XBRL Financials

Pension liability amortization, net of income tax (expense)

6,606

Cash dividends

(29,074)

197

Balance, Shares at Sep. 27, 2018

616

Balance at Sep. 27, 2018

221,347

120,568

104,852

(2,984)

(1,204)

$ 26

$ 89

2,597,426

8,865,475

Balance at Jun. 28, 2018

243,002

119,952

127,320

(3,181)

(1,204)

$ 26

$ 89

Balance, Shares at Jun. 28, 2018

2,597,426

8,865,475

Balance, Shares at Mar. 28, 2019

28,201

Balance at Mar. 28, 2019

244,418

121,650

126,447

(2,590)

(1,204)

$ 26

$ 89

2,597,426

8,909,406

Balance at Sep. 27, 2018

221,347

120,568

104,852

(2,984)

(1,204)

$ 26

$ 89

Balance, Shares at Sep. 27, 2018

2,597,426

8,865,475

Pension liability amortization, net of income tax (expense)

11,264

197

Equity award exercises, net of shares withheld for employee taxes

(335)

Equity award exercises, net of shares withheld for employee taxes, shares

33,352

Balance, Shares at Dec. 27, 2018

900

Balance at Dec. 27, 2018

233,373

121,133

116,116

(2,787)

(1,204)

$ 26

$ 89

2,597,426

8,898,827

Pension liability amortization, net of income tax (expense)

10,331

197

Equity award exercises, net of shares withheld for employee taxes

(4)

Equity award exercises, net of shares withheld for employee taxes, shares

10,579

Balance, Shares at Mar. 28, 2019

521

Balance at Mar. 28, 2019

244,418

121,650

126,447

(2,590)

(1,204)

$ 26

$ 89

2,597,426

8,909,406

Balance at Jun. 27, 2019

254,555

122,257

137,712

(4,325)

(1,204)

$ 26

$ 89

Balance, Shares at Jun. 27, 2019

2,597,426

8,909,406

Pension liability amortization, net of income tax (expense)

12,926

Cash dividends

(34,321)

257

^[1]

976

(976)

Balance, Shares at Sep. 26, 2019

633

Balance at Sep. 26, 2019

234,050

122,890

117,293

(5,044)

(1,204)

$ 26

$ 89

2,597,426

8,909,406

Balance at Jun. 27, 2019

254,555

122,257

137,712

(4,325)

(1,204)

$ 26

$ 89

Balance, Shares at Jun. 27, 2019

2,597,426

8,909,406

43,853

Balance, Shares at Mar. 26, 2020

^[2]

(976)

Balance at Mar. 26, 2020

243,268

123,613

125,273

(4,529)

(1,204)

$ 26

$ 89

2,597,426

8,939,390

Balance at Sep. 26, 2019

234,050

122,890

117,293

(5,044)

(1,204)

$ 26

$ 89

Balance, Shares at Sep. 26, 2019

2,597,426

8,909,406

Pension liability amortization, net of income tax (expense)

17,461

Cash dividends

(22,947)

258

Equity award exercises, net of shares withheld for employee taxes

(761)

Equity award exercises, net of shares withheld for employee taxes, shares

27,830

Balance, Shares at Dec. 26, 2019

855

Balance at Dec. 26, 2019

228,916

122,984

111,807

(4,786)

(1,204)

$ 26

$ 89

2,597,426

8,937,236

Pension liability amortization, net of income tax (expense)

13,466

257

Equity award exercises, net of shares withheld for employee taxes

(73)

Equity award exercises, net of shares withheld for employee taxes, shares

2,154

Balance, Shares at Mar. 26, 2020

702

Balance at Mar. 26, 2020

$ 243,268

$ 123,613

$ 125,273

$ (4,529)

$ (1,204)

$ 26

$ 89

2,597,426

8,939,390

[1]	See Note 15 – “Recent Accounting Pronouncements” for additional information.
[2]	See Note 15 – “Recent Accounting Pronouncements” for additional information.

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2020	Dec. 26, 2019	Sep. 26, 2019	Mar. 28, 2019	Dec. 27, 2018	Sep. 27, 2018
Statement of Stockholders' Equity [Abstract]
Cash dividends per common share		$ 2.00	$ 3.00			$ 2.55
Pension liability amortization income tax expense	$ (86)	$ (86)	$ (86)	$ (66)	$ (66)	$ (66)

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Mar. 26, 2020	Mar. 28, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 43,853	$ 28,201
Depreciation and amortization	13,521	12,747
Gain on disposition of assets, net	(899)	(130)
Deferred income tax (benefit) expense	(250)	471
Stock-based compensation expense	2,190	2,037
Change in assets and liabilities:
Accounts receivable, net	(6,196)	7,763
Inventories	(31,490)	(4,547)
Prepaid expenses and other current assets	398	(884)
Accounts payable	12,080	(15,080)
Accrued expenses	(1,576)	8,270
Income taxes payable	1,039	1,839
Other long-term assets and liabilities	806	835
Other, net	1,486	1,295
Net cash provided by operating activities	34,962	42,817
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment	(10,560)	(12,080)
Proceeds from insurance recoveries	232	371
Other	(205)	(139)
Net cash used in investing activities	(10,533)	(11,848)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net short-term borrowings	38,175	3,821
Debt issue costs	(410)	0
Principal payments on long-term debt	(5,880)	(5,396)
Increase (decrease) in bank overdraft	1,190	(340)
Dividends paid	(57,268)	(29,074)
Taxes paid related to net share settlement of equity awards	(834)	(339)
Net cash used in financing activities	(25,027)	(31,328)
NET DECREASE IN CASH	(598)	(359)
Cash, beginning of period	1,591	1,449
Cash, end of period	993	1,090
Supplemental disclosure of non-cash activities:
Right-of-use assets recognized at ASU No. 2016-02 transition, see Note 3	$ 5,361	$ 0

Basis of Presentation and Description of Business

9 Months Ended

Mar. 26, 2020

Accounting Policies [Abstract]

Basis of Presentation and Description of Business

Note 1 – Basis of Presentation and Description of Business

As used herein, unless the context otherwise indicates, the terms “we”, “us”, “our” or “Company” collectively refer to John B. Sanfilippo & Son, Inc. and our wholly-owned subsidiary, JBSS Ventures, LLC. Our fiscal year ends on the final Thursday of June each year, and typically consists of

fifty-two

weeks (four thirteen-week quarters). Additional information on the comparability of the periods presented is as follows:

•

References herein to fiscal 2020 and fiscal 2019 are to the fiscal year ending June 25, 2020 and the fiscal year ended June 27, 2019, respectively.

•

References herein to the third quarter of fiscal 2020 and fiscal 2019 are to the quarters ended March 26, 2020 and March 28, 2019, respectively.

•

References herein to the first three quarters or first thirty-nine weeks of fiscal 2020 and fiscal 2019 are to the thirty-nine weeks ended March 26, 2020 and March 28, 2019, respectively.

We are one of the leading processors and distributors of peanuts, pecans, cashews, walnuts, almonds, and other nuts in the United States. These nuts are sold under a variety of private brands and under the

Fisher, Orchard Valley Harvest,

Squirrel Brand, Southern Style Nuts,

and

Sunshine Country

brand names. We also market and distribute, and in most cases, manufacture or process, a diverse product line of food and snack products, including peanut butter, almond butter, cashew butter, candy and confections, snacks and trail mixes, snack bites, sunflower kernels, dried fruit, corn snacks, sesame sticks and other sesame snack products under private brands and brand names. Our products are sold through three primary distribution channels to significant buyers of nuts, including food retailers in the consumer channel, commercial ingredient users and contract packaging customers.

The accompanying unaudited financial statements fairly present the consolidated statements of comprehensive income, consolidated balance sheets, consolidated statements of stockholders’ equity and consolidated statements of cash flows, and reflect all adjustments, consisting only of normal recurring adjustments which are necessary for the fair statement of the results of the interim periods. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses.

The interim results of operations are not necessarily indicative of the results to be expected for a full year. The balance sheet data as of June 27, 2019 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). Accordingly, these unaudited financial statements and related notes should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2019 Annual Report on Form

10-K

for the fiscal year ended June 27, 2019.

