		3.04	%		2.00	%
Reported during the period:
Maximum amount of borrowings	$	296,088		$	349,710		$	296,088		$	361,800
Average outstanding borrowings	$	280,960		$	301,395		$	246,414		$	289,949
Weighted average interest rate		2.82	%		1.89	%		2.59	%		1.88	%

6. Stockholders’ Equity

During the nine-month period ended December 30, 2017 the Company repurchased 114,532 shares or $3,441,000 of its Class A Common Stock as Treasury Stock. As of December 30, 2017, there are 2,414,678 shares or $69,941,000 of repurchased stock. These shares are not considered outstanding.

7. Retirement Plans

The net periodic benefit cost for the Company’s pension plan consisted of:

	Three Months Ended						Nine Months Ended
	December 30, 2017			December 31, 2016			December 30, 2017			December 31, 2016
	(In thousands)
Service Cost	$	1,981		$	2,164		$	5,944		$	6,491
Interest Cost		1,985			1,919			5,956			5,756
Expected Return on Plan Assets		(3,673	)		(2,978	)		(10,640	)		(8,934	)
Amortization of Actuarial Loss		-			679			-			2,037
Amortization of Transition Asset		30			27			90			82
Net Periodic Benefit Cost	$	323		$	1,811		$	1,350		$	5,432

There was a contribution of $2,500,000 to the pension plan in the nine month period ended December 30, 2017. There was a contribution of $8,000,000 made in the nine month period ended December 31, 2016.

9

SENECA FOODS CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

December 30, 2017

8. Plant Restructuring

The following table summarizes the rollforward of restructuring charges and related asset impairment charges recorded and the accruals established:

				Long-Lived
	Severance			Asset Charges			Other Costs			Total
	(In thousands)
Balance March 31, 2017	$	37		$	4,773		$	305		$	5,115
First quarter charge		36			9			36			81
Second quarter charge (credit)		-			8			(33	)		(25	)
Third quarter charge (credit)		98			-			3			101
Cash payments/write offs		(73	)		(3,888	)		(311	)		(4,272	)
Balance December 30, 2017	$	98		$	902		$	-		$	1,000
Balance March 31, 2016	$	-		$	4,975		$	3,897		$	8,872
First quarter charge (credit)		127			(6	)		1,064			1,185
Second quarter charge (credit)		112			(286	)		451			277
Third quarter charge (credit)		1,261			62			(7	)		1,316
Cash payments/write offs		(1,480	)		164			(3,588	)		(4,904	)
Balance December 31, 2016	$	20		$	4,909		$	1,817		$	6,746

During fiscal 2016, the Company recorded a restructuring charge of $10,302,000 related to the closing of a plant in the Northwest of which $162,000 was related to severance cost, $5,065,000 was related to asset impairments (contra fixed assets), and $5,075,000 was related to other costs (mostly operating lease costs). During fiscal 2017, the Company adjusted this restructuring charge by $1,829,000 related to the closing of this Northwest plant of which a charge of $1,578,000 was related to severance cost, a credit of $384,000 was related to asset impairments (contra fixed assets), and charge of $635,000 was related to other costs (mostly operating lease costs).

During the nine months ended December 30, 2017, the Company recorded an additional restructuring charge of $157,000 related to the previous closing of this Northwest plant.

9. Other Operating Income and Expense

During the nine months ended December 30, 2017, the Company sold unused fixed assets which resulted in a gain of $1,590,000 as compared to a gain of $149,000 during the nine months ended December 31, 2016. $1,081,000 of the current year gain was related to the sale of a closed plant in the Midwest. In addition, the Company recorded a bargain purchase gain of $1,078,000 as discussed in the Acquisition footnote during the nine months ended December 30, 2017. These items are included in other operating income in the Unaudited Condensed Consolidated Statements of Net Earnings.

10

SENECA FOODS CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

December 30, 2017

10. Recently Issued Accounting Standards

In May 2014, the FASB issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard will be effective for the Company on April 1, 2018 (beginning of fiscal 2019). The standard permits the use of either the retrospective or cumulative effect transition method. The Company has selected the modified retrospective approach for its transition method and applied the five-step model of the new standard to a selection of contracts within each of the revenue streams and has compared the results to our current accounting practices. The Company’s assessment efforts to date have has included reviewing current accounting policies, processes, and system requirements, as well as assigning internal resources and engaging third-party consultants to assist in the process. Additionally, the Company has reviewed our current contracts and other arrangements to identify potential differences that could arise from the adoption of ASU 2014-09. Most notably, the Company is evaluating its current conclusions with respect to the timing of revenue recognition for certain co-pack contract arrangements where revenue is at point in time, to determine whether the application of ASU 2014-09 necessitates changes to such reporting whereby revenue would be recognized over time. The Company will continue to evaluate our business processes, systems and controls, and potential differences, if any, in the timing and method of revenue recognition. However, the Company will not be able to make a complete determination about the impact of the standard on its consolidated financial statements until the time of adoption based upon outstanding contracts at that time. The Company will continue its evaluation of the standards update through the date of adoption.

In February 2016, the FASB issued ASU No. 2016-02, Leases. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018 (beginning fiscal 2020 for the Company), including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. While we are still evaluating the impact of our pending adoption of the new standard on our consolidated financial statements, we expect that upon adoption we will recognize ROU assets and lease liabilities and that the amounts could be material.

In January 2017, the FASB issued ASU No. 2017-01 ("ASU 2017-01"), which clarifies the definition of a business, with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, and early adoption is permitted for transactions which occur before the issuance or effective date of the amendments, only when the transaction has not been reported in the financial statements that have been issued or made available for issuance. ASU 2017-01 is to be applied on a prospective basis. The Company does not expect the adoption of ASU 2017-01 to have a material impact on its consolidated financial statements.

In March 2017, the FASB issued ASU 2017-07, “Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.”  ASU 2017-07 requires that the service cost component of net periodic benefit costs from defined benefit and other postretirement benefit plans be included in the same statement of earnings captions as other compensation costs arising from services rendered by the covered employees during the period.  The other components of net benefit cost will be presented in the statement of earnings separately from service costs.  ASU 2017-07 is effective for fiscal years beginning after December 31, 2017 (fiscal year 2019 for the Company).  Following adoption, only service costs will be eligible for capitalization into manufactured inventories, which should reduce diversity in practice.  The amendments of ASU 2017-07 should be applied retrospectively for the presentation of the service cost component and the other components of net periodic benefit costs from defined benefit and other postretirement benefit plans in the statement of earnings and prospectively, on and after the effective date, for the capitalization of the service cost component into manufactured inventories.  Early adoption is permitted as of the beginning of the Company's fiscal year 2018. The Company will adopt the new guidance in fiscal year 2019, and expects changes to earnings before income taxes to be immaterial in the year of adoption.

There were no other recently issued accounting pronouncements that impacted the Company’s condensed consolidated financial statements. In addition, the Company did not adopt any new accounting pronouncements during the quarter ended December 30, 2017.

11

SENECA FOODS CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

December 30, 2017

11. Earnings per Common Share

Earnings per share for the quarters ended December 30, 2017 and December 31, 2016 are as follows:

	Q U A R T E R				Y E A R T O D A T E
(Thousands, except share amounts)	Fiscal 2018		Fiscal 2017		Fiscal 2018		Fiscal 2017
	(Restated)		(Restated)		(Restated)		(Restated)
Basic
Net earnings	$	4,377	$	7,789	$	439	$	15,575
Deduct preferred stock dividends paid		6		6		17		17
Undistributed earnings		4,371		7,783		422		15,558
Earnings attributable to participating preferred		17		71		2		142
Earnings attributable to common shareholders	$	4,354	$	7,712	$	420	$	15,416
Weighted average common shares outstanding		9,740		9,770		9,782		9,790
Basic earnings per common share	$	0.45	$	0.79	$	0.04	$	1.58
Diluted
Earnings attributable to common shareholders	$	4,354	$	7,712	$	420	$	15,416
Add dividends on convertible preferred stock		5		5		15		15
Earnings attributable to common stock on a diluted basis	$	4,359	$	7,717	$	435	$	15,431
Weighted average common shares outstanding-basic		9,740		9,770		9,782		9,790
Additional shares issued related to the equity compensation plan		2		2		2		2
Additional shares to be issued under full conversion of preferred stock		67		67		67		67
Total shares for diluted		9,809		9,839		9,851		9,859
Diluted earnings per common share	$	0.44	$	0.78	$	0.04	$	1.57

12. Fair Value of Financial Instruments

As required by Accounting Standards Codification ("ASC") 825, “Financial Instruments,” the Company estimates the fair values of financial instruments on a quarterly basis. The estimated fair value for long-term debt (classified as Level 2 in the fair value hierarchy) is determined by the quoted market prices for similar debt (comparable to the Company’s financial strength) or current rates offered to the Company for debt with the same maturities. Long-term debt, including current portion had a carrying amount of $415,448,000 and an estimated fair value of $415,173,000 as of December 30, 2017. As of March 31, 2017, the carrying amount was $332,633,000 and the estimated fair value was $332,926,000. Capital lease obligations, including current portion had a carrying amount of $43,501,000 and an estimated fair value of $40,621,000 as of December 30, 2017. As of March 31, 2017, the carrying amount was $39,033,000 and the estimated fair value was $37,505,000. The fair values of all the other financial instruments approximate their carrying value due to their short-term nature.

12

SENECA FOODS CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

December 30, 2017

13. Income Taxes

The effective tax rate was (137.7)% and 34.3% for the nine month periods ended December 30, 2017 and December 31, 2016, respectively. The 172.0 percentage point decrease in the effective tax rate represents the tax rate change which reduced the tax provision by $1,241,000 due to the recently passed Tax Cut and Jobs Act.  This amount reflects the effect of the rate change on beginning of the year deferred tax balances.

The Tax Cut and Jobs Act was signed into law on December 22, 2017 and reduced the federal corporate income tax rate from 35% to 21%.

13

ITEM 2 MANAGEMENTS DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

December 30, 2017

Seneca Foods Corporation (the “Company”) is a leading provider of packaged fruits and vegetables, with facilities located throughout the United States. The Company’s product offerings include canned, frozen and bottled produce and snack chips. Its products are sold under private label as well as national and regional brands that the Company owns or licenses, including Seneca®, Libby’s®, Aunt Nellie’s®, Cherryman®, Green Valley®, READ® and Seneca Farms®. The Company’s canned fruits and vegetables are sold nationwide by major grocery outlets, including supermarkets, mass merchandisers, limited assortment stores, club stores and dollar stores. The Company also sells its products to foodservice distributors, industrial markets, other food processors, export customers in over 90 countries and federal, state and local governments for school and other food programs. The Company packs Green Giant®, Le Sueur® and other brands of canned vegetables as well as select Green Giant® frozen vegetables for B&G Foods North America (“B&G”) under a contract packing agreement. In addition, the Seneca provides contract packing services mostly through its wholly owned subsidiary Truitt Bros., Inc.

The Company’s raw product is harvested mainly between June through November.

Results of Operations:

Sales:

Third fiscal quarter 2018 results include net sales of $387,689,000, which represents an 8.7% increase, or $30,922,000, from the third quarter of fiscal 2017.   The increase in sales is primarily from the acquisition of Truitt during the current year with sales of $28,214,000, a $4,156,000 increase in B&G Foods, Inc. sales, a $2,055,000 increase in Frozen sales partially offset by, a $1,105,000 decrease in Canned Vegetable sales, a $1,241,000 decrease in Canned Fruit sales and a $1,157,000 decrease in Other sales.

