Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Aug. 29, 2020 | Oct. 02, 2020 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Aug. 29, 2020 | |
Document Transition Report | false | |
Entity File Number | 0-32113 | |
Entity Registrant Name | RESOURCES CONNECTION, INC. | |
Entity Incorporation State Country Code | DE | |
Entity Tax Identification Number | 33-0832424 | |
Entity Address Address Line 1 | 17101 Armstrong Avenue | |
Entity Address City Or Town | Irvine | |
Entity Address State Or Province | CA | |
Entity Address Postal Zip Code | 92614 | |
City Area Code | 714 | |
Local Phone Number | 430-6400 | |
Security 12b Title | Common stock, par value $0.01 per share | |
Trading Symbol | RGP | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 32,433,305 | |
Current Fiscal Year End Date | --05-29 | |
Amendment Flag | false | |
Entity Central Index Key | 0001084765 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 29, 2020 | May 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 114,551 | $ 95,624 |
Trade accounts receivable, net of allowance for doubtful accounts of $2,564 and $3,067 as of August 29, 2020 and May 30, 2020, respectively | 108,242 | 124,986 |
Prepaid expenses and other current assets | 5,994 | 6,222 |
Income taxes receivable | 2,727 | 4,167 |
Total current assets | 231,514 | 230,999 |
Goodwill | 216,091 | 214,067 |
Intangible assets, net | 18,661 | 20,077 |
Property and equipment, net | 23,077 | 23,644 |
Operating right-of-use assets | 33,114 | 34,287 |
Deferred income taxes | 1,641 | 1,597 |
Other assets | 5,064 | 4,510 |
Total assets | 529,162 | 529,181 |
Current liabilities: | ||
Accounts payable and accrued expenses | 15,278 | 15,799 |
Accrued salaries and related obligations | 46,305 | 52,407 |
Operating lease liabilities, current | 11,458 | 11,223 |
Other liabilities | 15,017 | 15,472 |
Total current liabilities | 88,058 | 94,901 |
Long-term debt | 88,000 | 88,000 |
Operating lease liabilities, noncurrent | 29,004 | 30,672 |
Deferred income taxes | 6,142 | 6,215 |
Other long-term liabilities | 8,030 | 5,732 |
Total liabilities | 219,234 | 225,520 |
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; 64,199 and 63,910 shares issued, and 32,433 and 32,144 shares outstanding as of August 29, 2020 and May 30, 2020, respectively | 642 | 639 |
Additional paid-in capital | 481,571 | 477,438 |
Accumulated other comprehensive loss | (9,546) | (13,862) |
Retained earnings | 358,294 | 360,534 |
Treasury stock at cost, 31,766 shares as of both August 29, 2020 and May 30, 2020 | (521,033) | (521,088) |
Total stockholders' equity | 309,928 | 303,661 |
Total liabilities and stockholders' equity | $ 529,162 | $ 529,181 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Aug. 29, 2020 | May 30, 2020 |
Consolidated Balance Sheets [Abstract] | ||
Trade accounts receivable, allowance for doubtful accounts | $ 2,564 | $ 3,067 |
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 | 64,199,000 | 63,910,000 |
Common stock, shares outstanding | 32,433,000 | 32,144,000 |
Treasury stock at cost, shares | 31,766,000 | 31,766,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Aug. 29, 2020 | Aug. 24, 2019 | |
Consolidated Statements Of Operations [Abstract] | ||
Revenue | $ 147,346 | $ 172,225 |
Direct cost of services, primarily payroll and related taxes for professional services employees | 89,449 | 104,722 |
Gross margin | 57,897 | 67,503 |
Selling, general and administrative expenses | 51,154 | 56,978 |
Amortization of intangible assets | 1,530 | 1,094 |
Depreciation expense | 1,007 | 1,369 |
Income from operations | 4,206 | 8,062 |
Interest expense, net | 495 | 482 |
Other income | (530) | |
Income before provision for income taxes | 4,241 | 7,580 |
Provision for income taxes | 1,957 | 2,641 |
Net income | $ 2,284 | $ 4,939 |
Net income per common share: | ||
Basic (per share) | $ 0.07 | $ 0.16 |
Diluted (per share) | $ 0.07 | $ 0.15 |
Weighted average common shares outstanding: | ||
Basic (shares) | 32,183 | 31,788 |
Diluted (shares) | 32,232 | 32,267 |
Cash dividends declared per common share | $ 0.14 | $ 0.14 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 29, 2020 | Aug. 24, 2019 | |
COMPREHENSIVE INCOME: | ||
Net income | $ 2,284 | $ 4,939 |
Foreign currency translation adjustment, net of tax | 4,316 | (686) |
Total comprehensive income | $ 6,600 | $ 4,253 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Total |
Balances at May. 25, 2019 | $ 631 | $ 460,226 | $ (516,103) | $ (12,588) | $ 350,230 | $ 282,396 |
Balances (in shares) at May. 25, 2019 | 63,054,000 | 31,466,000 | ||||
Exercise of stock options | $ 1 | 2,250 | 2,251 | |||
Exercise of stock options (in shares) | 172,000 | |||||
Stock-based compensation expense | 1,408 | 1,408 | ||||
Issuance of common stock under Employee Stock Purchase Plan | $ 2 | 2,597 | 2,599 | |||
Issuance of common stock under Employee Stock Purchase Plan (in shares) | 215,000 | |||||
Cancellation of restricted stock (in shares) | (5,000) | |||||
Cash dividends declared ($0.14 per share) | (4,476) | (4,476) | ||||
Currency translation adjustment | (686) | (686) | ||||
Net income | 4,939 | 4,939 | ||||
Balances at Aug. 24, 2019 | $ 634 | 466,481 | $ (516,103) | (13,274) | 350,693 | 288,431 |
Balances (in shares) at Aug. 24, 2019 | 63,436,000 | 31,466,000 | ||||
Balances at May. 30, 2020 | $ 639 | 477,438 | $ (521,088) | (13,862) | 360,534 | $ 303,661 |
Balances (in shares) at May. 30, 2020 | 63,910,000 | 31,766,000 | 32,144,000 | |||
Exercise of stock options | $ 1 | 503 | $ 504 | |||
Exercise of stock options (in shares) | 44,000 | 44,000 | ||||
Stock-based compensation expense | 1,212 | $ 1,212 | ||||
Issuance of common stock under Employee Stock Purchase Plan | $ 2 | 2,458 | $ 2,460 | |||
Issuance of common stock under Employee Stock Purchase Plan (in shares) | 245,000 | |||||
Cancellation of restricted stock (in shares) | 0 | |||||
Issuance of restricted stock out of treasury stock to board of director members | (40) | $ 55 | (15) | |||
Cash dividends declared ($0.14 per share) | (4,509) | $ (4,509) | ||||
Currency translation adjustment | 4,316 | 4,316 | ||||
Net income | 2,284 | 2,284 | ||||
Balances at Aug. 29, 2020 | $ 642 | $ 481,571 | $ (521,033) | $ (9,546) | $ 358,294 | $ 309,928 |
Balances (in shares) at Aug. 29, 2020 | 64,199,000 | 31,766,000 | 32,433,000 |
Consolidated Statements Of St_2
Consolidated Statements Of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Aug. 29, 2020 | Aug. 24, 2019 | |
Consolidated Statements Of Stockholders' Equity [Abstract] | ||
Cash dividends declared per common share | $ 0.14 | $ 0.14 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 29, 2020 | Aug. 24, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 2,284 | $ 4,939 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,537 | 2,463 |
Stock-based compensation expense | 1,397 | 1,515 |
Contingent consideration adjustment | 530 | (131) |
Loss on disposal of assets | 28 | 7 |
Adjustment to allowance for doubtful accounts | (50) | 471 |
