Note 1 - Basis of Presentation

6 Months Ended

Feb. 12, 2014

Disclosure Text Block [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1. Basis of Presentation

The accompanying unaudited consolidated financial statements of Luby’s, Inc. (the “Company” or “Luby’s”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements that are prepared for the Company’s Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the quarter ended February 12, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending August 27, 2014.

The consolidated balance sheet dated August 28, 2013, included in this Form 10-Q, has been derived from the audited consolidated financial statements at that date. However, this Form 10-Q does not include all of the information and footnotes required by GAAP for an annual filing of complete financial statements. Therefore, these financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the fiscal year ended August 28, 2013.

The results of operations, assets and liabilities for all units included in the Company’s disposal plans discussed in Note 8 have been reclassified to discontinued operations in the statements of operations and balance sheets for all periods presented. All prior period corrections, discussed below, have been reflected in the statements of operations, statement of shareholders equity, statements of cash flows and balance sheets.

Correction of Immaterial Errors in Previously Issued Financial Statements

In the second quarter of fiscal 2014, we identified accounting errors in prepaid assets and payroll related liabilities. The Company did not expense amounts related to these accounts properly in the appropriate prior periods. The errors impacted all prior reporting periods beginning in 2007. While these errors were not material to any previously issued annual or quarterly consolidated financial statements, management concluded that correcting the cumulative errors and related tax effects would be material to consolidated financial statements for the three months and six months ended February 12, 2014 and to the expected results of operations for the fiscal year ending August 27, 2014. Management evaluated the cumulative impact of the errors on prior periods under the guidance in ASC 25010 relating to SEC Staff Accounting Bulletin (“SAB”) Topic1.M, Assessing Materiality. The Company also evaluated the impact of correcting the errors through an adjustment to its financial statements and concluded, based on the guidance within ASC 250-10 relating to SAB Topic 1.N, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, to revise its previously issued financial statements to reflect the impact of the correction of these errors when it files subsequent reports on Form 10Q and Form 10K. Accordingly, the Company has revised its consolidated financial statements for the quarter ended February 12, 2014, to correct these errors. Revisions to periods not presented will be reflected accordingly as they are included in future filings. The prior period error corrections did not change the net cash flows provided by or used in operating, investing or financing activities previously reported. The cumulative effect on retained earnings as of August 28, 2013, was a reduction of $386,000, as reflected in the Statement of Shareholders Equity as of February 12, 2014.

Consolidated Balance Sheet.

The following table presents the impact of the accounting errors on the Company’s previously-reported consolidated balance sheet for the year ended August 28, 2013:

	Balance Sheet August 28, 2013 (In thousands)
	As Reported			Reclassifications1			Adjustments			Revised
ASSETS
Current Assets:
Cash and cash equivalents	$	1,528		$	(5	)	$	-		$	1,523
Trade accounts and other receivables, net		4,083			-			-			4,083
Food and supply inventories		5,026			(41	)		-			4,985
Prepaid expenses		3,183			(14	)		141			3,310
Assets related to discontinued operations		21			60			-			81
Deferred income taxes		1,436			-			199			1,635
Total current assets		15,277			-			340			15,617
Property held for sale		449			-			-			449
Assets related to discontinued operations		4,189			14			-			4,203
Property and equipment, net		190,519			(10	)		-			190,510
Intangible assets, net		25,517			-			-			25,517
Goodwill		2,169			-			-			2,169
Deferred income taxes		7,923			-			-			7,923
Other assets		4,262			(4	)		-			4,257
Total assets	$	250,305		$	-		$	340		$	250,645
LIABILITIES AND SHAREHOLDER EQUITY		-									-
Current Liabilities:
Accounts payable	$	23,655		$	-		$	-		$	23,655
Liabilities related to discontinued operations		440			37			-			477
Accrued expenses and other liabilities		21,178			(37	)		726			21,868
Total current liabilities		45,273			-			726			46,000
Credit facility debt		19,200			-			-			19,200
Liabilities related to discontinued operations		304			23			-			327
Other liabilities		8,010			(23	)		-			7,986
Total liabilities		72,787			(0	)		726			73,513
Commitments and Contingencies		-			-			-			-
SHAREHOLDER'S EQUITY
Common Stock		9,217			-			-			9,217
Paid-in capital		26,065			-			-			26,065
Retained earnings		147,011			-			(386	)		146,625
Less cost of treasury stock		(4,775	)		-			-			(4,775	)
Total shareholders' equity		177,518			-			(386	)		177,132
Total liabilities and shareholders' equity	$	250,305		$	-		$	340		$	250,645

1 The results of operations, assets and liabilities for all units included in the Company's disposal plans discussed in Note 8 have been reclassified to discontinued operations in the statements of operations and balance sheets for all periods presented. Some table rows may not sum due to rounding.

Consolidated Statements of Operations.

The following table presents the impact of the accounting errors on the Company’s previously-reported consolidated Statement of operations for the quarter and two quarters ended February 13, 2013:

	Quarter Ended February 13, 2013 (In thousands)
	As Reported		Reclassifications(1)			Adjustments			Revised
Restaurant sales	$	82,152	$	(467	)	$	-		$	81,685
Cost of food		23,763		(144	)		-			23,619
Payroll and related costs		28,817		292			(1	)		29,108
Other operating expenses		19,593		(5,571	)		-			14,022
Occupancy costs		-		4,902			-			4,902
General and administrative expenses		7,616		-			36			7,652
Provision (benefit) for income taxes		487		-			(12	)		475
Income (loss) from continuing operations		603		54			(23	)		634

⁽¹⁾ Certain reclassification of amounts have been made to conform with the current year presentation for comparative purposes. The results of operations, assets and liabilities for all units included in the Company’s disposal plans discussed in Note 8 have been reclassified to discontinued operations in the statements of operations and balance sheets for all periods presented. Occupancy costs have been reclassified from Other operating expenses to a separate line item on the Consolidated Statement of Operations and group insurance, employer 401k matching and employee meal costs have been reclassified from Other operating expenses to Payroll and related costs to provide comparability to financial results reported by our peers in the industry.

	Two Quarters Ended February 13, 2013 (In thousands)
	As Reported		Reclassifications(1)			Adjustments			Revised
Restaurant sales	$	156,120	$	(466	)	$	-		$	155,654
Cost of food		44,606		(145	)		-			44,461
Payroll and related costs		54,346		751			15			55,112
Other operating expenses		37,434		(10,064	)		-			27,370
Occupancy costs		-		8,943			-			8,943
General and administrative expenses		14,994		-			78			15,072
Provision (benefit) for income taxes		566		-			(32	)		534
Income (loss) from continuing operations		819		49			(62	)		807

⁽¹⁾ Certain reclassification of amounts have been made to conform with the current year presentation for comparative purposes. The results of operations, assets and liabilities for all units included in the Company’s disposal plans discussed in Note 8 have been reclassified to discontinued operations in the statements of operations and balance sheets for all periods presented. Occupancy costs have been reclassified from Other operating expenses to a separate line item on the Consolidated Statement of Operations and group insurance, employer 401k matching and employee meal costs have been reclassified from Other operating expenses to Payroll and related costs to provide comparability to financial results reported by our peers in the industry.