Commitments and Contingencies	12 Months Ended
Jun. 02, 2015
Commitments and Contingencies
Commitments and Contingencies	NOTE L – COMMITMENTS AND CONTINGENCIES Commitments In the ordinary course of business, purchase commitments are entered into with certain of the Company’s suppliers. Most of these agreements are typically for periods of one year or less in duration; however, longer term agreements are also in place. Future minimum payments under these arrangements are $14,145, $6,701, $3,972, $3,645, $4,698, and $8,808 respectively, for Fiscal Years 2016, 2017, 2018, 2019, 2020 and later years. These agreements are intended to secure favorable pricing while ensuring availability of desirable products. Management does not believe such agreements expose the Company to any significant risk. Litigation General Employees, customers and other parties bring various claims and suits against the Company from time to time in the ordinary course of business. Claims made by employees are subject to workers' compensation insurance or are covered generally by employment practices liability insurance. Claims made by customers are covered by general and product liability insurance. Exposure to loss contingencies from pending or threatened litigation is continually NOTE L – COMMITMENTS AND CONTINGENCIES (continued) monitored by management, which believes presently that the resolution of claims outstanding as of June 2, 2015, whether covered by insurance or not, will not result in a material adverse effect upon the Company's earnings, cash flows or financial position. Management believes presently that adequate provisions for expected losses not covered by insurance are included in the Consolidated Financial Statements. Employee Harassment Suit On October 16, 2012, a former employee (plaintiff) filed a complaint asserting various claims including negligence and intentional infliction of emotional distress, stemming from the plaintiff's employment in 1995. With the exception of the negligence claim, all claims were dismissed by the Court as a result of the Motion to Dismiss, filed by the Company on November 13, 2012. In August 2013, the plaintiff's complaint was amended to include claims of sexual harassment and a hostile work environment. Following discovery, the Company moved for summary judgment on all remaining counts. The Court heard oral arguments and entertained supplemental briefings. On July 9, 2015, the Court granted the Company’s Motion for Summary Judgment in its entirety and all claims were dismissed. The plaintiff filed a Notice of Appeal on July 17, 2015. The Company continues to deny all allegations and will continue to defend the matter vigorously; however, the ultimate outcome of the lawsuit remains uncertain. Defalcation Suit As discussed in detail in NOTE M – IMMATERIAL REVISION below, during the Third Quarter Fiscal 2015, the Company identified that a former officer had embezzled approximately $3,900 over a multi-year period and on January 20, 2015, the Company disclosed in a Current Report on Form 8-K that it had filed a civil lawsuit against the former officer for defrauding the Company and embezzlement. Since identification of the theft during the Third Quarter Fiscal 2015, the Company incurred $1,871 in forensic, legal and professional fees investigating the theft. The Company does not expect that it will incur significant future legal, accounting and professional service expenses defining the extent of the theft and determining any recovery options that exist. The Company will recognize these expenses in future periods as services are received. During the Fourth Quarter Fiscal 2015, the Company recorded insurance proceeds of $505 under its crime insurance policy. Other Contingencies Subject to a two year cycle, the Company self-insures a significant portion of expected losses under its workers’ compensation program in the state of Ohio. Insurance coverage is purchased from an insurance company for individual claims that may exceed $400 (the retention was $300 in periods prior to June 4, 2014). (See Self Insurance in NOTE A – ACCOUNTING POLICIES.) Insurance coverage is maintained for various levels of casualty and general and product liability. Outstanding letters of credit maintained by the Company totaled $100 as of June 2, 2015. As of June 2, 2015, the Company operated 15 restaurants on non-owned properties. (See NOTE D - LEASED PROPERTY.) One of the leases provides for contingent rental payments based on a percentage of the leased restaurant’s sales in excess of a fixed amount. The Company remains contingently liable under certain ground lease agreements relating to land on which seven of the Company's former Golden Corral restaurant operations are situated. The seven restaurant operations were sold to Golden Corral Corporation (GCC) in May 2012, at which time the seven operating leases were simultaneously NOTE L – COMMITMENTS AND CONTINGENCIES (continued) assigned to GCC, with the Company contingently liable in the event of default by GCC. The amount remaining under contingent lease obligations totaled $5,692 as of June 2, 2015, for which the aggregate average annual lease payments approximate $680 in each of the next five years. The Company is also contingently liable for the performance of a certain ground lease that was assigned to a third party in 2000; the annual obligation of the lease approximates $48 through 2020. Since management has no reason to believe that either of these third party assignees are likely to default, no provision has been made in the Consolidated Financial Statements for amounts that would be payable by the Company. In addition, the Company generally retains the right to re-assign the leases in the event of a third party’s default.

