NOTE A – ACCOUNTING POLICIES

A summary of the Company’s significant accounting policies consistently applied in the preparation of the accompanying Consolidated Financial Statements follows:

Description of the Business

Frisch’s Restaurants, Inc. and Subsidiaries (Company) is a regional company that operates full service family-style restaurants under the name “Frisch’s Big Boy.”All 95 Frisch's Big Boy restaurants operated by the Company as of June 2, 2015 are located in various regions of Ohio, Kentucky and Indiana. The Company owns the trademark “Frisch’s” and has exclusive, irrevocable ownership of the rights to the “Big Boy” trademark, trade name and service marks in the states of Kentucky and Indiana, and in most of Ohio and Tennessee. All of the Frisch’s Big Boy restaurants also offer “drive-thru” service. The Company also licenses 26 Frisch's Big Boy restaurants to other operators, which are located in certain parts of Ohio, Kentucky and Indiana. In addition, the Company operates a commissary and food manufacturing plant near its headquarters in Cincinnati, Ohio that services all Frisch's Big Boy restaurants operated by the Company, and is available to supply restaurants licensed to others.

Pending Agreement and Plan of Merger

On May 21, 2015, the Company entered into an Agreement and Plan of Merger with FRI Holding Company, LLC a Delaware limited liability company (Parent) and FRI Merger Sub, LLC, an Ohio limited liability company and wholly-owned subsidiary of Parent (Merger-Sub). The merger agreement was unanimously approved by the Company’s board of directors (the Board) also on that date. Under the terms of the agreement, if the merger is consummated, each outstanding share of Common Stock will be converted into the right to receive $34.00 per share, in cash, without interest. The consummation of the merger is subject to customary closing conditions, including the approval of a majority of shareholders. The merger is expected to close in the first quarter of Fiscal Year 2016, at which time, the Company will cease being an independent public company and no longer traded on the NYSE MKT or required to file periodic reports with the Securities and Exchange Commission (SEC). Both Parent and Merger Sub are wholly owned subsidiaries of NRD Partners I, L.P. (NRD). The Company has scheduled a Special Shareholder Meeting for August 24, 2015 for the purpose of obtaining shareholder approval.

Consolidation Practices

The accompanying Consolidated Financial Statements include the accounts of Frisch’s Restaurants, Inc. and all of its subsidiaries, prepared in conformity with generally accepted accounting principles in the United States of America (US GAAP) and in accordance with the rules and regulations of the SEC. Significant inter-company accounts and transactions have been eliminated in consolidation. All dollar amounts referenced in the text of these footnotes are reported in thousands.

Reclassifications

Certain amounts reported in prior years have been reclassified to conform to the current year presentation.

Immaterial Revision

The historical financial statements included in these Consolidated Financial Statements have been corrected for the errors associated with the employee theft (See NOTE M – IMMATERIAL REVISION).

NOTE A - ACCOUNTING POLICIES (continued)

Fiscal Year

The Company’s fiscal year is the 52 week (364 days) or 53 week (371 days) period ending on the Tuesday nearest to the last day of May. Fiscal Year 2015 ended on June 2, 2015 and consisted of 52 weeks. Fiscal Year 2014 ended June 3, 2014 and consisted of 53 weeks, whereas Fiscal Year 2013 ended on May 28, 2013 and consisted of 52 weeks. The fiscal year that will end on May 31, 2016 (Fiscal Year 2016) will be a normal year consisting of 52 weeks.

The first quarter of each fiscal year presented herein contained 16 weeks, while the last three quarters each contained 12 weeks, with the exception of the fourth quarter of Fiscal Year 2014, which contained 13 weeks.

Use of Estimates and Critical Accounting Policies

The preparation of financial statements in conformity with US GAAP requires management to use estimates and assumptions to measure certain items that affect the amounts reported. These judgments are based on knowledge and experience about past and current events, and assumptions about future events. Although management believes its estimates are reasonable and adequate, future events affecting them may differ markedly from current judgment. Significant estimates and assumptions are used to measure self-insurance liabilities, net periodic pension cost and future pension obligations, income taxes, the carrying values of property held for sale and for long-lived assets including property and equipment, goodwill and other intangible assets.

