Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Aug. 24, 2013 | Sep. 23, 2013 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 24-Aug-13 | |
Document Fiscal Year Focus | 2014 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | recn | |
Entity Registrant Name | RESOURCES CONNECTION INC | |
Entity Central Index Key | 1084765 | |
Current Fiscal Year End Date | -26 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 39,724,905 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Aug. 24, 2013 | 25-May-13 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $96,404 | $94,016 |
Short-term investments | 24,983 | 24,996 |
Trade accounts receivable, net of allowance for doubtful accounts of $3,351 and $3,428 as of August 24, 2013 and May 25, 2013, respectively | 81,354 | 84,194 |
Prepaid expenses and other current assets | 4,874 | 4,594 |
Income taxes receivable | 1,228 | |
Deferred income taxes | 8,030 | 8,149 |
Total current assets | 215,645 | 217,177 |
Goodwill | 175,001 | 174,275 |
Intangible assets, net | 2,281 | 2,659 |
Property and equipment, net | 21,558 | 21,087 |
Deferred income taxes | 816 | |
Other assets | 2,346 | 2,442 |
Total assets | 417,647 | 417,640 |
Current liabilities: | ||
Accounts payable and accrued expenses | 15,151 | 15,722 |
Accrued salaries and related obligations | 35,498 | 39,280 |
Other liabilities | 6,584 | 6,331 |
Total current liabilities | 57,233 | 61,333 |
Other long-term liabilities | 3,966 | 3,980 |
Total liabilities | 61,199 | 65,313 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 5,000 shares authorized; zero shares issued and outstanding | ||
Common stock, $0.01 par value, 70,000 shares authorized; 56,532 and 56,082 shares issued, and 39,843 and 39,705 shares outstanding as of August 24, 2013 and May 25, 2013, respectively | 565 | 561 |
Additional paid-in capital | 354,348 | 347,790 |
Accumulated other comprehensive loss | -3,102 | -3,958 |
Retained earnings | 291,414 | 290,549 |
Treasury stock at cost, 16,689 and 16,377 shares at August 24, 2013 and May 25, 2013, respectively | -286,777 | -282,615 |
Total stockholders' equity | 356,448 | 352,327 |
Total liabilities and stockholders' equity | $417,647 | $417,640 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Aug. 24, 2013 | 25-May-13 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets [Abstract] | ||
Trade accounts receivable, allowance for doubtful accounts | $3,351 | $3,428 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 70,000,000 | 70,000,000 |
Common stock, shares issued | 56,532,000 | 56,082,000 |
Common stock, shares outstanding | 39,843,000 | 39,705,000 |
Treasury stock at cost, shares | 16,689,000 | 16,377,000 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Aug. 24, 2013 | Aug. 25, 2012 |
Consolidated Statements Of Operations [Abstract] | ||
Revenue | $131,704 | $136,933 |
Direct cost of services, primarily payroll and related taxes for professional services employees | 81,994 | 83,544 |
Gross margin | 49,710 | 53,389 |
Selling, general and administrative expenses | 41,612 | 42,060 |
Amortization of intangible assets | 417 | 426 |
Depreciation expense | 961 | 1,191 |
Income from operations | 6,720 | 9,712 |
Interest income | -39 | -48 |
Income before provision for income taxes | 6,759 | 9,760 |
Provision for income taxes | 3,106 | 4,928 |
Net income | $3,653 | $4,832 |
Net income per common share: | ||
Basic | $0.09 | $0.12 |
Diluted | $0.09 | $0.12 |
Weighted average common shares outstanding: | ||
Basic | 39,826 | 41,720 |
Diluted | 39,844 | 41,774 |
Cash dividends declared per common share | $0.07 | $0.06 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Aug. 24, 2013 | Aug. 25, 2012 |
COMPREHENSIVE INCOME: | ||
Net income | $3,653 | $4,832 |
Foreign currency translation adjustment, net of tax | 856 | 773 |
Total comprehensive income | $4,509 | $5,605 |
Consolidated_Statement_Of_Stoc
Consolidated Statement Of Stockholders' Equity (USD $) | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
In Thousands, except Share data | ||||||
Balance at May. 25, 2013 | $561 | $347,790 | ($3,958) | $290,549 | ($282,615) | $352,327 |
Balance (in shares) at May. 25, 2013 | 56,082,000 | 16,377,000 | 39,705,000 | |||
Exercise of stock options | 3 | 3,243 | ||||
Exercise of stock options (in shares) | 269,000 | 269,000 | ||||
Stock-based compensation expense related to share-based awards and employee stock purchases | 1,654 | |||||
Issuance of restricted stock (in shares) | 5,000 | |||||
Tax shortfall from employee stock option plans | -72 | |||||
Issuance of common stock under Employee Stock Purchase Plan | 1 | 1,733 | ||||
Issuance of common stock under Employee Stock Purchase Plan (in shares) | 176,000 | |||||
Purchase of shares | -4,162 | |||||
Purchase of shares (in shares) | 312,000 | |||||
Cash dividends ($0.07 per share) | -2,788 | |||||
Foreign currency translation adjustment, net of tax | 856 | 856 | ||||
Net income | 3,653 | 3,653 | ||||
Balance at Aug. 24, 2013 | $565 | $354,348 | ($3,102) | $291,414 | ($286,777) | $356,448 |
Balance (in shares) at Aug. 24, 2013 | 56,532,000 | 16,689,000 | 39,843,000 |
Consolidated_Statement_Of_Stoc1
Consolidated Statement Of Stockholders' Equity (Parenthetical) (USD $) | 3 Months Ended | |
Aug. 24, 2013 | Aug. 25, 2012 | |
Consolidated Statement Of Stockholders' Equity | ||
Cash dividends declared per common share | $0.07 | $0.06 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
Aug. 24, 2013 | Aug. 25, 2012 | |
Cash flows from operating activities: | ||
Net income | $3,653,000 | $4,832,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,378,000 | 1,617,000 |
Stock-based compensation expense related to share-based awards and employee stock purchases | 1,654,000 | 1,813,000 |
Excess tax benefits from stock-based compensation | -1,000 | -7,000 |
Loss on disposal of assets | 20,000 | 17,000 |
Deferred income tax benefit | -368,000 | -626,000 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 3,225,000 | -1,521,000 |
Prepaid expenses and other current assets | -283,000 | 298,000 |
Income taxes | 1,488,000 | 2,818,000 |
Other assets | 90,000 | 34,000 |
Accounts payable and accrued expenses | -1,096,000 | -1,297,000 |
Accrued salaries and related obligations | -3,892,000 | -5,479,000 |
Other liabilities | -541,000 | 1,207,000 |
Net cash provided by operating activities | 5,327,000 | 3,706,000 |
Cash flows from investing activities: | ||
Redemption of short-term investments | 25,000,000 | 18,000,000 |
Purchase of short-term investments | -24,987,000 | -5,006,000 |
Purchase of property and equipment | -1,425,000 | -590,000 |
Net cash (used in) provided by investing activities | -1,412,000 | 12,404,000 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 3,246,000 | 225,000 |
Proceeds from issuance of common stock under Employee Stock Purchase Plan | 1,734,000 | 2,053,000 |
Purchase of common stock | -4,162,000 | -8,926,000 |
Cash dividends paid | -2,391,000 | -2,097,000 |
Excess tax benefits from stock-based compensation | 1,000 | 7,000 |
Net cash used in financing activities | -1,572,000 | -8,738,000 |
Effect of exchange rate changes on cash | 45,000 | 376,000 |
Net increase in cash | 2,388,000 | 7,748,000 |
Cash and cash equivalents at beginning of period | 94,016,000 | 105,124,000 |
Cash and cash equivalents at end of period | $96,404,000 | $112,872,000 |
Description_Of_The_Company_And
Description Of The Company And Its Business | 3 Months Ended |
