XML 37 R25.htm IDEA: XBRL DOCUMENT v3.8.0.1
NEW ACCOUNTING PRONOUNCEMENTS
9 Months Ended
Feb. 25, 2018
New Accounting Pronouncements [Abstract]  
New Accounting Pronouncements

(17) New Accounting Pronouncements

In the first quarter of fiscal 2018, we adopted new requirements for the accounting and presentation of stock-based payments. The adoption of this guidance resulted in the prospective recognition of realized windfall and shortfall tax benefits related to the exercise or vesting of stock-based awards in our Consolidated Statements of Earnings instead of additional paid-in capital within our Consolidated Balance Sheets. We recognized a windfall tax benefit in income tax expense in our Consolidated Statements of Earnings of $6.6 million in the third quarter of fiscal 2018 and $26.8 million in the nine-month period ended February 25, 2018. We retrospectively adopted the guidance related to reclassification of realized windfall tax benefits in our Consolidated Statements of Cash Flows. This resulted in reclassifications of $26.8 million and $65.1 million of cash provided by financing activities to operating activities for the nine-month periods ended February 25, 2018 and February 26, 2017, respectively. Additionally, we retrospectively adopted the guidance related to reclassification of employee tax withholdings in our Consolidated Statements of Cash Flows. This resulted in reclassifications of $21.4 million and $35.2 million of cash used by operating activities to financing activities for the nine-month periods ended February 25, 2018 and February 26, 2017, respectively. Stock-based compensation expense continues to reflect estimated forfeitures.

In the first quarter of fiscal 2018, we adopted new accounting requirements which permit reporting entities to measure a goodwill impairment loss by the amount by which a reporting unit’s carrying value exceeds the reporting unit’s fair value. Previously, goodwill impairment losses were required to be measured by determining the implied fair value of goodwill. Our annual goodwill impairment test was performed as of the first day of the second quarter of fiscal 2018, and the adoption of this guidance did not impact our results of operations or financial position.