Management considers the following accounting policies to be critical accounting policies because the application of estimates to these policies requires management’s most difficult, subjective or complex judgments: self-insurance liabilities, net periodic pension cost and future pension obligations, income taxes and the carrying values of long-lived assets.

Cash and Cash Equivalents

Funds in transit from credit card processors are classified as cash. Highly liquid investments with original maturities of 90 days or less are considered as cash equivalents. As of June 2, 2015 and June 3, 2014, cash and cash equivalents consisted entirely of cash.

Receivables

Trade and other accounts receivable are valued net of applicable reserves. The reserve balance was $31 as of June 2, 2015 and June 3, 2014. The reserve is monitored for adequacy based on historical collection patterns and write-offs, and current credit risks.

Inventories

Inventories, comprised principally of food items, are valued at the lower of cost, determined by the first-in, first-out method, or market.

NOTE A - ACCOUNTING POLICIES (continued)

Accounting for Rebates

Cash rebates received from vendors are recorded as a reduction of cost of sales in the periods in which they are earned. Cash received in advance of the period of recognition is recorded as a liability in the Consolidated Balance Sheet.

Leases

Minimum scheduled payments on operating leases, including escalating rental payments, are recognized as rent expense on a straight-line basis over the term of the lease. Under certain circumstances, the lease term used to calculate straight-line rent expense includes option periods that have yet to be legally exercised. Contingent rentals, typically based on a percentage of restaurant sales in excess of a fixed amount, are expensed as incurred. Rent expense is also recognized during that part of the lease term when no rent is paid to the landlord, often referred to as a “rent holiday,” that generally occurs while a restaurant is being constructed on leased land. The Company does not typically receive leasehold incentives from landlords (See NOTE D – LEASED PROPERTY).

Property and Equipment

Property and equipment are stated at cost (see NOTE C - PROPERTY AND EQUIPMENT). Depreciation is provided principally on the straight-line method over the estimated service lives, which range from 10 to 25 years for new buildings or components thereof and five to 10 years for equipment. Leasehold improvements are depreciated over the shorter of the useful life of the asset or the lease term. Property betterments are capitalized while the cost of maintenance and repairs is expensed as incurred.

The cost of land not yet in service is included in “Construction in progress” if construction has begun or if construction is likely within the next 12 months. Construction in progress as of June 2, 2015 and June 3, 2014 is comprised principally of remodeling work that was at various stages of completion in existing restaurants.

Interest on borrowings is capitalized during active construction periods of new restaurants. Capitalized interest for Fiscal Years 2014 and 2013 was $26 and $14, respectively. There were no active construction projects that required capitalized interest during Fiscal Year 2015.

Costs incurred during the application development stage of computer software that is developed or obtained for internal use is capitalized, while the costs of the preliminary project stage are expensed as incurred, along with certain other costs such as training. Capitalized computer software is amortized on the straight-line method over the estimated service lives, which range from three to 10 years. Software assets are reviewed for impairment when events or circumstances indicate that the carrying value may not be recoverable over the remaining service life.

Impairment of Long-Lived Assets

Management considers a history of cash flow losses on a restaurant-by-restaurant basis to be its primary indicator of potential impairment of long-lived assets. Carrying values are tested for impairment at least annually, and whenever

events or changes in circumstances indicate that the carrying values of the assets may not be recoverable from the estimated future cash flows expected to result from the use and eventual disposition of the property. When undiscounted expected future cash flows are less than carrying values, an impairment loss would be recognized

NOTE A - ACCOUNTING POLICIES (continued)

equal to the amount by which the carrying values exceed fair value, which is determined as either 1) the greater of the net present value of the future cash flow stream, or 2) by opinions of value provided by real estate brokers and/or

management's judgment as developed through its experience in disposing of unprofitable restaurant operations. Broker opinions of value and the judgment of management consider various factors in their fair value estimates such as the sales of comparable area properties, general economic conditions in the area, physical condition and location of the subject property, and general real estate activity in the area.

When decisions are made to permanently close under-performing restaurants, the carrying values of closed restaurant properties that are owned in fee simple title are reclassified to "Property held for sale" (see Real Property Not Used in Operations elsewhere in NOTE A – ACCOUNTING POLICIES) and are subjected to the accounting policy for impairment of long-lived assets (see the above discussion). When leased restaurant properties are permanently closed before reaching the end of their lease term and there is no immediate assignment of the lease to a third party, an impairment provision is made equal to the present value of remaining non-cancelable lease payments after the closing date, net of estimated subtenant income. The carrying values of leasehold improvements are also reduced, if necessary, in accordance with the accounting policy for impairment of long-lived assets.

