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Employee Benefit Plans
12 Months Ended
May 28, 2022
Employee Benefit Plans [Abstract]  
Employee Benefit Plans
Note 9 - Employee Benefit Plans
The Company maintains a medical plan that is qualified under Section
 
401(a) of the Internal Revenue Code and is not subject to
tax under present income tax laws. The plan is funded by contributions from the Company and its employees. Under its plan, the
Company
 
self-insures
 
its
 
portion
 
of
 
medical
 
claims
 
for
 
substantially
 
all
 
full-time
 
employees. The
 
Company
 
uses
 
stop-loss
insurance
 
to
 
limit
 
its
 
portion
 
of
 
medical
 
claims
 
to
 
$
225,000
 
per
 
occurrence. The
 
Company's
 
expenses
 
including
 
accruals
 
for
incurred but not
 
reported claims were approximately
 
$
24.6
 
million, $
21.7
 
million, and $
17.8
 
million in fiscal years
 
2022, 2021,
and 2020, respectively.
 
The liability recorded
 
for incurred but
 
not reported claims
 
was $
2.8
 
million and $
2.4
 
million as of
 
May
28,
 
2022
 
and
 
May
 
29,
 
2021,
 
respectively
 
and
 
are
 
classified
 
as
 
“Accrued
 
expenses
 
and
 
other
 
liabilities”
 
in
 
the
 
Company’s
Consolidated Balance Sheets.
The Company
 
has a KSOP
 
plan that
 
covers substantially
 
all employees
 
(the “Plan”). The
 
Company makes
 
contributions to
 
the
Plan at a rate of
3
% of participants' eligible compensation, plus an additional amount determined at the discretion of the
 
Board of
Directors. Contributions
 
can
 
be
 
made
 
in
 
cash
 
or
 
the
 
Company's
 
Common
 
Stock,
 
and
 
vest
 
immediately. The
 
Company's
 
cash
contributions to the Plan were $
3.9
 
million in fiscal year 2022
 
and $
3.8
 
million in both fiscal years
 
2021 and 2020. The Company
did
no
t
 
make
 
direct
 
contributions
 
of
 
the
 
Company’s
 
Common
 
Stock
 
in
 
fiscal
 
years
 
2022,
 
2021,
 
or
 
2020.
 
Dividends
 
on
 
the
Company’s Common Stock are paid to the Plan in cash. The Plan acquires the Company’s Common Stock, which is listed on the
NASDAQ, by using the dividends and the Company’s
 
cash contribution to purchase shares in the public markets.
 
The Plan sells
Common Stock on
 
the NASDAQ to pay
 
benefits to Plan participants.
 
Participants may make
 
contributions to the Plan
 
up to the
maximum allowed by the Internal Revenue Service regulations. The
 
Company does not match participant contributions.
The
 
Company
 
has
 
deferred
 
compensation
 
agreements
 
with
 
certain
 
officers
 
for
 
payments
 
to
 
be
 
made
 
over
 
specified
 
periods
beginning when the officers
 
reach age
65
 
or over as specified in the
 
agreements. Amounts accrued for
 
the agreements are based
upon
 
deferred
 
compensation
 
earned
 
over
 
the
 
estimated
 
remaining
 
service
 
period
 
of
 
each officer.
 
Payments
 
made
 
under
 
these
agreements
 
were $
170
 
thousand, in fiscal
 
years 2022
 
and 2021,
 
and $
150
 
thousand in fiscal
 
year
 
2020. The liability
 
recorded
related to these agreements was $
1.1
 
million and $
1.4
 
million at May 28, 2022 and May 29, 2021, respectively.
Effective
 
December
 
1,
 
2021,
 
the
 
Company
 
amended
 
and
 
restated
 
its
 
deferred
 
compensation
 
plan
 
(the
 
“Amended
 
DC Plan”).
 
The Amended DC Plan,
 
expanded eligibility for participation
 
from named officers only
 
to a select
 
group of management or
 
highly
compensated employees of the
 
Company,
 
expanded the investment options
 
available and added the
 
ability of participants to
 
make
elective deferrals.
 
The awards
 
issued under
 
the Amended
 
DC Plan
 
were $
340
 
thousand, $
279
 
thousand, and
 
$
266
 
thousand in
fiscal 2022,
 
2021, and 2020,
 
respectively. Payments
 
made under
 
the Amended
 
DC Plan were
 
$
480
 
thousand and $
55
 
thousand
in fiscal 2022 and 2021, respectively. The liability
 
recorded for the Amended DC Plan was $
4.5
 
million and $
4.1
 
million at May
28, 2022 and May 29, 2021, respectively.
Deferred compensation expense for
 
both plans totaled $
258
 
thousand, $
1.6
 
million and $
621
 
thousand in fiscal 2022,
 
2021, and
2020,
 
respectively.
Postretirement Medical Plan
The Company
 
maintains an
 
unfunded postretirement
 
medical plan to
 
provide limited
 
health benefits to
 
certain qualified
 
retired
employees
 
and officers.
 
Retired non-officers
 
and
 
spouses are
 
eligible for
 
coverage
 
until attainment
 
of Medicare
 
eligibility,
 
at
which time coverage
 
ceases. Retired officers
 
and spouses
 
are eligible for
 
lifetime benefits under
 
the plan. Officers,
 
who retired
prior to May 1, 2012 and their spouses must participate in Medicare
 
Plans A and B. Officers, who retire on or after May 1, 2012
and their spouses must participate in Medicare Plans A, B, and D.
 
The plan is accounted for
 
in accordance with ASC
 
715, Compensation – Retirement Benefits (“ASC
 
715”), whereby an employer
recognizes the funded status of a defined benefit postretirement plan as
 
an asset or liability, and recognizes changes in the funded
status in the year the change occurs through comprehensive income. Additionally,
 
this expense is recognized on an accrual basis
over the employees’ approximate period of employment. The liability associated with the plan was $
2.9
 
million and $
3.4
 
million
at
 
May
 
28,
 
2022
 
and
 
May
 
29,
 
2021,
 
respectively.
 
The
 
remaining
 
disclosures
 
associated
 
with
 
ASC
 
715
 
are
 
immaterial
 
to
 
the
Company’s financial statements.