Property, Plant And Equipment

12 Months Ended

May 30, 2020

Property, Plant and Equipment [Abstract]

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


	May 30, 2020		June 1, 2019
Land and improvements	$	91,865	$	93,046
Buildings and improvements	393,195		370,451
Machinery and equipment	531,545		494,937
Construction-in-progress	126,061		52,551
	1,142,666		1,010,985
Less: accumulated depreciation	585,291		555,638
	$	557,375	$	455,347

Depreciation expense was $54.5 million, $51.7 million and $51.1 million in fiscal years 2020, 2019 and 2018, 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 “(Gain) loss on disposal of fixed assets.” 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 2020, 2019, and 2018 did not have a material effect on the Company's consolidated financial statements.

Included in cost of sales for fiscal 2020 is a non-cash impairment loss on fixed assets of $2.9 million related to decommissioning some older, less efficient production facilities as the Company continues to invest in new facilities to meet the increasing demand for specialty eggs and reduce production costs.