Deferred income taxes | (117) | (246) |
Changes in operating assets and liabilities, net of effects of business combinations: | ||
Trade accounts receivable | 16,781 | 6,288 |
Prepaid expenses and other current assets | 202 | (236) |
Income taxes | 1,143 | 1,364 |
Other assets | (554) | 940 |
Accounts payable and accrued expenses | (521) | (1,727) |
Accrued salaries and related obligations | (6,102) | (20,082) |
Other liabilities | 1,028 | 1,397 |
Net cash provided by (used in) operating activities | 18,586 | (3,038) |
Cash flows from investing activities: | ||
Redemption of short-term investments | 5,981 | |
Proceeds from sale of assets | 20 | |
Acquisition of Veracity, net of cash acquired | (30,293) | |
Purchase of property and equipment | (267) | (510) |
Net cash used in investing activities | (247) | (24,822) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 522 | 2,251 |
Proceeds from issuance of common stock under Employee Stock Purchase Plan | 2,460 | 2,599 |
Proceeds from Revolving Credit Facility | 35,000 | |
Repayments on Revolving Credit Facility | (5,000) | |
Cash dividends paid | (4,512) | (4,106) |
Net cash (used in) provided by financing activities | (1,530) | 30,744 |
Effect of exchange rate changes on cash | 2,118 | (206) |
Net increase in cash | 18,927 | 2,678 |
Cash and cash equivalents at beginning of period | 95,624 | 43,045 |
Cash and cash equivalents at end of period | $ 114,551 | $ 45,723 |
Description Of The Company And
Description Of The Company And Its Business | 3 Months Ended |
Aug. 29, 2020 | |
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. The Company’s operating entities provide services primarily under the name Resources Global Professionals (“RGP” or the “Company”). RGP is a global consulting firm that enables rapid business outcomes by bringing together the right people to create transformative change. As a human capital partner to its global client base, the Company supports its clients’ needs through both professional staffing and project execution in the areas of transactions, regulations and transformations. 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 . The first quarters of fiscal 2021 and 2020 each consisted of 13 weeks. The Company’s fiscal 2021 will consist of 52 weeks. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 3 Months Ended |
Aug. 29, 2020 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Interim Financial Information The accompanying unaudited financial statements of the Company as of and for the three months ended August 29, 2020 and August 24, 2019 have been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. These financial statements include all adjustments (consisting only of normal recurring adjustments) the Company considers necessary for a fair presentation of its financial position at such dates and the operating results and cash flows for those periods. The fiscal 2020 year-end balance sheet data was derived from audited consolidated financial statements, and certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to Securities and Exchange Commission (“SEC”) rules or regulations; however, the Company believes the disclosures made are adequate to make the information presented not misleading. The unaudited consolidated results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for the full fiscal year. These interim financial statements should be read in conjunction with the audited consolidated financial statements for the year ended May 30, 2020, which are included in the Company’s Annual Report on Form 10-K (“Fiscal Year 2020 Form 10-K”) filed with the SEC on July 27, 2020 (File No. 0-32113). The Company’s significant accounting policies are described in Note 2 to the audited consolidated financial statements included in the Fiscal Year 2020 Form 10-K. The Company has reviewed its accounting policies and identified those that it believes to be critical to the preparation and understanding of its consolidated financial statements in the list set forth below. See the disclosure under the heading “Critical Accounting Policies” in Item 7 of Part II of the Fiscal Year 2020 Form 10-K for a detailed description of these policies and their potential effects on the Company’s results of operations and financial condition. Allowance for doubtful accounts Income taxes Revenue recognition Stock-based compensation Valuation of long-lived assets Valuation of goodwill Business combinations Principles of Consolidation The consolidated financial statements of the Company include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. 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. Net Income Per Share Information The Company presents both basic and diluted earnings per common 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. Under the treasury stock method, assumed proceeds include the amount the employee must pay for exercising stock options and the amount of compensation cost for future services the Company has not yet recognized. 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 common share for the periods indicated (in thousands, except per share amounts): Three Months Ended August 29, August 24, 2020 2019 Net income $ 2,284 $ 4,939 Basic: Weighted average shares 32,183 31,788 Diluted: Weighted average shares 32,183 31,788 Potentially dilutive shares 49 479 Total dilutive shares 32,232 32,267 Basic $ 0.07 $ 0.16 Dilutive $ 0.07 $ 0.15 Anti-dilutive shares not included above 5,324 3,345 Financial Instruments 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. Contingent consideration liability is for estimated future contingent consideration payments related to the Company’s acquisitions. Total contingent consideration liabilities were $ 8.5 million and $ 7.9 million as of August 29, 2020 and May 30, 2020, respectively. The fair value measurement of the liability is based on significant inputs not observed in the market and thus represents a Level 3 measurement. The significant unobservable inputs used in the fair value measurement of the contingent consideration liability are the Company’s measures of the estimated payouts based on internally generated financial projections and discount rates. The fair value of contingent consideration liability is reassessed on a quarterly basis by the Company using additional information as it becomes available, and any change in the fair value estimates are recorded in selling, general and administrative expenses in the Company’s Consolidated Statements of Operations. See Note 3 – Acquisition . The Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and long-term debt are carried at cost, which approximates their fair value because of the short - term maturity of these instruments or because their stated interest rates are indicative of market interest rates. Recent Accounting Pronouncements Adopted In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). Under ASU 2016-13, companies are required to present financial assets, measured at amortized cost basis, at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis, such as trade receivables. The measurement of expected credit loss will be based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The Company adopted this guidance using the modified retrospective adoption method beginning with its first quarter of fiscal 2021, and applied it to all applicable accounts. The application of this new guidance did not have a material impact on the Company’s consolidated financial condition, results of operations or cash flows. |