In Fiscal Year 2015, three impairment charges totaling $653 were recorded to lower the estimated fair value of Property held for sale. The impairment charges reduced the fair value of two former Golden Corral restaurants held for sale since 2011, which are located in Lawrenceburg, Indiana and Medina, Ohio which were lowered by $23 and $212, respectively. The third impairment charge was for $418, which was recorded to lower the previous estimate of the fair value of on an undeveloped land parcel, which has been for sale for several years. There were no non-cash pretax impairments of long-lived assets charges recorded during Fiscal Year 2014. Fair value measurements recorded under level 2 (observable inputs) of the fair value hierarchy are based on accepted sales contracts. Fair value measurements recorded under level 3 (significant unobservable inputs) are generally based on brokers' opinions of value and/or management's judgment:

	Fair Value Measurements Using
	(in thousands)
	Level 1		Level 2		Level 3		Gains (Losses)
Fiscal Year 2015
Impairment on undeveloped property held for sale	$	—	$	—	$	799	$	(418)
Former Golden Corral restaurants (closed August 2011) (2 units)	$	—	$	799	$	917	$	(235)

Fiscal Year 2014
Former Golden Corral restaurants (closed August 2011) (2 units)	$	—	$	—	$	1,950	$	—

Fiscal Year 2013
Former Frisch's Big Boy restaurants (3 units)	$	—	$	1,795	$	—	$	(179)
Former Golden Corral restaurants (closed August 2011) (3 units)	$	—	$	—	$	2,844	$	(211)

NOTE A - ACCOUNTING POLICIES (continued)

Restaurant Closing Costs

Any liabilities associated with exit or disposal activities are recognized only when the liabilities are incurred, rather than upon the commitment to an exit or disposal plan. Conditional obligations that meet the definition of an asset retirement obligation are currently recognized if fair value is reasonably estimable. No conditional obligations meeting the definition of an asset retirement obligation have been recorded in these Consolidated Financial Statements.

Property Not Used in Operations

The cost of land on which construction is not likely within the next 12 months is classified as "Land - deferred development". Surplus property that is no longer needed by the Company and for which the Company is committed to a plan to sell the property is classified as "Property held for sale". Both classes of property are grouped together under the caption "Real property not used in operations" in other long-term assets in the Consolidated Balance Sheet, as shown below:


	Fiscal Year
	2015		2014

	(in thousands)

Land - deferred development	$	2,799	$	2,861
Property held for sale		3,230		3,883
Total Property not used in operations	$	6,029	$	6,744

As of June 2, 2015 and June 3, 2014, “Land – deferred development” consisted of five tracts of land that are being held for potential future development. As of June 2, 2015 and June 3, 2014, “Property held for sale” consisted of two Golden Corral restaurants with carrying values of, $1,716 and $1,950, respectively and seven other surplus pieces of land with aggregate carrying values of $1,514 and $1,933, respectively.

All of the "Property held for sale" is stated at the lower of its cost or its fair value, less cost to sell, which is reviewed each quarter (see Impairment of Long-Lived Assets elsewhere in NOTE A – ACCOUNTING POLICIES). The stated value of any property for which a viable sales contract is pending at the balance sheet date is reclassified to current assets.

Gains and losses on the sale of assets, as reported in the Consolidated Statement of Earnings, consist of transactions involving real property and sometimes may include restaurant equipment that is sold together with real property as a package when former restaurants are sold. Gains and losses reported on this line do not include abandonment losses that routinely arise when certain equipment is replaced before it reaches the end of its expected life; abandonment losses are instead reported in other operating costs.

Goodwill and Other Intangible Assets

As of June 2, 2015 and June 3, 2014, the carrying amount of goodwill that was acquired in prior years amounted to $741. Acquired goodwill is tested for impairment in the fourth quarter of each fiscal year and whenever an impairment indicator arises. Impairment testing first assesses qualitative factors to determine whether it is necessary

NOTE A - ACCOUNTING POLICIES (continued)

to perform the two-step quantitative goodwill impairment test. Fair value is not calculated unless the qualitative assessment determines that it is more likely than not that its fair value is less than its carrying amount. Other intangible assets are also tested for impairment in the fourth quarter of each fiscal year and whenever an impairment indicator arises.