Aug. 24, 2013 | |
Description Of The Company And Its Business [Abstract] | |
Description Of The Company And Its Business | 1. Description of the Company and its Business |
Resources Connection, Inc. (“Resources Connection”), a Delaware corporation, was incorporated on November 16, 1998. Resources Connection is a multinational professional services firm; its operating entities provide services primarily under the name Resources Global Professionals (“RGP” or the “Company”). The Company is organized around client service teams utilizing experienced professionals specializing in accounting, finance, risk management and internal audit, corporate advisory, strategic communications and restructuring, information management, human capital, supply chain management, healthcare solutions, actuarial, legal and regulatory services in support of client-led projects, interim needs and consulting initiatives. The Company has offices in the United States (“U.S.”), Asia, Australia, Canada, Europe and Mexico. | |
The Company’s fiscal year consists of 52 or 53 weeks, ending on the last Saturday in May. The first quarters of fiscal 2014 and 2013 consisted of 13 weeks each. | |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 3 Months Ended | ||||||||||||||
Aug. 24, 2013 | |||||||||||||||
Summary Of Significant Accounting Policies [Abstract] | |||||||||||||||
Summary Of Significant Accounting Policies | 2. Summary of Significant Accounting Policies | ||||||||||||||
Interim Financial Information | |||||||||||||||
The financial information as of and for the three months ended August 24, 2013 and August 25, 2012 is unaudited but includes all adjustments (consisting only of normal recurring adjustments) that the Company considers necessary for a fair presentation of its financial position at such dates and the operating results and cash flows for those periods. The year-end balance sheet data was derived from audited financial statements, and certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to Securities and Exchange Commission (“SEC”) rules or regulations; however, the Company believes the disclosures made are adequate to make the information presented not misleading. | |||||||||||||||
The results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for the fiscal year. These condensed interim financial statements should be read in conjunction with the audited financial statements for the year ended May 25, 2013, which are included in the Company’s Annual Report on Form 10-K for the year then ended (File No. 0-32113). | |||||||||||||||
Cash, Cash Equivalents and Short-Term Investments | |||||||||||||||
The Company considers cash on hand, deposits in banks, and short-term investments purchased with an original maturity date of three months or less to be cash and cash equivalents. The carrying amounts reflected in the consolidated balance sheets for cash, cash equivalents and short-term investments approximate the fair values due to the short maturities of these instruments. | |||||||||||||||
Client Reimbursements of “Out-of-Pocket” Expenses | |||||||||||||||
The Company recognizes all reimbursements received from clients for “out-of-pocket” expenses as revenue and all such expenses as direct cost of services. Reimbursements received from clients were $2.0 million and $2.5 million for the three months ended August 24, 2013 and August 25, 2012, respectively. | |||||||||||||||
Foreign Currency Translation | |||||||||||||||
The financial statements of subsidiaries outside the U.S. are measured using the local currency as the functional currency. Assets and liabilities of these subsidiaries are translated at current exchange rates, income and expense items are translated at average exchange rates prevailing during the period and the related translation adjustments are recorded as a component of comprehensive income or loss. Gains and losses from foreign currency transactions are included in the Consolidated Statements of Operations. | |||||||||||||||
Net Income Per Share Information | |||||||||||||||
The Company presents both basic and diluted earnings per share (“EPS”). Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is based upon the weighted average number of common and common equivalent shares outstanding during the period, calculated using the treasury stock method for stock options. Under the treasury stock method, assumed proceeds include the amount the employee must pay for exercising stock options, the amount of compensation cost for future services that the Company has not yet recognized and the amount of tax benefits that would be recorded in additional paid-in capital when the award becomes deductible. Common equivalent shares are excluded from the computation in periods in which they have an anti-dilutive effect. Stock options for which the exercise price exceeds the average market price over the period are anti-dilutive and are excluded from the calculation. | |||||||||||||||
The following table summarizes the calculation of net income per share for the periods indicated (in thousands, except per share amounts): | |||||||||||||||
Three Months Ended | |||||||||||||||
August 24, | August 25, | ||||||||||||||
2013 | 2012 | ||||||||||||||
Net income | $ | 3,653 | $ | 4,832 | |||||||||||
Basic: | |||||||||||||||
Weighted average shares | 39,826 | 41,720 | |||||||||||||
Diluted: | |||||||||||||||
Weighted average shares | 39,826 | 41,720 | |||||||||||||
Potentially dilutive shares | 18 | 54 | |||||||||||||
Total dilutive shares | 39,844 | 41,774 | |||||||||||||
Net income per common share: | |||||||||||||||
Basic | $ | 0.09 | $ | 0.12 | |||||||||||
Dilutive | $ | 0.09 | $ | 0.12 | |||||||||||
Anti-dilutive shares not included above | 8,736 | 8,360 | |||||||||||||
Stock-Based Compensation | |||||||||||||||
The Company recognizes compensation expense for all share-based payment awards made to employees and directors, including employee stock options and employee stock purchases made via the Company’s Employee Stock Purchase Plan (the “ESPP”), based on estimated fair value at the date of grant. | |||||||||||||||
The Company estimates the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods. Stock options vest over four years and restricted stock award vesting is determined on an individual grant basis under the Company’s 2004 Performance Incentive Plan (“2004 Plan”). The Company determines the estimated value of stock options using the Black-Scholes valuation model. The Company recognizes stock-based compensation expense on a straight-line basis over the service period for options that are expected to vest and records adjustments to compensation expense at the end of the service period if actual forfeitures differ from original estimates. | |||||||||||||||
See Note 8 — Stock-Based Compensation Plans for further information on stock-based compensation. | |||||||||||||||
Use of Estimates | |||||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although management believes these estimates and assumptions are adequate, actual results could differ from the estimates and assumptions used. | |||||||||||||||
Contingent_Consideration
Contingent Consideration | 3 Months Ended |
Aug. 24, 2013 | |
Contingent Consideration [Abstract] | |
Contingent Consideration | 3. Contingent Consideration |
