The Company frequently enters into purchase contracts of between to months for chocolate and certain nuts. These contracts permit the Company to purchase the specified commodity at a fixed price on an as-needed basis during the term of the contract. Because prices for these products fluctuate, the Company benefit if prices rise during the terms of these contracts, but it be required to pay above-market prices if prices fall and it is unable to renegotiate the terms of the contract. As of the Company was contracted for approximately of raw materials under such agreements. The Company has designated these contracts as normal under the normal purchase and sale exception under the accounting standards for derivatives.  These contracts are entered into for speculative purposes.

 

 

From time to time, the Company is involved in litigation relating to claims arising out of its operations. The Company records accruals for outstanding legal matters when it believes it is probable that a loss will be incurred and the amount can be reasonably estimated.  At the Company was a party to any legal proceedings that were expected, individually or in the aggregate, to have a material adverse effect on our business, financial condition or operating results.