Goodwill and Other Intangible Assets consists of:


	Fiscal Year
	2015		2014

	(in thousands)

Goodwill	$	741	$	741
Other intangible assets not subject to amortization		22		22
Other intangible assets subject to amortization - net		7		10
Total goodwill and other intangible assets	$	770	$	773

Revenue Recognition

Revenue from restaurant operations is recognized upon the sale of products as they are sold to customers. All sales revenue is recorded on a net basis, which excludes sales tax collected from being reported as sales revenue and sales tax remitted from being reported as a cost. Receipts from sales of coupon books associated with seasonal promotions are de minimis, which are recorded as contra costs of sales.

Revenue from the sale of commissary products to restaurants licensed to other operators is recognized upon delivery of product. Revenue from franchise fees, based on certain percentages of sales volumes generated in restaurants licensed to other operators, is recorded on the accrual method as earned. Initial franchise fees are recognized as revenue when the fees are deemed fully earned and non-refundable, which ordinarily occurs upon the execution of the license agreement, in consideration for the Company’s services to that time.

Revenue from the sale of gift cards is deferred for recognition until the gift card is redeemed by the cardholder, or when the probability becomes remote that the cardholder will demand full performance by the Company and there is no legal obligation to remit the value of the unredeemed card under applicable state escheatment statutes.

Advertising

Advertising costs are charged to “Administrative and advertising” expense as incurred. Advertising expense for Fiscal Years 2015, 2014 and 2013 was $4,979, $4,931 and $4,855, respectively. Restaurants licensed to other operators are required to make contributions to the Company's general advertising fund. The advertising costs cited above have been offset by the contributions of licensees.

New Store Opening Costs

New store opening costs consist of new employee training costs, the cost of a team to coordinate the opening and the cost of certain replaceable items such as uniforms and china. New store opening costs are charged to “Other

NOTE A - ACCOUNTING POLICIES (continued)

operating costs” as incurred. New store opening costs for Fiscal Years 2014 and 2013 were $307 and $592, respectively. There were no new stores opened during Fiscal Year 2015.

Benefit Plans

The Company sponsors the Frisch's Restaurants, Inc. Pension Plan, a defined benefit pension plan that was created on May 29, 2012 when two previously sponsored plans were merged: the Pension Plan for Operating Unit Hourly Employees (the Hourly Pension Plan) and the Pension Plan for Managers, Office and Commissary Employees (the Salaried Pension Plan). (See NOTE H - PENSION PLANS.) The merger did not affect plan benefits, but lower administrative costs have been realized.

Plan benefits are based on years-of-service and other factors. The Company’s funding policy is to contribute at least the minimum annual amount sufficient to satisfy legal funding requirements plus additional discretionary tax deductible amounts that may be deemed advisable, even when no minimum funding is required. Contributions are intended to provide not only for benefits attributed to service-to-date, but also for those expected to be earned in the future.

Hourly Restaurant Employees - Hourly restaurant employees hired after December 31, 1998 are ineligible for pension plan participation. Future accruals for credited service after August 31, 2009 have been frozen for hourly restaurant employees who were hired on or before December 31, 1998. Hourly restaurant employees hired January 1, 1999 or after have been eligible to participate in the Frisch’s Restaurants, Inc. Hourly Employees 401(k) Savings Plan (the Hourly Savings Plan), a defined contribution plan. In earlier years, the Hourly Savings Plan had provided a 40 percent match by the Company on the first 10 percent of earnings deferred by the participants and the Company’s match had vested on a scale based on length of service that reached 100 percent after four years of service. The Hourly Savings Plan was amended effective September 1, 2009 to provide for immediate vesting along

with a 100 percent match from the Company on the first 3 percent of earnings deferred by participants. All hourly restaurant employees are now eligible to participate in the Hourly Savings Plan, regardless of when hired.