On November 20, 2009, the Company acquired certain assets of Sitrick And Company (“Sitrick Co”), a strategic communications firm, and Brincko Associates, Inc. (“Brincko”), a corporate advisory and restructuring firm, through the purchase of all of the outstanding membership interests in Sitrick Brincko Group, a Delaware limited liability company, formed for the purpose of the acquisition, pursuant to a Membership Interest Purchase Agreement by and among the Company, Sitrick Co, Michael S. Sitrick, an individual, Brincko and John P. Brincko, an individual (together with Mr. Sitrick, Sitrick Co and Brincko, the “Sellers”). Prior to the acquisition date, Mr. Sitrick and Nancy Sitrick were the sole shareholders of Sitrick Co and Mr. Brincko was the sole shareholder of Brincko. In addition, on the same date, the Company acquired the personal goodwill of Mr. Sitrick pursuant to a Goodwill Purchase Agreement by and between the Company and Mr. Sitrick (collectively with the Membership Interest Purchase Agreement, the “Acquisition Agreements”). Sitrick Brincko Group is now a wholly-owned subsidiary of the Company. By combining the specialized skill sets of Sitrick Brincko Group with the Company’s existing consultant capabilities, geographic footprint and client base, the Company believes it has increased its ability to assist clients during challenging periods, particularly in the areas of management consulting, corporate advisory, strategic communications and restructuring services. This expected synergy gave rise to goodwill recorded as part of the purchase price of Sitrick Brincko Group. | |
Contingent consideration may be payable to the Sellers in a lump sum following the fourth anniversary of the acquisition only if the average annual earnings before interest, taxes, depreciation and amortization (“EBITDA”) (calculated from each of the four one-year periods following the acquisition date) of Sitrick Brincko Group exceed $11.3 million. At the end of the four-year earn-out period, the Company will determine if the average annual EBITDA exceeded $11.3 million; if so, the contingent consideration payable is determined by multiplying the average annual EBITDA by 3.15 (representing the agreed upon multiple to be paid by the Company as specified in the Acquisition Agreements). | |
As of August 24, 2013, the Company believes that it is unlikely that there will be a contingent consideration payment due in November 2013 to either the Sellers or an allocated portion of up to 20% to the employees of Sitrick Brincko Group. Sitrick Brincko Group’s average EBITDA for the first three annual measurement periods ended in November 2012 was substantially below the required $11.3 million base and, after considering the results from December 2012 through August 2013 and an estimate for the quarter ended in November 2013, the Company believes it is unlikely that the average EBITDA for the four annual measurement periods will exceed the average EBITDA required for the contingent consideration payment. There is no contingent consideration liability recorded as of August 24, 2013. | |
Although the Company believes that there will be no earn-out payment due in November 2013, it will continue to periodically review actual EBITDA results and an updated assessment of various probability weighted projected EBITDA scenarios of Sitrick Brincko Group; if circumstances change and the Company determines that an earn-out payment may be due, such future revisions would materially change the estimate of the fair value of contingent consideration and therefore materially affect the Company’s future financial results. | |
In the event that the contingent consideration is not paid at the conclusion of the earn-out period, Mr. Brincko will be entitled to receive a cash payment of $2,250,000, subject to his employment in good standing with the Company as defined. As a result of the Company’s determination that it is unlikely that the contingent consideration will be earned, this amount is being recognized as a selling, general and administrative expense over the remaining service period from the time it was estimated that no contingent consideration will be due. | |
Intangible_Assets_And_Goodwill
Intangible Assets And Goodwill | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||
Aug. 24, 2013 | |||||||||||||||||||||||||||||||||||||||
Intangible Assets And Goodwill [Abstract] | |||||||||||||||||||||||||||||||||||||||
Intangible Assets And Goodwill | |||||||||||||||||||||||||||||||||||||||
4. Intangible Assets and Goodwill | |||||||||||||||||||||||||||||||||||||||
The following table presents details of the Company’s intangible assets, estimated lives and related accumulated amortization (in thousands): | |||||||||||||||||||||||||||||||||||||||
As of August 24, 2013 | As of May 25, 2013 | ||||||||||||||||||||||||||||||||||||||
Accumulated | Accumulated | ||||||||||||||||||||||||||||||||||||||
Gross | Amortization | Net | Gross | Amortization | Net | ||||||||||||||||||||||||||||||||||
Customer relationships (2-7 years) | $ | 18,175 | $ | -17,072 | $ | 1,103 | $ | 17,978 | $ | -16,710 | $ | 1,268 | |||||||||||||||||||||||||||
Consultant and customer database (1-5 years) | 2,348 | -2,348 | - | 2,330 | -2,330 | - | |||||||||||||||||||||||||||||||||
Non-compete agreements (1-5 years) | 3,232 | -2,487 | 745 | 3,226 | -2,331 | 895 | |||||||||||||||||||||||||||||||||
Trade name and trademark (5 years) | 1,341 | -908 | 433 | 1,341 | -845 | 496 | |||||||||||||||||||||||||||||||||
Total | $ | 25,096 | $ | -22,815 | $ | 2,281 | $ | 24,875 | $ | -22,216 | $ | 2,659 | |||||||||||||||||||||||||||
The following table summarizes amortization expense for the three months ended August 24, 2013 and August 25, 2012 and the expected amount of intangible asset amortization expense (based on existing intangible assets) for the years ending May 31, 2014, May 30, 2015, May 28, 2016, May 27, 2017 and May 26, 2018 (in thousands): | |||||||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||||||
August 24, | August 25, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
Amortization expense | $ | 417 | $ | 426 | |||||||||||||||||||||||||||||||||||
Fiscal Years Ending | |||||||||||||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||||||||||||||||||
Expected amortization expense | $ | 1,676 | $ | 904 | $ | 12 | $ | 12 | $ | 12 | |||||||||||||||||||||||||||||
These estimates do not incorporate the impact that currency fluctuations may cause when translating the financial results of the Company’s international operations that have amortizable intangible assets into U.S. dollars. The fluctuation in the gross balance of intangible assets reflects the impact of currency fluctuations between fiscal 2014 and 2013 in translating the intangible balances recorded on the Company’s international operations financial statements. | |||||||||||||||||||||||||||||||||||||||
The following table summarizes the activity in the Company’s goodwill balance (in thousands): | |||||||||||||||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||
August 24, | August 25, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
Goodwill, beginning of year | $ | 174,275 | $ | 173,576 | |||||||||||||||||||||||||||||||||||
Impact of foreign currency exchange rate changes | 726 | 126 | |||||||||||||||||||||||||||||||||||||
Goodwill, end of period | $ | 175,001 | $ | 173,702 | |||||||||||||||||||||||||||||||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Aug. 24, 2013 | |
Income Taxes [Abstract] | |
Income Taxes | 5. Income Taxes |
