Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
May 27, 2017 | Jul. 17, 2017 | Nov. 25, 2016 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | May 27, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | recn | ||
Entity Registrant Name | RESOURCES CONNECTION INC | ||
Entity Central Index Key | 1,084,765 | ||
Current Fiscal Year End Date | --05-27 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 456,774,000 | ||
Entity Common Stock, Shares Outstanding | 29,867,919 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | May 27, 2017 | May 28, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 62,329 | $ 91,089 |
Short-term investments | 0 | 24,957 |
Trade accounts receivable, net of allowance for doubtful accounts of $2,517 and $2,994 as of May 27, 2017 and May 28, 2016, respectively | 98,222 | 97,807 |
Prepaid expenses and other current assets | 4,395 | 4,735 |
Income taxes receivable | 1,899 | |
Total current assets | 166,845 | 218,588 |
Goodwill | 171,088 | 171,183 |
Property and equipment, net | 23,354 | 21,274 |
Deferred income taxes | 973 | 4,237 |
Other assets | 1,868 | 1,973 |
Total assets | 364,128 | 417,255 |
Current liabilities: | ||
Accounts payable and accrued expenses | 14,102 | 13,606 |
Accrued salaries and related obligations | 49,241 | 50,155 |
Other liabilities | 8,428 | 7,123 |
Total current liabilities | 71,771 | 70,884 |
Long-term debt | 48,000 | |
Deferred income taxes | 1,280 | |
Other long-term liabilities | 4,935 | 3,722 |
Total liabilities | 125,986 | 74,606 |
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; 58,992 and 58,237 shares issued, and 29,662 and 36,229 shares outstanding as of May 27, 2017 and May 28, 2016, respectively | 590 | 582 |
Additional paid-in capital | 398,828 | 388,763 |
Accumulated other comprehensive loss | (11,396) | (10,794) |
Retained earnings | 332,024 | 327,954 |
Treasury stock at cost, 29,330 and 22,008 shares as of May 27, 2017 and May 28, 2016, respectively | (481,904) | (363,856) |
Total stockholders' equity | 238,142 | 342,649 |
Total liabilities and stockholders' equity | $ 364,128 | $ 417,255 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | May 27, 2017 | May 28, 2016 |
Consolidated Balance Sheets [Abstract] | ||
Trade accounts receivable, allowance for doubtful accounts | $ 2,517 | $ 2,994 |
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 | 58,992,000 | 58,237,000 |
Common stock, shares outstanding | 29,662,000 | 36,229,000 |
Treasury stock at cost, shares | 29,330,000 | 22,008,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
May 27, 2017 | May 28, 2016 | May 30, 2015 | |
Consolidated Statements Of Operations [Abstract] | |||
Revenue | $ 583,411 | $ 598,521 | $ 590,589 |
Direct cost of services, primarily payroll and related taxes for professional services employees | 362,086 | 366,355 | 362,227 |
Gross margin | 221,325 | 232,166 | 228,362 |
Selling, general and administrative expenses | 183,471 | 174,806 | 173,797 |
Amortization of intangible assets | 90 | 918 | |
Depreciation expense | 3,452 | 3,467 | 3,389 |
Income from operations | 34,402 | 53,803 | 50,258 |
Interest expense | 773 | ||
Interest income | (144) | (186) | (148) |
Income before provision for income taxes | 33,773 | 53,989 | 50,406 |
Provision for income taxes | 15,122 | 23,546 | 22,898 |
Net income | $ 18,651 | $ 30,443 | $ 27,508 |
Net income per common share: | |||
Basic (per share) | $ 0.57 | $ 0.82 | $ 0.73 |
Diluted (per share) | $ 0.56 | $ 0.81 | $ 0.72 |
Weighted average common shares outstanding: | |||
Basic (shares) | 32,851 | 37,037 | 37,825 |
Diluted (shares) | 33,471 | 37,608 | 38,248 |
Cash dividends declared per common share | $ 0.44 | $ 0.40 | $ 0.32 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
May 27, 2017 | May 28, 2016 | May 30, 2015 | |
COMPREHENSIVE INCOME: | |||
Net income | $ 18,651 | $ 30,443 | $ 27,508 |
Foreign currency translation adjustment, net of tax | (602) | 123 | (8,344) |
Total comprehensive income | $ 18,049 | $ 30,566 | $ 19,164 |
Consolidated Statement Of Stock
Consolidated Statement Of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Retained Earnings [Member] | Total |
Balance at May. 31, 2014 | $ 567 | $ 360,445 | $ (311,508) | $ (2,573) | $ 298,830 | $ 345,761 |
Balance (in shares) at May. 31, 2014 | 56,738 | 18,580 | ||||
Exercise of stock options | $ 4 | 5,299 | 5,303 | |||
Exercise of stock options (in shares) | 408 | |||||
Stock-based compensation expense | 5,989 | 5,989 | ||||
Tax shortfall from stock-based compensation arrangements | (1,216) | (1,216) | ||||
Issuance of common stock under Employee Stock Purchase Plan | $ 4 | 3,768 | 3,772 | |||
Issuance of common stock under Employee Stock Purchase Plan (in shares) | 337 | |||||
Issuance of restricted stock (in shares) | 6 | |||||
Issuance of restricted stock out of treasury to board of director members | $ 1,026 | (1,026) | ||||
Issuance of restricted stock out of treasury to board of director members (in shares) | (44) | |||||
Forfeitures of restricted stock (in shares) | (1) | |||||
Purchase of shares | $ (26,277) | (26,277) | ||||
Purchase of shares (in shares) | 1,679 | |||||
Cash dividends declared (per share) | (12,044) | (12,044) | ||||
Currency translation adjustment | (8,344) | (8,344) | ||||
Net income | 27,508 | 27,508 | ||||
Balance at May. 30, 2015 | $ 575 | 374,285 | $ (336,759) | (10,917) | 313,268 | 340,452 |
Balance (in shares) at May. 30, 2015 | 57,488 | 20,215 | ||||
Exercise of stock options | $ 4 | 5,304 | 5,308 | |||
Exercise of stock options (in shares) | 418 | |||||
Stock-based compensation expense | 6,280 | 6,280 | ||||
Tax shortfall from stock-based compensation arrangements | (1,565) | (1,565) | ||||
Issuance of common stock under Employee Stock Purchase Plan | $ 3 | 4,459 | 4,462 | |||
Issuance of common stock under Employee Stock Purchase Plan (in shares) | 325 | |||||
Issuance of restricted stock (in shares) | 6 | |||||
Issuance of restricted stock out of treasury to board of director members | $ 1,031 | (1,031) | ||||
Issuance of restricted stock out of treasury to board of director members (in shares) | (44) | |||||
Purchase of shares | $ (28,128) | (28,128) | ||||
Purchase of shares (in shares) | 1,837 | |||||
Cash dividends declared (per share) | (14,726) | (14,726) | ||||
Currency translation adjustment | 123 | 123 | ||||
Net income | 30,443 | 30,443 | ||||
Balance at May. 28, 2016 | $ 582 | 388,763 | $ (363,856) | (10,794) | 327,954 | $ 342,649 |
Balance (in shares) at May. 28, 2016 | 58,237 | 22,008 | 36,229 | |||
Exercise of stock options | $ 3 | 3,853 | $ 3,856 | |||
Exercise of stock options (in shares) | 305 | 305 | ||||
Stock-based compensation expense | 6,068 | $ 6,068 | ||||
Tax shortfall from stock-based compensation arrangements | (4,344) | (4,344) | ||||
Issuance of common stock under Employee Stock Purchase Plan | $ 4 | 4,489 | 4,493 | |||
Issuance of common stock under Employee Stock Purchase Plan (in shares) | 359 | |||||
Issuance of restricted stock | $ 1 | (1) | ||||
Issuance of restricted stock (in shares) | 92 | |||||
Issuance of restricted stock out of treasury to board of director members | $ 838 | (838) | ||||
Issuance of restricted stock out of treasury to board of director members (in shares) | (36) | |||||
Forfeitures of restricted stock (in shares) | (1) | |||||
Purchase of shares | $ (118,886) | (118,886) | ||||
Purchase of shares (in shares) | 7,358 | |||||
Cash dividends declared (per share) | (13,743) | (13,743) | ||||
Currency translation adjustment | (602) | (602) | ||||
Net income | 18,651 | 18,651 | ||||
Balance at May. 27, 2017 | $ 590 | $ 398,828 | $ (481,904) | $ (11,396) | $ 332,024 | $ 238,142 |
Balance (in shares) at May. 27, 2017 | 58,992 | 29,330 | 29,662 |
Consolidated Statement Of Stoc7
Consolidated Statement Of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
May 27, 2017 | May 28, 2016 | May 30, 2015 | |
Consolidated Statement Of Stockholders' Equity | |||
Cash dividends declared per common share | $ 0.44 | $ 0.40 | $ 0.32 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
May 27, 2017 | May 28, 2016 | May 30, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 18,651 | $ 30,443 | $ 27,508 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 3,452 | 3,557 | 4,307 |
Stock-based compensation expense | 6,068 | 6,280 | 5,989 |
Excess tax benefits from stock-based compensation | (8) | (185) | (86) |
Loss on disposal of assets | 19 | 15 | |
Bad debt expense | 458 | 1,118 | 212 |
Deferred income taxes | 4,538 | 1,243 | 692 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | (1,494) | (2,702) | (10,052) |
Prepaid expenses and other current assets | 374 | (651) | 547 |
Income taxes | (6,232) | (949) | (2,187) |
Other assets | 253 | 15 | 254 |
Accounts payable and accrued expenses | 681 | 176 | 304 |
Accrued salaries and related obligations | (434) | 1,574 | 4,090 |
Other liabilities | 1,939 | (1,657) | 158 |
Net cash provided by operating activities | 28,265 | 38,262 | 31,751 |
Cash flows from investing activities: | |||
Redemption of short-term investments | 24,957 | 45,000 | 49,000 |
Purchase of short-term investments | (44,969) | (40,002) | |
Proceeds from sale of property and equipment | 233 | ||
Purchase of property and equipment | (4,781) | (2,381) | (2,364) |
Net cash provided by (used in) investing activities | 20,409 | (2,350) | 6,634 |
Cash flows from financing activities: | |||
Proceeds from exercise of stock options | 3,856 | 5,308 | 5,303 |
Proceeds from issuance of common stock under Employee Stock Purchase Plan | 4,493 | 4,462 | 3,772 |
Purchase of common stock | (118,886) | (28,128) | (26,277) |
Proceeds from use of Revolving Credit Facility | 58,000 | ||
Repayment on Revolving Credit Facility | (10,000) | ||
Debt issuance costs | (190) | ||
Cash dividends paid | (14,157) | (14,085) | (11,748) |
Excess tax benefits from stock-based compensation | 8 | 185 | 86 |
Net cash used in financing activities | (76,876) | (32,258) | (28,864) |
Effect of exchange rate changes on cash | (558) | 185 | (2,562) |
Net (decrease) increase in cash | (28,760) | 3,839 | 6,959 |
Cash and cash equivalents at beginning of period | 91,089 | 87,250 | 80,291 |
Cash and cash equivalents at end of period | $ 62,329 | $ 91,089 | $ 87,250 |
Description Of The Company And
Description Of The Company And Its Business | 12 Months Ended |
May 27, 2017 | |
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 provides agile consulting services to its global client base utilizing experienced professionals in the areas of accounting; finance; governance, risk and compliance management ; corporate advisory, strategic communications and restructuring; information management; human capital; supply chain management; and legal and regulatory. 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 Saturday in May closest to May 31. Fiscal years 201 7, 201 6 and 2015 consisted of four 13 week quarters and a total of 52 weeks of activity for the fiscal year. For fiscal years of 53 weeks, (which next occurs for fiscal 20 20) , the first three quarters consist of 13 weeks each and the fourth quarter consist s of 14 weeks. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
May 27, 2017 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The Consolidated Financial Statements of the Company (“financial statements”) have been prepared in conformity with accounting principles generally accepted in the U.S. (“GAAP”) and the rules of the Securities and Exchange Commission (“SEC”). The financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Revenue Recognition Revenues are recognized and billed when the Company’s professionals deliver services. Conversion fees are recognized when one of the Company’s professionals accepts an offer of permanent employment from a client. Conversion fees were 0.5% of revenue for each of the years ended May 27, 2017 , May 28 , 201 6 and May 3 0 , 201 5 . All costs of compensating the Company’s professionals are the responsibility of the Company and are included in direct cost of services. 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 $10.1 million, $10.6 million and $10.6 million for the years ended May 27, 2017 , May 28 , 201 6 and May 3 0 , 201 5 , 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 within stockholders’ equity. Gains and losses from foreign currency transactions are included in selling, general and administrative expenses in the Consolidated Statements of Operations. 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, exercise 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 years ended May 27, 2017 , May 28 , 201 6 and May 3 0 , 201 5 (in thousands, except per share amounts): For the Years Ended May 27, May 28, May 30, 2017 2016 2015 Net income $ 18,651 $ 30,443 $ 27,508 Basic: Weighted average shares 32,851 37,037 37,825 Diluted: Weighted average shares 32,851 37,037 37,825 Potentially dilutive shares 620 571 423 Total dilutive shares 33,471 37,608 38,248 Net income per common share: Basic $ 0.57 $ 0.82 $ 0.73 Dilutive $ 0.56 $ 0.81 $ 0.72 Anti-dilutive shares not included above 4,582 4,745 5,746 Cash and Cash Equivalents 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 and cash equivalents approximate the fair values due to the short maturities of these instruments. Short-Term Investments The Company’s short-term investments were $25.0 million as of May 28 , 201 6 with original contractual maturities of between three months and one year. The Company had no short-term investments as of May 27, 2017. The Company had no investments with a maturity in excess of one year as of the end of either fiscal year 201 7 or 201 6 . The Company carries debt securities that it has the ability and positive intent to hold to maturity at amortized cost. The fair value of the Company’s financial instruments reflects the amounts that the Company estimates it will receive in connection with the sale of an asset in an orderly transaction between market participants at the measurement date (exit price). The fair value hierarchy prioritizes the use of inputs used in valuation techniques into the following three levels: Level 1 – Quoted prices in active markets for identical assets and liabilities. Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets. Level 3 – Unobservable inputs. The Company’s investments in commercial paper and U.S. Government Agency securities are measured using quoted prices in markets that are not active (Level 2). There were no unrealized holding gains or losses as of May 27, 2017 and May 28 , 201 6 . Short-term investments consist of the following (in thousands): As of May 27, 2017 As of May 28, 2016 Cost Fair Value Cost Fair Value Commercial paper $ - $ - $ 19,959 $ 19,959 U.S. Government Agency securities - - 4,998 4,998 $ - $ - $ 24,957 $ 24,957 Allowance for Doubtful Accounts The Company maintains an allowance for doubtful accounts for estimated losses resulting from its clients’ failure to make required payments for services rendered. Management estimates this allowance based upon knowledge of the financial condition of the Company’s clients (which may not include knowledge of all significant events), review of historical receivable and reserve trends and other pertinent information. If the financial condition of the Company’s clients deteriorates or there is an unfavorable trend in aggregate receivable collections, additional allowances may be required. The following table summarizes the activity in our allowance for doubtful accounts (in thousands): Currency Beginning Charged to Rate (Write-offs)/ Ending Balance Operations Changes Recoveries Balance Years Ended: May 30, 2015 $ 3,139 $ 212 $ (78) $ 18 $ 3,291 May 28, 2016 $ 3,291 $ 1,118 $ (16) $ (1,399) $ 2,994 May 27, 2017 $ 2,994 $ 458 $ (20) $ (915) $ 2,517 Property and Equipment Property and equipment is stated at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the following estimated useful lives: Building 30 years Furniture 5 to 10 years Leasehold improvements Lesser of useful life of asset or term of lease Computer, equipment and software 3 to 5 years Costs for normal repairs and maintenance are expensed to operations as incurred, while renewals and major refurbishments are capitalized. Assessments of whether there has been a permanent impairment in the value of property and equipment are periodically performed by considering factors such as expected future operating income, trends and prospects, as well as the effects of demand, competition and other economic factors. Management believes no permanent impairment has occurred. Goodwill Goodwill is not subject to amortization but is tested for impairment annually or whenever events or changes in circumstances indicate that the asset might be impaired. The Company performed its annual goodwill impairment analysis as of May 27, 2017 and will continue to test for impairment at least annually. The Company performs its impairment analysis by comparing its market capitalization to its book value throughout the fiscal year. For application of this methodology the Company determined that it operates as a single reporting unit resulting from the combination of its practice offices. No impairment was indicated as of May 27, 2017 . The Company has no other intangible assets. See Note 4 — Intangible Assets and Goodwill for a further description of the Company’s intangible assets. 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 2014 Performance Incentive Plan (“2014 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 10 — Stock Based Compensation Plans for further information on the 2014 Plan and stock-based compensation. Income Taxes The Company recognizes deferred income taxes for the estimated tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end based on enacted tax laws and statutory rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established to reduce deferred tax assets to the amount expected to be realized when, in management’s opinion, it is more likely than not that some portion of the deferred tax assets will not be realized. The provision for income taxes represents current taxes payable net of the change during the period in deferred tax assets and liabilities. Recent Accounting Pronouncements Accounting Pronouncements Adopted During Current Fiscal Year Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes . In November 2015, the Financial Accounting Standards Board ( “ FASB ” ) issued ASU 2015-17. The standard requires that deferred tax assets and liabilities be classified as noncurrent on the balance sheet rather than being separated into current and noncurrent portions. ASU 2015-17 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. As permitted, the Company early adopted ASU 2015-17 during the first quarter of fiscal year 2017 on a retrospective basis. Accordingly, current deferred taxes have been reclassified as noncurrent on the May 28, 2016 Consolidated Balance Sheet. This reclassification decreased current deferred tax assets by $8.4 million and increased noncurrent deferred tax assets by $8.4 million. The Company also netted noncurrent deferred tax liabilities of $5.0 million against noncurrent deferred tax assets. Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments . In September 2015, the FASB issued ASU 2015-16. This ASU eliminates the requirement to retrospectively account for changes to provisional amounts initially recorded in a business combination. ASU 2015-16 requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustments are determined, including the effect of the change in provisional amount as if the accounting had been completed at the acquisition date. The Company adopted this guidance as of the beginning of fiscal 2017 and will consider it during future business combinations. Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern . In August 2014, the FASB issued ASU 2014-15.This ASU provides guidance regarding management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. The Company adopted this guidance as of the beginning of fiscal 2017. Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period . In June 2014, the FASB issued ASU 2014-12. This ASU provides guidance requiring that a performance target that affects vesting and could be achieved after the requisite service period be treated as a performance condition. The Company adopted this guidance as of the beginning of fiscal 2017. The Company does not currently have any performance based awards and thus the adoption has not had a material impact on its consolidated financial statements. Accounting Pronouncements Pending Adoption Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting. In May 2017, the FASB issued ASU 2017-09, which clarifies when changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. Under the new guidance, modification accounting is only required if the fair value, vesting conditions or classification (equity or liability) of the new award are different from the original award immediately before the original award is modified. The new standard is effective for financial statements for annual periods beginning after December 15, 2017 (for the company, fiscal 2019). Early adoption is permitted. The guidance must be applied prospectively to awards modified on or after the adoption date. The future impact of ASU 2017-09 will be dependent on the nature of future stock award modifications. Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. In January 2017, the FASB issued ASU 2017-04, which provides guidance regarding the goodwill impairment testing process. The new standard eliminates Step 2 of the goodwill impairment test. If a company determines in Step 1 of the goodwill impairment test that the carrying value of goodwill is greater than the fair value, an impairment for that difference must be recorded in the income statement, rather than proceeding to Step 2. The new standard is effective for financial statements for annual periods beginning after December 15, 2019 (for the Company, fiscal 2021). Early adoption is permitted for interim or annual goodwill impairments tests performed on testing dates after January 1, 2017. Based on the Company’s most recent annual goodwill impairment test completed in fiscal 2017, the Company expects no initial impact on adoption. Stat ement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. In August 2016, the FASB issued ASU 2016-15, which provides guidance designed to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. Examples include cash payments for debt prepayment or debt extinguishment; contingent consideration payments made after a business combination; and proceeds from the settlement of corporate-owned life insurance policies. The new standard is effective for financial statements for annual and interim periods within those annual periods beginning after December 15, 2017 (for the Company, fiscal 2019). Early adoption is permitted. The Company believes the adoption of this guidance will not have a material impact on its consolidated financial statements. Co mpensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. In March 2016, the FASB issued ASU 2016-09. The new standard modifies several aspects of the accounting and reporting for employee share-based payments and related tax accounting impacts, including the presentation in the statements of operations and cash flows of certain tax benefits or deficiencies and employee tax withholdings, as well as the accounting for award forfeitures over the vesting period. The new standard is effective for financial statements for annual and interim periods within those annual periods beginning after December 15, 2016 (for the Company, fisca l 2018) . The Company is currently evaluating the impact the adoption of this new standard will have on its consolidated financial statements but anticipates three potential impacts: a) added volatility to the Company’s effective tax rate from the change in accounting for income taxes; b) changes to its classification of excess tax benefits on the Consolidated Statement of Cash Flows; and c) change in the accounting for forfeitures, as the guidance allows the Company to account for forfeitures as they occur, rather than estimating the expected forfeitures over the course of the vesting period. The Company will continue to evaluate the impact of adoption of this guidance and its preliminary assessments are subject to change. Lea ses (Topic 842): Leases. In February 2016, the FASB issued ASU 2016-02, which amends the existing guidance to require lessees to recognize operating lease obligations on their balance sheets by recording the rights and obligations created by those leases. The requirements are effective for financial statements for annual periods and interim periods within those annual periods beginning after December 15, 2018 (for the Company, fiscal 2020), and early adoption is permitted. The Company is currently evaluating the impact that ASU 2016-02 will have on its consolidated financial statements and believes that it will have a significant impact on the Company’s reported balance sheet assets and liabilities. Under current accounting guidelines, the Company’s office leases are operating lease arrangements, in which rental payments are treated as operating expenses and there is no recognition of the arrangement on the balance sheet as an asset with related obligation to the lessor. Rev enue from Contracts with Customers (Topic 606) : In May 2014, the FASB issued ASU 2014-09, a comprehensive new revenue recognition standard that will supersede current revenue recognition guidance and is intended to improve and converge revenue recognition and related financial reporting requirements. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a number of steps to apply to achieve that core principle and requires additional disclosures. In August 2015, the FASB issued ASU 2015-14, which delays the required implementation date for the Company until fiscal 2019, with early adoption permitted for fiscal 2018. The Company has elected to adopt the guidance beginning in fiscal 2019. The standard allows for either “full retrospective” adoption, meaning the standard is applied to all periods presented, or “cumulative effect” adoption, meaning the standard is applied only to the most current period presented in the financial statements. In addition, in March 2016, the FASB issued ASU 2016-12, Narrow-Scope Improvements and Practical Expedients (Topic 606), which provides clarifying guidance in certain areas and adds some practical expedients. The effective date for this ASU is the same as the effective date for ASU 2014-09. We intend to implement the standard using the modified retrospective approach, which recognizes the cumulative effect (if any) of application recognized on that date. The Company is currently evaluating the impact of adoption of this guidance, including required disclosures, and based upon our current analysis, does not expect a significant impact on processes, systems or controls. The Company will continue to evaluate the impact of adoption of this guidance and its preliminary assessments are subject to change. 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. 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. |
Property And Equipment
Property And Equipment | 12 Months Ended |
May 27, 2017 | |
Property And Equipment [Abstract] | |
Property And Equipment | 3. Property and Equipment Property and equipment consist of the following (in thousands): As of As of May 27, 2017 May 28, 2016 Building and land $ 14,198 $ 14,172 Computers, equipment and software 17,811 16,568 Leasehold improvements 19,403 21,170 Furniture 9,653 10,306 61,065 62,216 Less accumulated depreciation and amortization (37,711) (40,942) $ 23,354 $ 21,274 |