Salaried Restaurant Management, Office and Commissary Employees - Salaried employees hired after June 30, 2009 are ineligible for pension plan participation. Salaried employees hired on or before June 30, 2009 continue to participate and are credited with normal benefits for years of service. Salaried employees are automatically enrolled, unless otherwise elected, in the Frisch’s Employee 401(k) Savings Plan (the Salaried Savings Plan), a defined contribution plan. The Salaried Savings Plan provides immediate vesting under two different Company matching schedules. Employees hired before June 30, 2009 may continue to defer up to 25 percent of their compensation under the Salaried Savings Plan, with the Company contributing a 10 percent match on the first 18 percent deferred. Salaried employees hired after June 30, 2009 receive a 100 percent match from the Company on the first 3 percent of compensation deferred.

The executive officers of the Company and certain other “highly compensated employees” (HCEs) are disqualified from participation in the Salaried Savings Plan. A non-qualified savings plan - Frisch’s Executive Savings Plan (FESP) - provides a means by which the HCEs may continue to defer a portion of their compensation. FESP allows deferrals of up to 25 percent of a participant’s compensation into a choice of mutual funds or common stock of the Company. Matching contributions are added to the first 10 percent of salary deferred at a rate of 10 percent for deferrals into mutual funds, while a 15 percent match is added to deferrals into the Company’s common stock. HCEs hired after June 30, 2009 receive a 100 percent matching contribution from the Company on the first 3

NOTE A - ACCOUNTING POLICIES (continued)

percent of compensation deferred into either mutual funds or common stock. (See NOTE I - FRISCH'S EXECUTIVE SAVINGS PLAN.)

The Company also sponsors an unfunded non-qualified Supplemental Executive Retirement Plan (SERP) that was originally intended to provide a supplemental retirement benefit to the HCEs whose benefits under the Salaried Pension Plan were reduced when their compensation exceeded Internal Revenue Code imposed limitations or when elective salary deferrals were made to FESP. Amendments to the SERP were made on January 1, 2000 to exclude any benefit accruals after December 31, 1999 (interest continues to accrue) and to close entry into the Plan by any HCE hired after December 31, 1999. (See NOTE H - PENSION PLANS .)

Effective January 1, 2000 a Non Deferred Cash Balance Plan was adopted to provide comparable retirement type benefits to the HCEs in lieu of future accruals under the qualified defined benefit plan and the SERP. The comparable benefit amount is determined each year and converted to a lump sum (reported as W-2 compensation) from which taxes are withheld and the net amount is deposited into the HCE’s individual trust account. In addition, accruals are made for additional required contributions that are due when the present value of lost benefits under the qualified defined benefit plan and the SERP exceeds the value of the assets in the HCE's trust account when a participating HCE retires or is otherwise separated from service with the Company. (See NOTE H - PENSION PLANS.)

Self Insurance

The Company self-insures its Ohio workers’ compensation claims (up to $300 per claim through June 3, 2014, which was increased to $400 per claim beginning June 4, 2014 - the first day of Fiscal Year 2015). Based on prior

claims history, initial self-insurance liabilities are accrued each fiscal year from forward estimates, which are provided by an actuarial consulting firm, of the ultimate value of claims to be incurred during that fiscal year. The same actuarial consulting firm also provides an independent estimate each year of the Company's required loss and allocated loss adjustment expense for any accidents since the inception of the program, which remain open on the date of the actuarial consulting firm's assessment. The self-insurance program is subject to a two year cycle. The program continues to benefit from active claims management and post accident drug testing.

Income Taxes

Income taxes are provided on all items included in the Consolidated Statement of Earnings regardless of when such items are reported for tax purposes, which gives rise to deferred income tax assets and liabilities. (See NOTE F – INCOME TAXES.)

Fair Value of Financial Instruments

The Company’s financial instruments consist primarily of cash and cash equivalents, accounts payable and accounts receivable, investments and long-term debt. The carrying values of cash and cash equivalents together with accounts payable and accounts receivable approximate their fair value based on their short-term character. The fair value of investments held as part of FESP (see Benefit Plans elsewhere in NOTE A – ACCOUNTING POLICIES) is disclosed in NOTE I- FRISCH'S EXECUTIVE SAVINGS PLAN. Fair value measurements for non-financial assets and non-financial liabilities are used primarily in the impairment analyses of long-lived assets, goodwill and other intangible assets. The Company does not use derivative financial instruments.