The Company’s provision for income taxes was $3.1 million (effective tax rate of approximately 46%) and $4.9 million (effective tax rate of approximately 50%) for the three months ended August 24, 2013 and August 25, 2012, respectively. The Company records tax expense based upon an actual effective tax rate versus a forecasted tax rate because of the volatility in its international operations which span numerous tax jurisdictions. | |
The provision for income taxes in the first quarter of fiscal 2014 and 2013 results from taxes on income in the U.S. and certain other foreign jurisdictions, no benefit for losses in jurisdictions in which a full valuation allowance on operating loss carryforwards had previously been established and a lower benefit for losses in certain foreign jurisdictions with tax rates lower than the U.S. statutory rates. The period to period decrease in the effective tax rate results primarily from the reversal of $350,000 of uncertain international tax position accruals for which the statute of limitations has expired. In addition, the inability to benefit from losses in jurisdictions with a full valuation allowance and the unpredictability of the timing and amount of eligible disqualifying incentive stock option (“ISO”) exercises impact the Company’s effective tax rate. The Company cannot recognize a tax benefit for the stock compensation expense related to certain ISO exercises unless and until the holder exercises his or her option and then sells the shares within a certain period of time. Also, the Company can only recognize a potential tax benefit for employees’ acquisition and subsequent sale of shares purchased through the ESPP if the sale occurs within a certain defined period. Further, tax benefits associated with ISO grants fully vested at the date of adoption of current accounting rules for stock-based compensation will be recognized as additions to paid-in capital when and if those options are exercised and not as a reduction to the Company’s tax provision. The Company recognized a benefit of approximately $590,000 and $631,000 related to stock-based compensation for nonqualified stock options expensed and for eligible disqualifying ISO exercises during the first quarter of fiscal 2014 and 2013, respectively. | |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended |
Aug. 24, 2013 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 6. Stockholders’ Equity |
In April 2011, the Company’s board of directors approved a stock repurchase program, authorizing the repurchase, at the discretion of the Company’s senior executives, of the Company’s common stock for an aggregate dollar limit not to exceed $150 million. During the three months ended August 24, 2013, the Company purchased approximately 312,100 shares of its common stock at an average price of $13.34 per share on the open market for approximately $4.2 million. As of August 24, 2013, approximately $68.4 million remains available for future repurchases of the Company’s common stock under the stock repurchase program. | |
Supplemental_Disclosure_Of_Cas
Supplemental Disclosure Of Cash Flow Information | 3 Months Ended | ||||||
Aug. 24, 2013 | |||||||
Supplemental Disclosure Of Cash Flow Information [Abstract] | |||||||
Supplemental Disclosure Of Cash Flow Information | 7. Supplemental Disclosure of Cash Flow Information | ||||||
Additional information regarding cash flows is as follows (in thousands): | |||||||
For the Three Months Ended | |||||||
August 24, | August 25, | ||||||
2013 | 2012 | ||||||
Non-cash financing activities: | |||||||
Dividends declared, not paid | $ | 2,788 | $ | 2,492 | |||
StockBased_Compensation_Plans
Stock-Based Compensation Plans | 3 Months Ended | |||||||||||
Aug. 24, 2013 | ||||||||||||
Stock Based Compensation Plans [Abstract] | ||||||||||||
Stock Based Compensation Plans | 8. Stock-Based Compensation Plans | |||||||||||
Stock Options and Restricted Stock | ||||||||||||
As of August 24, 2013, the Company had outstanding grants under the 2004 Plan and the 1999 Long Term Incentive Plan (“1999 Plan”). The 2004 Plan serves as the successor to the 1999 Plan. At inception, a total of 7,500,000 new shares of common stock were made available for awards under the 2004 Plan to employees and non-employee directors. Awards under the 2004 Plan may include, but are not limited to, stock options and restricted stock grants. Outstanding awards under the 1999 Plan that expire or terminate without having been exercised roll over to the 2004 Plan. Stock options generally vest in equal annual installments over four years and terminate ten years from the date of grant. Restricted stock award vesting is determined on an individual grant basis. As of August 24, 2013, 559,000 shares were available for future award grants under the 2004 Plan, although awards of restricted stock under the 2004 Plan will be counted against the available share limit as two and a half shares for every one share actually issued in connection with the award. The Company’s policy is to issue shares from its authorized shares upon the exercise of stock options. | ||||||||||||
The following table summarizes the stock option activity for the three months ended August 24, 2013 (number of options and intrinsic value in thousands): | ||||||||||||
Number of Shares Under Option | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | |||||||||
Outstanding at May 25, 2013 | 7,970 | $ | 19.60 | 4.91 | $ | 72 | ||||||
Granted, at fair market value | 1,168 | 11.08 | ||||||||||
Exercised | -269 | 12.05 | ||||||||||
Forfeited | -40 | 13.12 | ||||||||||
Expired | -47 | 16.95 | ||||||||||
Outstanding at August 24, 2013 | 8,782 | $ | 18.74 | 5.46 | $ | 2,361 | ||||||
Exercisable at August 24, 2013 | 6,098 | $ | 21.10 | 4.01 | $ | 95 | ||||||
Vested and expected to vest at August 24, 2013 | 8,389 | $ | 19.06 | 5.28 | $ | 1,865 | ||||||
The aggregate intrinsic value in the table above represents the total pretax intrinsic value, which is the difference between the Company’s closing stock price on the last trading day of the first quarter of fiscal 2014 and the exercise price multiplied by the number of shares that would have been received by the option holders if they had exercised their “in the money” options on August 24, 2013. This amount will change based on the fair market value of the Company’s common stock. The aggregate intrinsic value of stock options exercised for the three months ended August 24, 2013 and August 25, 2012 was $289,000 and $134,000, respectively. | ||||||||||||
Stock-Based Compensation Expense | ||||||||||||
As of August 24, 2013, there was $11.0 million of total unrecognized compensation cost related to non-vested employee stock options granted. That cost is expected to be recognized over a weighted-average period of 32 months. Stock-based compensation expense included in selling, general and administrative expenses for the three months ended August 24, 2013 and August 25, 2012 was $1.7 million and $1.8 million, respectively; this consisted of stock-based compensation expense related to employee stock options, employee stock purchases made via the Company’s ESPP and issuances of restricted stock. There were no capitalized share-based compensation costs during the three months ended August 24, 2013 and August 25, 2012. | ||||||||||||
The weighted average estimated fair value per share of employee stock options granted during the three months ended August 24, 2013 was $3.73 using the Black-Scholes valuation model with the following assumptions: | ||||||||||||