Acquisition
Acquisition | 3 Months Ended |
Aug. 29, 2020 | |
Acquisition [Abstract] | |
Acquisition | 3. Acquisition On July 31, 2019, the Company acquired Veracity Consulting Group, LLC (“Veracity”) with a total purchase price of approximately $ 38.6 million. Veracity is a fast-growing, digital transformation firm based in Richmond, Virginia, that delivers innovative solutions to the Fortune 500 and leading healthcare organizations. The purchase agreement requires earn-out payments to be made based on performance after each of the first and second anniversary of the acquisition date. The Company is obligated to pay the former owners of Veracity contingent consideration if certain earnings before interest, taxes, depreciation and amortization (“EBITDA”) requirements are achieved. In determining the fair value of the contingent consideration liability, the Company uses the Monte Carlo simulation modeling which includes the application of an appropriate discount rate (Level 3 fair value) . Each reporting period, the Company estimates changes in the fair value of contingent consideration and records any change in fair value in selling, general and administrative expense in the Company’s Consolidated Statements of Operations. The estimate of fair value of contingent consideration requires very subjective assumptions to be made of various potential EBITDA results and discount rates. Future revisions to these assumptions could materially change the estimate of the fair value of contingent consideration and therefore could materially affect the Company’s future operating results. During the three months ended August 29, 2020, the fair value of the Veracity contingent consideration increased by $ 0.5 million. As of August 29, 2020, the contingent consideration liability related to Veracity was $ 8.1 million, of which $ 5.3 million was included in Other current liabilities and $ 2.8 million was included in Long-term liabilities in the Consolidated Balance Sheet. |
Intangible Assets And Goodwill
Intangible Assets And Goodwill | 3 Months Ended |
Aug. 29, 2020 | |
Intangible Assets And Goodwill [Abstract] | |
Intangible Assets And Goodwill | 4. Intangible Assets and Goodwill The following table summarizes details of the Company’s intangible assets and related accumulated amortization (amounts in thousands): As of August 29, 2020 As of May 30, 2020 Accumulated Accumulated Gross Amortization Net Gross Amortization Net Customer contracts and relationships ( 3 - 8 years) $ 23,905 $ ( 7,698 ) $ 16,207 $ 23,779 $ ( 6,707 ) $ 17,072 Tradenames ( 3 - 10 years) 5,094 ( 3,111 ) 1,983 4,960 ( 2,735 ) 2,225 Backlog ( 17 months) 1,210 ( 904 ) 306 1,210 ( 694 ) 516 Consultant list ( 3 years) 833 ( 833 ) - 776 ( 718 ) 58 Non-compete agreements ( 3 years) 953 ( 910 ) 43 888 ( 821 ) 67 Computer software ( 2 years) 199 ( 77 ) 122 185 ( 46 ) 139 Total $ 32,194 $ ( 13,533 ) $ 18,661 $ 31,798 $ ( 11,721 ) $ 20,077 The Company recorded amortization expense of $ 1.5 million and $ 1.1 million for the three months ended August 29, 2020 and August 24, 2019, respectively. The following table summarizes future estimated amortization expense related to intangible assets (in thousands): 2021 (remaining 9 months) $ 3,113 2022 3,360 2023 3,151 2024 3,119 2025 3,119 2026 2,326 Total $ 18,188 The estimates of future intangible asset amortization expense do not incorporate the potential impact of future currency fluctuations when translating the financial results of the Company’s international operations that have amortizable intangible assets into U.S. dollars. The following table summarizes the activity in the Company’s goodwill balance (in thousands): Three Months Ended August 29, 2020 Goodwill, beginning of period $ 214,067 Impact of foreign currency exchange rate changes 2,024 Goodwill, end of period $ 216,091 |
Leases
Leases | 3 Months Ended |
Aug. 29, 2020 | |
Leases [Abstract] | |
Leases | 5. Leases The Company currently leases office space, vehicles and certain equipment under operating leases. The following table summarizes components of the total lease cost, which were included within selling, general and administrative expenses in the Consolidated Statements of Operations (in thousands): Three Months Ended August 29, 2020 August 24, 2019 Operating lease cost $ 2,873 $ 3,080 Short-term lease cost 63 78 Variable lease cost 567 604 Sublease income ( 222 ) ( 121 ) Total lease cost $ 3,281 $ 3,641 Supplemental cash flow information related to the Company’s operating leases were as follows (in thousands): Three Months Ended August 29, 2020 August 24, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 3,274 $ 3,329 Right-of-use assets obtained in exchange for new operating lease obligations $ 1,020 $ 1,460 The weighted average remaining lease term and weighted average discount rate for the Company’s operating leases were as follows: As of As of August 29, 2020 May 30, 2020 Weighted average remaining lease term 4.1 years 4.3 years Weighted average discount rate 4.06 % 4.09 % The m aturities of operating lease liabilities were as follows as of August 29, 2020 (in thousands): Years Ending : Operating Lease Maturity May 29, 2021 $ 9,818 May 28, 2022 11,382 May 27, 2023 8,978 May 25, 2024 7,181 May 31, 2025 3,442 Thereafter 3,186 Total minimum payments $ 43,987 Less: discount ( 3,525 ) Present value of operating lease liabilities $ 40,462 The Company owns its headquarters office building located in Irvine, California and leases approximately 13,000 square feet of the approximately 57,000 square feet building to independent third parties under operating lease agreements expiring through fiscal 2025. Rental income received during the first quarter ended August 29, 2020 and August 24, 2019 totaled $ 55,000 and $ 35,000 , respectively. Under the terms of these operating lease agreements, rental income is expected to be $ 161,000 , $ 219,000 , $ 226,000 , $ 232,000 and $ 78,000 in the remaining nine months of fiscal 2021 through 2025, respectively. Rental income is included in selling, general and administrative expenses in the Consolidated Statements of Operations. |
Income Taxes
Income Taxes | 3 Months Ended |
