Note I - Closure and Impairments Expense

6 Months Ended

Dec. 02, 2014

Disclosure Text Block Supplement [Abstract]

Asset Impairment Charges [Text Block]

NOTE I – CLOSURES AND IMPAIRMENTS EXPENSE

Closures and impairments expense includes the following for the 13 and 26 weeks ended December 2, 2014 and December 3, 2013 (in thousands):

	Thirteen weeks ended						Twenty-six weeks ended
	December 2, 2014			December 3, 2013			December 2, 2014			December 3, 2013
Closures and impairments from continuing operations:
Property impairments	$	1,216		$	12,318		$	2,272		$	17,248
Closed restaurant lease reserves		295			1,702			761			4,297
Other closing costs		395			110			628			578
(Gain)/loss on sale of surplus properties		(831	)		13			(1,104	)		53
Closures and impairments, net	$	1,075		$	14,143		$	2,557		$	22,176
Closures and impairments from discontinued operations				$	(453	)				$	65

A rollforward of our reserve for future lease obligations associated with closed properties is as follows (in thousands):

	Reserve for Lease Obligations
Balance at June 3, 2014	$	10,873
Closing expense including rent and other lease charges		761
Payments		(2,309	)
Other		(340	)
Balance at December 2, 2014	$	8,985

The amounts comprising future lease obligations in the table above are estimated using certain assumptions, including the period of time it will take to settle the lease with the landlord or find a suitable sublease tenant, and the amount of actual future cash payments could differ from our recorded lease obligations. Of the total future lease obligations included in the table above, $8.8 million and $10.5 million are included within the Accrued liabilities – Rent and other caption in our Consolidated Balance Sheets as of December 2, 2014 and June 3, 2014, respectively. The actual amount of any cash payments made by the Company for lease contract termination costs will be dependent upon ongoing negotiations with the landlords of the leased restaurant properties.