Nine months ended December 30, 2017 include net sales of $1,015,086,000, which represents a 3.4% increase, or $33,578,000, from the first nine months of fiscal 2017.  The increase in sales is primarily from the acquisition of Truitt during the current year with sales of $69,352,000, a $12,181,000 increase in Canned Vegetable sales, $7,982,000 increase in Frozen sales, partially offset by a $25,749,000 decrease in B&G Foods, Inc. sales, a $24,035,000 decrease in Canned Fruit sales, a $3,999,000 decrease in Other sales and a $2,154,000 decrease in Snack sales.

The following table presents sales by product category (in millions):

	Three Months Ended				Nine Months Ended
	December 30, 2017		December 31, 2016		December 30, 2017		December 31, 2016
		(Restated)		(Restated)		(Restated)		(Restated)
Canned Vegetables	$	226.1	$	227.2	$	564.8	$	552.6
B&G*		37.3		33.2		89.7		115.4
Frozen		27.3		25.3		78.5		70.5
Fruit Products		62.5		63.7		193.1		217.2
Chip Products		2.4		2.4		7.9		10.0
Truitt		28.2		0.0		69.4		0.0
Other		3.9		5.0		11.7		15.8
	$	387.7	$	356.8	$	1,015.1	$	981.5

*B&G includes frozen vegetable sales exclusively for B&G.

14

ITEM 2 MANAGEMENTS DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

December 30, 2017

Operating Income:

The following table presents components of operating income as a percentage of net sales:

	Three Months Ended						Nine Months Ended
	December 30, 2017			December 31, 2016			December 30, 2017			December 31, 2016
		(Restated)			(Restated)			(Restated)			(Restated)
Gross Margin		7.9	%		10.6	%		6.3	%		9.3	%
Selling		2.6	%		3.1	%		2.8	%		2.9	%
Administrative		2.5	%		2.8	%		2.8	%		2.9	%
Plant Restructuring		0.0	%		0.4	%		0.0	%		0.3	%
Other Operating Expense (Income)		0.0	%		0.3	%		-0.3	%		0.1	%
Operating Income		2.6	%		4.0	%		0.9	%		3.0	%
Interest Expense, Net		1.0	%		0.7	%		1.1	%		0.7	%

For the three month period ended December 30, 2017, the gross margin decreased from the prior year quarter from 10.6% to 7.9% due primarily to lower selling prices in the third quarter of 2018. The LIFO charge for the third quarter ended December 30, 2017 which was $1,921,000 as compared to a credit of $5,082,000 for the third quarter ended December 31, 2016 and reflects the impact on the quarter of higher cost increases incurred in fiscal 2018, compared with smaller cost increases to fiscal 2017. On an after-tax basis, LIFO net earnings decreased by $1,249,000 for the quarter ended December 30, 2017 and decreased LIFO net earnings by $3,303,000 for the quarter ended December 31, 2016, based on the historical statutory federal income tax rate.

For the nine month period ended December 30, 2017, the gross margin decreased from the prior year period from 9.3% to 6.3% due primarily to a higher LIFO charge in the current year. The LIFO charge for the nine months ended December 30, 2017 was $21,275,000 as compared to a credit of $2,669,000 for the nine months ended December 31, 2016 and reflects the impact on the nine months of cost increases expected in fiscal 2018, compared to cost decreases in fiscal 2017. On an after-tax basis, LIFO decreased net earnings by $13,829,000 for the nine months ended December 30, 2017 and increased net earnings by $1,732,000 for the nine months ended December 31, 2016, based on the historical statutory federal income tax rate.

For the three month period ended December 30, 2017, selling costs as a percentage of sales decreased from 3.1% to 2.6% for the same period in the prior year. For the nine month period ended December 30, 2017, selling costs as a percentage of sales decreased from 2.9% to 2.8% for the same period in the prior year. 

For the three month period ended December 30, 2017, administrative expense as a percentage of sales decreased from 2.8% to 2.5%. For the nine month period ended December 30, 2017, administrative expense as a percentage of sales decreased from 2.9% to 2.8% primarily due to lower employment costs in the current year.

During the nine months ended December 30, 2017, the Company sold some unused fixed assets which resulted in a gain of $1,590,000. $1,081,000 of the current year gain was related to the sale of a closed plant in the Midwest. In addition, the Company recorded a bargain purchase gain of $1,078,000 as discussed in the Acquisition footnote to the Condensed Consolidated Financial Statements. During the quarter ended December 31, 2016, the Company recorded a charge for impairment of a long-term asset of $1,052,000. During the nine months ended December 31, 2016, the Company sold some unused fixed assets which resulted in a loss of $149,000. These items are included in other operating income in the Unaudited Condensed Consolidated Statements of Net Earnings.

15

ITEM 2 MANAGEMENTS DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

December 30, 2017

Interest expense for the third quarter ended December 30, 2017, as a percentage of sales, increased to 1.0% from 0.7% in third quarter ended December 31, 2016. For the nine month period ended December 30, 2017, interest expense as a percentage of sales increased from 0.7% to 1.1% compared to nine months ended December 31, 2016. During fiscal 2018, overall borrowings and interest rates were higher than the previous year.

Income Taxes:

The effective tax rate was (137.7)% and 34.3% for the nine month periods ended December 30, 2017 and December 31, 2016, respectively. The 172.0 percentage point decrease in the effective tax rate represents the tax rate change which reduced the tax provision by $1,241,000 due to the recently passed Tax Cut and Jobs Act. This amount reflects the effect of the rate change on beginning of the year deferred tax balances.

The Tax Cut and Jobs Act was signed into law on December 22, 2017 and reduced the federal corporate income tax rate from 35% to 21%.

Earnings per Share:

Basic earnings per share were $0.45 and $0.79 for the three months ended December 30, 2017 and December 31, 2016, respectively. Diluted earnings per share were $0.44 and $0.78 for the three months ended December 30, 2017 and December 31, 2016, respectively. Basic earnings per share were $0.04 and $1.58 for the nine months ended December 30, 2017 and December 31, 2016, respectively. Diluted earnings per share were $0.04 and $1.57 for the nine months ended December 30, 2017 and December 31, 2016, respectively. For details of the calculation of these amounts, refer to footnote 11 of the Notes to Condensed Consolidated Financial Statements.

Liquidity and Capital Resources:

The financial condition of the Company is summarized in the following table and explanatory review:

	December 30,		December 31,			March 31,		March 31,
	2017		2016			2017		2016
		(Restated)		(Restated)			(Restated)		(Restated)
Working Capital:
Balance	$	613,061	$	554,462		$	541,385	$	254,200
Change in Quarter		21,260		(20,677	)
Long-Term Debt, Less Current Portion		411,799		343,634			329,138		35,967
Capital Lease Obligations, Less Current Portion		37,447		25,992			34,194		4,988
Total Stockholders' Equity Per Equivalent Common Share (see Note below)		42.91		41.00			42.72		39.40
Stockholders' Equity Per Common Share		43.30		41.53			43.27		39.90
Current Ratio		3.53		3.32			4.05		1.55

Note: Equivalent common shares are either common shares or, for convertible preferred shares, the number of common shares that the preferred shares are convertible into. See Note 7 of the Notes to Consolidated Financial Statements of the Company’s 2017 Annual Report on Form 10-K for conversion details.

16

ITEM 2 MANAGEMENTS DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

December 30, 2017

As shown in the Condensed Consolidated Statements of Cash Flows, net cash used in operating activities was $26,748,000 in the first nine months of fiscal 2018, compared to $9,709,000 in the first nine months of fiscal 2017. The $17,039,000 increase in cash used is primarily attributable to an $125,691,000 increase in inventory in the first nine months of fiscal 2018 as compared to $89,964,000 increase in inventory in the first nine months of fiscal 2017, decreased net earnings of $15,136,000 as previously discussed, and a $5,616,000 decrease in cash provided by income taxes, partially offset by a $40,032,000 increase in cash provided by accounts payable, deferred revenue, accrued expenses and other liabilities, a $1,721,000 decrease in cash used by deferred income taxes and a $2,460,000 increase in cash provided by accounts receivable.

As compared to December 31, 2016, inventory increased $71,257,000 to $770,702,000 at December 30, 2017 (including $16,076,000 increase from the Truitt Bros. Inc. acquisition). The components of the inventory increase reflect a $82,565,000 increase in finished goods, a $14,900,000 increase in work in process and a $26,208,000 decrease in raw materials and supplies. The finished goods increase is primarily due to the Truitt acquisition and reflects higher inventory quantities due to the magnitude and timing of the fiscal year 2018 pack versus fiscal year 2017 pack partially offset by increased sales volume as compared to the prior year. The raw materials and supplies decrease is primarily due to a decrease in cans and raw steel quantities compared to the prior year. FIFO based inventory costs exceeded LIFO based inventory costs by $165,114,000 as of the end of the third quarter of 2018 as compared to $151,269,000 as of the end of the third quarter of 2017.

Cash used in investing activities was $33,699,000 in the first nine months of fiscal 2018 compared to cash used in investing activities of $23,266,000 in the first nine months of fiscal 2017. Additions to property, plant and equipment were $21,120,000 in the first nine months of fiscal 2018 as compared to $23,389,000 in first nine months of fiscal 2017. The prior year purchases include $4,767,000 of fixed assets purchased from Monsanto in connection with our seed processing in August 2016. In April 2017, the Company acquired the other 50% of Truitt Bros., Inc. for $14,420,000 (net of cash acquired).

Cash provided by financing activities was $61,577,000 in the first nine months of fiscal 2018, which included borrowings of $438,730,000 and the repayment of $373,298,000 of long-term debt, principally consisting of borrowing and repayment on the revolving credit facility (“Revolver”). Cash provided by financing activities was $34,633,000 in the first nine months of fiscal 2017, which included borrowings of $411,483,000 and the repayment of $374,577,000 of long-term debt, principally consisting of borrowing and repayment on the Revolver. Other than borrowings under the Revolver, there was no new long-term debt during the first nine months of fiscal 2018. During the nine months ended December 31, 2016, the Company paid off $22,596,000 of Industrial Revenue Bonds. During the nine months ended December 30, 2017, the Company repurchased $3,442,000 of its Class A and Class B Common Stock as treasury stock compared to $1,841,000 in the prior period.

During the nine months ended December 30, 2017, the Company entered into $8,381,000 of equipment capital leases compared to $23,056,000 in the same period in the prior year.

The Company completed the closing of a new five-year revolving credit facility on July 5, 2016. Available borrowings on the Revolver total $400,000,000 from April through July and $500,000,000 from August through March with a maturity date of July 5, 2021.  The interest rate on the Revolver is based on LIBOR plus an applicable margin based on excess availability and the Company's fixed charge coverage ratio. As of December 30, 2017, the interest rate was approximately 2.90% on a balance of $290,196,000. We believe that cash flows from operations, availability under our Revolver and other financing sources will provide adequate funds for our working capital needs, planned capital expenditures, and debt obligations for at least the next 12 months.