For the Three Months Ended | ||||||||||||
24-Aug-13 | ||||||||||||
Expected volatility | 42.1% - 44.1% | |||||||||||
Risk-free interest rate | 1.1% - 1.7% | |||||||||||
Expected dividends | 2.10% | |||||||||||
Expected life | 5.3 - 7.5 years | |||||||||||
The Company granted 5,141 shares of restricted stock during the three months ended August 24, 2013. No shares of restricted stock were granted during the three months ended August 25, 2012. Stock-based compensation expense for restricted shares for the three months ended August 24, 2013 and August 25, 2012 was $85,000 and $62,000, respectively. There were 78,741 unvested restricted shares, with approximately $814,000 of remaining unrecognized compensation cost, as of August 24, 2013. | ||||||||||||
The Company recognizes compensation expense for only the portion of stock options and restricted stock that is expected to vest, rather than recording forfeitures when they occur. If the actual number of forfeitures differs from that estimated by management, additional adjustments to compensation expense may be required in future periods. | ||||||||||||
The Company reflects, in its Consolidated Statements of Cash Flows, the tax impact resulting from tax deductions in excess of expense recognized in its Consolidated Statements of Operations as a financing cash flow, which will impact the Company’s future reported cash flows from operating activities. Gross excess tax benefits totaled $1,000 and $7,000 for the three months ended August 24, 2013 and August 25, 2012, respectively. | ||||||||||||
Employee Stock Purchase Plan | ||||||||||||
The Company’s ESPP allows qualified employees (as defined in the ESPP) to purchase designated shares of the Company’s common stock at a price equal to 85% of the lesser of the fair market value of common stock at the beginning or end of each semi-annual stock purchase period. A total of 4,400,000 shares of common stock may be issued under the ESPP. The Company issued 176,000 and 411,000 shares of common stock pursuant to the ESPP for the three months ended August 24, 2013 and the year ended May 25, 2013, respectively. There were 610,000 shares of common stock available for issuance under the ESPP as of August 24, 2013. | ||||||||||||
Segment_Information_And_Enterp
Segment Information And Enterprise Reporting | 3 Months Ended | ||||||||||||
Aug. 24, 2013 | |||||||||||||
Segment Information And Enterprise Reporting [Abstract] | |||||||||||||
Segment Information And Enterprise Reporting | |||||||||||||
9. Segment Information and Enterprise Reporting | |||||||||||||
The Company discloses information regarding operations outside of the U.S. The Company operates as one segment. The accounting policies for the domestic and international operations are the same as those described in Note 2-Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements included in the Company’s 2013 Annual Report on Form 10-K for the fiscal year ended May 25, 2013. Summarized information regarding the Company’s domestic and international operations is shown in the following table (in thousands): | |||||||||||||
Revenue for the | |||||||||||||
Three Months Ended | Long-Lived Assets (1) as of | ||||||||||||
August 24, | August 25, | August 24, | May 25, | ||||||||||
2013 | 2012 | 2013 | 2013 | ||||||||||
United States | $ | 102,194 | $ | 104,790 | $ | 172,366 | $ | 171,939 | |||||
The Netherlands | 5,767 | 5,827 | 22,928 | 22,457 | |||||||||
Other | 23,743 | 26,316 | 3,546 | 3,625 | |||||||||
Total | $ | 131,704 | $ | 136,933 | $ | 198,840 | $ | 198,021 | |||||
(1)Long-lived assets are comprised of goodwill, intangible assets, building and land, furniture, leasehold improvements, computers, equipment and software. | |||||||||||||
Legal_Proceedings
Legal Proceedings | 3 Months Ended |
Aug. 24, 2013 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | 10. Legal Proceedings |
The Company is involved in certain legal matters in the ordinary course of business. In the opinion of management, all such matters, if disposed of unfavorably, would not have a material adverse effect on the Company’s financial position, cash flows or results of operations. | |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Aug. 24, 2013 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 11. Recent Accounting Pronouncements |
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. In July 2013, the Financial Accounting Standards Board (“FASB”) issued new guidance which requires an unrecognized tax benefit to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, similar tax loss, or a tax credit carryforward. To the extent the tax benefit is not available at the reporting date under the governing tax law or if the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented as a liability and not combined with deferred tax assets. The guidance is effective for annual periods, and interim periods within those years, beginning after December 15, 2013. The amendments are to be applied to all unrecognized tax benefits that exist as of the effective date and may be applied retrospectively to each prior reporting period presented. The Company does not expect that adoption of this guidance will have a material impact on the Company’s consolidated financial statements. | |
Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries. In March 2013, the FASB issued new guidance on a parent’s accounting for the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. This guidance requires that the parent release any related cumulative translation adjustment into net income only if the sale or transfer result in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company does not expect that adoption of this guidance will have a material impact on the Company’s consolidated financial statements. | |
Comprehensive Income. In February 2013, the FASB issued new guidance on the presentation of comprehensive income which requires a company to present, either on the face of the statement where net income is presented or in the notes, the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2012. The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. The information required under this guidance is already required to be disclosed elsewhere in the financial statements under GAAP and, therefore, the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. | |
Testing Indefinite-Lived Intangible Assets for Impairment. In July 2012, the FASB issued new guidance for annual and interim indefinite-lived intangible asset impairment tests performed for fiscal years beginning after September 15, 2012. The guidance allows an organization the option of first assessing qualitative factors to determine if a quantitative impairment test of the indefinite-lived intangible asset is necessary. If the qualitative assessment reveals that it is more likely than not that the asset is impaired, a calculation of the asset’s fair value is required. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. | |
Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants and the SEC did not, or are not expected to, have a material effect on the Company’s results of operations, financial position or cash flows. | |
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policy) | 3 Months Ended | ||||||||||||||
Aug. 24, 2013 | |||||||||||||||
Summary Of Significant Accounting Policies [Abstract] | |||||||||||||||
