Note 5 - Property, Equipment, Assets Held for Sale, and Operating Leases

6 Months Ended

Dec. 01, 2015

Property, Plant and Equipment Disclosure [Text Block]

NOTE 5 –

PROPERTY, EQUIPMENT, ASSETS HELD FOR SALE, AND OPERATING LEASES

Property and equipment, net, is comprised of the following (in thousands):

	December 1, 2015		June 2, 2015

Land	$	212,068	$	212,073
Buildings		429,769		426,813
Improvements		349,787		358,549
Restaurant equipment		246,705		247,775
Other equipment		87,474		87,782
Surplus properties*		7,001		10,504
Construction in progress and other		2,888		4,316
		1,335,692		1,347,812
Less accumulated depreciation		603,272		595,638
	$	732,420	$	752,174

* Surplus properties represent assets held for sale that are not classified as such in the Condensed Consolidated Balance Sheets as we do not expect to sell these assets within the next 12 months. These assets primarily consist of parcels of land upon which we have no intention to build restaurants, closed properties which include a building, and liquor licenses not needed for operations.

Included within the current assets section of our Condensed Consolidated Balance Sheets at December 1, 2015 and June 2, 2015 are amounts classified as held for sale totaling $8.0 million and $5.5 million, respectively. Assets held for sale primarily consist of parcels of land upon which we have no intention to build restaurants, land and buildings of closed restaurants, and various liquor licenses. During the 13 weeks ended December 1, 2015, we entered into an agreement to sell eight Company-owned Lime Fresh restaurants in Florida for approximately $6.3 million, which we expect to complete over the remainder of fiscal year 2016, and closed the remaining 11 Company-owned Lime Fresh restaurants. Accordingly, included within amounts classified as assets held for sale as of December 1, 2015 was $2.0 million, an amount representing the net book value of improvements, restaurant equipment, and other equipment associated with the eight restaurants that we plan to sell over the remainder of fiscal year 2016.

During the 13 and 26 weeks ended December 1, 2015, we sold surplus properties with carrying values of $0.6 million and $2.7 million, respectively, at net gains of $0.4 million and $1.0 million, respectively. Cash proceeds, net of broker fees, from these sales during the 13 and 26 weeks ended December 1, 2015 totaled $1.0 million and $3.7 million, respectively. During the 13 and 26 weeks ended December 2, 2014, we sold surplus properties with carrying values of $4.5 million for both periods, at net gains of $0.8 million and $1.1 million, respectively. Cash proceeds, net of broker fees, from these sales during the 13 and 26 weeks ended December 2, 2014 totaled $5.3 million and $5.6 million, respectively.