The Company’s credit facilities contain standard representations and warranties, events of default, and certain affirmative and negative covenants, including various financial covenants. At December 30, 2017, the Company was in compliance with all such financial covenants.

17

ITEM 2 MANAGEMENTS DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

December 30, 2017

New Accounting Standards

Refer to footnote 10 of the Notes to Condensed Consolidated Financial Statements.

Seasonality

The Company's revenues are typically higher in the second and third fiscal quarters. The Company’s sales exhibit seasonality with the third fiscal quarter generating the highest retail sales due to holidays that occur during that quarter.

Forward-Looking Information

The information contained in this report contains, or may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this report and include statements regarding the intent, belief or current expectations of the Company or its officers (including statements preceded by, followed by or that include the words “believes,” “expects,” “anticipates” or similar expressions) with respect to various matters, including (i) the Company’s anticipated needs for, and the availability of, cash, (ii) the Company’s liquidity and financing plans, (iii) the Company’s ability to successfully integrate acquisitions into its operations, (iv) trends affecting the Company’s financial condition or results of operations, including anticipated sales price levels and anticipated expense levels, in particular higher production, fuel and transportation costs, (v) the Company’s plans for expansion of its business (including through acquisitions) and cost savings, and (vi) the impact of competition.

Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Investors are cautioned not to place undue reliance on such statements, which speak only to events as of the date the statements were made. Among the factors that could cause actual results to differ materially are:

● general economic and business conditions;

● cost and availability of commodities and other raw materials such as vegetables, steel and packaging materials;

● transportation costs;

● climate and weather affecting growing conditions and crop yields;

● the availability of financing;

● leverage and the Company’s ability to service and reduce its debt;

● foreign currency exchange and interest rate fluctuations;

● effectiveness of the Company’s marketing and trade promotion programs;

● changing consumer preferences;

● competition;

● product liability claims;

● the loss of significant customers or a substantial reduction in orders from these customers;

● changes in, or the failure or inability to comply with, U.S., foreign and local governmental regulations, including environmental and health and safety regulations; and

18

ITEM 2 MANAGEMENTS DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

December 30, 2017

● other risks detailed from time to time in the reports filed by the Company with the SEC.

Except for ongoing obligations to disclose material information as required by the federal securities laws, the Company does not undertake any obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of the filing of this report or to reflect the occurrence of unanticipated events.

Critical Accounting Policies

Trade promotions are an important component of the sales and marketing of the Company’s branded products, and are critical to the support of the business. Trade promotion costs, which are recorded as a reduction of net sales, include amounts paid to encourage retailers to offer temporary price reductions for the sale of our products to consumers, amounts paid to obtain favorable display positions in retailers’ stores, and amounts paid to retailers for shelf space in retail stores. Accruals for trade promotions are recorded primarily at the time of sale of product to the retailer based on expected levels of performance. Settlement of these liabilities typically occurs in subsequent periods primarily through an authorized process for deductions taken by a retailer from amounts otherwise due to us. As a result, the ultimate cost of a trade promotion program is dependent on the relative success of the events and the actions and level of deductions taken by retailers for amounts they consider due to them. Final determination of the permissible deductions may take extended periods of time.

The Company uses the lower of cost, determined under the LIFO (last-in, first out) method, or market, to value substantially all of its inventories. In a high inflation environment that the Company was experiencing, the Company believes that the LIFO method was preferable over the FIFO method because it better compares the cost of current production to current revenue.

The Company assesses its long-lived assets for impairment whenever there is an indicator of impairment. Property, plant, and equipment are depreciated over their assigned lives. The assigned lives and the projected cash flows used to test impairment are subjective. If actual lives are shorter than anticipated or if future cash flows are less than anticipated, a future impairment charge or a loss on disposal of the assets could be incurred. Impairment losses are evaluated if the estimated undiscounted value of the cash flows is less than the carrying value. If such is the case, a loss is recognized when the carrying value of an asset exceeds its fair value.

19

ITEM 3 Quantitative and Qualitative Disclosures About Market Risk

In the ordinary course of business, the Company is exposed to various market risk factors, including changes in general economic conditions, competition and raw material pricing and availability. In addition, the Company is exposed to fluctuations in interest rates, primarily related to its revolving credit facility and the $100,000,000 term loan. To manage interest rate risk, the Company uses both fixed and variable interest rate debt plus fixed interest rate capital lease obligations. There have been no material changes to the Company’s exposure to market risk since March 31, 2017.

20

ITEM 4 Controls and Procedures

The Company maintains a system of internal and disclosure controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported on a timely basis. The Company’s Board of Directors, operating through its Audit Committee, which is composed entirely of independent outside directors, provides oversight to the financial reporting process.

An evaluation was performed under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities and Exchange Act of 1934, as amended) as of the end of the period covered by this report. Based upon that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that, as of December 30, 2017, our disclosure controls and procedures were not effective due to a material weakness in the Company's internal control over financial reporting reported in the Company's Annual Report on Form 10-K for the year ended March 31, 2018 that the Company determined was also present as of  December 30, 2017. 

As a result of the control deficiencies identified in the Company’s Annual Report on Form 10-K for the year ended March 31, 2018, the Company restated its unaudited quarterly financial information for the fiscal quarters ended December 30, 2017 and December 31, 2016. During the fiscal quarter ended December 30, 2017, there were no changes to the Company's internal control over financial reporting that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting

21

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

Refer to footnote 13 to the Consolidated Financial Statements included in Part II Item 8 of the Annual Report on Form 10-K.

Item 1A. Risk Factors

There have been no material changes to the risk factors disclosed in the Company’s Form 10-K for the period ended March 31, 2017 except to the extent factual information disclosed elsewhere in this Form 10-Q relates to such risk factors.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

	Total Number of					Average Price Paid				Total Number		Maximum Number
	Shares Purchased					per Share				of Shares		(or Approximate
										Purchased as		Dollar Value) or
										Part of Publicly		Shares that May
										Announced		Yet Be Purchased
	Class A			Class B		Class A		Class B		Plans or		Under the Plans or
Period	Common			Common		Common		Common		Programs		Programs
10/01/2017 – 10/31/2017		16,800	(1)		-	$	35.73	$	-
11/01/2017 – 11/30/2017		4,950			-	$	29.34	$	-		4,950
12/01/2017 – 12/31/2017		-			-	$	-	$	-
Total		21,750			-	$	34.27	$	-		4,950		1,083,629

Note 1: These shares were purchased in open market transactions by the trustees under the Seneca Foods Corporation Employees' Savings Plan 401(k) Retirement Savings Plan to provide employee matching contributions under the plan.

Item 3.	Defaults Upon Senior Securities
	None.
Item 4.	Mine Safety Disclosures
	None.
Item 5.	Other Information
	None.

22

Item 6. Exhibits

31.1 Certification of Kraig H. Kayser pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

31.2 Certification of Timothy J. Benjamin pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

32 Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)

101 The following materials from Seneca Foods Corporation’s Quarterly Report on Form 10-Q for the nine months ended December 30, 2017, formatted in XBRL (eXtensible Business Reporting Language): (i) condensed consolidated balance sheets, (ii) condensed consolidated statements of net loss, (iii) condensed consolidated statements of comprehensive loss, (iv) condensed consolidated statements of cash flows, (v) condensed consolidated statement of stockholders’ equity and (vi) the notes to condensed consolidated financial statements.

23

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Seneca Foods Corporation
	(Company)
	/s/Kraig H. Kayser
September 7, 2018
	Kraig H. Kayser
	President and Chief Executive Officer
	/s/Timothy J. Benjamin
September 7, 2018
	Timothy J. Benjamin
	Chief Financial Officer

24

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Kraig H. Kayser, certify that:

1.     I have reviewed this quarterly report on Form 10-Q/A of Seneca Foods Corporation;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.     The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; 

(c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

	By:	/s/Kraig H. Kayser
Dated: September 7, 2018
		Kraig H. Kayser
		President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Timothy J. Benjamin, certify that:

1.     I have reviewed this quarterly report on Form 10-Q/A of Seneca Foods Corporation;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.     The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; 

(c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

	By:	/s/Timothy J. Benjamin
Dated: September 7, 2018
		Timothy J. Benjamin
		Chief Financial Officer

EX-32

EXHIBIT 32

CERTIFICATION PURSUANT TO

18. U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Seneca Foods Corporation (the "Registrant") on Form 10-Q/A for the period ended December 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), we, Kraig H. Kayser, Chief Executive Officer and Timothy J. Benjamin, Chief Financial Officer of the Registrant, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002, that, to our knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

	/s/Kraig H. Kayser
	Kraig H. Kayser
	Chief Executive Officer
September 7, 2018
	/s/ Timothy J. Benjamin
	Timothy J. Benjamin
	Chief Financial Officer
September 7, 2018

XML

Document And Entity Information - shares	9 Months Ended
	Dec. 30, 2017	Jan. 19, 2018
Document Information [Line Items]
Entity Registrant Name	Seneca Foods Corporation
Entity Central Index Key	0000088948
Trading Symbol	senea
Current Fiscal Year End Date	--03-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Type	10-Q/A
Document Period End Date	Dec. 30, 2017
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Amendment Flag	true
Amendment Description	Restatement of Consolidated Condensed Financial Statements Seneca Foods Corporation ("the "Company") is filing this Amendment No. 1 ("Form 10-Q/A") to our Form 10-Q for the quarterly period ended December 30, 2017, which was originally filed on January 25, 2017 ("Original Filing"), to restate our Consolidated Condensed Financial Statements and the related notes for the three and six months ended December 30, 2017 and December 31, 2016, including the financial information included in Management's Discussion and Analysis of Financial Condition and Results of Operations. We are also providing an update in our disclosures regarding the material weakness in Item 4 of this amended Form 10-Q/A. As previously disclosed, on June 28, 2018, the Company’s Audit Committee, in consultation with the Board of Directors, concluded that the Company’s previously issued financial statements for the three and nine months ended December 30, 2017 and December 31, 2016 (among other periods, see below) could no longer be relied upon. This decision was reached after discussions with the Company’s senior management and outside advisers. In reviewing the accounting for certain transactions related to the Company’s contract packing agreement, the Green Giant contract, our management identified a deficiency in the effectiveness of a control intended to properly document and review relevant facts in connection with our revenue recognition policy with respect to bill and hold transactions. The Company has determined that (1) the audited consolidated financial statements as of and for the years ended March 31, 2014, 2015, 2016 and 2017 and the independent registered public accounting firm’s reports thereon and (2) the unaudited condensed consolidated financial statements as of and for each of the interim periods within the years ended March 31, 2017 and 2018 should be restated to correct inadvertent errors in the application of generally accepted accounting principles dealing with complex and technical accounting issues relating to “bill and hold” revenue recognition. To correct this misstatement and to address matters related to the foregoing with respect to our disclosure controls and procedures and our internal control over financial reporting, we have restated our Consolidated Condensed Financial Statements and the related notes for the three and nine months ended December 30, 2017, including the financial information included in Management's Discussion and Analysis of Financial Condition and Results of Operations. See Note 2 - Restatement of Consolidated Condensed Financial Statements, which is included in the "Financial Statements" in Item 1 of this amended Form 10-Q/A for more detail. Amended Items in this Form 10Q/A The following items in the Original Filing have been amended: Part I, Item 1. Financial Statements Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Part I, Item 4. Controls and Procedures Part II, Item 6. Exhibits We are also filing currently dated certifications from our Chief Executive Officer and Chief Financial Officer as Exhibits 31.1, 31.2, 32, as well as various exhibits related to XBRL. This amended Form 10-Q/A does not reflect events occurring after the Original Filing on January 25, 2017, or modify or update those disclosures affected by subsequent events, except for the effects of the restatement. Disclosures not affected by the restatement are unchanged and reflect the disclosures made at the time of Original Filing.
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		7,854,451
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		1,884,439

