Note 8 - Employee Post-employment Benefits
 3 Months Ended
Aug. 30, 2016
Notes to Financial Statements  
Pension and Other Postretirement Benefits Disclosure [Text Block]
 
8. Employee Post-Employment Benefits
 
Pension and Postretirement Medical and Life Benefits
We sponsor three defined benefit pension plans for active employees and offer certain postretirement benefits for retirees. A summary of each of these is presented below.
 
Retirement Plan

RTI sponsors the Morrison Restaurants Inc. Retirement Plan (the "Retirement Plan"). Effective December 31, 1987, the Retirement Plan was amended so that no additional benefits would accrue and no new participants could enter the Retirement Plan after that date. Participants receive benefits based upon salary and length of service.
 
Minimum funding for the Retirement Plan is determined in accordance with the guidelines set forth in employee benefit and tax laws. From time to
time we may contribute additional amounts as we deem appropriate. We estimate that we will be required to make contributions totaling $0.1 million to the Retirement Plan during the remainder of fiscal year 2017.
 
Executive Supplemental Pension Plan and Management Retirement Plan

Under these unfunded defined benefit pension plans, eligible employees earn supplemental retirement income based upon salary and length of service, reduced by social security benefits and amounts otherwise receivable under other specified Company retirement plans. Effective June 1, 2001, the Management Retirement Plan was amended so that no additional benefits would accrue and no new participants could enter the plan after that date. In December 2015, the Executive Supplemental Pension Plan was similarly amended effective as of January 1, 2016 for current participants, and as of January 1, 2018 for two specified potential participants, who are currently not named executive officers.
 
Included in our Condensed Consolidated Balance Sheets as of August 30, 2016 and May 31, 2016 are amounts within Accrued liabilities: Payroll and related costs of
$2.5 million as of both dates and amounts within Other deferred liabilities of $34.7 million and $35.7 million, respectively, relating to our three defined benefit pension plans.
 
Postretirement Medical and Life Benefits

Our Postretirement Medical and Life Benefits plans provide medical benefits to substantially all retired employees and life insurance benefits to certain retirees. The medical plan requires retiree cost sharing provisions that are more substantial for employees who retire after January 1, 1990.
 
Included in our Condensed Consolidated Balance Sheets as of August 30, 2016 and May 31, 2016 are amounts within Accrued liabilities: Payroll and related costs of $0.1 million as of both dates and amounts within Other deferred liabilities of $1.0 million as of both dates relating to our postretirement medical and life benefits.
 
The following tables detail the components of net periodic benefit cost for the Retirement Plan, Management Retirement Plan, and the Executive Supplemental Pension Plan (collectively, the "Pension Plans") and the Postretirement Medical
and Life Benefits plans, which is recorded as a component of Selling, general, and administrative expense, net in our Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands):
 
   
Pension Plans
   
Thirteen weeks ended
   
August 30, 2016
  
September 1, 2015
Service cost
 
$
6
 
 
$
230
 
 
Interest cost
 
 
420
 
 
 
599
 
 
Expected return on plan assets
 
 
(
91
)
 
 
(
103
)
 
Recognized actuarial loss
 
 
338
 
 
 
628
 
 
Net periodic benefit cost
 
$
673
 
 
$
1,354
 
 
 
   
Postretirement Medical and Life Benefits
   
Thirteen weeks ended
   
August 30, 2016
  
September 1, 2015
Service cost
 
$
1
 
 
$
1
 
 
Interest cost
 
 
9
 
 
 
12
 
 
Recognized actuarial loss
 
 
17
 
 
 
32
 
 
Net periodic benefit cost
 
$
2
7
 
 
$
45
 
 
 
During the 13 weeks ended August 30, 2016 and September 1, 2015, we reclassified recognized actuarial losses of $
0.4 million and $0.7 million, respectively, out of accumulated other comprehensive loss and into pension expense, which is included in Selling, general and administrative, net within our Condensed Consolidated Statements of Operations and Comprehensive Loss.
 
We also sponsor two defined contribution retirement savings plans. Information regarding these plans is included in our Annual Report on Form 10-K for the fiscal year ended
May 31, 2016.
 
Restaurant Closures and
Corporate Restructuring
W
e closed 99 Company-owned restaurants during the 13 weeks ended August 30, 2016, 95 of which were closed in connection with an asset rationalization plan as previously discussed in Note 7 to the Condensed Consolidated Financial Statements.
 
A
s of both August 30, 2016 and May 31, 2016, liabilities of $0.3 million, representing unpaid obligations related to employee severance and vacation accruals, were included within Accrued liabilities: Payroll and related costs in our Consolidated Balance Sheet. Costs of $1.7 million and $0.3 million reflected in the table below related to employee severance and unused vacation accruals are included within Closures and impairments, net and Selling, general, and administrative, net, respectively, in our Consolidated Statements of Operations and Comprehensive Loss. A roll forward of our obligations in connection with employee separations is as follows (in thousands):
 
Balance at
May 31, 2016
 
$
317
 
Employee severance and unused vacation accruals
 
 
2,020
 
Cash payments
 
 
(
2,068
)
Balance at
August 30, 2016
 
$
269
 
 
As further discussed in Note 14 to the Condensed Consolidated Financial Statements, on
September 13, 2016, James J. Buettgen resigned as the Chairman of the Board of Directors, President, and Chief Executive Officer of the Company.