NOTE L – COMMITMENTS AND CONTINGENCIES

Commitments

In the ordinary course of business, purchase commitments are entered into with certain of the Company’s suppliers. Most of these agreements are typically for periods of one year or less in duration; however, longer term agreements are also in place. Future minimum payments under these arrangements are $14,145, $6,701, $3,972, $3,645, $4,698, and $8,808 respectively, for Fiscal Years 2016, 2017, 2018, 2019, 2020 and later years. These agreements are intended to secure favorable pricing while ensuring availability of desirable products. Management does not believe such agreements expose the Company to any significant risk.

Litigation

General

Employees, customers and other parties bring various claims and suits against the Company from time to time in the ordinary course of business. Claims made by employees are subject to workers' compensation insurance or are covered generally by employment practices liability insurance. Claims made by customers are covered by general and product liability insurance. Exposure to loss contingencies from pending or threatened litigation is continually

NOTE L – COMMITMENTS AND CONTINGENCIES (continued)

monitored by management, which believes presently that the resolution of claims outstanding as of June 2, 2015, whether covered by insurance or not, will not result in a material adverse effect upon the Company's earnings, cash flows or financial position. Management believes presently that adequate provisions for expected losses not covered by insurance are included in the Consolidated Financial Statements.

Employee Harassment Suit

On October 16, 2012, a former employee (plaintiff) filed a complaint asserting various claims including negligence and intentional infliction of emotional distress, stemming from the plaintiff's employment in 1995. With the exception of the negligence claim, all claims were dismissed by the Court as a result of the Motion to Dismiss, filed by the Company on November 13, 2012. In August 2013, the plaintiff's complaint was amended to include claims of sexual harassment and a hostile work environment. Following discovery, the Company moved for summary judgment on all remaining counts. The Court heard oral arguments and entertained supplemental briefings. On July 9, 2015, the Court granted the Company’s Motion for Summary Judgment in its entirety and all claims were dismissed. The plaintiff filed a Notice of Appeal on July 17, 2015. The Company continues to deny all allegations and will continue to defend the matter vigorously; however, the ultimate outcome of the lawsuit remains uncertain.

Defalcation Suit

As discussed in detail in NOTE M – IMMATERIAL REVISION below, during the Third Quarter Fiscal 2015, the Company identified that a former officer had embezzled approximately $3,900 over a multi-year period and on January 20, 2015, the Company disclosed in a Current Report on Form 8-K that it had filed a civil lawsuit against the former officer for defrauding the Company and embezzlement. Since identification of the theft during the Third Quarter Fiscal 2015, the Company incurred $1,871 in forensic, legal and professional fees investigating the theft. The Company does not expect that it will incur significant future legal, accounting and professional service expenses defining the extent of the theft and determining any recovery options that exist. The Company will recognize these expenses in future periods as services are received. During the Fourth Quarter Fiscal 2015, the Company recorded insurance proceeds of $505 under its crime insurance policy.

Other Contingencies

Subject to a two year cycle, the Company self-insures a significant portion of expected losses under its workers’ compensation program in the state of Ohio. Insurance coverage is purchased from an insurance company for individual claims that may exceed $400 (the retention was $300 in periods prior to June 4, 2014). (See Self Insurance in NOTE A – ACCOUNTING POLICIES.) Insurance coverage is maintained for various levels of casualty and general and product liability.

Outstanding letters of credit maintained by the Company totaled $100 as of June 2, 2015.

As of June 2, 2015, the Company operated 15 restaurants on non-owned properties. (See NOTE D - LEASED PROPERTY.) One of the leases provides for contingent rental payments based on a percentage of the leased restaurant’s sales in excess of a fixed amount.

The Company remains contingently liable under certain ground lease agreements relating to land on which seven of the Company's former Golden Corral restaurant operations are situated. The seven restaurant operations were sold to Golden Corral Corporation (GCC) in May 2012, at which time the seven operating leases were simultaneously

NOTE L – COMMITMENTS AND CONTINGENCIES (continued)

assigned to GCC, with the Company contingently liable in the event of default by GCC. The amount remaining under contingent lease obligations totaled $5,692 as of June 2, 2015, for which the aggregate average annual lease payments approximate $680 in each of the next five years. The Company is also contingently liable for the performance of a certain ground lease that was assigned to a third party in 2000; the annual obligation of the lease approximates $48 through 2020.

Since management has no reason to believe that either of these third party assignees are likely to default, no provision has been made in the Consolidated Financial Statements for amounts that would be payable by the Company. In addition, the Company generally retains the right to re-assign the leases in the event of a third party’s default.