Intangible Assets And Goodwill
Intangible Assets And Goodwill | 12 Months Ended |
May 27, 2017 | |
Intangible Assets And Goodwill [Abstract] | |
Intangible Assets And Goodwill | 4. Intangible Assets and Goodwill The following table presents details of our intangible assets, estimated lives and related accumulated amortization (in thousands): As of May 27, 2017 As of May 28, 2016 Accumulated Accumulated Gross Amortization Net Gross Amortization Net Trade name and trademark ( 5 years) $ - $ - $ - $ 1,341 $ (1,341) $ - The following table summarizes amortization expense for the years ended May 27, 2017 , May 28 , 201 6 and May 30 , 201 5 (in thousands): For the Years Ended May 27, May 28, May 30, 2017 2016 2015 Amortization expense $ - $ 90 $ 918 As of May 27, 2017 , all of the Company's intangible assets subject to amortization have been fully amortized. The following table summarizes the activity in the Company’s goodwill balance (in thousands): For the Years Ended May 27, May 28, 2017 2016 Goodwill, beginning of year $ 171,183 $ 170,878 Impact of foreign currency exchange rate changes (95) 305 Goodwill, end of period $ 171,088 $ 171,183 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
May 27, 2017 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | 5. Long-Term Debt In October 2016, the Company entered into a $120 million secured revolving credit facility (“Facility”) with Bank of America, consisting of (i) a $90 million revolving loan facility, which includes a $5 million sublimit for the issuance of standby letters of credit (“Revolving Loan”), and (ii) a $30 million reducing revolving loan facility, any amounts of which may not be reborrowed after being repaid (“Reducing Revolving Loan”). The Facility is available for working capital and general corporate purposes, including potential acquisitions and stock repurchases. Our obligations under the Facility are guaranteed by all of the Company’s domestic subsidiaries and secured by essentially all assets of the Company, Resources Connection LLC and their domestic subsidiaries, subject to certain customary exclusions. Borrowings under the Facility bear interest at a rate per annum of either, at the Company’s option, (i) a London Interbank Offered Rate (“LIBOR”) defined in the Facility plus a margin of 1.25% or 1.50% or (ii) an alternate base rate, plus margin of 0.25% or 0.50% with the applicable margin depending on the Company’s consolidated leverage ratio. The alternate base rate is the highest of (i) Bank of America’s prime rate, (ii) the federal funds rate plus 0.50% and (iii) the Eurodollar rate plus 1.0% . The Company pays an unused commitment fee on the average daily unused portion of the Facility at a rate of 0.15% to 0.25% depending upon on the Company’s consolidated leverage ratio. The Facility expires October 17, 2021 . In November 2016, the Company borrowed $58.0 million under the Facility to fund a portion of the purchase price of its modified Dutch auction tender offer. See Note 9 – Stockholders’ Equity , for additional information about the tender offer. During the third quarter of fiscal 2017, the Company reduced the amount borrowed by $10.0 million. As of May 27, 2017, the outstanding balance on the Facility is $49.0 million, including $1.0 million of outstanding letters of credit issued under the Facility. There is $41.0 million remaining to borrow under the Revolving Loan and $30.0 million remaining under the Reducing Revolving Loan. As of May 27, 2017, the interest rate on the Company’s borrowings was 2.5% on one tranche of $24.0 million based on a 1-month LIBOR plus 1.5% and 2.65% on a second tranche of $24.0 million based on a 3-month LIBOR plus 1.5% . The Facility contains both affirmative and negative covenants. Covenants include, but are not limited to, limitations on the Company’s and its subsidiaries ability to incur liens, incur additional indebtedness, make certain restricted payments, merge or consolidate and make dispositions of assets. In addition, the Facility requires us to comply with financial covenants limiting the Company’s total funded debt, minimum interest coverage ratio and maximum leverage ratio. The Company was in compliance with all financial covenants under the Facility as of May 27, 2017. Upon the occurrence of an event of default under the Facility, the lender may cease making loans, terminate the Facility and declare all amounts outstanding to be immediately due and payable. The Facility specifies a number of events of default (some of which are subject to applicable grace or cure periods), including, among other things, non-payment defaults, covenant defaults, cross-defaults to other material indebtedness, bankruptcy and insolvency defaults and material judgment defaults. |
Income Taxes
Income Taxes | 12 Months Ended |
May 27, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | 6 . Income Taxes The following table represents the current and deferred income tax provision for federal , state and foreign income taxes attributable to operations (in thousands): For the Years Ended May 27, May 28, May 30, 2017 2016 2015 Current Federal $ 10,901 $ 18,320 $ 18,046 State 2,551 4,168 4,028 Foreign 1,472 1,398 1,101 14,924 23,886 23,175 Deferred Federal 259 (178) (502) State 62 (27) (120) Foreign (123) (135) 345 198 (340) (277) $ 15,122 $ 23,546 $ 22,898 Income before provision for income taxes is as follows (in thousands): For the Years Ended May 27, May 28, May 30, 2017 2016 2015 Domestic $ 32,390 $ 53,417 $ 51,997 Foreign 1,383 572 (1,591) $ 33,773 $ 53,989 $ 50,406 The provision for income taxes differs from the amount that would result from applying the federal statutory rate as follows: For the Years Ended May 27, May 28, May 30, 2017 2016 2015 Statutory tax rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 5.0 4.9 5.0 Non-U.S. rate adjustments 0.1 0.4 1.1 Stock-based compensation 0.7 0.6 0.5 Valuation allowance 1.2 1.3 2.8 Permanent items, primarily meals and entertainment 2.2 1.5 1.3 Other, net 0.6 (0.1) (0.3) Effective tax rate 44.8 % 43.6 % 45.4 % The impact of state taxes, net of federal benefit, and foreign income taxed at other than U.S. rates fluctuates year over year due to the changes in the mix of operating income and losses amongst the various states and foreign jurisdictions in which the Company operates. The components of the net deferred tax asset consist of the following (in thousands): As of As of May 27, May 28, 2017 2016 Deferred tax assets: Allowance for doubtful accounts $ 1,595 $ 1,685 Accrued compensation 4,235 4,337 Accrued expenses 3,755 3,163 Stock options and restricted stock 11,779 15,132 Foreign tax credit 397 557 Net operating losses 15,855 15,283 Property and equipment 1,222 1,550 State taxes 232 368 Gross deferred tax asset 39,070 42,075 Valuation allowance (15,971) (15,714) Gross deferred tax asset, net of valuation allowance 23,099 26,361 Deferred tax liabilities: Goodwill and intangibles (23,406) (22,124) Net deferred tax asset $ (307) $ 4,237 The Company had a net income tax receivable of $1.4 million and a net income tax payable of $0.4 million as of May 27, 2017 and May 28, 2016, respectively. The tax benefit associated with the exercise of nonqualified stock options and the disqualifying dispositions by employees of incentive stock options, restricted stock awards and shares issued under the Company’s ESPP reduced income taxes payable by $1.1 million for both of the years ended May 27, 2017 and May 28 , 201 6 , respectively. The Company has foreign net operating loss carryforwards of $63. 5 million and foreign tax credit carryforwards of $0.4 million . The foreign tax credits will expire beginning in fiscal 2023. The following table summarizes the net operating loss expiration periods. Expiration Periods Amount of Net Operating Losses Fiscal Years Ending: (in thousands) 2018 $ 300 2019 550 2020 1,600 2021 4,600 2022 350 2023-2027 3,500 Unlimited 52,600 $ 63,500 The following table summarizes the activity in our valuation allowance accounts (in thousands): Currency Beginning Charged to Rate Ending Balance Operations Changes Balance Years Ended: May 30, 2015 $ 16,719 $ 1,189 $ (2,852) $ 15,056 May 28, 2016 $ 15,056 $ 691 $ (33) $ 15,714 May 27, 2017 $ 15,714 $ 438 $ (181) $ 15,971 Realization of the deferred tax assets is dependent upon generating sufficient future taxable income. Management believes that it is more likely than not that all other remaining deferred tax assets will be realized through future taxable earnings or alternative tax strategies. Deferred income taxes have not been provided on the undistributed earnings of approximately $18.4 million from the Company’s foreign subsidiaries as of May 27, 2017 since these amounts are intended to be indefinitely reinvested in foreign operations. If the earnings of the Company’s foreign subsidiaries were to be distributed, management estimates that the income tax impact would be immaterial as the federal taxes would be offset with foreign tax credits. The following table summarizes the activity related to the gross unrecognized tax benefits (in thousands): For the Years Ended May 27, May 28, 2017 2016 Unrecognized tax benefits, beginning of year $ 42 $ 42 Gross increases-tax positions in prior period - - Gross decreases-tax positions in prior period - - Gross increases-current period tax positions - - Settlements - - Lapse of statute of limitations - - Unrecognized tax benefits, end of year $ 42 $ 42 T he Company’s total liability for unrecognized gross tax benefits was $42,000 as of both May 27, 2017 and May 28, 2016, which, if ultimately recognized , would impact the effective tax rate in future periods. The unrecognized tax benefits include long-term liabilities of $42,000 as of both May 27, 2017 and May 28, 2016; none of the unrecognized tax benefits are short-term liabilities due to the closing of the statute of limitations. The Company’s major income tax jurisdiction is the U.S., with federal statute of limitations remaining open for fiscal 2014 and thereafter. For states within the U.S. in which the Company does significant business, the Company remains subject to examination for fiscal 2013 and thereafter. Major foreign jurisdictions in Europe remain open for fiscal years ended 2012 and thereafter. The Company continues to recognize interest expense and penalties related to income tax as a part of its provision for income taxes. While the amount accrued during the current fiscal year is immaterial, the Company has provided $1,000 of accrued interest and penalties as a component of the liability for unrecognized tax benefits. |
Accrued Salaries And Related Ob
Accrued Salaries And Related Obligations | 12 Months Ended |
May 27, 2017 | |
Accrued Salaries And Related Obligations [Abstract] | |
Accrued Salaries And Related Obligations | 7 . Accrued Salaries and Related Obligations Accrued salaries and related obligations consist of the following (in thousands): As of As of May 27, May 28, 2017 2016 Accrued salaries and related obligations $ 18,741 $ 18,166 Accrued bonuses 15,600 17,092 Accrued vacation 14,900 14,897 $ 49,241 $ 50,155 |
Concentrations Of Credit Risk
Concentrations Of Credit Risk | 12 Months Ended |
May 27, 2017 | |
Concentrations Of Credit Risk [Abstract] | |
Concentrations Of Credit Risk | 8. Concentrations of Credit Risk The Company maintains cash and cash equivalent balances, short-term investments in commercial paper and U.S. government agency securities with high credit quality financial institutions. At times, such balances are in excess of federally insured limits. Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of trade receivables. However, concentrations of credit risk are limited due to the large number of customers comprising the Company’s customer base and their dispersion across different business and geographic areas. The Company monitors its exposure to credit losses and maintains an allowance for anticipated losses. A significant change in the liquidity or financial position of one or more of the Company’s customers could result in an increase in the allowance for anticipated losses. No single customer accounted for more than 10% of revenue for the years ended May 27, 2017 , May 28 , 201 6 and May 30 , 201 5 . |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
