Note 11 - Commitments and Contingencies	12 Months Ended
Jun. 06, 2017
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	11. Commitments and Contingencies Litigation We are presently, and from time to time, subject to pending claims and lawsuits arising in the ordinary course of business. We provide reserves for such claims when payment is probable and estimable in accordance with GAAP. At this time, in the opinion of management, the ultimate resolution of pending legal proceedings, including the matter referred to below, will not have a material adverse effect on our operations, financial position, or cash flows. In May 2014, a securities class action case styled Dennis Krystek v. Ruby Tuesday, Inc. et al, was filed in the U.S. District Court for the Middle District of Tennessee, Nashville Division. The case alleged that the Company and some of its former executives made false and misleading statements about the Company's financial performance and the financial performance of the Lime Fresh concept. On March 29, 2017, the Company agreed to settle the case for $5.0 million. We maintain insurance to cover these types of claims with our primary insurance carrier, subject to a self-insured retention which has been met. Our insurance policies cover amounts in excess of our self-insured retention. The parties agreed to resolve the matter and the settlement was funded by the insurance carrier as of June 6, 2017. Final court approval of the settlement agreement was obtained on August 7, 2017. In accordance with ASC Subtopic 405 - 20 - 40, Extinguishment of Liabilities , and ASC Subtopic 210 - 20, Balance Sheet Offsetting , we have recorded both an accrued liability (included within Accrued liabilities: Rent and other) and Restricted cash, in the amount of $5.0 million, in our Consolidated Balance Sheet as of June 6, 2017. Insurance Programs We are currently self-insured for a portion of our expected workers’ compensation, employment practices liability, general liability, and automobile liability losses (collectively, “casualty losses”) as well as property losses and certain other insurable risks. To mitigate the cost of our exposures for certain property and casualty losses, we make annual decisions to either retain the risks of loss up to a certain maximum per occurrence, aggregate loss limits negotiated with our insurance carriers, or fully insure those risks. We are also self-insured for healthcare claims for eligible participating employees subject to certain deductibles and limitations. We have accounted for our retained liabilities for casualty losses and healthcare claims, including reported and incurred but not reported claims, based on information provided by third -party actuaries. At June 6, 2017, we were committed under letters of credit totaling $14.8 million issued primarily in connection with our workers’ compensation and casualty insurance programs. Purchase Commitments We have minimum purchase commitments with various vendors. Outstanding commitments as of June 6, 2017 were approximately $42.8 million. These obligations consist of supplies, advertising, utility contracts, and various types of meat, beverages, and other food products, which are an integral part of our business operations.

11.

Commitments and Contingencies

Litigation

We are presently, and from time to time, subject to pending claims and lawsuits arising in the ordinary course of business. We provide reserves for such claims when payment is probable and estimable in accordance with GAAP. At this time, in the opinion of management, the ultimate resolution of pending legal proceedings, including the matter referred to below, will

not

have a material adverse effect on our operations, financial position, or cash flows.

May 2014,

a securities class action case styled Dennis Krystek v. Ruby Tuesday, Inc. et al, was filed in the U.S. District Court for the Middle District of Tennessee, Nashville Division.

The case alleged that the Company and some of its former executives made false and misleading statements about the Company's financial performance and the financial performance of the Lime Fresh concept. On

March 29, 2017,

the Company agreed to settle the case for

$5.0

million. We maintain insurance to cover these types of claims with our primary insurance carrier, subject to a self-insured retention which has been met. Our insurance policies cover amounts in excess of our self-insured retention. The parties agreed to resolve the matter and the settlement was funded by the insurance carrier as of

June 6, 2017.

Final court approval of the settlement agreement was obtained on

August 7, 2017.

In accordance with ASC Subtopic

405

40,

Extinguishment of Liabilities

, and ASC Subtopic

210

20,

Balance Sheet Offsetting

, we have recorded both an accrued liability (included within Accrued liabilities: Rent and other) and Restricted cash, in the amount of

$5.0

million, in our Consolidated Balance Sheet as of

June 6, 2017.

Insurance Programs

We are currently self-insured for a portion of our expected workers’ compensation, employment practices liability, general liability, and automobile liability losses (collectively, “casualty losses”) as well as property losses and certain other insurable risks. To mitigate the cost of our exposures for certain property and casualty losses, we make annual decisions to either retain the risks of loss up to a certain maximum per occurrence, aggregate loss limits negotiated with our insurance carriers, or fully insure those risks. We are also self-insured for healthcare claims for eligible participating employees subject to certain deductibles and limitations. We have accounted for our retained liabilities for casualty losses and healthcare claims, including reported and incurred but

not

reported claims, based on information provided by

third

-party actuaries. At

June 6, 2017,

we were committed under letters of credit totaling

$14.8

million issued primarily in connection with our workers’ compensation and casualty insurance programs.

Purchase Commitments

We have minimum purchase commitments with various vendors.

Outstanding commitments as of

June 6, 2017

were approximately

$42.8

million. These obligations consist of supplies, advertising, utility contracts, and various types of meat, beverages, and other food products, which are an integral part of our business operations.