Interim Financial Information | Interim Financial Information | ||||||||||||||
The financial information as of and for the three months ended August 24, 2013 and August 25, 2012 is unaudited but includes all adjustments (consisting only of normal recurring adjustments) that the Company considers necessary for a fair presentation of its financial position at such dates and the operating results and cash flows for those periods. The year-end balance sheet data was derived from audited financial statements, and certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to Securities and Exchange Commission (“SEC”) rules or regulations; however, the Company believes the disclosures made are adequate to make the information presented not misleading. | |||||||||||||||
The results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for the fiscal year. These condensed interim financial statements should be read in conjunction with the audited financial statements for the year ended May 25, 2013, which are included in the Company’s Annual Report on Form 10-K for the year then ended (File No. 0-32113). | |||||||||||||||
Cash, Cash Equivalents And Short-Term Investments | Cash, Cash Equivalents and Short-Term Investments | ||||||||||||||
The Company considers cash on hand, deposits in banks, and short-term investments purchased with an original maturity date of three months or less to be cash and cash equivalents. The carrying amounts reflected in the consolidated balance sheets for cash, cash equivalents and short-term investments approximate the fair values due to the short maturities of these instruments. | |||||||||||||||
Client Reimbursements Of "Out-Of-Pocket" Expenses | Client Reimbursements of “Out-of-Pocket” Expenses | ||||||||||||||
The Company recognizes all reimbursements received from clients for “out-of-pocket” expenses as revenue and all such expenses as direct cost of services. Reimbursements received from clients were $2.0 million and $2.5 million for the three months ended August 24, 2013 and August 25, 2012, respectively. | |||||||||||||||
Foreign Currency Translation | Foreign Currency Translation | ||||||||||||||
The financial statements of subsidiaries outside the U.S. are measured using the local currency as the functional currency. Assets and liabilities of these subsidiaries are translated at current exchange rates, income and expense items are translated at average exchange rates prevailing during the period and the related translation adjustments are recorded as a component of comprehensive income or loss. Gains and losses from foreign currency transactions are included in the Consolidated Statements of Operations. | |||||||||||||||
Net Income Per Share Information | Net Income Per Share Information | ||||||||||||||
The Company presents both basic and diluted earnings per share (“EPS”). Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is based upon the weighted average number of common and common equivalent shares outstanding during the period, calculated using the treasury stock method for stock options. Under the treasury stock method, assumed proceeds include the amount the employee must pay for exercising stock options, the amount of compensation cost for future services that the Company has not yet recognized and the amount of tax benefits that would be recorded in additional paid-in capital when the award becomes deductible. Common equivalent shares are excluded from the computation in periods in which they have an anti-dilutive effect. Stock options for which the exercise price exceeds the average market price over the period are anti-dilutive and are excluded from the calculation. | |||||||||||||||
The following table summarizes the calculation of net income per share for the periods indicated (in thousands, except per share amounts): | |||||||||||||||
Three Months Ended | |||||||||||||||
August 24, | August 25, | ||||||||||||||
2013 | 2012 | ||||||||||||||
Net income | $ | 3,653 | $ | 4,832 | |||||||||||
Basic: | |||||||||||||||
Weighted average shares | 39,826 | 41,720 | |||||||||||||
Diluted: | |||||||||||||||
Weighted average shares | 39,826 | 41,720 | |||||||||||||
Potentially dilutive shares | 18 | 54 | |||||||||||||
Total dilutive shares | 39,844 | 41,774 | |||||||||||||
Net income per common share: | |||||||||||||||
Basic | $ | 0.09 | $ | 0.12 | |||||||||||
Dilutive | $ | 0.09 | $ | 0.12 | |||||||||||
Anti-dilutive shares not included above | 8,736 | 8,360 | |||||||||||||
Stock-Based Compensation | Stock-Based Compensation | ||||||||||||||
The Company recognizes compensation expense for all share-based payment awards made to employees and directors, including employee stock options and employee stock purchases made via the Company’s Employee Stock Purchase Plan (the “ESPP”), based on estimated fair value at the date of grant. | |||||||||||||||
The Company estimates the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods. Stock options vest over four years and restricted stock award vesting is determined on an individual grant basis under the Company’s 2004 Performance Incentive Plan (“2004 Plan”). The Company determines the estimated value of stock options using the Black-Scholes valuation model. The Company recognizes stock-based compensation expense on a straight-line basis over the service period for options that are expected to vest and records adjustments to compensation expense at the end of the service period if actual forfeitures differ from original estimates. | |||||||||||||||
See Note 8 — Stock-Based Compensation Plans for further information on stock-based compensation. | |||||||||||||||
Use Of Estimates | Use of Estimates | ||||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although management believes these estimates and assumptions are adequate, actual results could differ from the estimates and assumptions used. | |||||||||||||||
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||||||||
Aug. 24, 2013 | |||||||||||||||
Summary Of Significant Accounting Policies [Abstract] | |||||||||||||||
Calculation Of Net Income Per Share | |||||||||||||||
Three Months Ended | |||||||||||||||
August 24, | August 25, | ||||||||||||||
2013 | 2012 | ||||||||||||||
Net income | $ | 3,653 | $ | 4,832 | |||||||||||
Basic: | |||||||||||||||
Weighted average shares | 39,826 | 41,720 | |||||||||||||
Diluted: | |||||||||||||||
Weighted average shares | 39,826 | 41,720 | |||||||||||||
Potentially dilutive shares | 18 | 54 | |||||||||||||
Total dilutive shares | 39,844 | 41,774 | |||||||||||||
Net income per common share: | |||||||||||||||
Basic | $ | 0.09 | $ | 0.12 | |||||||||||
Dilutive | $ | 0.09 | $ | 0.12 | |||||||||||
Anti-dilutive shares not included above | 8,736 | 8,360 | |||||||||||||
Intangible_Assets_And_Goodwill1
Intangible Assets And Goodwill (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||
Aug. 24, 2013 | |||||||||||||||||||||||||||||||||||||||
Intangible Assets And Goodwill [Abstract] | |||||||||||||||||||||||||||||||||||||||
Schedule Of Details Of Intangible Assets | |||||||||||||||||||||||||||||||||||||||
As of August 24, 2013 | As of May 25, 2013 | ||||||||||||||||||||||||||||||||||||||
Accumulated | Accumulated | ||||||||||||||||||||||||||||||||||||||
Gross | Amortization | Net | Gross | Amortization | Net | ||||||||||||||||||||||||||||||||||
Customer relationships (2-7 years) | $ | 18,175 | $ | -17,072 | $ | 1,103 | $ | 17,978 | $ | -16,710 | $ | 1,268 | |||||||||||||||||||||||||||