May 27, 2017 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 9. Stockholders’ Equity The Company has 70,000,000 authorized shares of common stock with a $0.01 par value. At May 27, 2017 and May 28 , 201 6 , there were 29 , 662,000 and 3 6 ,2 29 ,000 shares of common stock outstanding, respectively, all of which provide the holders with voting rights. The Company has authorized for issuance 5,000,000 shares of preferred stock with a $0.01 par value per share. The board of directors has the authority to issue preferred stock in one or more series and to determine the related rights and preferences. No shares of preferred stock were outstanding as of May 27, 2017 and May 28 , 201 6 . Tender Offer for Common Stock In October 2016, the Company commenced a modified Dutch auction tender offer to purchase up to 6,000,000 shares of common stock at a price not greater than $16.00 per share and not less than $13.50 per share. In November 2016, the Company exercised its right to increase the size of the tender offer by up to 2.0% of its outstanding common stock. The tender offer period expired on November 15, 2016 and on November 22, 2016, the Company purchased 6,515,264 shares of its common stock at a per share price of $16.00 , excluding transaction costs, for approximately $104.2 million. These shares are currently held as treasury stock. The tender offer was funded through borrowings of $58.0 million under the Facility and the remainder with cash on hand. Stock Repurchase Program The Company’s board of directors has periodically approved a stock repurchase program authorizing the repurchase, at the discretion of the Company’s senior executives, of the Company’s common stock for a designated aggregate dollar limit. The current program was authorized in July 2015 (the “July 2015 program”) and set an aggregate dollar limit not to exceed $150 million. Use of the funds authorized under the July 2015 program commenced in February 2016 upon the exhaustion of the previous stock repurchase program of $150 million approved by the Company’s board of directors in April 2011. Repurchases under the program may take place in the open market or in privately negotiated transactions and may be made pursuant to a Rule 10b5-1 plan. During the years ended May 27, 2017 and May 28 , 201 6 , the Company purchased on the open market approximately 0.8 million and 1.8 million shares of its common stock, respectively, at an average price of $15.99 and $15.32 per share, respectively, for approximately $13.5 million and $ 28.1 million, respectively. As of May 27, 2017 , approximately $125. 1 million remains available for future repurchases of our common stock under the July 2015 program. Quarterly Dividend The Company’s board of directors has established a quarterly dividend, subject to quarterly board of directors’ approval. On April 2 0 , 201 7 , the board of directors declared a regular quarterly dividend of $0.11 per share of our common stock. The dividend, payable on June 15, 2017 , was accrued in the Consolidated Balance Sheet as of May 27, 2017 for approximately $3.2 million. Continuation of the quarterly dividend will be at the discretion of the board of directors and will depend upon the Company’s financial condition, results of operations, capital requirements, general business condition, contractual restrictions contained in our current credit agreements and other agreements, and other factors deemed relevant by the board of directors. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
May 27, 2017 | |
Stock-Based Compensation Plans [Abstract] | |
Stock-Based Compensation Plans | 1 0 . Stock - Based Compensation Plans 2014 Performance Incentive Plan On October 23, 2014, the Company’s stockholders approved the 2014 Plan. The 2014 Plan replaced the Resources Connection, Inc. 2004 Performance Incentive Plan and the 1999 Long Term Incentive Plan (the “Prior Stock Plans”). The effective date of the 2014 Plan is September 3, 2014 and, unless terminated earlier by the Board of Directors, will terminate on September 2, 2024. Under the terms of the 2014 Plan, the Company’s board of directors or one or more committees appointed by the board of directors will administer the 2014 Plan. The board of directors has delegated general administrative authority for the 2014 Plan to the Compensation Committee of the board of directors. The administrator of the 2014 Plan has broad authority to, among other things, select participants and determine the type(s) of award(s) that they are to receive, and determine the number of shares that are to be subject to awards and the terms and conditions of awards, including the price (if any) to be paid for the shares or the award. Persons eligible to receive awards under the 2014 Plan include officers or employees of the Company or any of its subsidiaries, directors of the Company, and certain consultants and advisors to the Company or any of its subsidiaries. The maximum number of shares of the Company’s common stock that may be issued or transferred pursuant to awards under the 2014 Plan equals the sum of: (1) 2,400,000 shares, plus (2) the number of shares subject to stock options granted under the Prior Stock Plans and outstanding as of September 3, 2014 (the date at which the Prior Stock Plans terminated), which expire, or for any reason are cancelled or terminated, after that date without being exercised, plus (3) the number of shares subject to restricted stock, restricted stock units and other full-value awards granted under the Prior Stock Plans that were outstanding and unvested as of September 3, 2014, which are forfeited, terminated, cancelled, or otherwise reacquired after that date without having become vested. As of May 27, 2017 , 2,767,000 shares were available for award grant purposes under the 2014 Plan, subject to future increases as described in (2) and (3) above and subject to increase as then-outstanding awards expire or terminate without having become vested or exercised, as applicable. The types of awards that may be granted under the 2014 Plan include stock options, restricted stock, stock bonuses, performance stock, stock units, phantom stock and other forms of awards granted or denominated in the Company’s common stock or units of the Company’s common stock, as well as certain cash bonus awards. Under the terms of the 2014 Plan, the option price for the incentive stock options (“ISOs”) and nonqualified stock options (“NQSO”) may not be less than the fair market value of the shares of the Company’s stock on the date of the grant. For ISOs, the exercise price per share may not be less than 110% of the fair market value of a share of common stock on the grant date for any individual possessing more than 10% of the total outstanding stock of the Company. Stock options granted under the 2014 Plan and the Prior Stock Plans generally become exercisable over periods of one to four years and expire not more than ten years from the date of grant. The Company predominantly grants NQSOs to employees in the U.S. The Company granted 127,720 and 50,354 shares of restricted stock during the fiscal years ended May 27, 2017 and May 28 , 201 6 , respectively. A summary of the share-based award activity under the 2014 Plan and the Prior Stock Plans follows (amounts in thousands, except weighted average exercise price): Share-Based Number of Weighted Weighted Average Awards Shares Average Remaining Aggregate Available Under Exercise Contractual Life Intrinsic for Grant Option Price (in years) Value Options outstanding at May 28, 2016 3,206 7,347 $ 16.08 5.41 $ 10,109 Granted, at fair market value (1,212) 1,212 14.52 Restricted stock (1) (319) - - Exercised - (305) 12.59 Forfeited (2) 267 (265) 14.18 Expired 825 (825) 29.77 Options outstanding at May 27, 2017 2,767 7,164 $ 15.08 5.56 $ 1,696 Exercisable at May 27, 2017 4,608 $ 15.59 4.04 $ 1,173 Vested and expected to vest at May 27, 2017 (3) 6,962 $ 15.09 5.46 $ 1,696 (1) Amounts represent restricted shares granted. Share-based awards available for grant are reduced by 2.5 shares for each share awarded as stock grants from the 2014 Plan. (2) Amounts represent both stock options and restricted share awards forfeited. (3) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to options not yet vested. . The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value, based on the Company’s closing stock price of $12.65 as of May 2 6 , 201 7 (the last actual trading day of fiscal 201 7 ), which would have been received by the option holders had all option holders exercised their options as of that date. The total pre-tax intrinsic value related to stock options exercised during the years ended May 27, 2017 , May 28 , 201 6 and May 30 , 201 5 was $1.1 million, $1.8 million and $1.2 million , respectively. The total estimated fair value of stock options that vested during the years ended May 27, 2017 , May 28 , 201 6 and May 30 , 201 5 was $3.6 million, $4.0 million and $3.8 million, respectively. Valuation and Expense Information for Stock Based Compensation Plans The following table summarizes the impact of the Company’s stock-based compensation plans. Stock-based compensation expense is included in selling, general and administrative expenses and consists of stock-based compensation expense related to employee stock options, ESPP stock purchase rights and restricted stock (in thousands, except per share amounts): For the Years Ended May 27, May 28, May 30, 2017 2016 2015 Income before income taxes $ (6,068) $ (6,280) $ (5,989) Net income $ (3,962) $ (4,159) $ (3,823) Net income per share: Basic $ (0.12) $ (0.11) $ (0.10) Diluted $ (0.12) $ (0.11) $ (0.10) The weighted average estimated fair value per share of employee stock options granted during the years ended May 27, 2017 , May 28 , 201 6 and May 30 , 201 5 was $3.61 , $4.54 and $3.93 , respectively, using the Black-Scholes model with the following assumptions: For the Years Ended May 27, 2017 May 28, 2016 May 30, 2015 Expected volatility 34.6% - 38.4% 35% - 40.5% 36.2% - 42.1% Risk-free interest rate 1.3% - 1.6% 1.7% - 2.0% 1.7% - 2.2% Expected dividends 3.0% 2.2% 1.9% - 2.1% Expected life 5.6 - 8.1 years 5.6 - 7.7 years 5.5 - 7.5 years As of May 27, 2017 , there was $7.0 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 31 months. Stock-based compensation expense included in selling, general and administrative expenses for the years ended May 27, 2017 , May 28 , 201 6 and May 30 , 201 5 was $ 6. 1 million, $6. 3 million and $ 6.0 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. Also included in the stock-based compensation expense for the year ended May 28, 2016 was approximately $900,000 related to the accelerated vesting of options held by Donald Murray in connection with his transition from Executive Chairman to Chairman. Stock-based compensation expense in the tables above includes compensation for restricted shares of $802,000 , $598,000 and $515,000 for the years ended May 27, 2017 , May 28 , 201 6 and May 30 , 201 5 , respectively. The Company granted 127,720 , 50,354 and 49,840 shares of restricted stock for the years ended May 27, 2017 , May 28 , 201 6 and May 30 , 201 5 , respectively. There were 43,261 and 41,796 restricted shares that vested in fiscal 201 7 and 201 6 , respectively. There were 189,015 , 105,925 and 97,938 unvested restricted shares as of May 27, 2017 , May 28 , 201 6 and May 30 , 201 5 , respectively. At May 27, 2017 , there was approximately $2.7 million of total unrecognized compensation cost related to restricted shares, which is expected to be recognized over a weighted-average period of 32 months . Excess tax benefits related to stock-based compensation expense are recognized as an increase to additional paid-in capital and tax shortfalls are recognized as income tax expense unless there are excess tax benefits from previous equity awards to which the shortfall can be offset. On the adoption date of the required accounting for stock-based compensation expense, the Company calculated the amount of eligible excess tax benefits available to offset future tax shortfalls in accordance with the long-form method. The Company recognizes compensation expense for only the portion of stock options and restricted stock units that are 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. Employee Stock Purchase Plan On October 23, 2014, the Company’s stockholders approved an amendment to the ESPP to extend the term of the ESPP through October 16, 2024, and to increase the maximum number of shares of the Company’s common stock authorized for issuance under the ESPP by an additional 1.5 million shares. 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. After approval of the amendment, a total of 5.9 million shares of common stock may be issued under the ESPP. The Company issued 359,000 , 325,000 and 337,000 shares of common stock pursuant to the ESPP for the years ended May 27, 2017 , May 28 , 201 6 and May 30 , 201 5 , respectively. There are 918,000 shares of common stock available for issuance under the ESPP as of May 27, 2017 . |
Benefit Plan
Benefit Plan | 12 Months Ended |
May 27, 2017 | |
Benefit Plan [Abstract] | |
Benefit Plan | 1 1 . Benefit Plan The Company has a defined contribution 401(k) plan (“the plan”) which covers all employees in the U.S. who have completed 90 days of service and are age 21 or older. Participants may contribute up to 50% of their annual salary up to the maximum amount allowed by statute. As defined in the plan agreement, the Company may make matching contributions in such amount, if any, up to a maximum of 6% of individual employees’ annual compensation. The Company, at its sole discretion, determines the matching contribution made from quarter to quarter. To receive matching contributions, the employee must be employed on the last business day of the fiscal quarter. For the years ended May 27, 2017 , May 28 , 201 6 and May 30 , 201 5 , the Company contributed approximately $5.1 million, $5.0 million and $4.8 million, respectively, to the plan as Company matching contributions. |
Supplemental Disclosure Of Cash
Supplemental Disclosure Of Cash Flow Information | 12 Months Ended |
May 27, 2017 | |
Supplemental Disclosure Of Cash Flow Information [Abstract] | |
Supplemental Disclosure Of Cash Flow Information | 1 2 . Supplemental Disclosure of Cash Flow Information Additional information regarding cash flows is as follows (in thousands): For the Years Ended May 27, May 28, May 30, 2017 2016 2015 Income taxes paid $ 16,756 $ 23,135 $ 24,326 Interest paid $ 628 $ - $ - Non-cash investing and financing activities: Capitalized leasehold improvements paid directly by landlord $ 1,026 $ 405 $ 144 Dividends declared, not paid $ 3,253 $ 3,623 $ 2,982 |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