Revenue Recognition

9 Months Ended

Mar. 26, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 2 – Revenue Recognition

We recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. For each customer contract, a five-step process is followed in which we identify the contract, identify performance obligations, determine the transaction price, allocate the contract transaction price to the performance obligations, and recognize the revenue when (or as) the performance obligation is transferred to the customer.

When Performance Obligations Are Satisfied

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account for revenue recognition. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The Company’s performance obligations are primarily for the delivery of raw and processed recipe and snack nuts, nut butters and trail mixes.

Our customer contracts do not include more than one performance obligation. If a contract were to contain more than one performance obligation, we are required to allocate the contract’s transaction price to each performance obligation based on its relative standalone selling price. The standalone selling price for each distinct good is generally determined by directly observable data.

Revenue recognition is generally completed at a point in time when product control is transferred to the customer. For approximately 99% of our revenues, control transfers to the customer when the product is shipped or delivered to the customer based upon applicable shipping terms, as the customer can then direct the use and obtain substantially all of the remaining benefits from the asset at that point in time. Therefore, for 99% of our revenues, the timing of revenue recognition requires little judgment.

Variable Consideration

Some of our products are sold through specific incentive programs consisting of promotional allowances, volume and customer rebates, in-store display incentives and marketing allowances, among others, to consumer and some commercial ingredient customers. The ultimate cost of these programs is dependent on certain factors such as actual purchase volumes or customer activities and is dependent on significant management estimate and judgment. The Company accounts for these programs as variable consideration and recognizes a reduction in revenue (and a corresponding reduction in the transaction price) in the same period as the underlying program based upon the terms of the specific arrangements.

Trade promotions, consisting primarily of customer pricing allowances, merchandising funds and consumer coupons, are also offered through various programs to customers and consumers. A provision for estimated trade promotions is recorded as a reduction of revenue (and a reduction in the transaction price) in the same period when the sale is recognized. Revenues are also recorded net of expected customer deductions which are provided for based upon past experiences. Evaluating these estimates requires management judgment.

We generally use the most likely amount method to determine the variable consideration. We believe there will not be significant changes to our estimates of variable consideration when any related uncertainties are resolved with our customers. The Company reviews and updates its estimates and related accruals of variable consideration and trade promotions at least quarterly based on the terms of the agreements and historical experience. Any uncertainties in the ultimate resolution of variable consideration due to factors outside of the Company’s influence are typically resolved within a short timeframe, therefore, no additional constraint on the variable consideration is required.

Contract Balances

Contract assets or liabilities result from transactions with revenue recorded over time. If the measure of remaining rights exceeds the measure of the remaining performance obligations, the Company records a contract asset. Conversely, if the measure of the remaining performance obligations exceeds the measure of the remaining rights, the Company records a contract liability. There was no contract asset balance at March 26, 2020. Contract asset balances at June 27, 2019 and March 28, 2019 were $117 and $358, respectively, and are recorded in the caption “Prepaid expenses and other current assets” on the Consolidated Balance Sheets. The Company generally does not have material deferred revenue or contract liability balances arising from transactions with customers.

Disaggregation of Revenue

Revenue disaggregated by sales channel is as follows:


	For the Quarter Ended				For the Thirty-Nine Weeks Ended
Distribution Channel	March 26, 2020		March 28, 2019		March 26, 2020		March 28, 2019
Consumer	$	158,616	$	141,761	$	503,848	$	476,683
Commercial Ingredients		30,312		32,469		101,447		101,125
Contract Packaging		22,696		27,604		70,598		81,631

Total	$	211,624	$	201,834	$	675,893	$	659,439

Leases

9 Months Ended

Mar. 26, 2020

Leases [Abstract]

Leases

Note 3 – Leases

On June 28, 2019 we adopted ASU

No. 2016-02,

Leases (“Topic 842”)

using the alternative transition method under ASU

No. 2018-11,

which permitted application of the new guidance at the beginning of the period of adoption, with comparative periods continuing to be reported under the previous lease accounting guidance in Topic 840. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. We did not elect the practical expedients regarding hindsight or land easements. See Note 15 – “Recent Accounting Pronouncements” for additional information.

Upon adoption of the new standard, we recognized operating lease

right-of-use

assets and liabilities on our Consolidated Balance Sheet of $5,361 and $5,320 respectively. We utilized a portfolio approach to establish discount rates for leases that are similar. Discount rates ranging from 4.2% to 5.8% were used when determining the present value of future lease payments. All of our lessee arrangements that were classified as operating leases under Topic 840 continue to be classified as operating leases since the adoption of Topic 842, and the pattern of lease expense recognition is unchanged. The adoption of Topic 842 did not materially impact our consolidated net earnings and had no impact on cash flows.

Description of Leases

We lease equipment used in the transportation of goods in our warehouses, as well as a limited number of automobiles and a small warehouse near our Bainbridge, Georgia facility. Our leases generally do not contain

non-lease

components and do not contain any explicit guarantees of residual value. Our leases for warehouse transportation equipment generally require the equipment to be returned to the lessor in good working order.

We determine if an arrangement is a lease at inception and analyze the lease to determine if it is operating or finance. Operating lease

right-of-use

assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease

right-of-use

assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental collateralized borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Implicit rates are used when readily determinable. None of our leases currently contain options to extend the term. In the event of an option to extend the term of a lease, the lease term used in measuring the liability would include options to extend or terminate the lease if it is reasonably certain that the Company will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the respective lease term. Our leases have remaining terms of up to 5.2 years.

Topic 842 allows for the election as an accounting policy to not apply lease recognition requirements to short term leases, defined as leases with an initial term of 12 months or less. We have elected to use this policy, and as such, leases with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheet. We have also made the policy election to not separate lease and

non-lease

components for all leases.

The following table provides supplemental information related to operating lease

right-of-use

assets and liabilities:


	March 26, 2020		Affected Line Item in Consolidated Balance Sheet
Assets
Operating lease right-of-use assets	$	4,638	Operating lease right-of-use assets

Total lease right-of-use assets	$	4,638

Liabilities
Current:
Operating leases	$	1,374	Other accrued expenses
Noncurrent:
Operating leases		3,259	Long-term operating lease liabilities

Total lease liabilities	$	4,633

The following tables summarize the Company’s total lease costs and other information arising from operating lease transactions:


	For the Quarter Ended March 26, 2020		For the Thirty-Nine Weeks Ended March 26, 2020
Operating lease costs (a)	$	432	$	1,266
Variable lease costs (b)		16		47

Total Lease Cost	$	448	$	1,313

(a)

Includes short-term leases which are immaterial.

(b)

Variable lease costs consist of sales tax.

Supplemental cash flow and other information related to leases was as follows:


	For the Thirty- Nine Weeks Ended March 26, 2020
Operating cash flows information:
Cash paid for amounts included in measurements for lease liabilities	$	1,163
Non-cash activity:
Right-of-use assets obtained in exchange for new operating lease obligations	$	326


	March 26, 2020
Weighted Average Remaining Lease Term (in years)		3.6
Weighted Average Discount Rate		4.4	%

Maturities of operating lease liabilities as of March 26, 2020 are as follows:


Fiscal year ending
June 25, 2020 (excluding the thirty-nine weeks ended March 26, 2020)	$	419
June 24, 2021		1,482
June 30, 2022		1,359
June 29, 2023		1,105
June 27, 2024		493
Thereafter		139

Total lease payments		4,997
Less imputed interest		(364	)

Present value of operating lease liabilities	$	4,633

Disclosures related to periods prior to adoption

As the Company has not recast prior year information for its adoption of Topic 842, the following presents its future minimum lease payments for operating leases under Topic 840 on June 27, 2019:


Fiscal year ending
June 25, 2020	$	1,715
June 24, 2021		1,540
June 30, 2022		1,392
June 29, 2023		1,109
June 27, 2024		464
Thereafter		133

	$	6,353

Lessor Accounting

We lease office space in our four-story office building located in Elgin, Illinois. As a lessor, we retain substantially all of the risks and benefits of ownership of the investment property and under Topic 842 we continue to account for all of our leases as operating leases. Lease agreements may include options to renew. We accrue fixed lease income on a

straight-line

basis over the terms of the leases. There is generally an immaterial amount of variable lease consideration and an immaterial amount of

non-lease

components such as recurring utility and storage fees. Leases between related parties are immaterial.