Aug. 29, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | 6. Income Taxes The Company’s provision for income taxes was $ 2.0 million, resulting in an effective tax rate of 46.1 %, and $ 2.6 million, resulting in an effective tax rate of 34.8 %, for the three months ended August 29, 2020 and August 24, 2019, respectively. The increase in the effective tax rate was primarily due to higher international losses and lower domestic pretax income in the first quarter of fiscal 2021. The Company’s total liability for unrecognized tax benefits was $ 0.8 million as of both August 29, 2020 and May 30, 2020, which, if ultimately recognized, would impact the effective tax rate in future periods. The unrecognized tax benefits are included in long-term liabilities in the Consolidated Balance Sheets based on the closing of the statute of limitations. The Company recognizes interest and penalties related to unrecognized tax benefits as a part of its provision for income taxes. As of August 29, 2020 and May 30, 2020, the Company did not accrue for any interest and penalties as a component of the liability for unrecognized tax benefits. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Aug. 29, 2020 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | 7. Long-Term Debt Pursuant to the terms of that certain Credit Agreement, dated October 17, 2016, between the Company and Resources Connection LLC, as borrowers, and Bank of America, N.A. as lender (as amended, the “Credit Agreement”), the Company has a $ 120.0 million secured revolving credit facility (“Facility”) with Bank of America, which, until September 3, 2020, consisted of (i) a $ 90.0 million revolving loan facility (“Revolving Commitment”), which includes a $ 5.0 million sublimit for the issuance of standby letters of credit, and (ii) a $ 30.0 million reducing revolving loan facility (“Reducing Revolving Commitment”), any amounts of which could not be reborrowed after being repaid. Pursuant to an amendment to the Facility entered into on September 3, 2020, available commitments under the Revolving Commitment increased to $ 120 million and the Reducing Revolving Commitment was eliminated. See Note 13 – Subsequent Events. The Facility is available for working capital and general corporate purposes, including potential acquisitions and stock repurchases. The Company’s 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 respective 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 or (ii) an alternate base rate, plus a margin, with the applicable margin depending on the Company’s consolidated leverage ratio. Prior to entering into the Fifth Amendment (as defined in Note 13 – Subsequent Events ), the margin for loans based on LIBOR was 1.25 % to 1.50 %, and the margin for loans based on the alternate base rate was 0.25 % to 0.50 %. 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, which, prior to entering into the Fifth Amendment, was a rate of 0.15 % to 0.25 % depending on the Company’s consolidated leverage ratio. See Note 13 – Subsequent Events regarding the amendments to the Facility effective September 3, 2020. 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 the Company to comply with financial covenants limiting the Company’s total funded debt, minimum interest coverage ratio and maximum leverage ratio. The Company was compliant with all financial covenants under the Facility as of August 29, 2020. 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. The Company’s borrowings on the Facility were $ 88.0 million as of August 29, 2020, all of which were under the Revolving Commitment. In addition, the Company had $ 1.3 million of outstanding letters of credit issued under the Revolving Commitment as of August 29, 2020. There was $ 0.7 million remaining capacity under the Revolving Commitment and $ 30.0 million remaining capacity under the Reducing Revolving Commitment as of August 29, 2020. As of August 29, 2020, the interest rates on the Company’s borrowings under the Facility ranged from 1.98 % to 2.49 %. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Aug. 29, 2020 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 8. Stockholders’ Equity Stock Repurchase Program In July 2015, the Company’s board of directors approved a stock repurchase program (the “July 2015 program”), authorizing the repurchase, at the discretion of the Company’s senior executives, of the Company’s common stock for an aggregate dollar limit not to exceed $ 150 million. 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 three months ended August 29, 2020, the Company made no repurchase of its common stock. As of August 29, 2020, approximately $ 85.1 million remained available for future repurchases of the Company’s common stock under the July 2015 program. Quarterly Dividend Subject to approval each quarter by its board of directors, the Company pays a regular quarterly cash dividend. On July 30, 2020, the Company’s board of directors declared a quarterly cash dividend of $ 0.14 per common share. The dividend of approximately $ 4.5 million was paid on September 24, 2020 to the holders of record on August 27, 2020 and is accrued in the Company’s Consolidated Balance Sheet as of August 29, 2020. Continuation of the quarterly dividend is at the discretion of the board of directors and depends upon the Company’s financial condition, results of operations, capital requirements, general business condition, contractual restrictions contained in the Credit Agreement and other agreements, and other factors deemed relevant by the board of directors. |
Restructuring Activities
Restructuring Activities | 3 Months Ended |
Aug. 29, 2020 | |
Restructuring Activities [Abstract] | |
Restructuring Activities | 9. Restructuring Activities The Company initiated its global restructuring and business transformation plan in North America and Asia Pacific (the “North America and APAC Plan”) in March 2020. The North America and APAC Plan consists of two key components: an effort to streamline RGP’s management structure and eliminate certain positions to focus on core solution offerings and a strategic rationalization of the Company’s physical geographic footprint and real estate spend to focus investment dollars in high growth core markets for greater impact. All of the employee termination and facility exit costs associated with the Company’s restructuring initiatives are recorded in selling, general and administrative expenses in the Company’s Consolidated Statement of Operations. Restructuring costs for the three months ended August 29, 2020 and August 24, 2019 were as follows (in thousands): Three Months Ended August 29, August 24, 2020 2019 Employee termination costs $ 938 $ - Real estate exit costs 22 - Other costs 56 - Total restructuring costs $ 1,016 $ - The following table summarizes the employee separation activity for the year ended May 30, 2020 and the three months ended August 29, 2020 (in thousands): Liability balance at May 25, 2019 $ - Increase in liability (restructuring costs) 3,927 Reduction in liability (payments and others) ( 2,053 ) Liability balance at May 30, 2020 1,874 Increase in liability (restructuring costs) 938 Reduction in liability (payments and others) ( 1,409 ) Liability balance at August 29, 2020 $ 1,403 The liability balance at August 29, 2020 is expected to be paid in fiscal 2021. Cumulative restructuring costs incurred under the North America and APAC Plan as of August 29, 2020 totaled $ 6.0 million. This consisted of $ 4.9 million in employee termination costs and $ 1.1 million of other costs primarily related to exiting the facilities, including $ 0.6 million in non-cash impairment of operating right-of-use assets and $ 0.5 million in loss on disposal of fixed assets. For the three months ended August 29, 2020, the restructuring costs were primarily related to employee termination costs in North America. The Company expects to incur an additional $ 0.4 million of employee termination costs in connection with the reduction in force in North America and Asia Pacific during the remainder of fiscal 2021. See Note 13 – Subsequent Events for the Company’s initiation of a restructuring and business transformation plan in Europe (the “European Plan”) starting in September 2020. |