May 27, 2017 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 1 3 . Commitments and Contingencies Lease Commitments and Purchase Obligations At May 27, 2017 , the Company had operating leases, expiring at various dates through March 2027 , primarily for office premises, and purchase obligations, primarily for property and equipment . At May 27, 2017 , the Company had no capital leases. Future minimum rental commitments under operating leases and other known purchase obligations are as follows (in thousands): Operating Purchase Years Ending: Leases Obligations May 26, 2018 $ 10,537 $ 440 May 25, 2019 9,460 340 May 30, 2020 6,837 235 May 29, 2021 6,085 105 May 28, 2022 5,097 9 Thereafter 6,993 - Total $ 45,009 $ 1,129 Rent expense for the years ended May 27, 2017 , May 28 , 201 6 and May 30 , 201 5 totaled $12.9 million, $13.1 million and $13.1 million, respectively. Rent expense is recognized on a straight-line basis over the term of the lease, including during any rent holiday periods. The Company leases approximately 18,200 square feet of the approximately 56,200 square foot Company owned building located in Irvine, California to independent third parties and has operating lease agreements for sub-let space with independent third parties expiring through fiscal 2025. Under the terms of these operating lease agreements, rental income from such third party leases is expected to be $245,000 , $201,000 , $207,000 , $213,000 and $219,000 in fiscal 2018 through 2022, respectively and $536,000 thereafter . Employment Agreements The Company ’s employment agreement with its president and chief executive officer, Kate W. Duchene, has an initial term of three years ending on December 19, 2019 and renew s for one -year periods commencing thereafter unless the Company or M s . Duchene provides the other party written notice within 60 days of the then-current expiration date that the agreement will not be extended. The employment agreement provides M s . Duchene with a specified severance amount depending on whether her separation from the Company is with or without good cause as defined in the agreement. The Company also has employment agreements with certain key members of management ; these agreements automatically renew for additional one year periods unless the Company or the named executive provides the other party written notice no later than 60 days prior to the then-current expiration date that the agreement will not be extended. These agreements provide those employees with a specified severance amount depending on whether the employee is terminated with or without good cause as defined in the applicable agreement. 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. |
Segment Information And Enterpr
Segment Information And Enterprise Reporting | 12 Months Ended |
May 27, 2017 | |
Segment Information And Enterprise Reporting [Abstract] | |
Segment Information And Enterprise Reporting | 14. 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 . Summarized information regarding the Company’s domestic and international operations is shown in the following table. Amounts are stated in thousands: Revenue for the For the Years Ended Long-Lived Assets (1) as of May 27, May 28, May 30, May 27, May 28, 2017 2016 2015 2017 2016 United States $ 469,846 $ 489,035 $ 479,972 $ 173,781 $ 172,155 The Netherlands 16,569 15,859 15,777 18,036 17,728 Other 96,996 93,627 94,840 2,625 2,574 Total $ 583,411 $ 598,521 $ 590,589 $ 194,442 $ 192,457 (1) Long-lived assets are comprised of goodwill, intangible assets and property and equipment. |
Summary Of Significant Accoun23
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
May 27, 2017 | |
Summary Of Significant Accounting Policies [Abstract] | |
Basis Of Presentation And Principles Of Consolidation | Basis of Presentation and Principles of Consolidation The Consolidated Financial Statements of the Company (“financial statements”) have been prepared in conformity with accounting principles generally accepted in the U.S. (“GAAP”) and the rules of the Securities and Exchange Commission (“SEC”). The financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Revenue Recognition | Revenue Recognition Revenues are recognized and billed when the Company’s professionals deliver services. Conversion fees are recognized when one of the Company’s professionals accepts an offer of permanent employment from a client. Conversion fees were 0.5% of revenue for each of the years ended May 27, 2017 , May 28 , 201 6 and May 3 0 , 201 5 . All costs of compensating the Company’s professionals are the responsibility of the Company and are included in direct cost of services. |
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 $10.1 million, $10.6 million and $10.6 million for the years ended May 27, 2017 , May 28 , 201 6 and May 3 0 , 201 5 , 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 within stockholders’ equity. Gains and losses from foreign currency transactions are included in selling, general and administrative expenses in the Consolidated Statements of Operations. |
Per Share Information | 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, exercise 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 years ended May 27, 2017 , May 28 , 201 6 and May 3 0 , 201 5 (in thousands, except per share amounts): For the Years Ended May 27, May 28, May 30, 2017 2016 2015 Net income $ 18,651 $ 30,443 $ 27,508 Basic: Weighted average shares 32,851 37,037 37,825 Diluted: Weighted average shares 32,851 37,037 37,825 Potentially dilutive shares 620 571 423 Total dilutive shares 33,471 37,608 38,248 Net income per common share: Basic $ 0.57 $ 0.82 $ 0.73 Dilutive $ 0.56 $ 0.81 $ 0.72 Anti-dilutive shares not included above 4,582 4,745 5,746 |
Cash And Cash Equivalents | Cash and Cash Equivalents 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 and cash equivalents approximate the fair values due to the short maturities of these instruments. |
Short-Term Investments | Short-Term Investments The Company’s short-term investments were $25.0 million as of May 28 , 201 6 with original contractual maturities of between three months and one year. The Company had no short-term investments as of May 27, 2017. The Company had no investments with a maturity in excess of one year as of the end of either fiscal year 201 7 or 201 6 . The Company carries debt securities that it has the ability and positive intent to hold to maturity at amortized cost. The fair value of the Company’s financial instruments reflects the amounts that the Company estimates it will receive in connection with the sale of an asset in an orderly transaction between market participants at the measurement date (exit price). The fair value hierarchy prioritizes the use of inputs used in valuation techniques into the following three levels: Level 1 – Quoted prices in active markets for identical assets and liabilities. Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets. Level 3 – Unobservable inputs. The Company’s investments in commercial paper and U.S. Government Agency securities are measured using quoted prices in markets that are not active (Level 2). There were no unrealized holding gains or losses as of May 27, 2017 and May 28 , 201 6 . Short-term investments consist of the following (in thousands): As of May 27, 2017 As of May 28, 2016 Cost Fair Value Cost Fair Value Commercial paper $ - $ - $ 19,959 $ 19,959 U.S. Government Agency securities - - 4,998 4,998 $ - $ - $ 24,957 $ 24,957 |
Allowance For Doubtful Accounts | Allowance for Doubtful Accounts The Company maintains an allowance for doubtful accounts for estimated losses resulting from its clients’ failure to make required payments for services rendered. Management estimates this allowance based upon knowledge of the financial condition of the Company’s clients (which may not include knowledge of all significant events), review of historical receivable and reserve trends and other pertinent information. If the financial condition of the Company’s clients deteriorates or there is an unfavorable trend in aggregate receivable collections, additional allowances may be required. The following table summarizes the activity in our allowance for doubtful accounts (in thousands): Currency Beginning Charged to Rate (Write-offs)/ Ending Balance Operations Changes Recoveries Balance Years Ended: May 30, 2015 $ 3,139 $ 212 $ (78) $ 18 $ 3,291 May 28, 2016 $ 3,291 $ 1,118 $ (16) $ (1,399) $ 2,994 May 27, 2017 $ 2,994 $ 458 $ (20) $ (915) $ 2,517 |
Property And Equipment | Property and Equipment Property and equipment is stated at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the following estimated useful lives: Building 30 years Furniture 5 to 10 years Leasehold improvements Lesser of useful life of asset or term of lease Computer, equipment and software 3 to 5 years Costs for normal repairs and maintenance are expensed to operations as incurred, while renewals and major refurbishments are capitalized. Assessments of whether there has been a permanent impairment in the value of property and equipment are periodically performed by considering factors such as expected future operating income, trends and prospects, as well as the effects of demand, competition and other economic factors. Management believes no permanent impairment has occurred. |
Goodwill | Goodwill Goodwill is not subject to amortization but is tested for impairment annually or whenever events or changes in circumstances indicate that the asset might be impaired. The Company performed its annual goodwill impairment analysis as of May 27, 2017 and will continue to test for impairment at least annually. The Company performs its impairment analysis by comparing its market capitalization to its book value throughout the fiscal year. For application of this methodology the Company determined that it operates as a single reporting unit resulting from the combination of its practice offices. No impairment was indicated as of May 27, 2017 . The Company has no other intangible assets. See Note 4 — Intangible Assets and Goodwill for a further description of the Company’s intangible assets. |
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 2014 Performance Incentive Plan (“2014 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 10 — Stock Based Compensation Plans for further information on the 2014 Plan and stock-based compensation. |
Income Taxes | Income Taxes The Company recognizes deferred income taxes for the estimated tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end based on enacted tax laws and statutory rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established to reduce deferred tax assets to the amount expected to be realized when, in management’s opinion, it is more likely than not that some portion of the deferred tax assets will not be realized. The provision for income taxes represents current taxes payable net of the change during the period in deferred tax assets and liabilities. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements Adopted During Current Fiscal Year Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes . In November 2015, the Financial Accounting Standards Board ( “ FASB ” ) issued ASU 2015-17. The standard requires that deferred tax assets and liabilities be classified as noncurrent on the balance sheet rather than being separated into current and noncurrent portions. ASU 2015-17 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. As permitted, the Company early adopted ASU 2015-17 during the first quarter of fiscal year 2017 on a retrospective basis. Accordingly, current deferred taxes have been reclassified as noncurrent on the May 28, 2016 Consolidated Balance Sheet. This reclassification decreased current deferred tax assets by $8.4 million and increased noncurrent deferred tax assets by $8.4 million. The Company also netted noncurrent deferred tax liabilities of $5.0 million against noncurrent deferred tax assets. Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments . In September 2015, the FASB issued ASU 2015-16. This ASU eliminates the requirement to retrospectively account for changes to provisional amounts initially recorded in a business combination. ASU 2015-16 requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustments are determined, including the effect of the change in provisional amount as if the accounting had been completed at the acquisition date. The Company adopted this guidance as of the beginning of fiscal 2017 and will consider it during future business combinations. Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern . In August 2014, the FASB issued ASU 2014-15.This ASU provides guidance regarding management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. The Company adopted this guidance as of the beginning of fiscal 2017. Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period . In June 2014, the FASB issued ASU 2014-12. This ASU provides guidance requiring that a performance target that affects vesting and could be achieved after the requisite service period be treated as a performance condition. The Company adopted this guidance as of the beginning of fiscal 2017. The Company does not currently have any performance based awards and thus the adoption has not had a material impact on its consolidated financial statements. Accounting Pronouncements Pending Adoption Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting. In May 2017, the FASB issued ASU 2017-09, which clarifies when changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. Under the new guidance, modification accounting is only required if the fair value, vesting conditions or classification (equity or liability) of the new award are different from the original award immediately before the original award is modified. The new standard is effective for financial statements for annual periods beginning after December 15, 2017 (for the company, fiscal 2019). Early adoption is permitted. The guidance must be applied prospectively to awards modified on or after the adoption date. The future impact of ASU 2017-09 will be dependent on the nature of future stock award modifications. Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. In January 2017, the FASB issued ASU 2017-04, which provides guidance regarding the goodwill impairment testing process. The new standard eliminates Step 2 of the goodwill impairment test. If a company determines in Step 1 of the goodwill impairment test that the carrying value of goodwill is greater than the fair value, an impairment for that difference must be recorded in the income statement, rather than proceeding to Step 2. The new standard is effective for financial statements for annual periods beginning after December 15, 2019 (for the Company, fiscal 2021). Early adoption is permitted for interim or annual goodwill impairments tests performed on testing dates after January 1, 2017. Based on the Company’s most recent annual goodwill impairment test completed in fiscal 2017, the Company expects no initial impact on adoption. Stat ement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. In August 2016, the FASB issued ASU 2016-15, which provides guidance designed to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. Examples include cash payments for debt prepayment or debt extinguishment; contingent consideration payments made after a business combination; and proceeds from the settlement of corporate-owned life insurance policies. The new standard is effective for financial statements for annual and interim periods within those annual periods beginning after December 15, 2017 (for the Company, fiscal 2019). Early adoption is permitted. The Company believes the adoption of this guidance will not have a material impact on its consolidated financial statements. Co mpensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. In March 2016, the FASB issued ASU 2016-09. The new standard modifies several aspects of the accounting and reporting for employee share-based payments and related tax accounting impacts, including the presentation in the statements of operations and cash flows of certain tax benefits or deficiencies and employee tax withholdings, as well as the accounting for award forfeitures over the vesting period. The new standard is effective for financial statements for annual and interim periods within those annual periods beginning after December 15, 2016 (for the Company, fisca l 2018) . The Company is currently evaluating the impact the adoption of this new standard will have on its consolidated financial statements but anticipates three potential impacts: a) added volatility to the Company’s effective tax rate from the change in accounting for income taxes; b) changes to its classification of excess tax benefits on the Consolidated Statement of Cash Flows; and c) change in the accounting for forfeitures, as the guidance allows the Company to account for forfeitures as they occur, rather than estimating the expected forfeitures over the course of the vesting period. The Company will continue to evaluate the impact of adoption of this guidance and its preliminary assessments are subject to change. Lea ses (Topic 842): Leases. In February 2016, the FASB issued ASU 2016-02, which amends the existing guidance to require lessees to recognize operating lease obligations on their balance sheets by recording the rights and obligations created by those leases. The requirements are effective for financial statements for annual periods and interim periods within those annual periods beginning after December 15, 2018 (for the Company, fiscal 2020), and early adoption is permitted. The Company is currently evaluating the impact that ASU 2016-02 will have on its consolidated financial statements and believes that it will have a significant impact on the Company’s reported balance sheet assets and liabilities. Under current accounting guidelines, the Company’s office leases are operating lease arrangements, in which rental payments are treated as operating expenses and there is no recognition of the arrangement on the balance sheet as an asset with related obligation to the lessor. Rev enue from Contracts with Customers (Topic 606) : In May 2014, the FASB issued ASU 2014-09, a comprehensive new revenue recognition standard that will supersede current revenue recognition guidance and is intended to improve and converge revenue recognition and related financial reporting requirements. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a number of steps to apply to achieve that core principle and requires additional disclosures. In August 2015, the FASB issued ASU 2015-14, which delays the required implementation date for the Company until fiscal 2019, with early adoption permitted for fiscal 2018. The Company has elected to adopt the guidance beginning in fiscal 2019. The standard allows for either “full retrospective” adoption, meaning the standard is applied to all periods presented, or “cumulative effect” adoption, meaning the standard is applied only to the most current period presented in the financial statements. In addition, in March 2016, the FASB issued ASU 2016-12, Narrow-Scope Improvements and Practical Expedients (Topic 606), which provides clarifying guidance in certain areas and adds some practical expedients. The effective date for this ASU is the same as the effective date for ASU 2014-09. We intend to implement the standard using the modified retrospective approach, which recognizes the cumulative effect (if any) of application recognized on that date. The Company is currently evaluating the impact of adoption of this guidance, including required disclosures, and based upon our current analysis, does not expect a significant impact on processes, systems or controls. The Company will continue to evaluate the impact of adoption of this guidance and its preliminary assessments are subject to change. 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. |
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 Accoun24
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
May 27, 2017 | |
Summary Of Significant Accounting Policies [Abstract] | |
Calculation Of Net Income Per Share | For the Years Ended May 27, May 28, May 30, 2017 2016 2015 Net income $ 18,651 $ 30,443 $ 27,508 Basic: Weighted average shares 32,851 37,037 37,825 Diluted: Weighted average shares 32,851 37,037 37,825 Potentially dilutive shares 620 571 423 Total dilutive shares 33,471 37,608 38,248 Net income per common share: Basic $ 0.57 $ 0.82 $ 0.73 Dilutive $ 0.56 $ 0.81 $ 0.72 Anti-dilutive shares not included above 4,582 4,745 5,746 |
Components Of Short-Term Investments | As of May 27, 2017 As of May 28, 2016 Cost Fair Value Cost Fair Value Commercial paper $ - $ - $ 19,959 $ 19,959 U.S. Government Agency securities - - 4,998 4,998 $ - $ - $ 24,957 $ 24,957 |
Summary Of The Activity In Allowance For Doubtful Accounts | Currency Beginning Charged to Rate (Write-offs)/ Ending Balance Operations Changes Recoveries Balance Years Ended: May 30, 2015 $ 3,139 $ 212 $ (78) $ 18 $ 3,291 May 28, 2016 $ 3,291 $ 1,118 $ (16) $ (1,399) $ 2,994 May 27, 2017 $ 2,994 $ 458 $ (20) $ (915) $ 2,517 |
Schedule Of Estimated Useful Lives Of Property And Equipment | Building 30 years Furniture 5 to 10 years Leasehold improvements Lesser of useful life of asset or term of lease Computer, equipment and software 3 to 5 years |
Property And Equipment (Tables)
Property And Equipment (Tables) | 12 Months Ended |
May 27, 2017 | |
Property And Equipment [Abstract] | |
Schedule Of Property And Equipment | As of As of May 27, 2017 May 28, 2016 Building and land $ 14,198 $ 14,172 Computers, equipment and software 17,811 16,568 Leasehold improvements 19,403 21,170 Furniture 9,653 10,306 61,065 62,216 Less accumulated depreciation and amortization (37,711) (40,942) $ 23,354 $ 21,274 |
Intangible Assets And Goodwill
Intangible Assets And Goodwill (Tables) | 12 Months Ended |
May 27, 2017 | |
Intangible Assets And Goodwill [Abstract] | |
Schedule Of Details Of Intangible Assets | As of May 27, 2017 As of May 28, 2016 Accumulated Accumulated Gross Amortization Net Gross Amortization Net Trade name and trademark ( 5 years) $ - $ - $ - $ 1,341 $ (1,341) $ - |
Schedule Of Intangible Assets Amortization Expense | For the Years Ended May 27, May 28, May 30, 2017 2016 2015 Amortization expense $ - $ 90 $ 918 |
Summary Of Activity In Goodwill Balance | For the Years Ended May 27, May 28, 2017 2016 Goodwill, beginning of year $ 171,183 $ 170,878 Impact of foreign currency exchange rate changes (95) 305 Goodwill, end of period $ 171,088 $ 171,183 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
May 27, 2017 | |
Income Taxes [Abstract] | |
Schedule Of Current And Deferred Income Tax Provision For Federal And State Income Taxes Attributable To Operations | For the Years Ended May 27, May 28, May 30, 2017 2016 2015 Current Federal $ 10,901 $ 18,320 $ 18,046 State 2,551 4,168 4,028 Foreign 1,472 1,398 1,101 14,924 23,886 23,175 Deferred Federal 259 (178) (502) State 62 (27) (120) Foreign (123) (135) 345 198 (340) (277) $ 15,122 $ 23,546 $ 22,898 |
Schedule Of Income Before Provision For Income Taxes | For the Years Ended May 27, May 28, May 30, 2017 2016 2015 Domestic $ 32,390 $ 53,417 $ 51,997 Foreign 1,383 572 (1,591) $ 33,773 $ 53,989 $ 50,406 |
Schedule Of Effective Income Tax Rate Reconciliation | For the Years Ended May 27, May 28, May 30, 2017 2016 2015 Statutory tax rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 5.0 4.9 5.0 Non-U.S. rate adjustments 0.1 0.4 1.1 Stock-based compensation 0.7 0.6 0.5 Valuation allowance 1.2 1.3 2.8 Permanent items, primarily meals and entertainment 2.2 1.5 1.3 Other, net 0.6 (0.1) (0.3) Effective tax rate 44.8 % 43.6 % 45.4 % |
Schedule Of The Components Of Net Deferred Tax Asset | As of As of May 27, May 28, 2017 2016 Deferred tax assets: Allowance for doubtful accounts $ 1,595 $ 1,685 Accrued compensation 4,235 4,337 Accrued expenses 3,755 3,163 Stock options and restricted stock 11,779 15,132 Foreign tax credit 397 557 Net operating losses 15,855 15,283 Property and equipment 1,222 1,550 State taxes 232 368 Gross deferred tax asset 39,070 42,075 Valuation allowance (15,971) (15,714) Gross deferred tax asset, net of valuation allowance 23,099 26,361 Deferred tax liabilities: Goodwill and intangibles (23,406) (22,124) Net deferred tax asset $ (307) $ 4,237 |
Summary Of Net Operating Loss Expiration Periods | Expiration Periods Amount of Net Operating Losses Fiscal Years Ending: (in thousands) 2018 $ 300 2019 550 2020 1,600 2021 4,600 2022 350 2023-2027 3,500 Unlimited 52,600 $ 63,500 |
Summary Of Activity In Valuation Allowance | Currency Beginning Charged to Rate Ending Balance Operations Changes Balance Years Ended: May 30, 2015 $ 16,719 $ 1,189 $ (2,852) $ 15,056 May 28, 2016 $ 15,056 $ 691 $ (33) $ 15,714 May 27, 2017 $ 15,714 $ 438 $ (181) $ 15,971 |
Summary Of The Activity Related To Gross Unrecognized Tax Benefits | For the Years Ended May 27, May 28, 2017 2016 Unrecognized tax benefits, beginning of year $ 42 $ 42 Gross increases-tax positions in prior period - - Gross decreases-tax positions in prior period - - Gross increases-current period tax positions - - Settlements - - Lapse of statute of limitations - - Unrecognized tax benefits, end of year $ 42 $ 42 |
Accrued Salaries And Related 28
Accrued Salaries And Related Obligations (Tables) | 12 Months Ended |
May 27, 2017 | |
Accrued Salaries And Related Obligations [Abstract] | |
Schedule Of Accrued Salaries And Related Obligations | As of As of May 27, May 28, 2017 2016 Accrued salaries and related obligations $ 18,741 $ 18,166 Accrued bonuses 15,600 17,092 Accrued vacation 14,900 14,897 $ 49,241 $ 50,155 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
May 27, 2017 | |
Stock-Based Compensation Plans [Abstract] | |
Schedule Of Stock Option Activity | Share-Based Number of Weighted Weighted Average Awards Shares Average Remaining Aggregate Available Under Exercise Contractual Life Intrinsic for Grant Option Price (in years) Value Options outstanding at May 28, 2016 3,206 7,347 $ 16.08 5.41 $ 10,109 Granted, at fair market value (1,212) 1,212 14.52 Restricted stock (1) (319) - - Exercised - (305) 12.59 Forfeited (2) 267 (265) 14.18 Expired 825 (825) 29.77 Options outstanding at May 27, 2017 2,767 7,164 $ 15.08 5.56 $ 1,696 Exercisable at May 27, 2017 4,608 $ 15.59 4.04 $ 1,173 Vested and expected to vest at May 27, 2017 (3) 6,962 $ 15.09 5.46 $ 1,696 (1) Amounts represent restricted shares granted. Share-based awards available for grant are reduced by 2.5 shares for each share awarded as stock grants from the 2014 Plan. (2) Amounts represent both stock options and restricted share awards forfeited. (3) The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to options not yet vested. |
Summary Of Impact Of Stock Based Compensation Plans | For the Years Ended May 27, May 28, May 30, 2017 2016 2015 Income before income taxes $ (6,068) $ (6,280) $ (5,989) Net income $ (3,962) $ (4,159) $ (3,823) Net income per share: Basic $ (0.12) $ (0.11) $ (0.10) Diluted $ (0.12) $ (0.11) $ (0.10) |
Schedule Of Share-Based Payment Award, Valuation Assumptions | For the Years Ended May 27, 2017 May 28, 2016 May 30, 2015 Expected volatility 34.6% - 38.4% 35% - 40.5% 36.2% - 42.1% Risk-free interest rate 1.3% - 1.6% 1.7% - 2.0% 1.7% - 2.2% Expected dividends 3.0% 2.2% 1.9% - 2.1% Expected life 5.6 - 8.1 years 5.6 - 7.7 years 5.5 - 7.5 years |
Supplemental Disclosure Of Ca30
Supplemental Disclosure Of Cash Flow Information (Tables) | 12 Months Ended |
May 27, 2017 | |
Supplemental Disclosure Of Cash Flow Information [Abstract] | |
Schedule Of Additional Information Regarding Cash Flows | For the Years Ended May 27, May 28, May 30, 2017 2016 2015 Income taxes paid $ 16,756 $ 23,135 $ 24,326 Interest paid $ 628 $ - $ - Non-cash investing and financing activities: Capitalized leasehold improvements paid directly by landlord $ 1,026 $ 405 $ 144 Dividends declared, not paid $ 3,253 $ 3,623 $ 2,982 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
May 27, 2017 | |
Commitments And Contingencies [Abstract] | |