Leasing revenue is as follows:


	For the Quarter Ended March 26, 2020		For the Thirty-Nine Weeks Ended March 26, 2020
Lease income related to lease payments	$	510	$	1,515

The future minimum, undiscounted cash flows under

non-cancelable

tenant operating leases for each of the next five years and thereafter is presented below and is materially consistent with our previous accounting under Topic 840.


Fiscal year ending
June 25, 2020 (excluding the thirty-nine weeks ended March 26, 2020)	$	461
June 24, 2021		1,948
June 30, 2022		1,707
June 29, 2023		1,737
June 27, 2024		1,766
Thereafter		2,512

	$	10,131

Inventories

9 Months Ended

Mar. 26, 2020

Inventory Disclosure [Abstract]

Inventories

Note 4 – Inventories

Inventories consist of the following:


	March 26, 2020		June 27, 2019		March 28, 2019
Raw material and supplies	$	87,120	$	58,927	$	84,270
Work-in-process and finished goods		101,394		98,097		94,639

Total	$	188,514	$	157,024	$	178,909

Goodwill and Intangible Assets

9 Months Ended

Mar. 26, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 5 – Goodwill and Intangible Assets

Identifiable intangible assets that are subject to amortization consist of the following:


	March 26, 2020			June 27, 2019			March 28, 2019
Customer relationships	$	21,100		$	21,100		$	21,100
Brand names		16,990			16,990			16,990
Non-compete agreement		270			270			270

		38,360			38,360			38,360
Less accumulated amortization:
Customer relationships		(15,830	)		(14,466	)		(13,980	)
Brand names		(9,700	)		(9,182	)		(9,010	)
Non-compete agreement		(126	)		(86	)		(72	)

		(25,656	)		(23,734	)		(23,062	)

Net intangible assets	$	12,704		$	14,626		$	15,298

Customer relationships are being amortized on an accelerated basis. The brand names consist of the

Squirrel Brand

and

Southern Style Nuts

brand names.

Total amortization expense related to intangible assets, which is recorded within Administrative expense, was $578 and $1,922 for the quarter and thirty-nine weeks ended March 26, 2020, respectively. Amortization expense for the remainder of fiscal 2020 is expected to be approximately $579 and expected amortization expense the next five fiscal years is as follows:


Fiscal year ending
June 24, 2021	$	2,165
June 30, 2022		1,896
June 29, 2023		1,657
June 27, 2024		1,414
June 26, 2025		1,156

Our goodwill of $9,650 relates entirely to the Squirrel Brand acquisition (the “Acquisition”) completed in the second quarter of fiscal 2018. There was no change in the carrying amount of goodwill during the thirty-nine weeks ended March 26, 2020.

Credit Facility

9 Months Ended

Mar. 26, 2020

Debt Disclosure [Abstract]

Credit Facility

Note 6 – Credit Facility

On March 5, 2020, we entered into an Amended and Restated Credit Agreement (the “Amended and Restated Credit Agreement”) which amended and restated our Credit Agreement dated as of February 7, 2008 (the “Former Credit Agreement”). The Amended and Restated Credit Agreement provides for a $117,500 senior secured revolving credit facility (the “Credit Facility”) with the same

borrowing capacity,

interest rates and applicable margin as the Former Credit Agreement and extends the term of the Former Credit Agreement from July 7, 2021 to March 5, 2025. The Credit Facility is secured by substantially all our assets other than real property and fixtures.

Enhanced features for the Amended and Restated Credit Agreement include, but are not limited to, the additions and amendments listed below:

•

The maximum incremental revolver was increased to $50,000.

•

The purchase-money and capital lease basket was increased to $10,000.

•

A new basket for unsecured subordinated indebtedness of $10,000 and a new basket for additional unsecured indebtedness of $20,000 were added.

•

For permitted acquisitions, a new

two-tier

alternative test was added. For any acquisition by the Company, either (a) revolver availability plus unrestricted cash must be equal to or greater than $20,000 after giving effect to the acquisition, or (ii) revolver availability plus unrestricted cash must be equal to or greater than $15,000 and the pro forma fixed charge coverage ratio must be equal to or greater than 1.00:1.00, in each case after giving effect to the acquisition.

•

The aggregate amount of dividends and distribution permitted in any fiscal year was increased to $75,000, subject to the same existing conditions of no defaults and a minimum excess availability of $30,000.

•

The Company is allowed unlimited investments as long as (a) there are no existing defaults and (b) revolver availability plus unrestricted cash is not less than $20,000 after giving effect to the proposed investment.

•

The definition of fixed charges was amended to increase the threshold exclusion of dividends and distributions to $40,000.

At March 26, 2020, we had $76,150 of available credit under the Credit Facility which reflects borrowings of $38,175 and reduced availability as a result of $3,175 in outstanding letters of credit. As of March 26, 2020, we were in compliance with all financial covenants under the Credit Facility and Mortgage Facility.

Earnings Per Common Share

9 Months Ended

Mar. 26, 2020

Earnings Per Share [Abstract]

Earnings Per Common Share

Note 7 – Earnings Per Common Share

The following table presents the reconciliation of the weighted average shares outstanding used in computing basic and diluted earnings per share:


	For the Quarter Ended				For the Thirty-Nine Weeks Ended
	March 26, 2020		March 28, 2019		March 26, 2020		March 28, 2019
Weighted average number of shares outstanding – basic		11,475,874		11,444,560		11,459,653		11,425,378
Effect of dilutive securities:
Stock options and restricted stock units		63,767		64,333		75,015		68,040

Weighted average number of shares outstanding – diluted		11,539,641		11,508,893		11,534,668		11,493,418

The following table presents a summary of anti-dilutive awards excluded from the computation of diluted earnings per share:


	For the Quarter Ended				For the Thirty-Nine Weeks Ended
	March 26, 2020		March 28, 2019		March 26, 2020		March 28, 2019
Weighted average number of anti-dilutive awards:		28,040		—		9,347		—
Weighted average exercise price per award:	$	90.26	$	—	$	90.26	$	—

Stock-Based Compensation Plans

9 Months Ended

Mar. 26, 2020

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation Plans

Note 8 – Stock-Based Compensation Plans

The following is a summary of restricted stock unit (“RSU”) activity for the first thirty-nine weeks of fiscal 2020:


Restricted Stock Units	Shares			Weighted Average Grant Date Fair Value
Outstanding at June 27, 2019		188,992		$	46.79
Activity:
Granted		38,572			91.47
Vested (a)		(38,333	)		60.55
Forfeited		(9,347	)		63.52

Outstanding at March 26, 2020		179,884		$	52.57

(a)	The number of RSUs vested includes shares that were withheld on behalf of employees to satisfy the statutory income tax withholding requirements.

At March 26, 2020, there are 57,871 RSUs outstanding that are vested but deferred.

The following table summarizes compensation expense charged to earnings for all equity compensation plans for the periods presented:


	For the Quarter Ended				For the Thirty-Nine Weeks Ended
	March 26, 2020		March 28, 2019		March 26, 2020		March 28, 2019
Stock-based compensation expense	$	702	$	521	$	2,190	$	2,037

As of March 26, 2020, there was $4,433

of total unrecognized compensation expense related to

non-vested

RSUs granted under our stock-based compensation plans. We expect to recognize that cost over a weighted average period of 1.5 years.

Stock option activity was insignificant during the first thirty-nine weeks of fiscal 2020.

Retirement Plan

9 Months Ended

Mar. 26, 2020

Retirement Benefits [Abstract]

Retirement Plan

Note 9 – Retirement Plan

The Supplemental Employee Retirement Plan is an unfunded,

non-qualified

deferred compensation plan that will provide eligible participants with monthly benefits upon retirement, disability or death, subject to certain conditions. The monthly benefit is based upon each participant’s earnings and his or her number of years of service. The components of net periodic benefit cost are as follows:


	For the Quarter Ended				For the Thirty-Nine Weeks Ended
	March 26, 2020		March 28, 2019		March 26, 2020		March 28, 2019
Service cost	$	178	$	152	$	534	$	457
Interest cost		223		224		669		671
Amortization of prior service cost		239		239		718		718
Amortization of loss		104		24		312		71

Net periodic benefit cost	$	744	$	639	$	2,233	$	1,917

The components of net periodic benefit cost other than the service cost component are included in the line item “Other expense” in the Consolidated Statements of Comprehensive Income.

