SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Form 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Year Ended December 31, 2003
Seneca Foods Corporation Employees' Savings Plan
(Full title of the Plan)
Seneca Foods Corporation
(Name of issuer of the securities held pursuant to the Plan)
3736 South Main Street, Marion, New York 14505
(Address of principal executive office)
REQUIRED INFORMATION
1. Plan financial statements and schedules examined by an independent
accountant prepared in accordance with financial reporting requirements
of ERISA.
See accompanying index on page 3.
2. Signature
SENECA FOODS CORPORATION
EMPLOYEES' SAVINGS PLAN
REPORT ON AUDITS OF FINANCIAL STATEMENTS
AND SUPPLEMENTAL SCHEDULES
FOR THE YEARS ENDED
DECEMBER 31, 2003 AND 2002
Bobbitt, Pittenger & Company, P.A.
SENECA FOODS CORPORATION
EMPLOYEES' SAVINGS PLAN
CONTENTS
PAGE
FINANCIAL STATEMENTS
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 1
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS 2
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS 3
NOTES TO FINANCIAL STATEMENTS 4
SUPPLEMENTAL SCHEDULES
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES 9
SCHEDULE OF REPORTABLE TRANSACTIONS 10
June 18, 2004
Seneca Foods Corporation
Employees' Savings Plan
Williamsburg, New York
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We have audited the accompanying statements of net assets available for benefits
of the Seneca Foods Corporation Employees' Savings Plan ("the Plan") as of
December 31, 2003 and 2002, and the related statements of changes in net assets
available for benefits for the years then ended. These financial statements are
the responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Piublic Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as of
December 31, 2003 and 2002, and the changes in net assets available for benefits
for the years then ended in conformity with generally accepted accounting
principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules listed in the
foregoing Table of Contents is presented for the purpose of additional analysis
and is not a required part of the basic financial statements but is
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The supplemental schedules are the responsibility of the
Plan's management. The supplemental schedules have been subjected to the
auditing procedures applied in the audits of the basic financial statements and,
in our opinion, are fairly stated in all material respects when considered in
relation to the basic financial statements taken as a whole.
/s/Bobbitt, Pittenger & Company, P.A.
Certified Public Accountants
SENECA FOODS CORPORATION
EMPLOYEES' SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
December 31,
2003 2002
---- ----
ASSETS
INVESTMENTS:
At fair value:
MFS Total Return Fund A $ 7,266,908 $ 6,044,205
Seneca Foods Corporation Employer Stock Fund 6,935,546
Federated Capital Appreciation Fund A 6,225,592
First American Equity Index Fund Y 5,633,369
U.S. Bank Stable Asset Fund 5,301,586
Dreyfus International Stock Index 917,069
Strong Small Cap Value Fund 364,334
Dreyfus Mid-Cap Index Fund 329,388
First American Intermediate Term Bond Fund A 198,190
MFS Value Fund A 175,301
Massachusetts Investors Growth Fund A 119,998
Growth and Income Fund 4,551,818
Stock Index Fund 4,126,358
Stable Value Fund 4,621,127
Seneca Foods Corporation common stock 4,424,816
International Fund 572,119
Balanced Fund 268
-------------------- -----------------
Total investments 33,467,281 24,340,711
------------ ------------
LOANS RECEIVABLE 125,549 143,664
CONTRIBUTIONS RECEIVABLE
Employer 961,864 440,293
Employee 70,908 81,920
---------------- ---------------
Total contributions receivable 1,032,772 522,213
----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $34,625,602 $25,006,588
=========== ===========
See notes to the financial statements.
-2-
SENECA FOODS CORPORATION
EMPLOYEES' SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS
Year Ended December 31,
2003 2002
---- ----
ADDITIONS:
Additions to net assets attributed to:
Net appreciation (depreciation) in
fair value of investments $ 5,376,353 $ (2,892,639)
Interest and dividend income 312,835 433,968
Contributions:
Participant 4,095,554 3,836,648
Employer 972,538 477,386
-------------- --------------
Total additions 10,757,280 1,855,363
DEDUCTIONS:
Deductions from net assets attributed to:
Withdrawals by participants/other (1,138,266) (1,775,444)
-------------- -------------
NET INCREASE 9,619,014 79,919
NET ASSETS AVAILABLE FOR BENEFITS,
BEGINNING OF YEAR 25,006,588 24,926,669
------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS,
END OF YEAR $34,625,602 $25,006,588
=========== ===========
See notes to the financial statements.
-3-
SENECA FOODS CORPORATION
EMPLOYEES' SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2003 AND 2002
NOTE A - DESCRIPTION OF PLAN
The following description of Seneca Foods Corporation Employees' Savings Plan
("the Plan") provides only general information. Participants should refer to the
Plan Agreement for a more complete description of the Plan's provisions.