Schedule Of Lease Commitments And Purchase Obligations | Operating Purchase Years Ending: Leases Obligations May 26, 2018 $ 10,537 $ 440 May 25, 2019 9,460 340 May 30, 2020 6,837 235 May 29, 2021 6,085 105 May 28, 2022 5,097 9 Thereafter 6,993 - Total $ 45,009 $ 1,129 |
Segment Information And Enter32
Segment Information And Enterprise Reporting (Tables) | 12 Months Ended |
May 27, 2017 | |
Segment Information And Enterprise Reporting [Abstract] | |
Schedule Of Revenue From External Customers And Long-Lived Assets, By Geographical Areas | Revenue for the For the Years Ended Long-Lived Assets (1) as of May 27, May 28, May 30, May 27, May 28, 2017 2016 2015 2017 2016 United States $ 469,846 $ 489,035 $ 479,972 $ 173,781 $ 172,155 The Netherlands 16,569 15,859 15,777 18,036 17,728 Other 96,996 93,627 94,840 2,625 2,574 Total $ 583,411 $ 598,521 $ 590,589 $ 194,442 $ 192,457 (1) Long-lived assets are comprised of goodwill, intangible assets and property and equipment. |
Summary Of Significant Accoun33
Summary Of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | ||
May 27, 2017USD ($)item | May 28, 2016USD ($)item | May 30, 2015USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Conversion fees percentage | 0.50% | 0.50% | 0.50% |
Reimbursements received from clients for "out-of-pocket" expenses | $ 10,100,000 | $ 10,600,000 | $ 10,600,000 |
Short-term investments | $ 0 | $ 24,957,000 | |
Number of investments with maturity in excess of one year | item | 0 | 0 | |
Unrealized holding gains and losses | $ 0 | $ 0 | |
Property and equipment impairment | 0 | ||
Goodwill impairment | $ 0 | ||
Stock options vesting period | 4 years | ||
Deferred income tax assets, noncurrent | $ 973,000 | 4,237,000 | |
Deferred income tax liabilities, noncurrent | $ 1,280,000 | ||
Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Debt securities contractual maturities period | 1 year | ||
Stock options vesting period | 4 years | ||
Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Debt securities contractual maturities period | 3 months | ||
Stock options vesting period | 1 year | ||
Accounting Standards Update 2015-17 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Deferred income tax liabilities, noncurrent | 5,000,000 | ||
Scenario, Adjustment [Member] | Accounting Standards Update 2015-17 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Deferred income tax assets, current | (8,400,000) | ||
Deferred income tax assets, noncurrent | $ 8,400,000 |
Summary Of Significant Accoun34
Summary Of Significant Accounting Policies (Calculation Of Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
May 27, 2017 | May 28, 2016 | May 30, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | |||
Net income | $ 18,651 | $ 30,443 | $ 27,508 |
Basic: | |||
Weighted average shares | 32,851 | 37,037 | 37,825 |
Diluted: | |||
Weighted average shares | 32,851 | 37,037 | 37,825 |
Potentially dilutive shares | 620 | 571 | 423 |
Total dilutive shares | 33,471 | 37,608 | 38,248 |
Net income per common share: | |||
Basic (per share) | $ 0.57 | $ 0.82 | $ 0.73 |
Diluted (per share) | $ 0.56 | $ 0.81 | $ 0.72 |
Anti-dilutive shares not included above | 4,582 | 4,745 | 5,746 |
Summary Of Significant Accoun35
Summary Of Significant Accounting Policies (Components Of Short-Term Investments) (Details) $ in Thousands | May 28, 2016USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Cost | $ 24,957 |
Fair Value | 24,957 |
Commercial Paper [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Cost | 19,959 |
Fair Value | 19,959 |
U.S. Government Agency Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Cost | 4,998 |
Fair Value | $ 4,998 |
Summary Of Significant Accoun36
Summary Of Significant Accounting Policies (Summary Of The Activity In Allowance For Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 27, 2017 | May 28, 2016 | May 30, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | |||
Beginning Balance | $ 2,994 | $ 3,291 | $ 3,139 |
Charged to Operations | 458 | 1,118 | 212 |
Currency Rate Changes | (20) | (16) | (78) |
(Write-offs)/Recoveries | (915) | (1,399) | 18 |
Ending Balance | $ 2,517 | $ 2,994 | $ 3,291 |
Summary Of Significant Accoun37
Summary Of Significant Accounting Policies (Schedule Of Estimated Useful Lives Of Property And Equipment) (Details) | 12 Months Ended |
May 27, 2017 | |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 30 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | Lesser of useful life of asset or term of lease |
Minimum [Member] | Furniture [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Minimum [Member] | Computers, Equipment And Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Maximum [Member] | Furniture [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Maximum [Member] | Computers, Equipment And Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Property And Equipment (Schedul
Property And Equipment (Schedule Of Property And Equipment) (Details) - USD ($) $ in Thousands | May 27, 2017 | May 28, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 61,065 | $ 62,216 |
Less accumulated depreciation and amortization | (37,711) | (40,942) |
Property and equipment, net | 23,354 | 21,274 |
Building And Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 14,198 | 14,172 |
Computers, Equipment And Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 17,811 | 16,568 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 19,403 | 21,170 |
Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 9,653 | $ 10,306 |
Intangible Assets And Goodwil39
Intangible Assets And Goodwill (Schedule Of Details Of Intangible Assets) (Details) - Trade Name And Trademark [Member] - USD ($) $ in Thousands | 12 Months Ended | |
May 27, 2017 | May 28, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, estimated lives | 5 years | |
Gross | $ 1,341 | |
Accumulated Amortization | (1,341) | |
Net |
Intangible Assets And Goodwil40
Intangible Assets And Goodwill (Schedule Of Intangible Assets Amortization Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
May 28, 2016 | May 30, 2015 | |
Intangible Assets And Goodwill [Abstract] | ||
Amortization expense | $ 90 | $ 918 |
Intangible Assets And Goodwil41
Intangible Assets And Goodwill (Summary Of Activity In Goodwill Balance) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
May 27, 2017 | May 28, 2016 | |
Intangible Assets And Goodwill [Abstract] | ||
Goodwill, beginning of year | $ 171,183 | $ 170,878 |
Impact of foreign currency exchange rate changes | (95) | 305 |
Goodwill, end of period | $ 171,088 | $ 171,183 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Nov. 30, 2016 | Feb. 25, 2017 | May 27, 2017 | |
Debt Instrument [Line Items] | |||
Proceeds from use of Revolving Credit Facility | $ 58,000 | ||
Repayment of Revolving Credit Facility | 10,000 | ||
Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 120,000 | ||
Credit facility, expiration date | Oct. 17, 2021 | ||
Proceeds from use of Revolving Credit Facility | $ 58,000 | $ 10,000 | |
Credit facility, outstanding balance | $ 49,000 | ||
Credit Facility [Member] | 1-Month LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, effective interest rate | 2.50% | ||
Credit facility, outstanding balance | $ 24,000 | ||
Credit Facility [Member] | 3-Month LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Interest spread on variable rate | 1.50% | ||
Credit facility, outstanding balance | $ 24,000 | ||
Credit Facility [Member] | Federal Funds Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest spread on variable rate | 0.50% | ||
Credit Facility [Member] | Eurodollar Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest spread on variable rate | 1.00% | ||
Credit Facility [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 90,000 | ||
Credit facility, remaining borrowing capacity | 41,000 | ||
Credit Facility [Member] | Reducing Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | 30,000 | ||
Credit facility, remaining borrowing capacity | 30,000 | ||
Credit Facility [Member] | Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | 5,000 | ||
Credit facility, outstanding balance | $ 1,000 | ||
Credit Facility [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, commitment fee | 0.15% | ||
Credit Facility [Member] | Minimum [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Interest spread on variable rate | 1.25% | ||
Credit Facility [Member] | Minimum [Member] | 1-Month LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Interest spread on variable rate | 1.50% | ||
Credit Facility [Member] | Minimum [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest spread on variable rate | 0.25% | ||
Credit Facility [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, commitment fee | 0.25% | ||
Credit Facility [Member] | Maximum [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Interest spread on variable rate | 1.50% | ||
Credit Facility [Member] | Maximum [Member] | 1-Month LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Interest spread on variable rate | 2.65% | ||
Credit Facility [Member] | Maximum [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest spread on variable rate | 0.50% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
May 27, 2017 | May 28, 2016 | May 30, 2015 | |
Income Taxes [Abstract] | |||
Income tax receivable | $ 1,400,000 | ||
Income taxes payable | $ 400,000 | ||
Tax benefit related to stock-based compensation for nonqualified stock options expensed and for eligible disqualifying ISO exercises and shares issued under ESPP | 1,100,000 | 1,100,000 | |
Foreign net operating loss carryforwards | 63,500,000 | ||
Tax credit carryforward | 400,000 | ||
Undistributed earnings of foreign subsidiaries | 18,400,000 | ||
Unrecognized tax benefits | 42,000 | 42,000 | $ 42,000 |
Unrecognized tax benefit classified as long-term liability | 42,000 | $ 42,000 | |
Unrecognized tax benefit, accrued interest and penalties | $ 1,000 |
Income Taxes (Schedule Of Curre
Income Taxes (Schedule Of Current And Deferred Income Tax Provision For Federal And State Income Taxes Attributable To Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 27, 2017 | May 28, 2016 | May 30, 2015 | |
Income Taxes [Abstract] | |||
Current, Federal | $ 10,901 | $ 18,320 | $ 18,046 |
Current, State | 2,551 | 4,168 | 4,028 |
Current, Foreign | 1,472 | 1,398 | 1,101 |
Current, Total | 14,924 | 23,886 | 23,175 |
Deferred, Federal | 259 | (178) | (502) |
Deferred, State | 62 | (27) | (120) |
Deferred, Foreign | (123) | (135) | 345 |
Deferred, Total | 198 | (340) | (277) |
Income Tax Provision, Total | $ 15,122 | $ 23,546 | $ 22,898 |
Income Taxes (Schedule Of Incom
Income Taxes (Schedule Of Income Before Provision For Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 27, 2017 | May 28, 2016 | May 30, 2015 | |
Income Taxes [Abstract] | |||
Domestic | $ 32,390 | $ 53,417 | $ 51,997 |
Foreign | 1,383 | 572 | (1,591) |
Income before provision for income taxes | $ 33,773 | $ 53,989 | $ 50,406 |
Income Taxes (Schedule Of Effec
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
May 27, 2017 | May 28, 2016 | May 30, 2015 | |
Income Taxes [Abstract] | |||
Statutory tax rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal benefit | 5.00% | 4.90% | 5.00% |
Non-U.S. rate adjustments | 0.10% | 0.40% | 1.10% |
Stock-based compensation | 0.70% | 0.60% | 0.50% |
Valuation allowance | 1.20% | 1.30% | 2.80% |
Permanent items, primarily meals and entertainment | 2.20% | 1.50% | 1.30% |
Other, net | 0.60% | (0.10%) | (0.30%) |
Effective tax rate | 44.80% | 43.60% | 45.40% |
Income Taxes (Schedule Of The C
Income Taxes (Schedule Of The Components Of Net Deferred Tax Asset) (Details) - USD ($) $ in Thousands | May 27, 2017 | May 28, 2016 |
Income Taxes [Abstract] | ||
Allowance for doubtful accounts | $ 1,595 | $ 1,685 |
Accrued compensation | 4,235 | 4,337 |
Accrued expenses | 3,755 | 3,163 |
Stock options and restricted stock | 11,779 | 15,132 |
Foreign tax credit | 397 | 557 |
Net operating losses | 15,855 | 15,283 |
Property and equipment | 1,222 | 1,550 |
State taxes | 232 | 368 |
Gross deferred tax assets | 39,070 | 42,075 |
Valuation allowance | (15,971) | (15,714) |
Gross deferred tax asset, net of valuation allowance | 23,099 | 26,361 |
Goodwill and intangibles | (23,406) | (22,124) |
Total deferred tax liabilities | $ (307) | |
Net deferred tax asset | $ 4,237 |
Income Taxes (Summary Of Net Op
Income Taxes (Summary Of Net Operating Loss Expiration Periods) (Details) $ in Thousands | May 27, 2017USD ($) |
Income Taxes [Abstract] | |
2,018 | $ 300 |
2,019 | 550 |
2,020 | 1,600 |
2,021 | 4,600 |
2,022 | 350 |
2023-2027 | 3,500 |
Unlimited | 52,600 |
Net operating loss carryforwards | $ 63,500 |
Income Taxes (Summary Of Activi
Income Taxes (Summary Of Activity In Valuation Allowance) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 27, 2017 | May 28, 2016 | May 30, 2015 | |
Income Taxes [Abstract] | |||
Valuation allowance, Beginning Balance | $ 15,714 | $ 15,056 | $ 16,719 |
Valuation allowance, Charged to Operations | 438 | 691 | 1,189 |
Valuation allowance, Currency Rate Changes | (181) | (33) | (2,852) |
Valuation allowance, Ending Balance | $ 15,971 | $ 15,714 | $ 15,056 |
Income Taxes (Summary Of The Ac
Income Taxes (Summary Of The Activity Related To Gross Unrecognized Tax Benefits) (Details) | 12 Months Ended |
May 27, 2017USD ($) | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |
Unrecognized tax benefits, beginning of year | $ 42,000 |
Gross increases-tax positions in prior period | |
Gross decreases-tax positions in prior periods | |
Gross increases-current period tax positions | |
Settlements | |
Lapse of statute of limitations | |
Unrecognized tax benefits, end of year | $ 42,000 |
Accrued Salaries And Related 51