XML

Condensed Consolidated Balance Sheets (Interim Periods Unaudited) - USD ($)	Dec. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
Current Assets:
Cash and Cash Equivalents	$ 13,122,000	$ 11,992,000	$ 10,260,000
Accounts Receivable, Net	66,233,000	72,080,000	67,357,000
Assets Held For Sale			5,025,000
Inventories:
Finished Goods	637,480,000	466,126,000	554,915,000
Work in Process	39,542,000	32,528,000	24,642,000
Raw Materials and Supplies	93,680,000	130,281,000	119,888,000
Total Inventories	770,702,000	628,935,000	699,445,000
Refundable Income Taxes	2,222,000	2,471,000
Other Current Assets	2,815,000	3,671,000	11,146,000
Total Current Assets	855,094,000	719,149,000	793,233,000
Property, Plant and Equipment, Net	272,363,000	237,476,000	217,983,000
Deferred Income Taxes, Net	1,650,000	1,370,000	22,492,000
Other Assets	5,130,000	20,273,000	20,038,000
Total Assets	1,134,237,000	978,268,000	1,053,746,000
Current Liabilities:
Notes Payable		166,000	1,255,000
Accounts Payable	102,020,000	72,824,000	98,170,000
Deferred Revenue	80,151,000	46,100,000	60,553,000
Accrued Vacation	12,428,000	11,867,000	11,702,000
Accrued Payroll	5,468,000	6,593,000	5,843,000
Other Accrued Expenses	32,263,000	31,880,000	41,312,000
Income Taxes Payable			8,830,000
Current Portion of Long-Term Debt and Capital Lease Obligations	9,703,000	8,334,000	11,106,000
Total Current Liabilities	242,033,000	177,764,000	238,771,000
Long-Term Debt, Less Current Portion	411,799,000	329,138,000	343,634,000
Capital Lease Obligations, Less Current Portion	37,447,000	34,194,000	25,992,000
Pension Liabilities	7,106,000	8,193,000	35,230,000
Other Long-Term Liabilities	13,447,000	3,775,000	3,509,000
Total Liabilities	711,832,000	553,064,000	647,136,000
Commitments and Contingencies
Stockholders' Equity:
Preferred Stock	707,000	1,324,000	1,324,000
Common Stock, $.25 Par Value Per Share	3,038,000	3,024,000	3,024,000
Additional Paid-in Capital	98,136,000	97,458,000	97,433,000
Treasury Stock, at Cost	(69,941,000)	(66,499,000)	(67,550,000)
Accumulated Other Comprehensive Loss	(11,023,000)	(11,175,000)	(28,396,000)
Retained Earnings	401,488,000	401,072,000	400,775,000
Total Stockholders' Equity	422,405,000	425,204,000	406,610,000
Total Liabilities and Stockholders’ Equity	$ 1,134,237,000	$ 978,268,000	$ 1,053,746,000

XML

Condensed Consolidated Balance Sheets (Interim Periods Unaudited) (Parentheticals) - $ / shares	Dec. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
Common Stock, Par Value (in dollars per share)	$ 0.25	$ 0.25	$ 0.25

XML

Condensed Consolidated Statements of Net Earnings (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Dec. 30, 2017	Dec. 31, 2016
Net Sales	$ 387,689	$ 356,767	$ 1,015,086	$ 981,508
Costs and Expenses:
Cost of Product Sold	357,188	318,841	951,639	890,602
Selling, General and Administrative	20,112	21,116	56,430	57,023
Plant Restructuring Charge	101	1,316	157	2,778
Other Operating (Income) Loss	17	1,153	(2,615)	1,172
Total Costs and Expenses	377,418	342,426	1,005,611	951,575
Operating Income	10,271	14,341	9,475	29,933
Earnings From Equity Investment		(333)	(21)	(500)
Interest Expense, Net	4,012	2,414	10,662	6,709
Earnings (Loss) Before Income Taxes	6,259	12,260	(1,166)	23,724
Income Taxes (Benefit) Expense	1,882	4,471	(1,605)	8,149
Net Earnings	4,377	7,789	439	15,575
Earnings Applicable to Common Stock	$ 4,354	$ 7,712	$ 420	$ 15,416
Basic Earnings per Common Share (in dollars per share)	$ 0.45	$ 0.79	$ 0.04	$ 1.58
Diluted Earnings per Common Share (in dollars per share)	$ 0.44	$ 0.78	$ 0.04	$ 1.57

XML

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Dec. 30, 2017	Dec. 31, 2016
Comprehensive income:
Net earnings	$ 4,377	$ 7,789	$ 439	$ 15,575
Change in pension, post retirement benefits and other (net of tax of $30 and $93)	50		152
Total	$ 4,427	$ 7,789	$ 591	$ 15,575

XML

Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Dec. 30, 2017	Dec. 31, 2016
Change in pension, post retirement benefits and other, tax	$ 30		$ 93

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Dec. 30, 2017	Dec. 31, 2016
Cash Flows from Operating Activities:
Net Earnings	$ 439	$ 15,575
Adjustments to Reconcile Net Earnings to Net Cash Used In Operations (Net of Acquisition):
Depreciation & Amortization	23,112	18,209
(Gain) Loss on the Sale of Assets	(1,590)	149
Bargain purchase gain	(1,078)
Provision for Restructuring and Impairment	157	3,830
Earnings From Equity Investment	(21)	(500)
Deferred Income Tax Benefit	16	(1,705)
Changes in Operating Assets and Liabilities:
Accounts Receivable	11,891	9,431
Inventories	(125,691)	(89,964)
Other Current Assets	954	4,619
Income Taxes	240	5,856
Accounts Payable, Deferred Revenue, Accrued Expenses and Other Liabilities	64,823	24,791
Net Cash Used in Operations	(26,748)	(9,709)
Cash Flows from Investing Activities:
Additions to Property, Plant and Equipment	(21,120)	(23,389)
Cash Paid for Acquisition (Net of Cash Acquired)	(14,420)
Proceeds from the Sale of Assets	1,841	123
Net Cash Used In Investing Activities	(33,699)	(23,266)
Cash Flow from Financing Activities:
Long-Term Borrowing	438,730	411,483
Payments on Long-Term Debt and Capital Lease Obligations	(373,298)	(374,577)
(Payments) Borrowings on Notes Payable	(166)	853
Other Assets	(235)	(1,273)
Purchase of Treasury Stock	(3,442)	(1,841)
Dividends	(12)	(12)
Net Cash Provided by Financing Activities	61,577	34,633
Net Increase in Cash and Cash Equivalents	1,130	1,658
Cash and Cash Equivalents, Beginning of the Period	11,992	8,602
Cash and Cash Equivalents, End of the Period	13,122	10,260
Noncash Transactions:
Property, Plant and Equipment Purchased Under Capital Lease Obligations	8,381	23,056
Silgan Payable	$ 8,000

XML

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 9 months ended Dec. 30, 2017 - USD ($)	Cumulative Preferred Stock [Member]	Cumulative Convertible Preferred Stock [Member]	Participating Convertible Preferred Stock [Member]	Series 2003 Convertible Preferred Stock [Member]	Common Class A [Member]	Common Class B [Member]	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Balance at Mar. 31, 2017							$ 1,324,000	$ 3,024,000	$ 97,458,000	$ (66,499,000)	$ (11,175,000)	$ 401,072,000	$ 425,204,000
Net earnings												439,000	439,000
Cash dividends paid on preferred stock												(23,000)	17,000
Equity incentive program									75,000
Preferred stock conversion							(617,000)	14,000	603,000
Purchase treasury stock					$ (3,441,000)					(3,442,000)
Change in pension, post retirement benefits, other adjustment (net of tax of $93)											152,000		152,000
Balance at Dec. 30, 2017							$ 707,000	$ 3,038,000	$ 98,136,000	$ (69,941,000)	$ (11,023,000)	$ 401,488,000	$ 422,405,000
Preferred stock, shares authorized (in shares)	200,000	1,400,000	37,529	500
Common stock, shares authorized (in shares)					20,000,000	10,000,000
Preferred stock, shares outstanding (in shares)	200,000	807,240	37,529	500
Common stock, shares outstanding (in shares)					7,854,451	1,884,439

XML

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Dec. 30, 2017	Dec. 31, 2016	Mar. 31, 2017
Cumulative Preferred Stock [Member]
Preferred stock, dividend rate			6.00%
Preferred stock, par value (in dollars per share)	$ 0.25		$ 0.25
Cumulative Convertible Preferred Stock [Member]
Preferred stock, dividend rate			10.00%
Preferred stock, par value (in dollars per share)	0.25		$ 0.25
Participating Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	0.25		0.25
Series 2003 Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	0.25		0.25
Common Class A [Member]
Common Stock, Par Value (in dollars per share)	0.25		0.25
Common Class B [Member]
Common Stock, Par Value (in dollars per share)	$ 0.25		$ 0.25
AOCI Attributable to Parent [Member]
Change in pension, post retirement benefits, other adjustment, tax			$ 93
Change in pension, post retirement benefits, other adjustment, tax	$ (30)		$ (93)
Common Stock, Par Value (in dollars per share)	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 0.25

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Note 1 - Unaudited Condensed Consolidated Financial Statements

9 Months Ended

Dec. 30, 2017

Notes to Financial Statements

Business Description and Basis of Presentation [Text Block]

1. Unaudited Condensed Consolidated Financial Statements

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, which are normal and recurring in nature, necessary to present fairly the financial position of Seneca Foods Corporation (the “Company”) as of

December 30, 2017

and results of its operations and its cash flows for the interim periods presented. All significant intercompany transactions and accounts have been eliminated in consolidation. The

March 31, 2017

balance sheet was derived from the audited consolidated financial statements.

The results of operations for the

three

and

nine

month periods ended

December 30, 2017

are

not

necessarily indicative of the results to be expected for the full year.

The accounting policies followed by the Company are set forth in Note

1

to the Company's Consolidated Financial Statements in the Company’s

2017

Annual Report on Form

10

-K.

Other footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes included in the Company's

2017

Annual Report on Form

10

-K.

All references to years are fiscal years ended or ending

March 31

unless otherwise indicated. Certain percentage tables

may

not

foot due to rounding.

Reclassifications—Certain previously reported amounts have been reclassified to conform to the current period classification.

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Note 2 - Restatement of Previously Issued Financial Statements

9 Months Ended

Dec. 30, 2017

Notes to Financial Statements

Accounting Changes and Error Corrections [Text Block]

2. Restatement of Previously Issued Financial Statements— On June 28, 2018, the Company concluded that it did not meet all of the criteria for bill and hold treatment under Staff Accounting Bulletin Topic 13 for the Green Giant contract. In particular, the Company determined that performance obligations were not complete at the time title transferred to the customer as the unlabeled products under this contract were not ready for shipment. The Company has determined that the audited consolidated financial statements as of and for the years ended March 31, 2016 and 2017 and the unaudited condensed consolidated financial statements as of and for each of the interim periods within the years ended March 31, 2017 and 2018 should be restated to correct these inadvertent errors in the application of generally accepted accounting principles dealing with complex and technical accounting issues relating to “bill and hold” revenue recognition.  For more information, see footnote 2 of the Company’s March 31, 2018 10 -K filed on June 29, 2018.

