Note 10 - Comprehensive Income

6 Months Ended

Nov. 27, 2016

Notes to Financial Statements

Comprehensive Income (Loss) Note [Text Block]

10. Comprehensive Income

Comprehensive income consists of

two

components, net income and Other Comprehensive Income (“OCI”). OCI refers to revenue, expenses, and gains and losses that under GAAP are recorded as a component of stockholders

’ equity but are excluded from net income. The Company’s OCI consists of net deferred gains and losses on its interest rate swap derivative instrument accounted for a cash flow hedge. The components of OCI, net of tax, were as follows (in thousands):

	Unrealized Gains on Cash Flow Hedge
Balance as of August 28, 2016	$	-
Other comprehensive income before reclassifications, net of tax effect		327
Amounts reclassified from OCI		(-	)
Other comprehensive income, net		327
Balance as of November 27, 2016		327

The Company does not expect any transactions or other events to occur that would result in the reclassification of any significant gains into earnings in the next

12

months.