Accumulated Other Comprehensive Loss

9 Months Ended

Mar. 26, 2020

Equity [Abstract]

Accumulated Other Comprehensive Loss

Note 10 – Accumulated Other Comprehensive Loss

The table below sets forth the changes to accumulated other comprehensive loss (“AOCL”) for the thirty-nine weeks ended March 26, 2020 and March 28, 2019.

These changes are all related to our defined benefit pension plan.


	For the Thirty-Nine Weeks Ended
Changes to AOCL (a)	March 26, 2020			March 28, 2019
Balance at beginning of period	$	(4,325	)	$	(3,181	)
Other comprehensive income before reclassifications		—			—
Amounts reclassified from accumulated other comprehensive loss		1,030			789
Tax effect		(258	)		(198	)

Net current-period other comprehensive income		772			591
Impact of adopting ASU 2018-02 (b)		(976	)		—

Balance at end of period	$	(4,529	)	$	(2,590	)

(a)	Amounts in parenthesis indicate debits/expense.

(b)	See Note 15 – “Recent Accounting Pronouncements” for additional information.

The reclassifications out of AOCL for the quarter and thirty-nine weeks ended March 26, 2020 and March 28, 2019 were as follows:


	For the Quarter Ended						For the Thirty-Nine Weeks Ended						Affected line item in the Consolidated Statements of Comprehensive Income
Reclassifications from AOCL to earnings (c)	March 26, 2020			March 28, 2019			March 26, 2020			March 28, 2019
Amortization of defined benefit pension items:
Unrecognized prior service cost	$	(239	)	$	(239	)	$	(718	)	$	(718	)		Other expense
Unrecognized net loss		(104	)		(24	)		(312	)		(71	)		Other expense

Total before tax		(343	)		(263	)		(1,030	)		(789	)
Tax effect		86			66			258			198			Income tax expense

Amortization of defined pension items, net of tax	$	(257	)	$	(197	)	$	(772	)	$	(591	)

(c)	Amounts in parenthesis indicate debits to expense. See Note 9 – “Retirement Plan” above for additional details.

Commitments and Contingent Liabilities

9 Months Ended

Mar. 26, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

Note 11 – Commitments and Contingent Liabilities

We are currently a party to various legal proceedings in the ordinary course of business. While management presently believes that the ultimate outcomes of these proceedings, individually and in the aggregate, will not materially affect our Company’s financial position, results of operations or cash flows, legal proceedings are subject to inherent uncertainties, and unfavorable outcomes could occur. Unfavorable outcomes could include substantial monetary damages in excess of any accruals that management has established. Were such unfavorable final outcomes to occur, there exists the possibility of a material adverse effect on our financial position, results of operations and cash flows.

Fair Value of Financial Instruments

9 Months Ended

Mar. 26, 2020

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Note 12 – Fair Value of Financial Instruments

Authoritative guidance issued by the Financial Accounting Standards Board (“FASB”) defines fair value as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The guidance establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels:

Level 1	–	Quoted prices in active markets that are accessible at the measurement date for identical assets and liabilities.
Level 2	–	Observable inputs other than quoted prices in active markets. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.
Level 3	–	Unobservable inputs for which there is little or no market data available.

The carrying values of cash, trade accounts receivable and accounts payable approximate their fair values at each balance sheet date because of the short-term maturities and nature of these balances.

The carrying value of our revolving credit facility borrowings approximates fair value at each balance sheet date because interest rates on this instrument approximate current market rates (Level 2 criteria), the short-term maturity and nature of this balance. In addition, there has been no significant change in our inherent credit risk.

The following table summarizes the carrying value and fair value estimate of our current and long-term debt, excluding unamortized debt issuance costs:


	March 26, 2020		June 27, 2019		March 28, 2019
Carrying value of long-term debt:	$	21,918	$	27,798	$	29,253
Fair value of long-term debt:		22,946		27,720		28,872

The estimated fair value of our long-term debt was determined using a market approach based upon Level 2 observable inputs, which estimates fair value based on interest rates currently offered on loans with similar terms to borrowers of similar credit quality or broker quotes. In addition, there have been no significant changes in the underlying assets securing our long-term debt.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Related Party Transaction

9 Months Ended

Mar. 26, 2020

Related Party Transaction

Note 13 – Related Party Transaction

In connection with the Acquisition in the second quarter of fiscal 2018, we incurred $11,500 of unsecured debt (the “Promissory Note”) to the principal owner and seller of the Squirrel Brand business, who was subsequently appointed as an executive officer of the Company and was considered a related party. Late in the second quarter of fiscal 2020, the employment of this executive officer with the Company ceased. He is no longer considered a related party, and therefore the outstanding balance on the Promissory Note is not reflected as related party debt on our Consolidated Balance Sheet as of March 26, 2020 and there was no related party interest paid to this former executive officer during the current third quarter. Interest paid on the Promissory Note for the thirty-nine weeks ended March 26, 2020 while the executive officer was a related party was $127 and is reflected as related party interest on our Consolidated Statements of Comprehensive Income.

Garysburg, North Carolina Facility

9 Months Ended

Mar. 26, 2020

Damage From Fire In Business Unit [Abstract]

Garysburg, North Carolina Facility

Note 14 – Garysburg, North Carolina Facility

On October 7, 2019 we experienced a fire at our peanut processing facility located in Garysburg, North Carolina. No personnel were injured, and there was no damage to our peanut shelling and inventory storage areas. The fire occurred in our roasting room where all of the roasting equipment was destroyed. The fire also damaged some equipment in our packaging room and a portion of the roof. We have contracted with a third party to roast and salt our inshell peanuts to meet our current production requirements. We do not expect any negative impact on our customer service levels or a material adverse impact on our operating or financial results for the 2020 fiscal year.

After evaluating our options with regard to our peanut production operations, the Company is considering strategic alternatives for this facility and currently plans to permanently cease all operations at the Garysburg facility once we have finished shelling the current crop of peanuts at this facility, which is estimated to take approximately seven to ten more months. We ceased roasting operations in the second quarter of this fiscal year, which resulted in a partial reduction in the workforce at this facility and we recognized an immaterial amount of separation costs in the second quarter of fiscal 2020.

We have adequate property damage and business interruption insurance, subject to applicable deductibles. To date, approximately $2,000 in

clean-up

costs and damage to capital assets has been incurred. Insurance claims have been filed under our property damage and business interruption policies. An advance payment of $1,500 was received from the insurance carrier in the second quarter of this fiscal year, and a receivable for a second advance payment of $1,434 was recorded in the current third quarter. Insurance proceeds received for damage to capital equipment are recorded as investing activities on the Consolidated Statements of Cash Flows.

Recent Accounting Pronouncements

9 Months Ended

Mar. 26, 2020

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

Note 15 – Recent Accounting Pronouncements

The following recent accounting pronouncements have been adopted in the current fiscal year:

In February 2016, the FASB issued ASU

No. 2016-02

“

Leases (Topic 842)

”. The primary goal of this Update is to require the lessee to recognize all lease commitments, both operating and finance, by initially recording a lease asset and liability on the balance sheet at the lease commencement date. Additionally, enhanced qualitative and quantitative disclosures are required. ASU

No. 2016-02

is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2018. This new guidance became effective for the Company beginning in fiscal year 2020. Under ASU

No. 2016-02

the guidance was to be adopted using a modified retrospective approach, with elective reliefs, with application of the new guidance for all periods presented. In July 2018, the FASB issued ASU

No. 2018-11

“

Leases (Topic 842): Targeted Improvements

” which provides for another transition method by allowing entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The amendments in this Update also provide lessors with a practical expedient, by class of underlying asset, to not separate

non-lease

components from the associated lease component, similar to the expedient provided for lessees. In July 2018, the FASB also issued ASU

No. 2018-10

“

Codification Improvements to Topic 842, Leases

” which affects narrow aspects of the guidance issued in ASU

No. 2016-02.