Supplemental Disclosure Of Cash
Supplemental Disclosure Of Cash Flow Information | 3 Months Ended |
Aug. 29, 2020 | |
Supplemental Disclosure Of Cash Flow Information [Abstract] | |
Supplemental Disclosure Of Cash Flow Information | 10. Supplemental Disclosure of Cash Flow Information The following table presents information regarding income taxes paid, interest paid and non-cash investing and financing activities (amounts in thousands): Three Months Ended August 29, August 24, 2020 2019 Income taxes paid $ 873 $ 1,432 Interest paid $ 460 $ 477 Non-cash investing and financing activities: Acquisition of Veracity: Liability for contingent consideration $ - $ 10,400 Dividends declared, not paid $ 4,509 $ 4,476 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 3 Months Ended |
Aug. 29, 2020 | |
Stock-Based Compensation Plans [Abstract] | |
Stock-Based Compensation Plans | 11. Stock-Based Compensation Plans General Executive officers and employees, as well as non-employee directors of the Company and certain consultants and advisors to the Company, are eligible to participate in the Company’s 2014 Performance Incentive Plan (“2014 Plan”). The 2014 Plan was approved by stockholders on October 23, 2014 and replaced and succeeded in its entirety the Resources Connection, Inc. 2004 Performance Incentive Plan and the 1999 Long Term Incentive Plan . As of August 29, 2020, there were 1,724,000 shares available for award grant purposes under the 2014 Plan, subject to future increases as described in the 2014 Plan. Awards under the 2014 Plan may include, but are not limited to, stock options, restricted stock units and restricted stock grants, including restricted stock units under the Company’s Directors Deferred Compensation Plan. Stock option grants generally vest in equal annual installments over four years and terminate ten years from the date of grant. Restricted stock award vesting is determined on an individual grant basis. Awards of restricted stock and restricted stock units under the 2014 Plan will be counted against the available share limit as two and a half share s for every one share actually issued in connection with the award. Stock-Based Compensation Expense Stock-based compensation expense included in selling, general and administrative expenses was $ 1.4 million and $ 1.5 million for the three months ended August 29, 2020 and August 24, 2019, respectively. These amounts consisted of stock-based compensation expense related to employee stock options, employee stock purchases made via the Employee Stock Purchase Plan (“ESPP”), restricted stock awards and stock units credited under the Directors Deferred Compensation Plan. Stock Options The following table summarizes the stock option activity for the three months ended August 29, 2020 (amounts in thousands, except weighted average exercise price): Shares Weighted Average Exercise Price Outstanding at May 30, 2020 5,755 $ 16.07 Granted, at fair market value Exercised ( 44 ) 11.36 Forfeited ( 131 ) 17.36 Expired ( 141 ) 16.04 Outstanding at August 29, 2020 5,439 $ 16.08 Exercisable at August 29, 2020 3,179 $ 15.11 Vested and expected to vest at August 29, 2020 5,280 $ 16.03 As of August 29, 2020, there was $ 6.4 million of total unrecognized compensation cost related to unvested employee stock options granted. That cost is expected to be recognized over a weighted-average period of 1.70 years. Employee Stock Purchase Plan On October 15, 2019, the Company’s stockholders approved the ESPP which superseded the Company’s previous Employee Stock Purchase Plan. The maximum number of shares of the Company’s common stock that are authorized for issuance under the ESPP is 1,825,000 . The 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. The ESPP’s term expires July 16, 2029. The Company issued 245,000 and 215,000 shares of common stock pursuant to the ESPP during the three months ended August 29, 2020 and August 24, 2019, respectively. There were 1,396,000 shares of common stock available for issuance under the ESPP as of August 29, 2020. Restricted Stock No restricted stock awards were granted or forfeited during the three months ended August 29, 2020. As of August 29, 2020, there were 89,907 unvested restricted awards, and 86,402 unvested restricted stock units under the Directors Deferred Compensation Plan, with approximately $ 1.7 million of remaining unrecognized compensation cost in total. Such cost is expected to be recognized over a weighted-average period of 1.67 years. |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Aug. 29, 2020 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | 12. Legal Proceedings The Company is involved in certain legal matters arising 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. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Aug. 29, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events Amendment to the Credit Agreement and Repayment On September 3, 2020, the Company and certain domestic subsidiaries of the Company entered into the Fifth Amendment to Credit Agreement (the “Fifth Amendment”) with Bank of America, N.A. as lender, which amended the terms of the Facility pursuant to the Credit Agreement. The Fifth Amendment, among other things, (1) extends the maturity date of the obligations under the Credit Agreement from October 17, 2021 to October 17, 2022, (2) modifies the commitments to (a) eliminate the $ 30.0 million Reducing Revolving Commitment and (b) increase the Revolving Commitment by $ 30.0 million to $ 120.0 million, (3) modifies the interest rate by increasing the applicable margin by 0.25 % and increases the LIBOR interest rate floor from 0 % to 0.25 %, and (4) revises Consolidated EBITDA (as defined in the Credit Agreement) to include addbacks for certain non-recurring severance and restructuring amounts and fees. On September 21, 2020, the Company repaid $ 20.0 million on its Facility, reducing its outstanding borrowing under the Facility to $ 68.0 million. European Restructuring Activities In September 2020, the Company’s Board of Directors approved the European Plan. Similar to the restructuring initiatives in the Company’s North