Note I - Closure and Impairments Expense

9 Months Ended

Mar. 03, 2015

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 39 weeks ended March 3, 2015 and March 4, 2014 (in thousands):

	Thirteen weeks ended						Thirty-nine weeks ended
	March 3, 2015			March 4, 2014			March 3, 2015			March 4, 2014
Closures and impairments from continuing operations:
Property impairments	$	3,578		$	2,908		$	5,850		$	20,156
Closed restaurant lease reserves		380			257			1,141			4,554
Other closing costs		277			983			905			1,561
Gain on sale of surplus properties		(244	)		(377	)		(1,348	)		(324	)
Closures and impairments, net	$	3,991		$	3,771		$	6,548		$	25,947
Closures and impairments from discontinued operations				$	(77	)				$	(12	)

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		1,141
Payments		(3,682	)
Other		(498	)
Balance at March 3, 2015	$	7,834

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, $7.7 million and $10.5 million are included within the Accrued liabilities - Rent and other caption in our Consolidated Balance Sheets as of March 3, 2015 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.