Discontinued Operations

12 Months Ended

Jun. 04, 2013

Discontinued Operations [Abstract]

Discontinued Operations

3.  Discontinued Operations

In an effort to focus primarily on the successful sales turnaround of our core Ruby Tuesday concept and secondly, to improve the financial performance of our Lime Fresh concept, on January 9, 2013, the Board of Directors of Ruby Tuesday, Inc. approved management's plan to close all 13 Marlin & Ray's restaurants as well as the Company's one Wok Hay restaurant in the third quarter of fiscal 2013.  We closed these restaurants on January 9, 2013.  Additionally, on the same date we announced our intention to seek a buyer for our two Truffles restaurants.  No buyer suitable to our landlords was found and we consequently opted, on April 7, 2013, to close the restaurants instead.  As a result of these decisions, pre-tax charges of $21.7 million were recognized for asset impairments, lease reserves, and other closing costs within closures and impairments expense from discontinued operations for the fiscal year ended June 4, 2013. 

We have classified the results of operations of our Company-owned Marlin & Ray's, Wok Hay, and Truffles concepts as discontinued operations for all periods presented.  The results of operations of our discontinued operations are as follows (in thousands):

	June 4, 2013			June 5, 2012			May 31, 2011
Restaurant sales and operating revenue	$	11,884		$	14,015		$	3,989
Loss before income taxes	$	(24,498	)	$	(6,312	)	$	(4,496	)
Benefit for income taxes		(8,519	)		(2,598	)		(1,819	)
Loss from discontinued operations	$	(15,979	)	$	(3,714	)	$	(2,677	)

As of June 4, 2013 and June 5, 2012, we had $2.8 million and $24.8 million, respectively, of assets associated with the closed concept restaurants, which are included in Property and equipment, net in our Consolidated Balance Sheets.  Additionally, included within Assets held for sale in our June 4, 2013 Consolidated Balance Sheet are $4.2 million of assets associated with the closed concept restaurants.  See Note 9 to the Consolidated Financial Statements for a discussion of closed restaurant lease reserves as of June 4, 2013 and June 5, 2012 associated with the closed concept restaurants.