America and Asia Pacific businesses that commenced in March 2020, the European Plan is aimed at improving the organizational structure of the European business and its operating efficiency and more effectively aligning resources to a set of core high growth clients. The European Plan includes a reduction in force (“RIF”) that is proposed to impact approximately 40 % of the European positions. In addition, the Company plans to focus on its core markets in Europe and reduce its footprint in its remaining offices. With respect to the RIF, the Company has communicated the proposed plan to employees, and is in the process of consulting and negotiating with employees to enter into settlement agreements in accordance with local laws. The exact amount and timing of payments are subject to a number of variables, including individual negotiations and government approval. The Company currently expects to complete the RIF by the end of fiscal 2021, with total employee termination costs ranging from approximately $ 5.5 million to $ 6.5 million . Upon completion of the RIF, the Company expects annual pre-tax savings of $ 6.0 million to $ 7.0 million in personnel costs. Concurrently, the Company has begun taking necessary steps to exit real estate leases and other ancillary contracts in certain European markets, and currently expects to complete the majority of the lease and contract terminations by the end of fiscal 2021. While the exact amount and timing of the expenses and resulting payments are subject to a number of variables, the Company currently expects to incur cash and non-cash charges related to such exit initiatives of approximately $ 2.5 million to $ 3.5 million. Upon completion of the exit initiatives, the Company expects annual pre-tax savings of approximately $ 1.0 million to $ 2.0 million in occupancy and other general and administrative costs. The Company is in the process of assessing the impact of the European Plan on its financial reporting. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policy) | 3 Months Ended |
Aug. 29, 2020 | |
Summary Of Significant Accounting Policies [Abstract] | |
Interim Financial Information | Interim Financial Information The accompanying unaudited financial statements of the Company as of and for the three months ended August 29, 2020 and August 24, 2019 have been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. These financial statements include all adjustments (consisting only of normal recurring adjustments) the Company considers necessary for a fair presentation of its financial position at such dates and the operating results and cash flows for those periods. The fiscal 2020 year-end balance sheet data was derived from audited consolidated financial statements, and certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to Securities and Exchange Commission (“SEC”) rules or regulations; however, the Company believes the disclosures made are adequate to make the information presented not misleading. The unaudited consolidated results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for the full fiscal year. These interim financial statements should be read in conjunction with the audited consolidated financial statements for the year ended May 30, 2020, which are included in the Company’s Annual Report on Form 10-K (“Fiscal Year 2020 Form 10-K”) filed with the SEC on July 27, 2020 (File No. 0-32113). The Company’s significant accounting policies are described in Note 2 to the audited consolidated financial statements included in the Fiscal Year 2020 Form 10-K. The Company has reviewed its accounting policies and identified those that it believes to be critical to the preparation and understanding of its consolidated financial statements in the list set forth below. See the disclosure under the heading “Critical Accounting Policies” in Item 7 of Part II of the Fiscal Year 2020 Form 10-K for a detailed description of these policies and their potential effects on the Company’s results of operations and financial condition. Allowance for doubtful accounts Income taxes Revenue recognition Stock-based compensation Valuation of long-lived assets Valuation of goodwill Business combinations |
Principles Of Consolidation | Principles of Consolidation The consolidated financial statements of the Company include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
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. |
Net Income Per Share Information | Net Income Per Share Information The Company presents both basic and diluted earnings per common 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. Under the treasury stock method, assumed proceeds include the amount the employee must pay for exercising stock options and the amount of compensation cost for future services the Company has not yet recognized. 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 common share for the periods indicated (in thousands, except per share amounts): Three Months Ended August 29, August 24, 2020 2019 Net income $ 2,284 $ 4,939 Basic: Weighted average shares 32,183 31,788 Diluted: Weighted average shares 32,183 31,788 Potentially dilutive shares 49 479 Total dilutive shares 32,232 32,267 Basic $ 0.07 $ 0.16 Dilutive $ 0.07 $ 0.15 Anti-dilutive shares not included above 5,324 3,345 |
Financial Instruments | Financial Instruments 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. Contingent consideration liability is for estimated future contingent consideration payments related to the Company’s acquisitions. Total contingent consideration liabilities were $ 8.5 million and $ 7.9 million as of August 29, 2020 and May 30, 2020, respectively. The fair value measurement of the liability is based on significant inputs not observed in the market and thus represents a Level 3 measurement. The significant unobservable inputs used in the fair value measurement of the contingent consideration liability are the Company’s measures of the estimated payouts based on internally generated financial projections and discount rates. The fair value of contingent consideration liability is reassessed on a quarterly basis by the Company using additional information as it becomes available, and any change in the fair value estimates are recorded in selling, general and administrative expenses in the Company’s Consolidated Statements of Operations. See Note 3 – Acquisition . The Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and long-term debt are carried at cost, which approximates their fair value because of the short - term maturity of these instruments or because their stated interest rates are indicative of market interest rates. |