In December 2018, the FASB issued ASU

No. 2018-20

“

Leases (Topic 842) – Narrow Scope Improvements for Lessors

” which provides specific guidance for lessors on the issues of sales taxes and other similar taxes collected from lessees, certain lessor costs, and recognition of variable payments for contracts with lease and

non-lease

components. In March 2019, the FASB issued ASU

No. 2019-01

“

Leases (Topic 842) – Codification Improvements

” which clarifies transition disclosure requirements for annual and interim periods after the date of adoption of ASU

No. 2016-02.

We have implemented processes and information technology tools to assist in our compliance with Topic 842. We have also updated our accounting policies and internal controls that are impacted by the new guidance. We adopted ASU

No. 2016-02

utilizing the modified retrospective transition method and did not recast comparative periods in transition to the new standard. In addition, the new standard provides a number of optional practical expedients in transition. We elected the ‘package of practical expedients’, which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We did not elect the

use-of-hindsight

or the practical expedient pertaining to land easements; the latter not being applicable to us. The adoption of this standard resulted in the recognition of operating lease

right-of-use

assets and liabilities on our Consolidated Balance Sheet of $5,361 and $5,320, respectively, during the first quarter of fiscal 2020. The new standard also provides practical expedients for an entity’s initial and ongoing accounting. We elected the short-term lease recognition exemption for all leases that qualify. We also elected the practical expedient to not separate lease and

non-lease

components for all of our leases. Refer to Note 3 – “Leases” for additional information regarding the Company’s leases.

In February 2018, the FASB issued ASU

No. 2018-02

“Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”

. The amendments in this Update allow a reclassification from accumulated other comprehensive income (loss) (“AOCL”) to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. The amendments in this Update also require certain disclosures about stranded tax effects. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company adopted ASU

No. 2018-02

in the first quarter of fiscal 2020 and reclassified $976 from AOCL to retained earnings. Refer to Note 10 – “Accumulated Other Comprehensive Loss” for additional detail. ASU

2018-02

was not applied retrospectively. No other income tax effects related to the application of the Tax Cuts and Jobs Act were reclassified from AOCL to retained earnings.

The following recent accounting pronouncements have not yet been adopted:

In December 2019, the FASB issued ASU

No. 2019-12

“

Income Taxes (Topic 740)

”. The amendments in this Update simplify the accounting for income taxes by removing certain exceptions, providing updated requirements and specifications in certain areas and by making minor codification improvements. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2020, including interim periods within that fiscal year. Early adoption is permitted. This Update is effective for the Company beginning in fiscal 2022. We do not expect this accounting Update to have a material impact on our Consolidated Financial Statements.

In March 2020, the FASB issued ASU

No. 2020-04

“

Reference Rate Reform (Topic 848)

”. The amendments in this Update are elective and apply to all entities, subject to meeting certain criteria, that have contracts, hedging relationship, and other transactions that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform. The amendments in this Update provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this Update are effective upon issuance and can be taken at any point in time (at the beginning of an interim period) through December 31, 2022. We do not expect this accounting Update to have a material impact on our Consolidated Financial Statements.

Subsequent Event

9 Months Ended

Mar. 26, 2020

Subsequent Events [Abstract]

Subsequent Event

Note 16 – Subsequent Event

On April 29, 2020, our Board of Directors declared a special cash dividend of $1.00 per share on all issued and outstanding shares of Common Stock and Class A Stock of the Company (the “April 2020 Dividends”). The April 2020 Dividends will be paid on June 17, 2020 to stockholders of record as of the close of business on May 27, 2020.

Revenue Recognition (Policies)

9 Months Ended

Mar. 26, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 2 – Revenue Recognition

We recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. For each customer contract, a five-step process is followed in which we identify the contract, identify performance obligations, determine the transaction price, allocate the contract transaction price to the performance obligations, and recognize the revenue when (or as) the performance obligation is transferred to the customer.

When Performance Obligations Are Satisfied

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account for revenue recognition. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The Company’s performance obligations are primarily for the delivery of raw and processed recipe and snack nuts, nut butters and trail mixes.

Our customer contracts do not include more than one performance obligation. If a contract were to contain more than one performance obligation, we are required to allocate the contract’s transaction price to each performance obligation based on its relative standalone selling price. The standalone selling price for each distinct good is generally determined by directly observable data.

Revenue recognition is generally completed at a point in time when product control is transferred to the customer. For approximately 99% of our revenues, control transfers to the customer when the product is shipped or delivered to the customer based upon applicable shipping terms, as the customer can then direct the use and obtain substantially all of the remaining benefits from the asset at that point in time. Therefore, for 99% of our revenues, the timing of revenue recognition requires little judgment.

Variable Consideration

Some of our products are sold through specific incentive programs consisting of promotional allowances, volume and customer rebates, in-store display incentives and marketing allowances, among others, to consumer and some commercial ingredient customers. The ultimate cost of these programs is dependent on certain factors such as actual purchase volumes or customer activities and is dependent on significant management estimate and judgment. The Company accounts for these programs as variable consideration and recognizes a reduction in revenue (and a corresponding reduction in the transaction price) in the same period as the underlying program based upon the terms of the specific arrangements.

Trade promotions, consisting primarily of customer pricing allowances, merchandising funds and consumer coupons, are also offered through various programs to customers and consumers. A provision for estimated trade promotions is recorded as a reduction of revenue (and a reduction in the transaction price) in the same period when the sale is recognized. Revenues are also recorded net of expected customer deductions which are provided for based upon past experiences. Evaluating these estimates requires management judgment.

We generally use the most likely amount method to determine the variable consideration. We believe there will not be significant changes to our estimates of variable consideration when any related uncertainties are resolved with our customers. The Company reviews and updates its estimates and related accruals of variable consideration and trade promotions at least quarterly based on the terms of the agreements and historical experience. Any uncertainties in the ultimate resolution of variable consideration due to factors outside of the Company’s influence are typically resolved within a short timeframe, therefore, no additional constraint on the variable consideration is required.

Contract Balances

Contract assets or liabilities result from transactions with revenue recorded over time. If the measure of remaining rights exceeds the measure of the remaining performance obligations, the Company records a contract asset. Conversely, if the measure of the remaining performance obligations exceeds the measure of the remaining rights, the Company records a contract liability. There was no contract asset balance at March 26, 2020. Contract asset balances at June 27, 2019 and March 28, 2019 were $117 and $358, respectively, and are recorded in the caption “Prepaid expenses and other current assets” on the Consolidated Balance Sheets. The Company generally does not have material deferred revenue or contract liability balances arising from transactions with customers.

Disaggregation of Revenue

Revenue disaggregated by sales channel is as follows:


	For the Quarter Ended				For the Thirty-Nine Weeks Ended
Distribution Channel	March 26, 2020		March 28, 2019		March 26, 2020		March 28, 2019
Consumer	$	158,616	$	141,761	$	503,848	$	476,683
Commercial Ingredients		30,312		32,469		101,447		101,125
Contract Packaging		22,696		27,604		70,598		81,631

Total	$	211,624	$	201,834	$	675,893	$	659,439

Revenue Recognition (Tables)

9 Months Ended

Mar. 26, 2020

Revenue from Contract with Customer [Abstract]

Summary of Revenue Disaggregated by Sales Channel

Revenue disaggregated by sales channel is as follows:


	For the Quarter Ended				For the Thirty-Nine Weeks Ended
Distribution Channel	March 26, 2020		March 28, 2019		March 26, 2020		March 28, 2019
Consumer	$	158,616	$	141,761	$	503,848	$	476,683
Commercial Ingredients		30,312		32,469		101,447		101,125
Contract Packaging		22,696		27,604		70,598		81,631

Total	$	211,624	$	201,834	$	675,893	$	659,439

Leases (Tables)

9 Months Ended

Mar. 26, 2020

Leases [Abstract]

Supplemental information related to operating lease right-of-use assets and liabilities

The following table provides supplemental information related to operating lease

right-of-use

assets and liabilities:


	March 26, 2020		Affected Line Item in Consolidated Balance Sheet
Assets
Operating lease right-of-use assets	$	4,638	Operating lease right-of-use assets

Total lease right-of-use assets	$	4,638

Liabilities
Current:
Operating leases	$	1,374	Other accrued expenses
Noncurrent:
Operating leases		3,259	Long-term operating lease liabilities

Total lease liabilities	$	4,633

Summary of company's total lease costs and other information arising from operating lease transactions

The following tables summarize the Company’s total lease costs and other information arising from operating lease transactions:


	For the Quarter Ended March 26, 2020		For the Thirty-Nine Weeks Ended March 26, 2020
Operating lease costs (a)	$	432	$	1,266
Variable lease costs (b)		16		47

Total Lease Cost	$	448	$	1,313

(a)

Includes short-term leases which are immaterial.