General
The Plan is a defined contribution plan intended to qualify as a cash or
deferred arrangement under Section 401(k) of the Internal Revenue Code.
Substantially all employees of Seneca Foods Corporation ("the Company") are
eligible to participate after completion of twelve months employment and
attainment of age twenty-one. The Plan is subject to the provisions of the
Employee Retirement Income Security Act of 1974 ("ERISA").
Effective January 1, 2003, the Plan was amended to conform to final Treasury
Department regulations governing minimum distributions.
Contributions
Participants may elect to contribute, on a pre-tax basis (elective deferrals),
from 1% to 15% of their compensation up to regulatory maximums. Participants may
also contribute amounts representing distributions from other qualified defined
benefit or contribution plans. The Company may contribute additional amounts at
the discretion of the Company's Board of Directors. During the year ended
December 31, 2003 the Company contributed fifty percent of the first four
percent of base compensation that a participant contributes to the Plan. The
Company contributions are invested directly in Seneca Foods Corporation Employer
Stock Fund and are allocated to participants based on the participants pro rata
share of total participating payroll.
Vesting
Participants are immediately vested in all elective contributions and related
earnings. Matching contributions made by the Plan sponsor fully vest after a
service period of five years.
Participant Loans
Participants may borrow from their fund accounts a minimum of $1,000 up to a
maximum equal to the lesser of $50,000 or 50 percent of their account balance.
The loans are secured by the balance in the participant's account and bear
interest at rates that range from 5 percent to 9.25 percent, which are
commensurate with local prevailing rates as determined by the Company. Principal
and interest is paid ratably through monthly payroll deductions over a period
not to exceed five years.
-4-
SENECA FOODS CORPORATION
EMPLOYEES' SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE A - DESCRIPTION OF PLAN (CONTINUED)
Payment of Benefits
After termination of service, the participant's account balance is generally
distributed in a lump sum if the balance is less than $3,500. Benefits are
recorded when paid.
Plan Termination
Although it has not expressed any intent to do so, the Company has the right
under the Plan to discontinue its contributions at any time and/or to terminate
the Plan subject to the provisions of ERISA. In the event of plan termination,
the Administrator shall determine the method of distribution of the
participants' accounts in accordance with the provisions of the plan.
Participant Accounts
Each participants' account is credited with the participants' contribution and
allocations of (a) additional Company contributions, if any, and (b) Plan
earnings. Allocations are based on participant earnings or account balances, as
defined. The benefit to which a participant is entitled is the benefit that can
be provided from the participants' vested account.
Forfeited Accounts
At December 31, 2003 forfeited nonvested accounts totaled approximately $17,000.
These accounts were used to reduce employer contributions.
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The accompanying financial statements have been prepared on the accrual basis of
accounting.
Valuation of Investments
All investments are valued at fair value as determined by quoted market prices.
Current year increases or decreases in market value are recognized as investment
appreciation or depreciation. All security transactions are recorded as of the
trade date.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of additions and deductions during the reporting period.
Actual results could differ from those estimates.
-5-
SENECA FOODS CORPORATION
EMPLOYEES' SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Payment of Benefits
Benefits are recorded when paid.
NOTE C - TAX STATUS
The Internal Revenue Service has determined and informed the Company by a letter
dated April 30, 1999, that the Plan is designed in accordance with applicable
sections of the Internal Revenue Code. The Plan has been amended since receiving
the determination letter. However, the Plan administrator and the Plan's tax
counsel believe that the plan is currently designed and being operated in
compliance with applicable requirements of the Internal Revenue Code. Therefore,
no provision for income taxes has been included in the Plan's financial
statements.
NOTE D - INVESTMENTS
The following presents investments that represent 5 percent or more of the
Plan's net assets at December 31:
2003 2002
---- ----
MFS Total Return Fund $7,266,908 $6,044,205
Seneca Foods Corporation Employer Stock Fund 6,935,546*
Federated Capital Appreciation Fund A 6,225,592
First American Equity Index Fund Y 5,633,369
U.S. Bank Stable Asset Fund 5,301,586
Growth and Income Fund 4,551,818
Stock Index Fund 4,126,358
Stable Value Fund 4,621,127
Seneca Foods Corporation common stock 4,424,816*
* Nonparticipant-directed
During 2003, the Plan's investments (including gains and losses on investments
bought and sold, as well as held during the year) appreciated in value as
follows:
Mutual funds $4,157,344
Common stock 1,219,009
----------
$5,376,353
==========
-6-
SENECA FOODS CORPORATION
EMPLOYEES' SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE E - NONPARTICIPANT-DIRECTED INVESTMENTS
Information about the net assets and the significant components of the changes
in net assets relating to the nonparticipant-directed investments is as follows:
2003 2002
---- ----
Net assets:
Seneca Foods Corporation Employer Stock Fund $6,935,546
==========
Seneca Foods Corporation common stock $4,424,816
=========
Changes in net assets:
Contributions $ 715,393 $1,015,533
Net appreciation in fair value 2,041,472 186,788
Withdrawals by participants (180,803) (54,720)
Net transfers to participant-directed investments (65,332) (284,405)
-------------- -----------
$2,510,730 $ 863,196
========== ===========
NOTE F - RECONCILIATION OF FINANCIAL STATEMENTS
TO SCHEDULE H OF FORM 5500
The Form 5500 was unavailable for review at the audit date. When it becomes
available it will be read for inconsistencies. If any inconsistencies are noted,
a reconciliation will be performed.