The Consolidated Statements of Cash Flows for the

three

and

nine

month periods ended

December 30, 2017 

and

December 

31,

2016

are

not

presented in the following tables because there is

no

impact on total cash flows from operating activities, investing activities and financing activities. The impact from the restatements within the operating activities section of the cash flow statement is illustrated in the balance sheet and income statement corrections presented below.

The following tables present a summary of the effects of these restatements: 

	Consolidated Statements of Earnings (Loss)
	Three Months Ended
	December 30, 2017 (Unaudited)								December 31, 2016 (Unaudited)
	As						As		As					As
	Reported			Correction			Restated		Reported		Correction			Restated
Net Sales	$	392,714		$	(5,025	)	$	387,689	$	369,705	$	(12,938	)	$	356,767
Cost of Products Sold		361,013			(3,825	)		357,188		332,230		(13,389	)		318,841
Gross Profit		31,701			(1,200	)		30,501		37,475		451			37,926
Operating Income/(Loss)		11,471			(1,200	)		10,271		13,890		451			14,341
Earnings/(Loss) Before Income Taxes		7,459			(1,200	)		6,259		11,809		451			12,260
Income Tax (Benefit) Expense		(268	)		2,150			1,882		3,628		843			4,471
Net Earnings (Loss)		7,727			(3,350	)		4,377		8,181		(392	)		7,789
Earnings Per Common Share-Basic	$	0.79		$	(0.34	)	$	0.45	$	0.83	$	(0.04	)	$	0.79
Earnings Per Common Share-Diluted	$	0.78		$	(0.34	)	$	0.44	$	0.82	$	(0.04	)	$	0.78

	Nine Months Ended
	December 30, 2017 (Unaudited)									December 31, 2016 (Unaudited)
	As						As			As					As
	Reported			Correction			Restated			Reported		Correction			Restated
Net Sales	$	1,049,209		$	(34,123	)	$	1,015,086		$	979,566	$	1,942		$	981,508
Cost of Products Sold		981,344			(29,705	)		951,639			891,904		(1,302	)		890,602
Gross Profit		67,865			(4,418	)		63,447			87,662		3,244			90,906
Operating Income/(Loss)		13,893			(4,418	)		9,475			26,689		3,244			29,933
Earnings/(Loss) Before Income Taxes		3,252			(4,418	)		(1,166	)		20,480		3,244			23,724
Income Tax (Benefit) Expense		(2,524	)		919			(1,605	)		6,217		1,932			8,149
Net Earnings (Loss)		5,776			(5,337	)		439			14,263		1,312			15,575
Earnings Per Common Share-Basic	$	0.59		$	(0.55	)	$	0.04		$	1.44	$	0.14		$	1.58
Earnings Per Common Share-Diluted	$	0.58		$	(0.54	)	$	0.04		$	1.43	$	0.14		$	1.57

	Consolidated Balance Sheets
	As of December 30, 2017 (Unaudited)							As of March 31, 2017 (Audited)
	As					As		As					As
	Reported		Correction			Restated		Reported		Correction			Restated
Assets
Inventory	$	710,118	$	60,584		$	770,702	$	598,056	$	30,879		$	628,935
Total Current Assets		794,510		60,584			855,094		688,270		30,879			719,149
Total Assets		1,072,003		62,234			1,134,237		946,019		32,249			978,268
Liabilities and Stockholders' Equity
Deferred Revenue	$	545	$	79,606		$	80,151	$	545	$	45,555		$	46,100
Total Current Liabilities		162,423		79,610			242,033		132,277		45,487			177,764
Total Liabilities		635,204		76,628			711,832		511,758		41,306			553,064
Stockholders' Equity		436,799		(14,394	)		422,405		434,261		(9,057	)		425,204
Total Liabilities and Stockholders' Equity		1,072,003		62,234			1,134,237		946,019		32,249			978,268

	As of December 31, 2016 (Unaudited)
	As					As
	Reported		Correction			Restated
Assets
Inventory	$	656,368	$	43,077		$	699,445
Total Current Assets		750,156		43,077			793,233
Total Assets		1,004,711		49,035			1,053,746
Liabilities and Stockholders' Equity
Deferred Revenue	$	473	$	60,080		$	60,553
Total Current Liabilities		178,732		60,039			238,771
Total Liabilities		587,097		60,039			647,136
Stockholders' Equity		417,614		(11,004	)		406,610
Total Liabilities and Stockholders' Equity		1,004,711		49,035			1,053,746

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Note 3 - Acquisition

9 Months Ended

Dec. 30, 2017

Notes to Financial Statements

Business Combination Disclosure [Text Block]

3. Acquisition

In April 2014, the Company purchased a 50% equity interest in Truitt Bros. Inc. ("Truitt") for $16,242,000 which was accounted for as an equity investment. The purchase agreement granted the Company the right to acquire the remaining 50% ownership of Truitt in the future under certain conditions. On April 3, 2017, the Company purchased the remaining 50% equity interest in Truitt. This was considered a step acquisition, whereby the Company remeasured the previously held investment to fair value during the first quarter of 2018. As a result, the Company’s first quarter 2018 net loss includes a non-taxable bargain purchase gain of $1,096,000 of which $562,000 was related to the remeasurement of the previously held investment. Gross profit in the first quarter of fiscal 2018 included a charge of $542,000 related to the recognition of the Truitt inventory step-up through cost of sales for the portion of acquired inventory that was sold during the period. The business, based in Salem, Oregon, has two state-of-the-art plants located in Oregon and Kentucky. The purchase price for the more recent 50% was $14,420,000 (net of cash acquired of $3,030,000 ) plus the assumption of certain liabilities. The Company had an equity method investment of $17,422,000, so the total investment was $34,872,000. In conjunction with the closing, the Company paid off $3,608,000 of liabilities acquired. The rationale for the acquisition was twofold: ( 1 ) the business is a complementary fit with our existing business and ( 2 ) Truitt is known for its industry innovation related to packing shelf stable foods in trays, pouches and bowls. This acquisition was financed with proceeds from the Company's revolving credit facility. The purchase price to acquire Truitt Bros., Inc. was allocated based on the internally developed fair value of the assets acquired and liabilities assumed and the independent valuation of inventory, intangibles, and property, plant, and equipment. The total purchase price of $31,842,000 has been allocated as follows (in thousands):

Purchase Price (net of cash received)	$	31,842
Approximate fair values of assets acquired and liabilities assumed:
Current assets	$	22,823
Other long-term assets		1,744
Property, plant and equipment		28,696
Current liabilities		(5,068	)
Deferred taxes		389
Other long-term liabilities		(15,664	)
Bargain purchase gain		(1,078	)
Total	$	31,842

The Company is continuing to evaluate the purchase price allocation and these preliminary estimates could change. Proforma results of operations for the Truitt acquisition are

not

presented because the effects are

not

material to the consolidated financial statements.

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Note 4 - Inventories

9 Months Ended

Dec. 30, 2017

Notes to Financial Statements

Inventory Disclosure [Text Block]

4. Inventories

First-In, First-Out (“FIFO”) based inventory costs exceeded LIFO based inventory costs by $165,114,000 as of the end of the third quarter of fiscal 2018 as compared to $151,269,000 as of the end of the third quarter of fiscal 2017. The change in the LIFO Reserve for the three months ended December 30, 2017 was an increase of $1,921,000 as compared to a decrease of $5,082,000 for the three months ended December 31, 2016. The LIFO Reserve increased by $21,275,000 in the first nine months of fiscal 2018 compared to a decrease of $2,669,000 in the first nine months of fiscal 2017. This reflects the projected impact of an overall cost increase expected in fiscal 2018 versus fiscal 2017.

XML

Note 5 - Revolving Credit Facility

9 Months Ended

Dec. 30, 2017

Notes to Financial Statements

Debt Disclosure [Text Block]

5. Revolving Credit Facility

The Company completed the closing of a new five -year revolving credit facility (“Revolver”) on July 5, 2016. Maximum borrowings under the Revolver total $400,000,000 from April through July and $500,000,000 from August through March.   The Revolver balance as of December 30, 2017 was $290,196,000 and is included in Long-Term Debt in the accompanying Condensed Consolidated Balance Sheet since the Revolver matures on July 5, 2021. The Company utilizes its Revolver for general corporate purposes, including seasonal working capital needs, to pay debt principal and interest obligations, and to fund capital expenditures and acquisitions. Seasonal working capital needs are affected by the growing cycles of the vegetables and fruits the Company processes. The majority of vegetable and fruit inventories are produced during the months of June through November and are then sold over the following year. Payment terms for vegetable and fruit produce are generally three months but can vary from a few days to seven months. Accordingly, the Company’s need to draw on the Revolver may fluctuate significantly throughout the year.

The decrease in average amount of Revolver borrowings during the

first

nine

months of fiscal

2018

compared to the

first

nine

months of fiscal

2017

was attributable to the

$100,000,000

term loan from Farm Credit which was obtained in

December 2016

less the cash paid for the Truitt acquisition of

$14,420,000

made during the

first

nine

months of fiscal

2018,

Accounts Receivable which are

$7,168,000

lower than the same period last year (excluding the amount from the acquisition), and total Inventories, excluding the inventories of the acquisition, which are

$55,181,000

higher than the same period last year, and net earnings in the last

twelve

months ended

December 30, 2017

of

$759,000.

General terms of the Revolver include payment of interest at LIBOR plus a defined spread.

The following table documents the quantitative data for Revolver borrowings during the

third

quarter and year-to-date periods of fiscal

2018

and fiscal

2017:

	Third Quarter						Year-to-Date
	2018			2017			2018			2017
	(In thousands)						(In thousands)
Reported end of period:
Outstanding borrowings	$	290,196		$	232,586		$	290,196		$	232,586
Weighted average interest rate		3.04	%		2.00	%		3.04	%		2.00	%
Reported during the period:
Maximum amount of borrowings	$	296,088		$	349,710		$	296,088		$	361,800
Average outstanding borrowings	$	280,960		$	301,395		$	246,414		$	289,949
Weighted average interest rate		2.82	%		1.89	%		2.59	%		1.88	%

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Note 6 - Stockholders' Equity

9 Months Ended

Dec. 30, 2017

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

6. Stockholders’ Equity

During the nine -month period ended December 30, 2017 the Company repurchased 114,532 shares or $3,441,000 of its Class A Common Stock as Treasury Stock. As of December 30, 2017, there are 2,414,678 shares or $69,941,000 of repurchased stock. These shares are not considered outstanding.