Recent Accounting Pronouncements Adopted | Recent Accounting Pronouncements Adopted In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). Under ASU 2016-13, companies are required to present financial assets, measured at amortized cost basis, at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis, such as trade receivables. The measurement of expected credit loss will be based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The Company adopted this guidance using the modified retrospective adoption method beginning with its first quarter of fiscal 2021, and applied it to all applicable accounts. The application of this new guidance did not have a material impact on the Company’s consolidated financial condition, results of operations or cash flows. |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Tables) | 3 Months Ended |
Aug. 29, 2020 | |
Summary Of Significant Accounting Policies [Abstract] | |
Calculation Of Net Income Per Share | Three Months Ended August 29, August 24, 2020 2019 Net income $ 2,284 $ 4,939 Basic: Weighted average shares 32,183 31,788 Diluted: Weighted average shares 32,183 31,788 Potentially dilutive shares 49 479 Total dilutive shares 32,232 32,267 Basic $ 0.07 $ 0.16 Dilutive $ 0.07 $ 0.15 Anti-dilutive shares not included above 5,324 3,345 |
Intangible Assets And Goodwill
Intangible Assets And Goodwill (Tables) | 3 Months Ended |
Aug. 29, 2020 | |
Intangible Assets And Goodwill [Abstract] | |
Summary Of Intangible Assets And Related Accumulated Amortization | As of August 29, 2020 As of May 30, 2020 Accumulated Accumulated Gross Amortization Net Gross Amortization Net Customer contracts and relationships ( 3 - 8 years) $ 23,905 $ ( 7,698 ) $ 16,207 $ 23,779 $ ( 6,707 ) $ 17,072 Tradenames ( 3 - 10 years) 5,094 ( 3,111 ) 1,983 4,960 ( 2,735 ) 2,225 Backlog ( 17 months) 1,210 ( 904 ) 306 1,210 ( 694 ) 516 Consultant list ( 3 years) 833 ( 833 ) - 776 ( 718 ) 58 Non-compete agreements ( 3 years) 953 ( 910 ) 43 888 ( 821 ) 67 Computer software ( 2 years) 199 ( 77 ) 122 185 ( 46 ) 139 Total $ 32,194 $ ( 13,533 ) $ 18,661 $ 31,798 $ ( 11,721 ) $ 20,077 |
Summary Of Future Estimated Amortization Expense | 2021 (remaining 9 months) $ 3,113 2022 3,360 2023 3,151 2024 3,119 2025 3,119 2026 2,326 Total $ 18,188 |
Summary Of Activity In Goodwill Balance | Three Months Ended August 29, 2020 Goodwill, beginning of period $ 214,067 Impact of foreign currency exchange rate changes 2,024 Goodwill, end of period $ 216,091 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Aug. 29, 2020 | |
Leases [Abstract] | |
Lease Cost Components | Three Months Ended August 29, 2020 August 24, 2019 Operating lease cost $ 2,873 $ 3,080 Short-term lease cost 63 78 Variable lease cost 567 604 Sublease income ( 222 ) ( 121 ) Total lease cost $ 3,281 $ 3,641 |
Supplemental Cash Flow Information Related To Operating Leases | Three Months Ended August 29, 2020 August 24, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 3,274 $ 3,329 Right-of-use assets obtained in exchange for new operating lease obligations $ 1,020 $ 1,460 |
Lease Term And Discount Rate | As of As of August 29, 2020 May 30, 2020 Weighted average remaining lease term 4.1 years 4.3 years Weighted average discount rate 4.06 % 4.09 % |
Maturities Of Operating Lease Liabilities | Years Ending : Operating Lease Maturity May 29, 2021 $ 9,818 May 28, 2022 11,382 May 27, 2023 8,978 May 25, 2024 7,181 May 31, 2025 3,442 Thereafter 3,186 Total minimum payments $ 43,987 Less: discount ( 3,525 ) Present value of operating lease liabilities $ 40,462 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 3 Months Ended |
Aug. 29, 2020 | |
Restructuring Activities [Abstract] | |
Summary Of Restructuring Costs | Three Months Ended August 29, August 24, 2020 2019 Employee termination costs $ 938 $ - Real estate exit costs 22 - Other costs 56 - Total restructuring costs $ 1,016 $ - |
Summary Of Employee Separation Activity | Liability balance at May 25, 2019 $ - Increase in liability (restructuring costs) 3,927 Reduction in liability (payments and others) ( 2,053 ) Liability balance at May 30, 2020 1,874 Increase in liability (restructuring costs) 938 Reduction in liability (payments and others) ( 1,409 ) Liability balance at August 29, 2020 $ 1,403 |
Supplemental Disclosure Of Ca_2
Supplemental Disclosure Of Cash Flow Information (Tables) | 3 Months Ended |
Aug. 29, 2020 | |
Supplemental Disclosure Of Cash Flow Information [Abstract] | |
Schedule Of Additional Information Regarding Cash Flows | Three Months Ended August 29, August 24, 2020 2019 Income taxes paid $ 873 $ 1,432 Interest paid $ 460 $ 477 Non-cash investing and financing activities: Acquisition of Veracity: Liability for contingent consideration $ - $ 10,400 Dividends declared, not paid $ 4,509 $ 4,476 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 3 Months Ended |
Aug. 29, 2020 | |
Stock-Based Compensation Plans [Abstract] | |
Summary Of Stock Option Activity | Shares Weighted Average Exercise Price Outstanding at May 30, 2020 5,755 $ 16.07 Granted, at fair market value Exercised ( 44 ) 11.36 Forfeited ( 131 ) 17.36 Expired ( 141 ) 16.04 Outstanding at August 29, 2020 5,439 $ 16.08 Exercisable at August 29, 2020 3,179 $ 15.11 Vested and expected to vest at August 29, 2020 5,280 $ 16.03 |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | Aug. 29, 2020 | May 30, 2020 |
Summary Of Significant Accounting Policies [Abstract] | ||
Contingent consideration liability | $ 8.5 | $ 7.9 |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies (Calculation Of Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Aug. 29, 2020 | Aug. 24, 2019 | |
Summary Of Significant Accounting Policies [Abstract] | ||
Net income | $ 2,284 | $ 4,939 |
Basic: | ||
Weighted average shares | 32,183 | 31,788 |
Diluted: | ||
Weighted average shares | 32,183 | 31,788 |
Potentially dilutive shares | 49 | 479 |
Total dilutive shares | 32,232 | 32,267 |
Net income per common share: | ||
Basic (per share) | $ 0.07 | $ 0.16 |
Dilutive (per share) | $ 0.07 | $ 0.15 |
Anti-dilutive shares not included above | 5,324 | 3,345 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Aug. 29, 2020 | Aug. 24, 2019 | May 30, 2020 |
Business Acquisition [Line Items] | ||||
Contingent consideration adjustment | $ 530 | $ (131) | ||
Contingent consideration liability | 8,500 | $ 7,900 | ||
Veracity [Member] | ||||
Business Acquisition [Line Items] | ||||
Consideration paid | $ 38,600 | |||
Contingent consideration adjustment | 500 | |||
Contingent consideration liability | 8,100 | |||
Contingent consideration liability, current | 5,300 | |||
Contingent consideration liability, noncurrent | $ 2,800 |
Intangible Assets And Goodwil_2
Intangible Assets And Goodwill (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 29, 2020 | Aug. 24, 2019 | |
Intangible Assets And Goodwill [Abstract] | ||
Amortization expense | $ 1,530 | $ 1,094 |
Intangible Assets And Goodwil_3
Intangible Assets And Goodwill (Summary Of Intangible Assets And Related Accumulated Amortization) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 29, 2020 | May 30, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 32,194 | $ 31,798 |
Accumulated Amortization | (13,533) | (11,721) |
Net | 18,661 | 20,077 |
Customer Contracts And Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 23,905 | 23,779 |
Accumulated Amortization | (7,698) | (6,707) |
