Note 5 - Property, Equipment, and Assets Held for Sale

3 Months Ended

Aug. 30, 2016

Property, Plant and Equipment Disclosure [Text Block]

5. Property, Equipment, and Assets Held for Sale

Property and equipment, net, is comprised of the following (in thousands):

	August 30, 2016		May 31, 2016
Land	$	182,829	$	209,930
Buildings		381,496		398,984
Improvements		294,500		303,032
Restaurant equipment		216,542		222,646
Other equipment		80,026		82,204
Surplus properties*		37,302		4,354
Construction in progress and other		2,239		3,325
		1,194,93 4		1,224,475
Less accumulated depreciation		543,157		553,225
Property and equipment, net	$	651,777	$	671,250

* Surplus properties represent assets held for sale that are not classified as such in the Consolidated Balance Sheets as we

have yet to conclude that we can sell these assets within the next 12 months. These assets primarily consist of parcels of land upon which we have no intention to build restaurants, closed properties which include a building, and liquor licenses not needed for operations.

Included within the current assets section of our

Condensed Consolidated Balance Sheets at August 30, 2016 and May 31, 2016 are amounts classified as assets held for sale totaling $11.8 million and $4.6 million, respectively. Assets held for sale primarily consist of parcels of land upon which we have no intention to build restaurants, land and buildings of closed restaurants, and various liquor licenses. During the 13 weeks ended August 30, 2016 and September 1, 2015, we sold surplus properties with carrying values that were negligible and $2.1 million, respectively, at net gains of $0.1 million and $0.6 million, respectively. Cash proceeds, net of broker fees, from these sales totaled $0.1 million and $2.7 million for the 13 weeks ended August 30, 2016 and September 1, 2015, respectively.