Property, Plant And Equipment

12 Months Ended

Jun. 02, 2018

Property, Plant and Equipment [Abstract]

Property, plant and equipment consisted of the following (in thousands):



	June 2, 2018		June 3, 2017
Land and improvements	$	90,757	$	87,276
Buildings and improvements	360,030		342,933
Machinery and equipment	478,997		460,218
Construction-in-progress	9,307		36,752
	939,091		927,179
Less: accumulated depreciation	513,707		468,995
	$	425,384	$	458,184

Depreciation expense was $51.1 million, $48.8 million and $41.4 million in fiscal years 2018, 2017 and 2016, respectively.

The Company maintains insurance for both property damage and business interruption relating to catastrophic events, such as fires. Insurance recoveries received for property damage and business interruption in excess of the net book value of damaged assets, clean-up and demolition costs, and post-event costs are recognized as income in the period received or committed when all contingencies associated with the recoveries are resolved. Gains on insurance recoveries related to business interruption are recorded within “Cost of sales” and any gains or losses related to property damage are recorded within “Other income (expense).” Insurance recoveries related to business interruption are classified as operating cash flows and recoveries related to property damage are classified as investing cash flows in the statement of cash flows. Insurance claims incurred or finalized during the fiscal years ended 2018, 2017, and 2016 are discussed below.

In the second quarter of fiscal 2016, a contract producer owned pullet complex in Florida was damaged by fire. The fire destroyed two contract producer owned pullet houses that contained the Company’s flocks. In the third quarter of fiscal 2016, the Company’s Shady Dale, Georgia complex was damaged by a fire. The fire destroyed two pullet houses. These claims were resolved in fiscal 2017 and did not have a material impact on the Company’s results of operations.