(b)

Variable lease costs consist of sales tax.

Supplemental cash flow and other information related to leases

Supplemental cash flow and other information related to leases was as follows:


	For the Thirty- Nine Weeks Ended March 26, 2020
Operating cash flows information:
Cash paid for amounts included in measurements for lease liabilities	$	1,163
Non-cash activity:
Right-of-use assets obtained in exchange for new operating lease obligations	$	326

Summary of other information


	March 26, 2020
Weighted Average Remaining Lease Term (in years)		3.6
Weighted Average Discount Rate		4.4	%

Summary of maturities of operating lease liabilities

Maturities of operating lease liabilities as of March 26, 2020 are as follows:


Fiscal year ending
June 25, 2020 (excluding the thirty-nine weeks ended March 26, 2020)	$	419
June 24, 2021		1,482
June 30, 2022		1,359
June 29, 2023		1,105
June 27, 2024		493
Thereafter		139

Total lease payments		4,997
Less imputed interest		(364	)

Present value of operating lease liabilities	$	4,633

Schedule of future minimum payments under non-cancelable operating leases

As the Company has not recast prior year information for its adoption of Topic 842, the following presents its future minimum lease payments for operating leases under Topic 840 on June 27, 2019:


Fiscal year ending
June 25, 2020	$	1,715
June 24, 2021		1,540
June 30, 2022		1,392
June 29, 2023		1,109
June 27, 2024		464
Thereafter		133

	$	6,353

Summary of operating lease revenue

Leasing revenue is as follows:


	For the Quarter Ended March 26, 2020		For the Thirty-Nine Weeks Ended March 26, 2020
Lease income related to lease payments	$	510	$	1,515

Undiscounted fixed lease consideration under non-cancelable tenant operating leases

The future minimum, undiscounted cash flows under

non-cancelable

tenant operating leases for each of the next five years and thereafter is presented below and is materially consistent with our previous accounting under Topic 840.


Fiscal year ending
June 25, 2020 (excluding the thirty-nine weeks ended March 26, 2020)	$	461
June 24, 2021		1,948
June 30, 2022		1,707
June 29, 2023		1,737
June 27, 2024		1,766
Thereafter		2,512

	$	10,131

Inventories (Tables)

9 Months Ended

Mar. 26, 2020

Inventory Disclosure [Abstract]

Components of Inventories

Inventories consist of the following:


	March 26, 2020		June 27, 2019		March 28, 2019
Raw material and supplies	$	87,120	$	58,927	$	84,270
Work-in-process and finished goods		101,394		98,097		94,639

Total	$	188,514	$	157,024	$	178,909

Goodwill and Intangible Assets (Tables)

9 Months Ended

Mar. 26, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Components of Identifiable Intangible Assets

Identifiable intangible assets that are subject to amortization consist of the following:


	March 26, 2020			June 27, 2019			March 28, 2019
Customer relationships	$	21,100		$	21,100		$	21,100
Brand names		16,990			16,990			16,990
Non-compete agreement		270			270			270

		38,360			38,360			38,360
Less accumulated amortization:
Customer relationships		(15,830	)		(14,466	)		(13,980	)
Brand names		(9,700	)		(9,182	)		(9,010	)
Non-compete agreement		(126	)		(86	)		(72	)

		(25,656	)		(23,734	)		(23,062	)

Net intangible assets	$	12,704		$	14,626		$	15,298

Summary of Expected Amortization Expense

Total amortization expense related to intangible assets, which is recorded within Administrative expense, was $578 and $1,922 for the quarter and thirty-nine weeks ended March 26, 2020, respectively. Amortization expense for the remainder of fiscal 2020 is expected to be approximately $579 and expected amortization expense the next five fiscal years is as follows:


Fiscal year ending
June 24, 2021	$	2,165
June 30, 2022		1,896
June 29, 2023		1,657
June 27, 2024		1,414
June 26, 2025		1,156

Earnings Per Common Share (Tables)

9 Months Ended

Mar. 26, 2020

Earnings Per Share [Abstract]

Weighted Average Shares Outstanding Used in Computing Basic and Diluted Earnings Per Share

The following table presents the reconciliation of the weighted average shares outstanding used in computing basic and diluted earnings per share:


	For the Quarter Ended				For the Thirty-Nine Weeks Ended
	March 26, 2020		March 28, 2019		March 26, 2020		March 28, 2019
Weighted average number of shares outstanding – basic		11,475,874		11,444,560		11,459,653		11,425,378
Effect of dilutive securities:
Stock options and restricted stock units		63,767		64,333		75,015		68,040

Weighted average number of shares outstanding – diluted		11,539,641		11,508,893		11,534,668		11,493,418

Summary of Anti-dilutive Awards Excluded from Computation of Diluted Earnings Per Share

The following table presents a summary of anti-dilutive awards excluded from the computation of diluted earnings per share:


	For the Quarter Ended				For the Thirty-Nine Weeks Ended
	March 26, 2020		March 28, 2019		March 26, 2020		March 28, 2019
Weighted average number of anti-dilutive awards:		28,040		—		9,347		—
Weighted average exercise price per award:	$	90.26	$	—	$	90.26	$	—

Stock-Based Compensation Plans (Tables)

9 Months Ended

Mar. 26, 2020

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of RSU Activity

The following is a summary of restricted stock unit (“RSU”) activity for the first thirty-nine weeks of fiscal 2020:


Restricted Stock Units	Shares			Weighted Average Grant Date Fair Value
Outstanding at June 27, 2019		188,992		$	46.79
Activity:
Granted		38,572			91.47
Vested (a)		(38,333	)		60.55
Forfeited		(9,347	)		63.52

Outstanding at March 26, 2020		179,884		$	52.57

Summary of Compensation Cost and Income Tax Benefit

The following table summarizes compensation expense charged to earnings for all equity compensation plans for the periods presented:


	For the Quarter Ended				For the Thirty-Nine Weeks Ended
	March 26, 2020		March 28, 2019		March 26, 2020		March 28, 2019
Stock-based compensation expense	$	702	$	521	$	2,190	$	2,037

Retirement Plan (Tables)

9 Months Ended

Mar. 26, 2020

Retirement Benefits [Abstract]

Schedule of Net Periodic Pension Cost

The components of net periodic benefit cost are as follows:


	For the Quarter Ended				For the Thirty-Nine Weeks Ended
	March 26, 2020		March 28, 2019		March 26, 2020		March 28, 2019
Service cost	$	178	$	152	$	534	$	457
Interest cost		223		224		669		671
Amortization of prior service cost		239		239		718		718
Amortization of loss		104		24		312		71

Net periodic benefit cost	$	744	$	639	$	2,233	$	1,917

Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Mar. 26, 2020

Equity [Abstract]

Changes in Accumulated Other Comprehensive Loss

The table below sets forth the changes to accumulated other comprehensive loss (“AOCL”) for the thirty-nine weeks ended March 26, 2020 and March 28, 2019.

These changes are all related to our defined benefit pension plan.


	For the Thirty-Nine Weeks Ended
Changes to AOCL (a)	March 26, 2020			March 28, 2019
Balance at beginning of period	$	(4,325	)	$	(3,181	)
Other comprehensive income before reclassifications		—			—
Amounts reclassified from accumulated other comprehensive loss		1,030			789
Tax effect		(258	)		(198	)

Net current-period other comprehensive income		772			591
Impact of adopting ASU 2018-02 (b)		(976	)		—

Balance at end of period	$	(4,529	)	$	(2,590	)

(a)	Amounts in parenthesis indicate debits/expense.