Consultant and customer database (1-5 years) | 2,348 | -2,348 | - | 2,330 | -2,330 | - | |||||||||||||||||||||||||||||||||
Non-compete agreements (1-5 years) | 3,232 | -2,487 | 745 | 3,226 | -2,331 | 895 | |||||||||||||||||||||||||||||||||
Trade name and trademark (5 years) | 1,341 | -908 | 433 | 1,341 | -845 | 496 | |||||||||||||||||||||||||||||||||
Total | $ | 25,096 | $ | -22,815 | $ | 2,281 | $ | 24,875 | $ | -22,216 | $ | 2,659 | |||||||||||||||||||||||||||
Schedule Of Intangible Assets Related Accumulated Amortization | Three Months Ended | ||||||||||||||||||||||||||||||||||||||
August 24, | August 25, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
Amortization expense | $ | 417 | $ | 426 | |||||||||||||||||||||||||||||||||||
Fiscal Years Ending | |||||||||||||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||||||||||||||||||
Expected amortization expense | $ | 1,676 | $ | 904 | $ | 12 | $ | 12 | $ | 12 | |||||||||||||||||||||||||||||
Summary Of Activity In Goodwill Balance | |||||||||||||||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||||||||||||
August 24, | August 25, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||||||
Goodwill, beginning of year | $ | 174,275 | $ | 173,576 | |||||||||||||||||||||||||||||||||||
Impact of foreign currency exchange rate changes | 726 | 126 | |||||||||||||||||||||||||||||||||||||
Goodwill, end of period | $ | 175,001 | $ | 173,702 | |||||||||||||||||||||||||||||||||||
Supplemental_Disclosure_Of_Cas1
Supplemental Disclosure Of Cash Flow Information (Tables) | 3 Months Ended | ||||||
Aug. 24, 2013 | |||||||
Supplemental Disclosure Of Cash Flow Information [Abstract] | |||||||
Schedule Of Additional Information Regarding Cash Flows | |||||||
For the Three Months Ended | |||||||
August 24, | August 25, | ||||||
2013 | 2012 | ||||||
Non-cash financing activities: | |||||||
Dividends declared, not paid | $ | 2,788 | $ | 2,492 | |||
Stock_Based_Compensation_Plans
Stock Based Compensation Plans (Tables) | 3 Months Ended | |||||||||||
Aug. 24, 2013 | ||||||||||||
Stock Based Compensation Plans [Abstract] | ||||||||||||
Summary Of Stock Option Activity | ||||||||||||
Number of Shares Under Option | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | |||||||||
Outstanding at May 25, 2013 | 7,970 | $ | 19.60 | 4.91 | $ | 72 | ||||||
Granted, at fair market value | 1,168 | 11.08 | ||||||||||
Exercised | -269 | 12.05 | ||||||||||
Forfeited | -40 | 13.12 | ||||||||||
Expired | -47 | 16.95 | ||||||||||
Outstanding at August 24, 2013 | 8,782 | $ | 18.74 | 5.46 | $ | 2,361 | ||||||
Exercisable at August 24, 2013 | 6,098 | $ | 21.10 | 4.01 | $ | 95 | ||||||
Vested and expected to vest at August 24, 2013 | 8,389 | $ | 19.06 | 5.28 | $ | 1,865 | ||||||
Schedule Of Share-Based Payment Award, Valuation Assumptions | ||||||||||||
For the Three Months Ended | ||||||||||||
24-Aug-13 | ||||||||||||
Expected volatility | 42.1% - 44.1% | |||||||||||
Risk-free interest rate | 1.1% - 1.7% | |||||||||||
Expected dividends | 2.10% | |||||||||||
Expected life | 5.3 - 7.5 years | |||||||||||
Segment_Information_And_Enterp1
Segment Information And Enterprise Reporting (Tables) | 3 Months Ended | ||||||||||||
Aug. 24, 2013 | |||||||||||||
Segment Information And Enterprise Reporting [Abstract] | |||||||||||||
Schedule Of Revenue From External Customers And Long-Lived Assets, By Geographical Areas | |||||||||||||
Revenue for the | |||||||||||||
Three Months Ended | Long-Lived Assets (1) as of | ||||||||||||
August 24, | August 25, | August 24, | May 25, | ||||||||||
2013 | 2012 | 2013 | 2013 | ||||||||||
United States | $ | 102,194 | $ | 104,790 | $ | 172,366 | $ | 171,939 | |||||
The Netherlands | 5,767 | 5,827 | 22,928 | 22,457 | |||||||||
Other | 23,743 | 26,316 | 3,546 | 3,625 | |||||||||
Total | $ | 131,704 | $ | 136,933 | $ | 198,840 | $ | 198,021 | |||||
(1)Long-lived assets are comprised of goodwill, intangible assets, building and land, furniture, leasehold improvements, computers, equipment and software | |||||||||||||
Summary_Of_Significant_Account3
Summary Of Significant Accounting Policies (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Aug. 24, 2013 | Aug. 25, 2012 |
Summary Of Significant Accounting Policies [Line Items] | ||
Reimbursements received from clients for "out-of-pocket" expenses | $2 | $2.50 |
Stock Incentive Plan 2004 [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Stock options vesting period | 4 years |
Summary_Of_Significant_Account4
Summary Of Significant Accounting Policies (Calculation Of Net Income Per Share) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Aug. 24, 2013 | Aug. 25, 2012 |
Summary Of Significant Accounting Policies [Abstract] | ||
Net income | $3,653 | $4,832 |
Basic: | ||
Weighted average shares | 39,826 | 41,720 |
Diluted: | ||
Weighted average shares | 39,826 | 41,720 |
Potentially dilutive shares | 18 | 54 |
Total dilutive shares | 39,844 | 41,774 |
Net income per common share: | ||
Basic | $0.09 | $0.12 |
Diluted | $0.09 | $0.12 |
Anti-dilutive shares not included above | 8,736 | 8,360 |
Contingent_Consideration_Detai
Contingent Consideration (Details) (USD $) | Aug. 24, 2013 | Aug. 24, 2013 | Aug. 24, 2013 | Nov. 30, 2013 |
Maximum [Member] | Sitrick Brincko Group LLC [Member] | Scenario, Forecast [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||||
Minimum average annual earnings before interest, taxes, depreciation and amortization required to make contingent consideration payment | $11,300,000 | |||
Contingent consideration, earn-out measurement period | 4 years | |||
Contingent consideration, factor by which EBITDA is multiplied to calculate consideration payable | 3.15 | |||
Contingent consideration, percentage payable to employees of the acquired business | 20.00% | |||
Business acquisition, actual results period | 3 years | |||
Contingent consideration liability | 0 | 0 | ||
Potential cash payment | $2,250,000 |
Intangible_Assets_And_Goodwill2
Intangible Assets And Goodwill (Schedule Of Details Of Intangible Assets) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Aug. 24, 2013 | 25-May-13 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $25,096 | $24,875 |
Accumulated Amortization | -22,815 | -22,216 |
Net | 2,281 | 2,659 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 18,175 | 17,978 |
Accumulated Amortization | -17,072 | -16,710 |
Net | 1,103 | 1,268 |
Consultant And Customer Database [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 2,348 | 2,330 |
Accumulated Amortization | -2,348 | -2,330 |
Non-compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 3,232 | 3,226 |
Accumulated Amortization | -2,487 | -2,331 |
Net | 745 | 895 |
Trade Name And Trademark [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, estimated lives | 5 years | |
Gross | 1,341 | 1,341 |
Accumulated Amortization | -908 | -845 |
Net | $433 | $496 |
Minimum [Member] | Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, estimated lives | 2 years | |
Minimum [Member] | Consultant And Customer Database [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, estimated lives | 1 year | |
Minimum [Member] | Non-compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, estimated lives | 1 year | |
Maximum [Member] | Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, estimated lives | 7 years | |
Maximum [Member] | Consultant And Customer Database [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, estimated lives | 5 years | |
