Note J - Employee Post-employment Benefits

9 Months Ended

Mar. 03, 2015

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

NOTE J - EMPLOYEE POST-EMPLOYMENT BENEFITS

We sponsor three defined benefit pension plans for active employees and offer certain postretirement benefits for retirees. A summary of each of these is presented below.

Retirement Plan

RTI sponsors the Morrison Restaurants Inc. Retirement Plan (the “Retirement Plan”). Effective December 31, 1987, the Retirement Plan was amended so that no additional benefits would accrue and no new participants may enter the Retirement Plan after that date. Participants receive benefits based upon salary and length of service.

Minimum funding for the Retirement Plan is determined in accordance with the guidelines set forth in employee benefit and tax laws. From time to time we may contribute additional amounts as we deem appropriate. We estimate that we will be required to make contributions totaling $0.2 million to the Retirement Plan during the remainder of fiscal year 2015.

Executive Supplemental Pension Plan and Management Retirement Plan

Under these unfunded defined benefit pension plans, eligible employees earn supplemental retirement income based upon salary and length of service, reduced by social security benefits and amounts otherwise receivable under other specified Company retirement plans. Effective June 1, 2001, the Management Retirement Plan was amended so that no additional benefits would accrue and no new participants may enter the plan after that date.

Included in our Condensed Consolidated Balance Sheets as of March 3, 2015 and June 3, 2014 are amounts within Accrued liabilities: Payroll and related costs of $3.3 million as of both dates and amounts within Other deferred liabilities of $32.2 million and $32.5 million, respectively, relating to our three defined benefit pension plans.

Postretirement Medical and Life Benefits

Our Postretirement Medical and Life Benefits plans provide medical and life insurance benefits to certain retirees. The medical plan requires retiree cost sharing provisions that are more substantial for employees who retire after January 1, 1990.

The following tables detail the components of net periodic benefit costs and the amounts recognized in our Condensed Consolidated Financial Statements for the Retirement Plan, Management Retirement Plan, and the Executive Supplemental Pension Plan (collectively, the “Pension Plans”) and the Postretirement Medical and Life Benefits plans (in thousands):

	Pension Benefits
	Thirteen weeks ended						Thirty-nine weeks ended
	March 3,			March 4,			March 3,			March 4,
	2015			2014			2015			2014
Service cost	$	75		$	89		$	225		$	267
Interest cost		443			435			1,330			1,303
Expected return on plan assets		(124	)		(111	)		(373	)		(333	)
Recognized actuarial loss		430			427			1,290			1,283
Net periodic benefit cost	$	824		$	840		$	2,472		$	2,520

	Postretirement Medical and Life Benefits
	Thirteen weeks ended					Thirty-nine weeks ended
	March 3,		March 4,			March 3,		March 4,
	2015		2014			2015		2014
Service cost	$	1	$	4		$	3	$	10
Interest cost		12		16			35		50
Amortization of prior service cost (a)		-		(12	)		-		(34	)
Recognized actuarial loss		33		61			100		183
Net periodic benefit cost	$	46	$	69		$	138	$	209

(a) Prior service costs are amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits.

During the 13 and 39 weeks ended March 3, 2015 and March 4, 2014, we reclassified recognized actuarial losses and amortized prior service costs out of accumulated other comprehensive loss and into pension expense, which is included in Selling, general and administrative, net within our Condensed Consolidated Statements of Operations and Comprehensive Loss, as follows (in thousands):

	Thirteen weeks ended					Thirty-nine weeks ended
	March 3, 2015		March 4, 2014			March 3, 2015		March 4, 2014
Recognized actuarial loss	$	463	$	489		$	1,390	$	1,466
Amortization of prior service cost		-		(12	)		-		(34	)
Pension liability reclassification	$	463	$	477		$	1,390	$	1,432

The following table is a rollforward of accumulated other comprehensive loss for the 39 weeks ended March 3, 2015 (in thousands):

	Accumulated Other Comprehensive Loss
Balance at June 3, 2014	$	(10,900	)
Pension liability reclassification		1,390
Balance at March 3, 2015	$	(9,510	)

We also sponsor two defined contribution retirement savings plans. Information regarding these plans is included in our Annual Report on Form 10-K for the fiscal year ended June 3, 2014.

Executive Separations

On June 26, 2014, our then Executive Vice President, Chief Financial Officer stepped down as Chief Financial Officer and subsequently retired from the Company on August 4, 2014. Additionally, our Senior Vice President, Chief Development Officer and Senior Vice President, Chief Legal Officer and Secretary left the Company on July 24, 2014 and December 12, 2014, respectively. During the 39 weeks ended March 3, 2015, we recorded severance expense and made severance payments of $0.3 million in connection with the separation agreements for certain of these former executives.

As of March 3, 2015, liabilities of $0.2 million, representing unpaid obligations in connection with the employee separations, were included within Accrued liabilities: Payroll and related costs in our Condensed Consolidated Balance Sheet. A rollforward of our obligations in connection with employee separations is as follows (in thousands):

Balance at June 3, 2014	$	1,055
Employee severance and unused vacation accruals		1,005
Cash payments		(1,853	)
Balance at March 3, 2015	$	207

See Note L to the Condensed Consolidated Financial Statements for discussion of the impact of executive separations to our share-based employee compensation costs.