(b)	See Note 15 – “Recent Accounting Pronouncements” for additional information.

Reclassifications Out of AOCL

The reclassifications out of AOCL for the quarter and thirty-nine weeks ended March 26, 2020 and March 28, 2019 were as follows:


	For the Quarter Ended						For the Thirty-Nine Weeks Ended						Affected line item in the Consolidated Statements of Comprehensive Income
Reclassifications from AOCL to earnings (c)	March 26, 2020			March 28, 2019			March 26, 2020			March 28, 2019
Amortization of defined benefit pension items:
Unrecognized prior service cost	$	(239	)	$	(239	)	$	(718	)	$	(718	)		Other expense
Unrecognized net loss		(104	)		(24	)		(312	)		(71	)		Other expense

Total before tax		(343	)		(263	)		(1,030	)		(789	)
Tax effect		86			66			258			198			Income tax expense

Amortization of defined pension items, net of tax	$	(257	)	$	(197	)	$	(772	)	$	(591	)

(c)	Amounts in parenthesis indicate debits to expense. See Note 9 – “Retirement Plan” above for additional details.

Fair Value of Financial Instruments (Tables)

9 Months Ended

Mar. 26, 2020

Fair Value Disclosures [Abstract]

Carrying Value and Fair Value Estimate of Current and Long Term Debt

The following table summarizes the carrying value and fair value estimate of our current and long-term debt, excluding unamortized debt issuance costs:


	March 26, 2020		June 27, 2019		March 28, 2019
Carrying value of long-term debt:	$	21,918	$	27,798	$	29,253
Fair value of long-term debt:		22,946		27,720		28,872

Basis of Presentation and Description of Business - Additional Information (Detail)	9 Months Ended
	Mar. 26, 2020 Channel
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of distribution channels	3

Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Mar. 26, 2020	Jun. 27, 2019	Mar. 28, 2019
Disaggregation of Revenue [Line Items]
Contract assets	$ 0	$ 117	$ 358
Customer Concentration Risk [Member] \| Sales Revenue, Net [Member] \| Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Risk percentage	99.00%

Revenue Recognition - Summary of Revenue Disaggregated by Sales Channel (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 26, 2020	Mar. 28, 2019	Mar. 26, 2020	Mar. 28, 2019
Disaggregation of Revenue [Line Items]
Total	$ 211,624	$ 201,834	$ 675,893	$ 659,439
Consumer [Member]
Disaggregation of Revenue [Line Items]
Total	158,616	141,761	503,848	476,683
Commercial Ingredients [Member]
Disaggregation of Revenue [Line Items]
Total	30,312	32,469	101,447	101,125
Contract Packaging [Member]
Disaggregation of Revenue [Line Items]
Total	$ 22,696	$ 27,604	$ 70,598	$ 81,631

Leases - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Mar. 26, 2020	Jun. 28, 2019	Jun. 27, 2019	Mar. 28, 2019
Operating Leased Assets [Line Items]
Operating lease right-of-use assets	$ 4,638		$ 0	$ 0
Operating lease, liability	$ 4,633
Minimum [Member]
Operating Leased Assets [Line Items]
Discount rate		4.20%
Maximum [Member]
Operating Leased Assets [Line Items]
Discount rate		5.80%
Remaining lease term	5 years 2 months 12 days
Accounting Standards Update 2016-02 [Member]
Operating Leased Assets [Line Items]
Operating lease right-of-use assets		$ 5,361
Operating lease, liability		$ 5,320

Leases - Operating Lease Assets And Liabilities (Detail) - USD ($) $ in Thousands	Mar. 26, 2020	Jun. 27, 2019	Mar. 28, 2019
Assets
Operating lease right-of-use assets	$ 4,638	$ 0	$ 0
Noncurrent
Operating Lease, Liability, Noncurrent	3,259	$ 0	$ 0
Total lease liabilities	4,633
Operating LeaseRight Of UseAssets [Member]
Assets
Operating lease right-of-use assets	4,638
Other Liabilities [Member]
Current
Operating Lease, Liability, Current	1,374
Non Current Operating Lease Liabilities [Member]
Noncurrent
Operating Lease, Liability, Noncurrent	$ 3,259

Leases - LeaseCost (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
Leases - LeaseCost (Detail) - USD ($) $ in Thousands	Mar. 26, 2020	Mar. 26, 2020
Leases [Abstract]
Operating lease costs	$ 432	$ 1,266
Variable lease costs	16	47
Total Lease Cost	$ 448	$ 1,313

Leases - Operating Leases Cash Flow Related Information (Detail) $ in Thousands	9 Months Ended
	Mar. 26, 2020 USD ($)
Operating cash flows information:
Cash paid for amounts included in measurements for lease liabilities	$ 1,163
Non-cash activity:
Right of use assets obtained in exchange for new operating lease obligations	$ 326

Leases - Other Information Related to Operating Lease (Detail)	Mar. 26, 2020
Leases [Abstract]
Weighted Average Remaining Lease Term (in years)	3 years 7 months 6 days
Weighted Average Discount Rate	4.40%

Leases - Lessee Operating Lease Liability Maturity (Detail) $ in Thousands	Mar. 26, 2020 USD ($)
Leases [Abstract]
June 25, 2020 (excluding the thirty-nine weeks ended March 26, 2020)	$ 419
June 24, 2021	1,482
June 30, 2022	1,359
June 29, 2023	1,105
June 27, 2024	493
Thereafter	139
Total lease payments	4,997
Less imputed interest	(364)
Present value of operating lease liabilities	$ 4,633

Leases - Schedule of Future Minimum Rental Payments for Operating Leases (Detail) $ in Thousands	Mar. 26, 2020 USD ($)
Leases [Abstract]
June 25, 2020	$ 1,715
June 24, 2021	1,540
June 30, 2022	1,392
June 29, 2023	1,109
June 27, 2024	464
Thereafter	133
Total	$ 6,353

Leases - Operating Lease Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 26, 2020	Mar. 26, 2020
Leases [Abstract]
Lease income related to lease payments	$ 510	$ 1,515

Leases - Lessor Operating Lease Payments To Be Received Maturity (Detail) $ in Thousands	Mar. 26, 2020 USD ($)
Leases [Abstract]
June 25, 2020 (excluding the thirty-nine weeks ended March 26, 2020)	$ 461
June 24, 2021	1,948
June 30, 2022	1,707
June 29, 2023	1,737
June 27, 2024	1,766
Thereafter	2,512
Total	$ 10,131

Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands	Mar. 26, 2020	Jun. 27, 2019	Mar. 28, 2019
Inventory Disclosure [Abstract]
Raw material and supplies	$ 87,120	$ 58,927	$ 84,270
Work-in-process and finished goods	101,394	98,097	94,639
Total	$ 188,514	$ 157,024	$ 178,909

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 26, 2020	Mar. 26, 2020	Jun. 27, 2019	Mar. 28, 2019
Goodwill and Intangible Assets [Line Items]
Amortization expense for remainder of fiscal 2019	$ 579	$ 579
Goodwill related to acquisition of Squirrel Brand	9,650	9,650	$ 9,650	$ 9,650
Administrative Expenses [Member]
Goodwill and Intangible Assets [Line Items]
Amortization of intangible assets	578	1,922
Squirrel Brand [Member]
Goodwill and Intangible Assets [Line Items]
Goodwill related to acquisition of Squirrel Brand	$ 9,650	$ 9,650

Goodwill and Intangible Assets - Components of Identifiable Intangible Assets (Detail) - USD ($) $ in Thousands	Mar. 26, 2020	Jun. 27, 2019	Mar. 28, 2019
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, gross	$ 38,360	$ 38,360	$ 38,360
Less accumulated amortization:
Total accumulated amortization	(25,656)	(23,734)	(23,062)
Net intangible assets	12,704	14,626	15,298
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, gross	21,100	21,100	21,100
Less accumulated amortization:
Total accumulated amortization	(15,830)	(14,466)	(13,980)
Brand Names [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, gross	16,990	16,990	16,990
Less accumulated amortization:
Total accumulated amortization	(9,700)	(9,182)	(9,010)
Non-compete Agreement [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, gross	270	270	270
Less accumulated amortization:
Total accumulated amortization	$ (126)	$ (86)	$ (72)

