ACCOUNTS RECEIVABLE

9 Months Ended

Feb. 28, 2012

ACCOUNTS RECEIVABLE [Abstract]

ACCOUNTS RECEIVABLE

NOTE E – ACCOUNTS RECEIVABLE

Accounts receivable – current consist of the following (in thousands):

	February 28, 2012		May 31, 2011
Rebates receivable	$	846	$	1,055
Amounts due from franchisees		2,625		2,506
Other receivables		3,471		3,970
	$	6,942	$	7,531

We negotiate purchase arrangements, including price terms, with designated and approved suppliers on behalf of us and our franchise system.  We receive various volume discounts and rebates based on purchases for our Company-owned restaurants from numerous suppliers.

Amounts due from franchisees consist of royalties, license and other miscellaneous fees, a substantial portion of which represents current and recently-invoiced billings.  Also included in this amount is the current portion of the straight-lined rent receivable from franchise sublessees.

We defer recognition of franchise fee revenue for any franchise with negative cash flows at times when the negative cash flows are deemed to be anything other than temporary and the franchise has borrowed directly from us.  We also do not recognize franchise fee revenue from franchises with fees in excess of 60 days past due.  Accordingly, we have deferred recognition of a portion of franchise revenue from certain franchisees.  Unearned income for franchise fees was $2.1 million and $1.2 million as of February 28, 2012 and May 31, 2011, respectively, which is included in Other deferred liabilities and/or Accrued liabilities – rent and other in the Condensed Consolidated Balance Sheets.

As of February 28, 2012 and May 31, 2011, other receivables consisted primarily of amounts due for third-party gift card sales ($1.0 million and $1.3 million, respectively), amounts due from our distributor for purchases of lobster ($1.0 million and $0.7 million, respectively), and amounts due relating to insurance claims ($0.6 million and $1.2 million, respectively).  See Note F to the Condensed Consolidated Financial Statements for discussion of our lobster inventory.