NOTE A - ACCOUNTING POLICIES (continued)

Recently Adopted Accounting Pronouncements

In July 2013, The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Carryforward Exists.” The Company adopted ASU 2013-11 in the first quarter of Fiscal Year 2015. The adoption of this standard did not have a significant impact on these Consolidated Financial Statements.

In April 2014, the FASB issued Accounting Standards Update 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” (ASU 2014-08). ASU 2014-08 includes amendments that change the requirements for reporting discontinued operations and requires additional disclosures about discontinued operations. Under ASU 2014-08, only disposals representing a strategic shift in operations should be presented as discontinued operations. ASU 2014-08 was effective June 4, 2014, the first day of Fiscal Year 2015. The adoption of this standard did not have a significant impact on these Consolidated Financial Statements.

In May 2015, FASB issued Accounting Standards Update 2015-08, “Pushdown Accounting - Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115,” (ASU 2015-08). The amendments in ASU 2015-08 amend various SEC paragraphs included in the FASB’s Accounting Standards Codification to reflect the issuance of Staff Accounting Bulletin No. 115, or SAB 115. SAB 115 rescinds portions of the interpretive guidance included in the SEC’s Staff Accounting Bulletins series and brings existing guidance into conformity with ASU No. 2014-17, Business Combinations (Topic 805): Pushdown Accounting, which provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. The Company adopted the amendments in ASU 2015-08, effective May 8, 2015, as the amendments in the update are effective upon issuance. The adoption did not have an immediate impact on these Consolidated Financial Statements.

Recently Issued Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers”, (ASU 2014-09) as a new Topic, ASC Topic 606. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In April 2015, the FASB voted to propose deferral of the effective date of the new revenue standard by one year, but to permit entities to adopt one year earlier if they choose. The deferral was approved on July 9, 2015 by the FASB. The Company will be required to adopt the new standard in Fiscal Year 2019 (May 30, 2018) and can adopt either retrospectively or as a cumulative effect adjustment as of the date of adoption. This new accounting guidance is currently being evaluated for its potential effect upon the Company’s results of operations, cash flows and financial position.

In January 2015, the FASB issued Accounting Standards Update 2015-01 “Income Statement—Extraordinary and Unusual Items” (ASU 2015-01). ASU 2015-01 eliminates from GAAP the concept of extraordinary items. ASU 2015-01 will be effective for Fiscal Year 2017 beginning, June 1, 2016 with early adoption permitted. The adoption of ASU 2015-01 is not expected to have a material impact on theses Consolidated Financial Statements.

NOTE A - ACCOUNTING POLICIES (continued)

In April 2015, the FASB issued Accounting Standards Update No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs," (ASU 2015-03). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The adoption of ASU 2015-03 will be effective for Fiscal Year 2017 beginning June 1, 2016 and is not expected to have a material impact on the Company’s Consolidated Financial Statements.

In April 2015, the FASB issued Accounting Standards Update No. 2015-04, "Compensation – Retirement Benefits - Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets," (ASU 2015-04). ASU 2015-04 provides the use of a practical expedient that permits the entity to measure defined benefit plans assets and obligations using the month-end that is closest to the entity's fiscal year-end and apply that practical expedient consistently from year to year. Further, if a contribution or significant event occurs between the month-end date used to measure defined benefit plan asset and obligations and an entity's fiscal year-end, the entity should adjust the measurement of defined plan assets and obligations to reflect of those contributions of significant events. However, an entity should not adjust the measurement of defined benefit plan asset and obligations for other events that occur between the month-end measurement and the entity's fiscal year-end that are not caused by the entity. The Company does not anticipate that the adoption of this standard will have a material impact on the Company’s Consolidated Financial Statements.

In April 2015, the FASB issued Accounting Standards Update No. 2015-05, "Customer's Accounting for Fees Paid in a Cloud Computing Arrangement," (ASU 2015-05). ASU 2015-05 provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change GAAP for a customer's accounting for service contracts. The adoption of ASU 2015-03 will be effective for Fiscal Year 2017 beginning June 1, 2016 and is not expected to have a material impact on the Company’s Consolidated Financial Statements.

Management reviewed all other significant newly issued accounting pronouncements and concluded that they are either not applicable to the Company’s business or that no material effect is expected on the Consolidated Financial Statements as a result of future adoption.