Accrued Salaries And Related Obligations (Schedule Of Accrued Salaries And Related Obligations) (Details) - USD ($) $ in Thousands | May 27, 2017 | May 28, 2016 |
Accrued Salaries And Related Obligations [Abstract] | ||
Accrued salaries and related obligations | $ 18,741 | $ 18,166 |
Accrued bonuses | 15,600 | 17,092 |
Accrued vacation | 14,900 | 14,897 |
Total accrued salaries and related obligations | $ 49,241 | $ 50,155 |
Concentrations Of Credit Risk (
Concentrations Of Credit Risk (Narrative) (Details) - customer | 12 Months Ended | ||
May 27, 2017 | May 28, 2016 | May 30, 2015 | |
Concentrations Of Credit Risk [Abstract] | |||
Number of major customers | 0 | 0 | 0 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 20, 2017 | Nov. 22, 2016 | Nov. 30, 2016 | Oct. 31, 2016 | Feb. 25, 2017 | May 27, 2017 | May 28, 2016 | May 30, 2015 | Feb. 29, 2016 |
Stockholders' Equity Disclosure [Line Items] | |||||||||
Common stock, shares authorized | 70,000,000 | 70,000,000 | |||||||
Common stock, par value | $ 0.01 | $ 0.01 | |||||||
Common stock, shares outstanding | 29,662,000 | 36,229,000 | |||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | |||||||
Preferred stock, par value | $ 0.01 | $ 0.01 | |||||||
Preferred stock, shares outstanding | 0 | 0 | |||||||
Cost of shares repurchased | $ 118,886 | $ 28,128 | $ 26,277 | ||||||
Proceeds from use of Revolving Credit Facility | 58,000 | ||||||||
Dividends payable (per share) | $ 0.11 | ||||||||
Dividends payable, date to be paid | Jun. 15, 2017 | ||||||||
Dividends payable, current | 3,200 | ||||||||
Tender Offer For Common Stock [Member] | The Netherlands [Member] | |||||||||
Stockholders' Equity Disclosure [Line Items] | |||||||||
Purchase of common stock (in shares) | 6,515,264 | ||||||||
Common stock shares repurchased, price per share | $ 16 | ||||||||
Cost of shares repurchased | $ 104,200 | ||||||||
Share repurchase, tender offer, shares | 6,000,000 | ||||||||
Percentage authorized under stock repurchase program | 2.00% | ||||||||
Tender Offer For Common Stock [Member] | The Netherlands [Member] | Maximum [Member] | |||||||||
Stockholders' Equity Disclosure [Line Items] | |||||||||
Share repurchase, tender offer per share | $ 16 | ||||||||
Tender Offer For Common Stock [Member] | The Netherlands [Member] | Minimum [Member] | |||||||||
Stockholders' Equity Disclosure [Line Items] | |||||||||
Share repurchase, tender offer per share | $ 13.50 | ||||||||
April 2011 Program [Member] | |||||||||
Stockholders' Equity Disclosure [Line Items] | |||||||||
Amount authorized under a stock repurchase program | $ 150,000 | ||||||||
July 2015 Program [Member] | |||||||||
Stockholders' Equity Disclosure [Line Items] | |||||||||
Amount authorized under a stock repurchase program | $ 150,000 | ||||||||
Purchase of common stock (in shares) | 800,000 | 1,800,000 | |||||||
Common stock shares repurchased, price per share | $ 15.99 | $ 15.32 | |||||||
Cost of shares repurchased | $ 13,500 | $ 28,100 | |||||||
Stock repurchase plan, remaining amount | $ 125,100 | ||||||||
Credit Facility [Member] | |||||||||
Stockholders' Equity Disclosure [Line Items] | |||||||||
Proceeds from use of Revolving Credit Facility | $ 58,000 | $ 10,000 |
Stock-Based Compensation Plan54
Stock-Based Compensation Plans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
May 27, 2017 | May 28, 2016 | May 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Increase in shares available for issuance | 2,400,000 | ||
Shares available for grant | 2,767,000 | 3,206,000 | |
Share price | $ 12.65 | ||
Stock options vesting period | 4 years | ||
Stock options termination period | 10 years | ||
Stock options exercise, intrinsic value | $ 1,100,000 | $ 1,800,000 | $ 1,200,000 |
Stock options vested, total fair value | 3,600,000 | 4,000,000 | 3,800,000 |
Unrecognized compensation cost related to stock-based compensation | $ 7,000,000 | ||
Weighted-average period of cost to be recognized | 31 months | ||
Stock-based compensation expense | $ 6,068,000 | $ 6,280,000 | $ 5,989,000 |
Weighted average estimated value per share of employee stock options granted | $ 3.61 | $ 4.54 | $ 3.93 |
Share based compensation expense for restricted shares | $ 802,000 | $ 598,000 | $ 515,000 |
Restricted stock, shares granted | 127,720 | 50,354 | 49,840 |
Restricted stock, shares vested | 43,261 | 41,796 | |
Unvested restricted shares | 189,015 | 105,925 | 97,938 |
Gross excess tax benefits | $ 8,000 | $ 185,000 | $ 86,000 |
Percentage of ownership threshold for minimum exercise price | 10.00% | ||
Chairman [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense related to accelerated vesting | $ 900,000 | ||
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Increase in shares available for issuance | 1,500,000 | ||
Shares of common stock made available for awards | 5,900,000 | ||
Shares available for grant | 918,000 | ||
Percentage of exercise price per share out of fair market value | 85.00% | ||
Common stock issued | 359,000 | 325,000 | 337,000 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average period of cost to be recognized | 32 months | ||
Total unrecognized compensation cost | $ 2,700,000 | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options vesting period | 1 year | ||
Percentage of exercise price per share out of fair market value | 110.00% | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options vesting period | 4 years |
Stock-Based Compensation Plan55
Stock-Based Compensation Plans (Schedule Of Stock Option Activity) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
May 27, 2017USD ($)item$ / sharesshares | May 28, 2016USD ($)$ / sharesshares | ||
Stock-Based Compensation Plans [Abstract] | |||
Options outstanding, Beginning balance, Share-Based Awards Available for Grant | 3,206,000 | ||
Granted, at fair market value, Share-Based Awards Available for Grant | (1,212,000) | ||
Restricted stock, Share-Based Awards Available for Grant | [1] | (319,000) | |
Forfeited, Share-Based Awards Available for Grant | [2] | 267,000 | |
Expired, Share-Based Awards Available for Grant | 825,000 | ||
Options outstanding, Ending balance, Share-Based Awards Available for Grant | 2,767,000 | 3,206,000 | |
Options outstanding, Beginning balance, Number of Shares Under Option | 7,347,000 | ||
Granted, at fair market value, Number of Shares Under Option | 1,212,000 | ||
Exercised, Number of Shares Under Option | (305,000) | ||
Forfeited, Number of Shares Under Option | [2] | (265,000) | |
Expired, Number of Shares Under Option | (825,000) | ||
Options outstanding, Ending balance, Number of Shares Under Option | 7,164,000 | 7,347,000 | |
Exercisable at May 27, 2017, Number of Shares Under Option | 4,608,000 | ||
Vested and expected to vest at May 27, 2017, Number of Shares Under Option | [3] | 6,962,000 | |
Options outstanding, Beginning balance, Weighted Average Exercise Price (per share) | $ / shares | $ 16.08 | ||
Granted, at fair market value, Weighted Average Exercise Price (per share) | $ / shares | 14.52 | ||
Exercised, Weighted Average Exercise Price (per share) | $ / shares | 12.59 | ||
Forfeited, Weighted Average Exercise Price (per share) | $ / shares | [2] | 14.18 | |
Expired, Weighted Average Exercise Price (per share) | $ / shares | 29.77 | ||
Options outstanding, Ending balance, Weighted Average Exercise Price (per share) | $ / shares | 15.08 | $ 16.08 | |
Exercisable at May 27, 2017, Weighted Average Exercise Price (per share) | $ / shares | 15.59 | ||
Vested and expected to vest at May 27, 2017, Weighted Average Exercise Price (per share) | $ / shares | [3] | $ 15.09 | |
Options outstanding, Weighted Average Remaining Contractual Life (in years) | 5 years 6 months 22 days | 5 years 4 months 28 days | |
Exercisable at May 27, 2017, Weighted Average Remaining Contractual Life (in years) | 4 years 15 days | ||
Vested and expected to vest at May 27, 2017, Weighted Average Remaining Contractual Life (in years) | [3] | 5 years 5 months 16 days | |
Options outstanding, Ending balance, Aggregate Intrinsic Value | $ | $ 1,696 | $ 10,109 | |
Exercisable at May 27, 2017, Aggregate Intrinsic Value | $ | 1,173 | ||
Vested and expected to vest at May 27, 2017, Aggregate Intrinsic Value | $ | [3] | $ 1,696 | |
Number Of Share-Based Awards Required For Each Share Granted | item | 2.5 | ||
[1] | Amounts represent restricted shares granted. Share-based awards available for grant are reduced by 2.5 shares for each share awarded as stock grants from the 2014 Plan. | ||
[2] | Amounts represent both stock options and restricted share awards forfeited. | ||
[3] | The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to options not yet vested. |
Stock Based Compensation Plans
Stock Based Compensation Plans (Summary Of Impact Of Stock-Based Compensation Plans) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
May 27, 2017 | May 28, 2016 | May 30, 2015 | |
Stock-Based Compensation Plans [Abstract] | |||
Income before income taxes | $ (6,068) | $ (6,280) | $ (5,989) |
Net income | $ (3,962) | $ (4,159) | $ (3,823) |
Net income per share, Basic | $ (0.12) | $ (0.11) | $ (0.10) |
Net income per share, Diluted | $ (0.12) | $ (0.11) | $ (0.10) |
Stock-Based Compensation Plan57
Stock-Based Compensation Plans (Schedule Of Share-Based Payment Award, Valuation Assumptions) (Details) | 12 Months Ended | ||
May 27, 2017 | May 28, 2016 | May 30, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected volatility, minimum | 34.60% | 35.00% | 36.20% |
Expected volatility, maximum | 38.40% | 40.50% | 42.10% |
Risk-free interest rate, minimum | 1.30% | 1.70% | 1.70% |
Risk-free interest rate, maximum | 1.60% | 2.00% | 2.20% |
Minimum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected dividends | 3.00% | 2.20% | 1.90% |
Expected life | 5 years 7 months 6 days | 5 years 7 months 6 days | 5 years 6 months |
Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected dividends | 2.10% | ||
Expected life | 8 years 1 month 6 days | 7 years 8 months 12 days | 7 years 6 months |
Benefit Plan (Narrative) (Detai
Benefit Plan (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 27, 2017 | May 28, 2016 | May 30, 2015 | |
Benefit Plan [Abstract] | |||
Maximum annual contribution per participant by employee | 50.00% | ||
Maximum annual matching contributions per participant by employer | 6.00% | ||
Contributions to the plan as Company matching contributions | $ 5.1 | $ 5 | $ 4.8 |
Supplemental Disclosure Of Ca59
Supplemental Disclosure Of Cash Flow Information (Schedule Of Additional Information Regarding Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 27, 2017 | May 28, 2016 | May 30, 2015 | |
Supplemental Disclosure Of Cash Flow Information [Abstract] | |||
Income taxes paid | $ 16,756 | $ 23,135 | $ 24,326 |
Interest paid | 628 | ||
Capitalized leasehold improvements paid directly by landlord | 1,026 | 405 | 144 |
Dividends declared, not paid | $ 3,253 | $ 3,623 | $ 2,982 |
Commitments And Contingencies60
Commitments And Contingencies (Narrative) (Details) | 12 Months Ended | ||
May 27, 2017USD ($)ft² | May 28, 2016USD ($) | May 30, 2015USD ($) | |
Property Subject to or Available for Operating Lease [Line Items] | |||
Capital leases | $ 0 | ||
Rent expense | $ 12,900,000 | $ 13,100,000 | $ 13,100,000 |
Area of real estate property | ft² | 56,200 | ||
Expected rental income from third party leases in 2018 | $ 245,000 | ||
Expected rental income from third party leases in 2019 | 201,000 | ||
Expected rental income from third party leases in 2020 | 207,000 | ||
Expected rental income from third party leases in 2021 | 213,000 | ||
Expected rental income from third party leases in 2022 | 219,000 | ||
Expected rental income from third party leases after 2022 | $ 536,000 | ||
Agreement renewal period | 1 year | ||
Period to provide written notice | 60 days | ||
Leases To Independent Third Parties [Member] | |||
Property Subject to or Available for Operating Lease [Line Items] | |||
Area of real estate property | ft² | 18,200 |
Commitments And Contingencies61
Commitments And Contingencies (Schedule Of Lease Commitments And Purchase Obligations) (Details) $ in Thousands | May 27, 2017USD ($) |
Commitments And Contingencies [Abstract] | |
Operating Leases, May 26, 2018 | $ 10,537 |
Operating Leases, May 25, 2019 | 9,460 |
Operating Leases, May 30, 2020 | 6,837 |
Operating Leases, May 29, 2021 | 6,085 |
Operating Leases, May 28, 2022 | 5,097 |
Operating Leases, Thereafter | 6,993 |
Total Operating Leases | 45,009 |
Purchase Obligations, May 26, 2018 | 440 |
Purchase Obligations, May 25, 2019 | 340 |
Purchase Obligations, May 30, 2020 | 235 |
Purchase Obligations, May 29, 2021 | 105 |
Purchase Obligations, May 28, 2022 | 9 |
Total Purchase Obligations | $ 1,129 |
Segment Information And Enter62
Segment Information And Enterprise Reporting (Narrative) (Details) | 12 Months Ended |
May 27, 2017segment | |
Segment Information And Enterprise Reporting [Abstract] | |
Number of operating segments | 1 |
Segment Information And Enter63
Segment Information And Enterprise Reporting (Schedule Of Revenue From External Customers And Long-Lived Assets, By Geographical Areas) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
May 27, 2017 | May 28, 2016 | May 30, 2015 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 583,411 | $ 598,521 | $ 590,589 | |
Long-Lived Assets | [1] | 194,442 | 192,457 | |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 469,846 | 489,035 | 479,972 | |
Long-Lived Assets | [1] | 173,781 | 172,155 | |
The Netherlands [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 16,569 | 15,859 | 15,777 | |
Long-Lived Assets | [1] | 18,036 | 17,728 | |
Other [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 96,996 | 93,627 | $ 94,840 | |
Long-Lived Assets | [1] | $ 2,625 | $ 2,574 | |
[1] | Long-lived assets are comprised of goodwill, intangible assets and property and equipment. |