Maximum [Member] | Trade Name And Trademark [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, estimated lives | 5 years |
Intangible_Assets_And_Goodwill3
Intangible Assets And Goodwill (Schedule Of Intangible Assets Related Accumulated Amortization) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Aug. 24, 2013 | Aug. 25, 2012 |
Intangible Assets And Goodwill [Abstract] | ||
Amortization expense | $417 | $426 |
Expected amortization expense, 2014 | 1,676 | |
Expected amortization expense, 2015 | 904 | |
Expected amortization expense, 2016 | 12 | |
Expected amortization expense, 2017 | 12 | |
Expected amortization expense, 2018 | $12 |
Intangible_Assets_And_Goodwill4
Intangible Assets And Goodwill (Summary Of Activity In Goodwill Balance) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Aug. 24, 2013 | Aug. 25, 2012 |
Intangible Assets And Goodwill [Abstract] | ||
Goodwill, beginning of year | $174,275 | $173,576 |
Impact of foreign currency exchange rate changes | 726 | 126 |
Goodwill, end of period | $175,001 | $173,702 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
Aug. 24, 2013 | Aug. 25, 2012 | |
Income Taxes [Abstract] | ||
Provision for income taxes | $3,106,000 | $4,928,000 |
Effective tax rate | 46.00% | 50.00% |
Reversal of liability for uncertain tax position | 350,000 | |
Tax benefit related to stock-based compensation | $590,000 | $631,000 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (Stock Repurchase Program 2011 [Member], USD $) | 3 Months Ended |
Aug. 24, 2013 | |
Stock Repurchase Program 2011 [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Amount authorized under a stock repurchase program | $150,000,000 |
Purchase of common stock | 312,100 |
Common stock shares repurchased, average price per share | $13.34 |
Cost of shares repurchased | 4,200,000 |
Stock repurchase plan, remaining amount | $68,400,000 |
Supplemental_Disclosure_Of_Cas2
Supplemental Disclosure Of Cash Flow Information (Details) (USD $) | Aug. 24, 2013 | Aug. 25, 2012 |
In Thousands, unless otherwise specified | ||
Supplemental Disclosure Of Cash Flow Information [Abstract] | ||
Dividends declared, not paid | $2,788 | $2,492 |
Stock_Based_Compensation_Plans1
Stock Based Compensation Plans (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Aug. 24, 2013 | Aug. 25, 2012 | Aug. 24, 2013 | Aug. 24, 2013 | 25-May-13 | |
Stock Incentive Plan 2004 [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | |||
item | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
New shares of common stock made available for awards | 7,500,000 | 4,400,000 | |||
Stock options vesting period | 4 years | ||||
Stock options termination period | 10 years | ||||
Shares available for grant | 610,000 | 559,000 | |||
Stock split conversion ratio | 2.5 | ||||
Unrecognized compensation cost related to stock-based compensation | $11,000,000 | ||||
Weighted-average period of cost to be recognized | 32 months | ||||
Stock-based compensation expense | 1,654,000 | 1,813,000 | |||
Weighted average estimated value per share of employee stock options granted | $3.73 | ||||
The aggregate intrinsic value of stock options exercised | 289,000 | 134,000 | |||
Shares of restricted stock granted | 5,141 | 0 | |||
Share based compensation expense for restricted shares | 85,000 | 62,000 | |||
Unvested restricted shares | 78,741 | ||||
Total unrecognized compensation cost | 814,000 | ||||
Excess tax benefits from stock-based compensation | $1,000 | $7,000 | |||
Percentage of exercise price per share out of fair market value | 85.00% | ||||
Common stock issued | 176,000 | 411,000 |
Stock_Based_Compensation_Plans2
Stock Based Compensation Plans (Summary Of Stock Option Activity) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Aug. 24, 2013 | 26-May-12 |
Stock Based Compensation Plans [Abstract] | ||
Options outstanding, Beginning balance, Number of Shares Under Option | 7,970 | |
Granted, at fair market value, Number of Shares Under Option | 1,168 | |
Exercised, Number of Shares Under Option | -269 | |
Forfeited, Number of Shares Under Option | -40 | |
Expired, Number of Shares Under Option | -47 | |
Options outstanding, Ending balance, Number of Shares Under Option | 8,782 | |
Exercisable at August 24, 2013, Number of Shares Under Option | 6,098 | |
Vested and expected to vest at August 24, 2013, Number of Shares Under Option | 8,389 | |
Options outstanding, Beginning balance, Weighted Average Exercise Price | $19.60 | |
Granted, at fair market value, Weighted Average Exercise Price | $11.08 | |
Exercised, Weighted Average Exercise Price | $12.05 | |
Forfeited, Weighted Average Exercise Price | $13.12 | |
Expired, Weighted Average Exercise Price | $16.95 | |
Options outstanding, Ending balance, Weighted Average Exercise Price | $18.74 | |
Exercisable at August 24, 2013, Weighted Average Exercise Price | $21.10 | |
Vested and expected to vest at August 24, 2013, Weighted Average Exercise Price | $19.06 | |
Options outstanding at August 24, 2013, Weighted Average Remaining Contractual Life (Years) | 5 years 5 months 16 days | 4 years 10 months 28 days |
Exercisable at May 25, 2013, Weighted Average Remaining Contractual Life (Years) | 4 years 4 days | |
Vested and expected to vest at August 24, 2013, Weighted Average Remaining Contractual Life (in years) | 5 years 3 months 11 days | |
Options outstanding, Beginning balance, Aggregate Intrinsic Value | $72 | |
Options outstanding, Ending balance, Aggregate Intrinsic Value | 2,361 | |
Exercisable at August 24, 2013, Aggregate Intrinsic Value | 95 | |
Vested and expected to vest at August 24, 2013, Aggregate Intrinsic Value | $1,865 |
Stock_Based_Compensation_Plans3
Stock Based Compensation Plans (Schedule Of Share-Based Payment Award, Valuation Assumptions) (Details) | 3 Months Ended |
Aug. 24, 2013 | |
Stock Based Compensation Plans [Abstract] | |
Expected volatility, minimum | 42.10% |
Expected volatility, maximum | 44.10% |
Risk-free interest rate, minimum | 1.10% |
Risk-free interest rate, maximum | 1.70% |
Expected dividends | 2.10% |
Expected life, minimum | 5 years 3 months 18 days |
Expected term, maximum | 7 years 6 months |
Segment_Information_And_Enterp2
Segment Information And Enterprise Reporting (Narrative) (Details) | 3 Months Ended |
Aug. 24, 2013 | |
segment | |
Segment Information And Enterprise Reporting [Abstract] | |
Number of operating segments | 1 |
Segment_Information_And_Enterp3
Segment Information And Enterprise Reporting (Schedule Of Revenue From External Customers And Long-Lived Assets, By Geographical Areas) (Details) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Aug. 24, 2013 | Aug. 25, 2012 | 25-May-13 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | $131,704 | $136,933 | |||
Long-Lived Assets | 198,840 | [1] | 198,021 | [1] | |
UNITED STATES [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 102,194 | 104,790 | |||
Long-Lived Assets | 172,366 | [1] | 171,939 | [1] | |
The Netherlands [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 5,767 | 5,827 | |||
Long-Lived Assets | 22,928 | [1] | 22,457 | [1] | |
Other [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 23,743 | 26,316 | |||
Long-Lived Assets | $3,546 | [1] | $3,625 | [1] | |
[1] | Long-lived assets are comprised of goodwill, intangible assets, building and land, furniture, leasehold improvements, computers, equipment and software. |