XML

Note 7 - Retirement Plans

9 Months Ended

Dec. 30, 2017

Notes to Financial Statements

Pension and Other Postretirement Benefits Disclosure [Text Block]

7. Retirement Plans

The net periodic benefit cost for the Company’s pension plan consisted of:

	Three Months Ended						Nine Months Ended
	December 30, 2017			December 31, 2016			December 30, 2017			December 31, 2016
	(In thousands)
Service Cost	$	1,981		$	2,164		$	5,944		$	6,491
Interest Cost		1,985			1,919			5,956			5,756
Expected Return on Plan Assets		(3,673	)		(2,978	)		(10,640	)		(8,934	)
Amortization of Actuarial Loss		-			679			-			2,037
Amortization of Transition Asset		30			27			90			82
Net Periodic Benefit Cost	$	323		$	1,811		$	1,350		$	5,432

There was a contribution of

$2,500,000

to the pension plan in the

nine

month period ended

December 30, 2017.

There was a contribution of

$8,000,000

made in the

nine

month period ended

December 31, 2016.

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Note 8 - Plant Restructuring

9 Months Ended

Dec. 30, 2017

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

8. Plant Restructuring

The following table summarizes the rollforward of restructuring charges and related asset impairment charges recorded and the accruals established:

				Long-Lived
	Severance			Asset Charges			Other Costs			Total
	(In thousands)
Balance March 31, 2017	$	37		$	4,773		$	305		$	5,115
First quarter charge		36			9			36			81
Second quarter charge (credit)		-			8			(33	)		(25	)
Third quarter charge (credit)		98			-			3			101
Cash payments/write offs		(73	)		(3,888	)		(311	)		(4,272	)
Balance December 30, 2017	$	98		$	902		$	-		$	1,000
Balance March 31, 2016	$	-		$	4,975		$	3,897		$	8,872
First quarter charge (credit)		127			(6	)		1,064			1,185
Second quarter charge (credit)		112			(286	)		451			277
Third quarter charge (credit)		1,261			62			(7	)		1,316
Cash payments/write offs		(1,480	)		164			(3,588	)		(4,904	)
Balance December 31, 2016	$	20		$	4,909		$	1,817		$	6,746

During fiscal

2016,

the Company recorded a restructuring charge of

$10,302,000

related to the closing of a plant in the Northwest of which

$162,000

was related to severance cost,

$5,065,000

was related to asset impairments (contra fixed assets), and

$5,075,000

was related to other costs (mostly operating lease costs). During fiscal

2017,

the Company adjusted this restructuring charge by

$1,829,000

related to the closing of this Northwest plant of which a charge of

$1,578,000

was related to severance cost, a credit of

$384,000

was related to asset impairments (contra fixed assets), and charge of

$635,000

was related to other costs (mostly operating lease costs).

During the

nine

months ended

December 30, 2017,

the Company recorded an additional restructuring charge of

$157,000

related to the previous closing of this Northwest plant.

XML

Note 9 - Other Operating Income and Expense

9 Months Ended

Dec. 30, 2017

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

9. Other Operating Income and Expense

During the nine months ended December 30, 2017, the Company sold unused fixed assets which resulted in a gain of $1,590,000 as compared to a gain of $149,000 during the nine months ended December 31, 2016. $1,081,000 of the current year gain was related to the sale of a closed plant in the Midwest. In addition, the Company recorded a bargain purchase gain of $1,078,000 as discussed in the Acquisition footnote during the nine months ended December 30, 2017. These items are included in other operating income in the Unaudited Condensed Consolidated Statements of Net Earnings.

XML

Note 10 - Recently Issued Accounting Standards

9 Months Ended

Dec. 30, 2017

Notes to Financial Statements

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

10. Recently Issued Accounting Standards

In May 2014, the FASB issued Accounting Standards Update ("ASU") 2014 - 09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard will be effective for the Company on April 1, 2018 ( beginning of fiscal 2019 ). The standard permits the use of either the retrospective or cumulative effect transition method. The Company has selected the modified retrospective approach for its transition method and applied the five -step model of the new standard to a selection of contracts within each of the revenue streams and has compared the results to our current accounting practices. The Company’s assessment efforts to date have has included reviewing current accounting policies, processes, and system requirements, as well as assigning internal resources and engaging third -party consultants to assist in the process. Additionally, the Company has reviewed our current contracts and other arrangements to identify potential differences that could arise from the adoption of ASU 2014 - 09. Most notably, the Company is evaluating its current conclusions with respect to the timing of revenue recognition for certain co-pack contract arrangements where revenue is at point in time, to determine whether the application of ASU 2014 - 09 necessitates changes to such reporting whereby revenue would be recognized over time. The Company will continue to evaluate our business processes, systems and controls, and potential differences, if any, in the timing and method of revenue recognition. However, the Company will not be able to make a complete determination about the impact of the standard on its consolidated financial statements until the time of adoption based upon outstanding contracts at that time. The Company will continue its evaluation of the standards update through the date of adoption.

In

February 2016,

the FASB issued ASU

No.

2016

-

02,

Leases

.

The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than

12

months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after

December 15, 2018 (

beginning fiscal

2020

for the Company), including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. While we are still evaluating the impact of our pending adoption of the new standard on our consolidated financial statements, we expect that upon adoption we will recognize ROU assets and lease liabilities and that the amounts could be material.

In

January 2017,

the FASB issued ASU

No.

2017

-

01

 ("ASU 

2017

-

01"

), which clarifies the definition of a business, with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 

2017

-

01

 is effective for fiscal years beginning after

December 15, 2017

and interim periods within those fiscal years, and early adoption is permitted for transactions which occur before the issuance or effective date of the amendments, only when the transaction has

not

been reported in the financial statements that have been issued or made available for issuance. ASU 

2017

-

01

 is to be applied on a prospective basis. The Company does

not

expect the adoption of ASU 

2017

-

01

 to have a material impact on its consolidated financial statements.

In

March 2017,

the FASB issued ASU

2017

-

07,

“Compensation – Retirement Benefits (Topic

715

): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.”  ASU

2017

-

07

requires that the service cost component of net periodic benefit costs from defined benefit and other postretirement benefit plans be included in the same statement of earnings captions as other compensation costs arising from services rendered by the covered employees during the period.  The other components of net benefit cost will be presented in the statement of earnings separately from service costs.  ASU

2017

-

07

is effective for fiscal years beginning after

December 31, 2017 (

fiscal year

2019

for the Company).  Following adoption, only service costs will be eligible for capitalization into manufactured inventories, which should reduce diversity in practice.  The amendments of ASU

2017

-

07

should be applied retrospectively for the presentation of the service cost component and the other components of net periodic benefit costs from defined benefit and other postretirement benefit plans in the statement of earnings and prospectively, on and after the effective date, for the capitalization of the service cost component into manufactured inventories.  Early adoption is permitted as of the beginning of the Company's fiscal year

2018.

The Company will adopt the new guidance in fiscal year

2019,

and expects changes to earnings before income taxes to be immaterial in the year of adoption.

There were

no

other recently issued accounting pronouncements that impacted the Company’s condensed consolidated financial statements. In addition, the Company did

not

adopt any new accounting pronouncements during the quarter ended

December 30, 2017.

XML

Note 11 - Earnings Per Common Share

9 Months Ended

Dec. 30, 2017

Notes to Financial Statements

Earnings Per Share [Text Block]

11. Earnings per Common Share

Earnings per share for the quarters ended December 30, 2017 and December 31, 2016 are as follows:

	Q U A R T E R				Y E A R T O D A T E
(Thousands, except share amounts)	Fiscal 2018		Fiscal 2017		Fiscal 2018		Fiscal 2017
	(Restated)		(Restated)		(Restated)		(Restated)
Basic
Net earnings	$	4,377	$	7,789	$	439	$	15,575
Deduct preferred stock dividends paid		6		6		17		17
Undistributed earnings		4,371		7,783		422		15,558
Earnings attributable to participating preferred		17		71		2		142
Earnings attributable to common shareholders	$	4,354	$	7,712	$	420	$	15,416
Weighted average common shares outstanding		9,740		9,770		9,782		9,790
Basic earnings per common share	$	0.45	$	0.79	$	0.04	$	1.58
Diluted
Earnings attributable to common shareholders	$	4,354	$	7,712	$	420	$	15,416
Add dividends on convertible preferred stock		5		5		15		15
Earnings attributable to common stock on a diluted basis	$	4,359	$	7,717	$	435	$	15,431
Weighted average common shares outstanding-basic		9,740		9,770		9,782		9,790
Additional shares issued related to the equity compensation plan		2		2		2		2
Additional shares to be issued under full conversion of preferred stock		67		67		67		67
Total shares for diluted		9,809		9,839		9,851		9,859
Diluted earnings per common share	$	0.44	$	0.78	$	0.04	$	1.57

XML

Note 12 - Fair Value of Financial Instruments

9 Months Ended

Dec. 30, 2017

Notes to Financial Statements

Fair Value Disclosures [Text Block]

12. Fair Value of Financial Instruments

As required by Accounting Standards Codification ("ASC") 825, “Financial Instruments,” the Company estimates the fair values of financial instruments on a quarterly basis. The estimated fair value for long-term debt (classified as Level 2 in the fair value hierarchy) is determined by the quoted market prices for similar debt (comparable to the Company’s financial strength) or current rates offered to the Company for debt with the same maturities. Long-term debt, including current portion had a carrying amount of $415,448,000 and an estimated fair value of $415,173,000 as of December 30, 2017. As of March 31, 2017, the carrying amount was $332,633,000 and the estimated fair value was $332,926,000. Capital lease obligations, including current portion had a carrying amount of $43,501,000 and an estimated fair value of $40,621,000 as of December 30, 2017. As of March 31, 2017, the carrying amount was $39,033,000 and the estimated fair value was $37,505,000. The fair values of all the other financial instruments approximate their carrying value due to their short-term nature.

XML

Note 13 - Income Taxes

9 Months Ended

Dec. 30, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

13. Income Taxes

The effective tax rate was ( 137.7 )% and 34.3% for the nine month periods ended December 30, 2017 and December 31, 2016, respectively. The 172.0 percentage point decrease in the effective tax rate represents the tax rate change which reduced the tax provision by $1,241,000 due to the recently passed Tax Cut and Jobs Act.  This amount reflects the effect of the rate change on beginning of the year deferred tax balances.

The Tax Cut and Jobs Act was signed into law on

December 22, 2017

and reduced the federal corporate income tax rate from

35%

to

21%.