Goodwill and Intangible Assets - Summary of Expected Amortization Expense (Detail) $ in Thousands	Mar. 26, 2020 USD ($)
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
June 24, 2021	$ 2,165
June 30, 2022	1,896
June 29, 2023	1,657
June 27, 2024	1,414
June 26, 2025	$ 1,156

Credit Facility - Additional Information (Detail) - Senior Secured Revolving Credit Facility [Member] - USD ($) $ in Thousands	Mar. 05, 2020	Mar. 26, 2020
Debt Instrument [Line Items]
Revolving loan commitment and letter of credit sub facility	$ 117,500	$ 117,500
Available credit under the Credit Facility		76,150
Revolver availability plus unrestricted cash	$ 15,000
Revolving credit facility covenants	revolver availability plus unrestricted cash must be equal to or greater than $15,000 and the pro forma fixed charge coverage ratio must be equal to or greater than 1.00:1.00
Revolver availability plus unrestricted cash after acquisition	$ 20,000
Outstanding letters of credit		3,175
Revolving credit facility borrowings		$ 38,175
Aggregate amount of dividends and distributions permitted	75,000
Excess availability required under the credit facility	30,000
Revolver availability plus unrestricted cash after proposed investments	20,000
Increased threshold exclusion of dividends and distributions	40,000
Incremental Revolver [Member]
Debt Instrument [Line Items]
Revolving loan commitment and letter of credit sub facility	50,000
Purchase Money and Capital Lease Basket [Member]
Debt Instrument [Line Items]
Revolving loan commitment and letter of credit sub facility	10,000
Unsecured Subordinated Indebtedness [Member]
Debt Instrument [Line Items]
Revolving loan commitment and letter of credit sub facility	10,000
Additional Unsecured Subordinated Indebtedness [Member]
Debt Instrument [Line Items]
Revolving loan commitment and letter of credit sub facility	$ 20,000

Earnings Per Common Share - Weighted Average Shares Outstanding Used in Computing Basic and Diluted Earnings Per Share (Detail) - shares	3 Months Ended		9 Months Ended
	Mar. 26, 2020	Mar. 28, 2019	Mar. 26, 2020	Mar. 28, 2019
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]
Weighted average number of shares outstanding - basic	11,475,874	11,444,560	11,459,653	11,425,378
Effect of dilutive securities:
Stock options and restricted stock units	63,767	64,333	75,015	68,040
Weighted average number of shares outstanding - diluted	11,539,641	11,508,893	11,534,668	11,493,418

Earnings Per Common Share - Summary of Anti-dilutive Awards Excluded from Computation of Diluted Earnings Per Share (Detail) - $ / shares	3 Months Ended		9 Months Ended
	Mar. 26, 2020	Mar. 28, 2019	Mar. 26, 2020	Mar. 28, 2019
Earnings Per Share [Abstract]
Weighted average number of anti-dilutive awards:	28,040	0	9,347	0
Weighted average exercise price per award:	$ 90.26	$ 0	$ 90.26	$ 0

Stock-Based Compensation Plans - Additional Information (Detail) $ in Thousands	9 Months Ended
	Mar. 26, 2020 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected weighted average recognize period of unrecognized compensation cost related to non-vested share-based compensation	1 year 6 months
Restricted stock units vested \| shares	57,871
Unrecognized compensation expense related to non-vested share-based compensation \| $	$ 4,433

Stock-Based Compensation Plans - Summary of RSU Activity (Detail)

9 Months Ended

Mar. 26, 2020

$ / shares

shares

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Outstanding beginning balance, Shares | shares

188,992

Granted, Shares | shares

38,572

Vested, Shares | shares

(38,333)

^[1]

Forfeited, Shares | shares

(9,347)

Outstanding ending balance, Shares | shares

179,884

Weighted-Average Grant-Date Fair Value, Beginning Balance | $ / shares

$ 46.79

Granted, Weighted-Average Grant-Date Fair Value | $ / shares

91.47

Vested, Weighted-Average Grant-Date Fair Value | $ / shares

60.55

^[1]

Forfeited, Weighted-Average Grant-Date Fair Value | $ / shares

63.52

Weighted-Average Grant-Date Fair Value, Ending Balance | $ / shares

$ 52.57

[1]	The number of RSUs vested includes shares that were withheld on behalf of employees to satisfy the statutory income tax withholding requirements.

Stock-Based Compensation Plans - Summary of Compensation Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 26, 2020	Mar. 28, 2019	Mar. 26, 2020	Mar. 28, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Compensation cost charged to earnings	$ 702	$ 521	$ 2,190	$ 2,037

Retirement Plan - Schedule of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 26, 2020	Mar. 28, 2019	Mar. 26, 2020	Mar. 28, 2019
Retirement Benefits [Abstract]
Service cost	$ 178	$ 152	$ 534	$ 457
Interest cost	223	224	669	671
Amortization of loss	104	24	312	71
Amortization of prior service cost	239	239	718	718
Net periodic benefit cost	$ 744	$ 639	$ 2,233	$ 1,917

Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Mar. 26, 2020

Sep. 26, 2019

Mar. 28, 2019

Mar. 26, 2020

Mar. 28, 2019

Accumulated Other Comprehensive Income (Loss) [Line Items]

Balance at beginning of period

$ (4,325)

Other comprehensive income, net of tax

$ 257

$ 197

772

$ 591

Balance at end of period

(4,529)

(2,590)

(4,529)

(2,590)

Accumulated Other Comprehensive Loss [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Balance at beginning of period

(4,325)

(3,181)

Amounts reclassified from accumulated other comprehensive loss

1,030

789

Tax effect

(258)

(198)

Other comprehensive income, net of tax

772

591

Change in Accounting Estimate [Line Items]

$ (976)

^[1]

(976)

^[2]

Balance at end of period

$ (4,529)

$ (2,590)

$ (4,529)

$ (2,590)

[1]	See Note 15 – “Recent Accounting Pronouncements” for additional information.
[2]	See Note 15 – “Recent Accounting Pronouncements” for additional information.

Accumulated Other Comprehensive Loss - Reclassifications Out of AOCL (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 26, 2020	Mar. 28, 2019	Mar. 26, 2020	Mar. 28, 2019
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Unrecognized prior service cost	$ (239)	$ (239)	$ (718)	$ (718)
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Unrecognized net loss	(104)	(24)	(312)	(71)
Amortization of Defined Benefit Pension Items [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total before tax	(343)	(263)	(1,030)	(789)
Tax effect	86	66	258	198
Amortization of defined pension items, net of tax	$ (257)	$ (197)	$ (772)	$ (591)

Fair Value of Financial Instruments - Carrying Value and Fair Value Estimate of Current and Long-Term Debt (Detail) - USD ($) $ in Thousands	Mar. 26, 2020	Jun. 27, 2019	Mar. 28, 2019
Fair Value Disclosures [Abstract]
Carrying value of long-term debt:	$ 21,918	$ 27,798	$ 29,253
Fair value of long-term debt:	$ 22,946	$ 27,720	$ 28,872

Related Party Transaction - Additional Information (Detail) - Promissory Note [Member] - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Dec. 28, 2017	Mar. 26, 2020
Purchase price financed by seller through unsecured debt	$ 11,500
Executive Officer [Member]
Interest paid to related parties		$ 127

Garysburg, North Carolina Facility - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 26, 2020	Dec. 26, 2019	Mar. 26, 2020
Fire Note [Line Items]
Clean-up cost and damage to capital assets			$ 2,000
Damage from Fire, Explosion or Other Hazard [Member]
Fire Note [Line Items]
Advance payment of insurance	$ 1,434	$ 1,500

Recent Accounting Pronouncements - Additional Information (Detail) - USD ($)
$ in Thousands

3 Months Ended

Sep. 26, 2019

Mar. 26, 2020

Jun. 28, 2019

Jun. 27, 2019

Mar. 28, 2019

Right of use assets

$ 4,638

$ 0

Lease liability

$ 4,633

Retained Earnings [Member]

Change in Accounting Estimate [Line Items]