-7-
SUPPLEMENTAL SCHEDULES
SENECA FOODS CORPORATION
EMPLOYEES' SAVINGS PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 2003
Description of Investment
Identity of Issue, Including Maturity Date,
Borrower, Lessor Rate of Interest, Collateral, Current
or Similar Party Par or Maturity Value Cost Value
------------------- ------------------------------ ---- --------
Mutual Funds MFS Total Return Fund A $ 6,532,531 $ 7,266,908
Federated Capital Appreciation
Fund A 5,253,124 6,225,592
First American Equity Index
Fund Y 4,666,228 5,633,369
Strong Small Cap Value Fund 299,915 364,334
U.S. Bank Stable Asset Fund 5,111,639 5,301,586
Dreyfus International Stock
Index Fund 917,069 917,069
Dreyfus Mid Cap Index Fund 289,569 329,388
First American Intermediate
Term Bond Fund A 201,149 198,190
MFS Value Fund A 147,670 175,301
Massachusetts Investors
Growth Fund A 106,086 119,998
Unitized Fund Seneca Foods Corporation
Employer Stock Fund 5,143,150 6,935,546
Participant Loans Interest rates 5% - 9.25% 125,549
-9-
SENECA FOODS CORPORATION
EMPLOYEES' SAVINGS PLAN
SCHEDULE H - LINE 4J - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
CURRENT
VALUE OF
ASSET ON
PURCHASE SELLING COST OF TRANSACTION NET GAIN
DESCRIPTION OF ASSETS PRICE PRICE ASSET DATE OR (LOSS)
--------------------- ----- ----- ----- ---- ---------
CATEGORY I -
A Single Transaction in
Excess of 5 % of Plan Assets
Scudder Growth and
Income Fund, one sale $ $4,551,818 $6,724,694 $ 4,551,818 $(2,172,876)
Scudder Stock Index
Fund, one sale 4,126,358 5,764,983 4,126,358 (1,638,625)
Scudder Stable Value
Fund, one sale 4,621,127 4,602,596 4,621,127 18,531
US Bank Stable Asset
Fund, one purchase 4,621,788 4,621,788 4,621,788
First America Equity Index
Fund Y, one purchase 4,126,372 4,126,372 4,126,372
Federated Capital
Appreciation Fund A,
one purchase 4,551,810 4,551,810 4,551,810
Seneca Foods Corporation
Common Stock, one sale 4,424,816 3,851,430 4,424,816 573,386
Seneca Food Employer
Stock Fund, one
purchase 4,424,816 4,424,816 4,424,816
CATEGORY II -
A Series of Transactions
(Other Than Securities)
With Same Person
Aggregating 5% of Plan
Assets
NONE
-10-
CURRENT
VALUE OF
ASSET ON
PURCHASE SELLING COST OF TRANSACTION NET GAIN
DESCRIPTION OF ASSETS PRICE PRICE ASSET DATE OR (LOSS)
--------------------- ----- ----- ----- ---- ---------
CATEGORY III -
A Series of Transactions
in a Security Issue
Aggregating 5% of Plan Assets
US Bank Stable Asset
Fund, 82 purchases 5,699,436 5,699,436 5,699,436
First America Equity Index
Fund Y, 102 purchases 5,162,893 5,162,893 5,162,893
Federated Capital
Appreciation Fund A,
95 purchases 5,649,896 5,649,896 5,649,896
Seneca Food Employer
Stock Fund, 85 purchases 5,139,516 5,139,516 5,139,516
CATEGORY IV -
Transactions in Securities
With a Person if any Single
Transaction With That Person
was in Excess of 5% of Plan Assets
NONE
-11-
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees have duly caused this annual report to be signed on its behalf by the
undersigned thereunto duly authorized.
Seneca Foods Corporation
Employees' Savings Plan
(Name of Plan)
/s/Kraig H. Kayser
-----------------------
July 12, 2004 Kraig H. Kayser
Sponsor of Seneca Foods
Corporation Employees'
Savings Plan