XML

Note 2 - Restatement of Previously Issued Financial Statements (Tables)

9 Months Ended

Dec. 30, 2017

Notes Tables

Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]

	Consolidated Statements of Earnings (Loss)
	Three Months Ended
	December 30, 2017 (Unaudited)								December 31, 2016 (Unaudited)
	As						As		As					As
	Reported			Correction			Restated		Reported		Correction			Restated
Net Sales	$	392,714		$	(5,025	)	$	387,689	$	369,705	$	(12,938	)	$	356,767
Cost of Products Sold		361,013			(3,825	)		357,188		332,230		(13,389	)		318,841
Gross Profit		31,701			(1,200	)		30,501		37,475		451			37,926
Operating Income/(Loss)		11,471			(1,200	)		10,271		13,890		451			14,341
Earnings/(Loss) Before Income Taxes		7,459			(1,200	)		6,259		11,809		451			12,260
Income Tax (Benefit) Expense		(268	)		2,150			1,882		3,628		843			4,471
Net Earnings (Loss)		7,727			(3,350	)		4,377		8,181		(392	)		7,789
Earnings Per Common Share-Basic	$	0.79		$	(0.34	)	$	0.45	$	0.83	$	(0.04	)	$	0.79
Earnings Per Common Share-Diluted	$	0.78		$	(0.34	)	$	0.44	$	0.82	$	(0.04	)	$	0.78

	Nine Months Ended
	December 30, 2017 (Unaudited)									December 31, 2016 (Unaudited)
	As						As			As					As
	Reported			Correction			Restated			Reported		Correction			Restated
Net Sales	$	1,049,209		$	(34,123	)	$	1,015,086		$	979,566	$	1,942		$	981,508
Cost of Products Sold		981,344			(29,705	)		951,639			891,904		(1,302	)		890,602
Gross Profit		67,865			(4,418	)		63,447			87,662		3,244			90,906
Operating Income/(Loss)		13,893			(4,418	)		9,475			26,689		3,244			29,933
Earnings/(Loss) Before Income Taxes		3,252			(4,418	)		(1,166	)		20,480		3,244			23,724
Income Tax (Benefit) Expense		(2,524	)		919			(1,605	)		6,217		1,932			8,149
Net Earnings (Loss)		5,776			(5,337	)		439			14,263		1,312			15,575
Earnings Per Common Share-Basic	$	0.59		$	(0.55	)	$	0.04		$	1.44	$	0.14		$	1.58
Earnings Per Common Share-Diluted	$	0.58		$	(0.54	)	$	0.04		$	1.43	$	0.14		$	1.57

	Consolidated Balance Sheets
	As of December 30, 2017 (Unaudited)							As of March 31, 2017 (Audited)
	As					As		As					As
	Reported		Correction			Restated		Reported		Correction			Restated
Assets
Inventory	$	710,118	$	60,584		$	770,702	$	598,056	$	30,879		$	628,935
Total Current Assets		794,510		60,584			855,094		688,270		30,879			719,149
Total Assets		1,072,003		62,234			1,134,237		946,019		32,249			978,268
Liabilities and Stockholders' Equity
Deferred Revenue	$	545	$	79,606		$	80,151	$	545	$	45,555		$	46,100
Total Current Liabilities		162,423		79,610			242,033		132,277		45,487			177,764
Total Liabilities		635,204		76,628			711,832		511,758		41,306			553,064
Stockholders' Equity		436,799		(14,394	)		422,405		434,261		(9,057	)		425,204
Total Liabilities and Stockholders' Equity		1,072,003		62,234			1,134,237		946,019		32,249			978,268

	As of December 31, 2016 (Unaudited)
	As					As
	Reported		Correction			Restated
Assets
Inventory	$	656,368	$	43,077		$	699,445
Total Current Assets		750,156		43,077			793,233
Total Assets		1,004,711		49,035			1,053,746
Liabilities and Stockholders' Equity
Deferred Revenue	$	473	$	60,080		$	60,553
Total Current Liabilities		178,732		60,039			238,771
Total Liabilities		587,097		60,039			647,136
Stockholders' Equity		417,614		(11,004	)		406,610
Total Liabilities and Stockholders' Equity		1,004,711		49,035			1,053,746

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Note 3 - Acquisition (Tables)

9 Months Ended

Dec. 30, 2017

Truitt Bros. Inc. [Member]

Notes Tables

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

Purchase Price (net of cash received)	$	31,842
Approximate fair values of assets acquired and liabilities assumed:
Current assets	$	22,823
Other long-term assets		1,744
Property, plant and equipment		28,696
Current liabilities		(5,068	)
Deferred taxes		389
Other long-term liabilities		(15,664	)
Bargain purchase gain		(1,078	)
Total	$	31,842

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Note 5 - Revolving Credit Facility (Tables)

9 Months Ended

Dec. 30, 2017

Notes Tables

Schedule of Line of Credit Facilities [Table Text Block]

	Third Quarter						Year-to-Date
	2018			2017			2018			2017
	(In thousands)						(In thousands)
Reported end of period:
Outstanding borrowings	$	290,196		$	232,586		$	290,196		$	232,586
Weighted average interest rate		3.04	%		2.00	%		3.04	%		2.00	%
Reported during the period:
Maximum amount of borrowings	$	296,088		$	349,710		$	296,088		$	361,800
Average outstanding borrowings	$	280,960		$	301,395		$	246,414		$	289,949
Weighted average interest rate		2.82	%		1.89	%		2.59	%		1.88	%

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Note 7 - Retirement Plans (Tables)

9 Months Ended

Dec. 30, 2017

Notes Tables

Schedule of Defined Benefit Plans Disclosures [Table Text Block]

	Three Months Ended						Nine Months Ended
	December 30, 2017			December 31, 2016			December 30, 2017			December 31, 2016
	(In thousands)
Service Cost	$	1,981		$	2,164		$	5,944		$	6,491
Interest Cost		1,985			1,919			5,956			5,756
Expected Return on Plan Assets		(3,673	)		(2,978	)		(10,640	)		(8,934	)
Amortization of Actuarial Loss		-			679			-			2,037
Amortization of Transition Asset		30			27			90			82
Net Periodic Benefit Cost	$	323		$	1,811		$	1,350		$	5,432

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Note 8 - Plant Restructuring (Tables)

9 Months Ended

Dec. 30, 2017

Notes Tables

Restructuring and Related Costs [Table Text Block]

				Long-Lived
	Severance			Asset Charges			Other Costs			Total
	(In thousands)
Balance March 31, 2017	$	37		$	4,773		$	305		$	5,115
First quarter charge		36			9			36			81
Second quarter charge (credit)		-			8			(33	)		(25	)
Third quarter charge (credit)		98			-			3			101
Cash payments/write offs		(73	)		(3,888	)		(311	)		(4,272	)
Balance December 30, 2017	$	98		$	902		$	-		$	1,000
Balance March 31, 2016	$	-		$	4,975		$	3,897		$	8,872
First quarter charge (credit)		127			(6	)		1,064			1,185
Second quarter charge (credit)		112			(286	)		451			277
Third quarter charge (credit)		1,261			62			(7	)		1,316
Cash payments/write offs		(1,480	)		164			(3,588	)		(4,904	)
Balance December 31, 2016	$	20		$	4,909		$	1,817		$	6,746

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Note 11 - Earnings Per Common Share (Tables)

9 Months Ended

Dec. 30, 2017

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Q U A R T E R				Y E A R T O D A T E
(Thousands, except share amounts)	Fiscal 2018		Fiscal 2017		Fiscal 2018		Fiscal 2017
	(Restated)		(Restated)		(Restated)		(Restated)
Basic
Net earnings	$	4,377	$	7,789	$	439	$	15,575
Deduct preferred stock dividends paid		6		6		17		17
Undistributed earnings		4,371		7,783		422		15,558
Earnings attributable to participating preferred		17		71		2		142
Earnings attributable to common shareholders	$	4,354	$	7,712	$	420	$	15,416
Weighted average common shares outstanding		9,740		9,770		9,782		9,790
Basic earnings per common share	$	0.45	$	0.79	$	0.04	$	1.58
Diluted
Earnings attributable to common shareholders	$	4,354	$	7,712	$	420	$	15,416
Add dividends on convertible preferred stock		5		5		15		15
Earnings attributable to common stock on a diluted basis	$	4,359	$	7,717	$	435	$	15,431
Weighted average common shares outstanding-basic		9,740		9,770		9,782		9,790
Additional shares issued related to the equity compensation plan		2		2		2		2
Additional shares to be issued under full conversion of preferred stock		67		67		67		67
Total shares for diluted		9,809		9,839		9,851		9,859
Diluted earnings per common share	$	0.44	$	0.78	$	0.04	$	1.57

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Note 2 - Restatement of Previously Issued Financial Statements - Summary of Effects of Restatements (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Dec. 30, 2017	Dec. 31, 2016	Mar. 31, 2017
Net Sales	$ 387,689	$ 356,767	$ 1,015,086	$ 981,508
Cost of Products Sold	357,188	318,841	951,639	890,602
Gross Profit	30,501	37,926	63,447	90,906
Operating Income/(Loss)	10,271	14,341	9,475	29,933
Earnings/(Loss) Before Income Taxes	6,259	12,260	(1,166)	23,724
Income Tax (Benefit) Expense	1,882	4,471	(1,605)	8,149
Net earnings	$ 4,377	$ 7,789	$ 439	$ 15,575
Earnings Per Common Share-Basic (in dollars per share)	$ 0.45	$ 0.79	$ 0.04	$ 1.58
Earnings Per Common Share-Diluted (in dollars per share)	$ 0.44	$ 0.78	$ 0.04	$ 1.57
Inventory	$ 770,702	$ 699,445	$ 770,702	$ 699,445	$ 628,935
Total Current Assets	855,094	793,233	855,094	793,233	719,149
Total Assets	1,134,237	1,053,746	1,134,237	1,053,746	978,268
Deferred Revenue	80,151	60,553	80,151	60,553	46,100
Total Current Liabilities	242,033	238,771	242,033	238,771	177,764
Total Liabilities	711,832	647,136	711,832	647,136	553,064
Stockholders' Equity	422,405	406,610	422,405	406,610	425,204
Total Liabilities and Stockholders' Equity	1,134,237	1,053,746	1,134,237	1,053,746	978,268
Previously Reported [Member]
Net Sales	392,714	369,705	1,049,209	979,566
Cost of Products Sold	361,013	332,230	981,344	891,904
Gross Profit	31,701	37,475	67,865	87,662
Operating Income/(Loss)	11,471	13,890	13,893	26,689
Earnings/(Loss) Before Income Taxes	7,459	11,809	3,252	20,480
Income Tax (Benefit) Expense	(268)	3,628	(2,524)	6,217
Net earnings	$ 7,727	$ 8,181	$ 5,776	$ 14,263
Earnings Per Common Share-Basic (in dollars per share)	$ 0.79	$ 0.83	$ 0.59	$ 1.44
Earnings Per Common Share-Diluted (in dollars per share)	$ 0.78	$ 0.82	$ 0.58	$ 1.43
Inventory	$ 710,118	$ 656,368	$ 710,118	$ 656,368	598,056
Total Current Assets	794,510	750,156	794,510	750,156	688,270
Total Assets	1,072,003	1,004,711	1,072,003	1,004,711	946,019
Deferred Revenue	545	473	545	473	545
Total Current Liabilities	162,423	178,732	162,423	178,732	132,277
Total Liabilities	635,204	587,097	635,204	587,097	511,758
Stockholders' Equity	436,799	417,614	436,799	417,614	434,261
Total Liabilities and Stockholders' Equity	1,072,003	1,004,711	1,072,003	1,004,711	946,019
Restatement Adjustment [Member]
Net Sales	(5,025)	(12,938)	(34,123)	1,942
Cost of Products Sold	(3,825)	(13,389)	(29,705)	(1,302)
Gross Profit	(1,200)	451	(4,418)	3,244
Operating Income/(Loss)	(1,200)	451	(4,418)	3,244
Earnings/(Loss) Before Income Taxes	(1,200)	451	(4,418)	3,244
Income Tax (Benefit) Expense	2,150	843	919	1,932
Net earnings	$ (3,350)	$ (392)	$ (5,337)	$ 1,312
Earnings Per Common Share-Basic (in dollars per share)	$ (0.34)	$ (0.04)	$ (0.55)	$ 0.14
Earnings Per Common Share-Diluted (in dollars per share)	$ (0.34)	$ (0.04)	$ (0.54)	$ 0.14
Inventory	$ 60,584	$ 43,077	$ 60,584	$ 43,077	30,879
Total Current Assets	60,584	43,077	60,584	43,077	30,879
Total Assets	62,234	49,035	62,234	49,035	32,249
Deferred Revenue	79,606	60,080	79,606	60,080	45,555
Total Current Liabilities	79,610	60,039	79,610	60,039	45,487
Total Liabilities	76,628	60,039	76,628	60,039	41,306
Stockholders' Equity	(14,394)	(11,004)	(14,394)	(11,004)	(9,057)
Total Liabilities and Stockholders' Equity	$ 62,234	$ 49,035	$ 62,234	$ 49,035	$ 32,249

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Note 3 - Acquisition (Details Textual) - USD ($)		3 Months Ended	9 Months Ended
	Apr. 03, 2017	Jul. 01, 2017	Dec. 30, 2017	Dec. 31, 2016	Apr. 02, 2017	Apr. 30, 2014
Business Combination, Bargain Purchase, Gain Recognized, Amount			$ 1,078,000
Truitt Bros. Inc. [Member]
Business Acquisition, Percentage of Voting Interests Acquired	50.00%
Business Combination, Bargain Purchase, Gain Recognized, Amount	$ 1,078,000	$ 1,096,000	1,078,000
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain		562,000
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement of Inventory, Impact on Cost of Goods Sold		$ 542,000
Business Combination, Consideration Transferred, Total	14,420,000		$ 14,420,000
Cash Acquired from Acquisition	3,030,000
Equity Method Investments	34,872,000				$ 17,422,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt	3,608,000
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination, Total	$ 31,842,000
Truitt Bros. Inc. Investment [Member]
Equity Method Investment, Ownership Percentage						50.00%
Equity Method Investment, Aggregate Cost						$ 16,242,000
Purchase Agreement, Additional Percentage of Voting Interests Acquirable						50.00%

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Note 3 - Acquisition - Purchase Price Allocation (Details) - USD ($)		3 Months Ended	9 Months Ended
	Apr. 03, 2017	Jul. 01, 2017	Dec. 30, 2017	Dec. 31, 2016
Approximate fair values of assets acquired and liabilities assumed:
Bargain purchase gain			$ (1,078,000)
Truitt Bros. Inc. [Member]
Purchase Price (net of cash received)	$ 31,842,000
Approximate fair values of assets acquired and liabilities assumed:
Current assets	22,823,000
Other long-term assets	1,744,000
Property, plant and equipment	28,696,000
Current liabilities	(5,068,000)
Deferred taxes	389,000
Other long-term liabilities	(15,664,000)
Bargain purchase gain	(1,078,000)	$ (1,096,000)	$ (1,078,000)
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination, Total	$ 31,842,000

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Note 4 - Inventories (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Dec. 30, 2017	Dec. 31, 2016
Inventory, LIFO Reserve	$ 165,114,000	$ 151,269,000	$ 165,114,000	$ 151,269,000
Inventory, LIFO Reserve, Period Charge	$ 1,921,000	$ (5,082,000)	$ 21,275,000	$ (2,669,000)

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Note 5 - Revolving Credit Facility (Details Textual) - USD ($)			9 Months Ended	12 Months Ended
	Apr. 03, 2017	Jul. 05, 2016	Dec. 30, 2017	Dec. 30, 2017	Dec. 31, 2016
Accounts Receivable, Vegetable and Fruit Products Sold, Standard Payment Term			90 days
Accounts Receivable, Vegetable and Fruit Products Sold, Maximum Payment Term			210 days
Increase (Decrease) in Accounts Receivable, Excluding Receivables Acquired from Business Combinations			$ (7,168,000)
Increase (Decrease) in Inventories, Excluding Inventories Acquired in a Business Combination			55,181,000
Truitt Bros. Inc. [Member]
Business Combination, Consideration Transferred, Total	$ 14,420,000		14,420,000
Farm Credit [Member] | Term Loan [Member]
Debt Instrument, Face Amount			100,000,000	$ 100,000,000
Revolving Credit Facility [Member]
Debt Instrument, Term		5 years
Line of Credit Facility, Maximum Borrowing Capacity During Nonproduction Period			400,000,000	400,000,000
Line of Credit Facility, Maximum Borrowing Capacity During Production Period			500,000,000	500,000,000
Long-term Line of Credit, Total			$ 290,196,000	290,196,000	$ 232,586,000
Line of Credit Facility, Impact on Average Amount Borrowed, Results of Operations				$ (759,000)

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Note 5 - Revolving Credit Facility - Revolving Line of Credit Summary (Details) - Revolving Credit Facility [Member] - USD ($)	3 Months Ended		9 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Dec. 30, 2017	Dec. 31, 2016
Outstanding borrowings	$ 290,196,000	$ 232,586,000	$ 290,196,000	$ 232,586,000
Weighted average interest rate	3.04%	2.00%	3.04%	2.00%
Maximum amount of borrowings	$ 296,088,000	$ 349,710,000	$ 296,088,000	$ 361,800,000
Average outstanding borrowings	$ 280,960,000	$ 301,395,000	$ 246,414,000	$ 289,949,000
Weighted average interest rate	2.82%	1.89%	2.59%	1.88%

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Note 6 - Stockholders' Equity (Details Textual) - USD ($)	9 Months Ended
	Dec. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
Treasury Stock, Shares, Ending Balance	2,414,678
Treasury Stock, Value, Ending Balance	$ 69,941,000	$ 66,499,000	$ 67,550,000
Common Class A [Member]
Treasury Stock, Shares, Acquired	114,532
Treasury Stock, Value, Acquired, Cost Method	$ 3,441,000

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Note 7 - Retirement Plans (Details Textual) - USD ($)	9 Months Ended
	Dec. 30, 2017	Dec. 31, 2016
Defined Benefit Plan, Plan Assets, Contributions by Employer	$ 2,500,000	$ 8,000,000

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Note 7 - Retirement Plans - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Dec. 30, 2017	Dec. 31, 2016
Service Cost	$ 1,981	$ 2,164	$ 5,944	$ 6,491
Interest Cost	1,985	1,919	5,956	5,756
Expected Return on Plan Assets	(3,673)	(2,978)	(10,640)	(8,934)
Amortization of Actuarial Loss		679		2,037
Amortization of Transition Asset	30	27	90	82
Net Periodic Benefit Cost	$ 323	$ 1,811	$ 1,350	$ 5,432

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Note 8 - Plant Restructuring (Details Textual) - Closing of Northwest Plant [Member] - USD ($)	9 Months Ended	12 Months Ended
	Dec. 30, 2017	Mar. 31, 2017	Mar. 31, 2016
Restructuring Charges, Total	$ 157,000		$ 10,302,000
Restructuring Reserve, Accrual Adjustment		$ 1,829,000
Employee Severance [Member]
Restructuring Charges, Total			162,000
Restructuring Reserve, Accrual Adjustment		1,578,000
Impairment of Long-Lived Assets [Member]
Restructuring Charges, Total			5,065,000
Restructuring Reserve, Accrual Adjustment		(384,000)
Other Restructuring [Member]
Restructuring Charges, Total			$ 5,075,000
Restructuring Reserve, Accrual Adjustment		$ 635,000

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Note 8 - Plant Restructuring - Restructuring Reserve (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Dec. 30, 2017	Sep. 30, 2017	Jul. 01, 2017	Dec. 31, 2016	Oct. 01, 2016	Jul. 02, 2016	Dec. 30, 2017	Dec. 31, 2016
Balance			$ 5,115			$ 8,872	$ 5,115	$ 8,872
Quarter charge (credit)	$ 101	$ (25)	81	$ 1,316	$ 277	1,185	157	2,778
Cash payments/write offs							(4,272)	(4,904)
Balance	1,000			6,746			1,000	6,746
Employee Severance [Member]
Balance			37				37
Quarter charge (credit)	98		36	1,261	112	127
Cash payments/write offs							(73)	(1,480)
Balance	98			20			98	20
Impairment of Long-Lived Assets [Member]
Balance			4,773			4,975	4,773	4,975
Quarter charge (credit)		8	9	62	(286)	(6)
Cash payments/write offs							(3,888)	164
Balance	902			4,909			902	4,909
Other Restructuring [Member]
Balance			305			3,897	305	3,897
Quarter charge (credit)	3	$ (33)	$ 36	(7)	$ 451	$ 1,064
Cash payments/write offs							(311)	(3,588)
Balance				$ 1,817				$ 1,817

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Note 9 - Other Operating Income and Expense (Details Textual) - USD ($)		3 Months Ended	9 Months Ended
	Apr. 03, 2017	Jul. 01, 2017	Dec. 30, 2017	Dec. 31, 2016
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property			$ 1,590,000	$ 149,000
Business Combination, Bargain Purchase, Gain Recognized, Amount			1,078,000
Truitt Bros. Inc. [Member]
Business Combination, Bargain Purchase, Gain Recognized, Amount	$ 1,078,000	$ 1,096,000	1,078,000
Closed Plant in the Midwest [Member]
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal			$ 1,081,000

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Note 11 - Earnings Per Common Share - Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Dec. 30, 2017	Dec. 31, 2016
Net Earnings	$ 4,377	$ 7,789	$ 439	$ 15,575
Deduct preferred stock dividends paid	6	6	17	17
Undistributed earnings	4,371	7,783	422	15,558
Earnings attributable to participating preferred	17	71	2	142
Earnings attributable to common shareholders	$ 4,354	$ 7,712	$ 420	$ 15,416
Weighted average common shares outstanding-basic (in shares)	9,740	9,770	9,782	9,790
Basic earnings per common share (in dollars per share)	$ 0.45	$ 0.79	$ 0.04	$ 1.58
Earnings attributable to common shareholders	$ 4,354	$ 7,712	$ 420	$ 15,416
Add dividends on convertible preferred stock	5	5	15	15
Earnings attributable to common stock on a diluted basis	$ 4,359	$ 7,717	$ 435	$ 15,431
Weighted average common shares outstanding-basic (in shares)	9,740	9,770	9,782	9,790
Additional shares issued related to the equity compensation plan (in shares)	2	2	2	2
Additional shares to be issued under full conversion of preferred stock (in shares)	67	67	67	67
Total shares for diluted (in shares)	9,809	9,839	9,851	9,859
Diluted earnings per common share (in dollars per share)	$ 0.44	$ 0.78	$ 0.04	$ 1.57

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Note 12 - Fair Value of Financial Instruments (Details Textual) - USD ($)	Dec. 30, 2017	Mar. 31, 2017
Long-term Debt, Gross	$ 415,448,000	$ 332,633,000
Long-term Debt, Fair Value	415,173,000	332,926,000
Capital Lease Obligations, Total	43,501,000	39,033,000
Capital Lease Obligations, Fair Value Disclosure	$ 40,621,000	$ 37,505,000

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Note 13 - Income Taxes (Details Textual) - USD ($)	9 Months Ended		12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Mar. 31, 2017
Effective Income Tax Rate Reconciliation, Percent, Total	(137.70%)	34.30%
Effective Income Tax Rate Reconciliation, Increase (Decrease), Percent	(172.00%)
Effective Income Tax Rate Reconciliation, Increase (Decrease), Amount	$ (1,241,000)
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%		35.00%