Net | $ 16,207 | 17,072 |
Customer Contracts And Relationships [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful lives | 3 years | |
Customer Contracts And Relationships [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful lives | 8 years | |
Tradenames [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 5,094 | 4,960 |
Accumulated Amortization | (3,111) | (2,735) |
Net | $ 1,983 | 2,225 |
Tradenames [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful lives | 3 years | |
Tradenames [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful lives | 10 years | |
Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful lives | 17 months | |
Gross | $ 1,210 | 1,210 |
Accumulated Amortization | (904) | (694) |
Net | $ 306 | 516 |
Consultant List [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful lives | 3 years | |
Gross | $ 833 | 776 |
Accumulated Amortization | $ (833) | (718) |
Net | 58 | |
Non-compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful lives | 3 years | |
Gross | $ 953 | 888 |
Accumulated Amortization | (910) | (821) |
Net | $ 43 | 67 |
Computer Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, useful lives | 2 years | |
Gross | $ 199 | 185 |
Accumulated Amortization | (77) | (46) |
Net | $ 122 | $ 139 |
Intangible Assets And Goodwil_4
Intangible Assets And Goodwill (Summary Of Future Estimated Amortization Expense) (Details) $ in Thousands | Aug. 29, 2020USD ($) |
Intangible Assets And Goodwill [Abstract] | |
2021 (remaining 9 months) | $ 3,113 |
2022 | 3,360 |
2023 | 3,151 |
2024 | 3,119 |
2025 | 3,119 |
2026 | 2,326 |
Total | $ 18,188 |
Intangible Assets And Goodwil_5
Intangible Assets And Goodwill (Summary Of Activity In Goodwill Balance) (Details) $ in Thousands | 3 Months Ended |
Aug. 29, 2020USD ($) | |
Intangible Assets And Goodwill [Abstract] | |
Goodwill, beginning of period | $ 214,067 |
Impact of foreign currency exchange rate changes | 2,024 |
Goodwill, end of period | $ 216,091 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 3 Months Ended | |
Aug. 29, 2020USD ($)ft² | Aug. 24, 2019USD ($) | |
Area of real estate property | ft² | 57,000 | |
Rental income | $ 55,000 | $ 35,000 |
Expected rental income from third party leases in fiscal 2021 | 161,000 | |
Expected rental income from third party leases in fiscal 2022 | 219,000 | |
Expected rental income from third party leases in fiscal 2023 | 226,000 | |
Expected rental income from third party leases in fiscal 2024 | 232,000 | |
Expected rental income from third party leases in fiscal 2025 | $ 78,000 | |
Leases To Independent Third Parties [Member] | ||
Area of real estate property | ft² | 13,000 |
Leases (Lease Cost Components)
Leases (Lease Cost Components) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 29, 2020 | Aug. 24, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 2,873 | $ 3,080 |
Short-term lease cost | 63 | 78 |
Variable lease cost | 567 | 604 |
Sublease income | (222) | (121) |
Total lease cost | $ 3,281 | $ 3,641 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information Related To Operating Leases) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 29, 2020 | Aug. 24, 2019 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 3,274 | $ 3,329 |
Right-of-use assets obtained in exchange for new operating lease obligations | $ 1,020 | $ 1,460 |
Leases (Lease Term And Discount
Leases (Lease Term And Discount Rate) (Details) | Aug. 29, 2020 | May 30, 2020 |
Leases [Abstract] | ||
Weighted average remaining lease term | 4 years 1 month 6 days | 4 years 3 months 18 days |
Weighted average discount rate | 4.06% | 4.09% |
Leases (Maturities Of Operating
Leases (Maturities Of Operating Lease Liabilities) (Details) $ in Thousands | Aug. 29, 2020USD ($) |
Leases [Abstract] | |
May 29, 2021 | $ 9,818 |
May 28, 2022 | 11,382 |
May 27, 2023 | 8,978 |
May 25, 2024 | 7,181 |
May 31, 2025 | 3,442 |
Thereafter | 3,186 |
Total minimum payments | 43,987 |
Less: discount | (3,525) |
Present value of operating lease liabilities | $ 40,462 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Aug. 29, 2020 | Aug. 24, 2019 | May 30, 2020 | |
Income Taxes [Abstract] | |||
Income tax expense | $ 1,957,000 | $ 2,641,000 | |
Effective tax rate | 46.10% | 34.80% | |
Unrecognized tax benefits | $ 800,000 | $ 800,000 | |
Unrecognized tax benefit, accrued interest and penalties | $ 0 | $ 0 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - Credit Facility [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Aug. 29, 2020 | Sep. 21, 2020 | Sep. 03, 2020 | |
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 120 | ||
Credit facility, remaining borrowing capacity | 0.7 | ||
Credit facility, outstanding balance | $ 88 | ||
Federal Funds Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest spread on variable rate | 0.50% | ||
Eurodollar Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest spread on variable rate | 1.00% | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 90 | ||
Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | 5 | ||
Credit facility, outstanding balance | 1.3 | ||
Reducing Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | 30 | ||
Credit facility, remaining borrowing capacity | $ 30 | ||
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, commitment fee | 0.15% | ||
Credit facility, effective interest rate | 1.98% | ||
Minimum [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Interest spread on variable rate | 1.25% | ||
Credit facility, effective interest rate | 0.00% | ||
Minimum [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest spread on variable rate | 0.25% | ||
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, commitment fee | 0.25% | ||
Credit facility, effective interest rate | 2.49% | ||
Maximum [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Interest spread on variable rate | 1.50% | ||
Maximum [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest spread on variable rate | 0.50% | ||
Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, outstanding balance | $ 68 | ||
Subsequent Event [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 120 | ||
Subsequent Event [Member] | Minimum [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, effective interest rate | 0.25% |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 24, 2020 | Aug. 29, 2020 | Aug. 24, 2019 | Jul. 30, 2020 | Jul. 31, 2015 |
Stockholders' Equity Disclosure [Line Items] | |||||
Purchase of common stock (in shares) | 0 | ||||
Dividends payable (per share) | $ 0.14 | ||||
Cash dividends paid | $ 4,512 | $ 4,106 | |||
Subsequent Event [Member] | |||||
Stockholders' Equity Disclosure [Line Items] | |||||
Cash dividends paid | $ 4,500 | ||||
July 2015 Program [Member] | |||||
Stockholders' Equity Disclosure [Line Items] | |||||
Amount authorized under a stock repurchase program | $ 150,000 | ||||
Stock repurchase plan, remaining amount | $ 85,100 |
Restructuring Activities (Narra
Restructuring Activities (Narrative) (Details) - North America And Asia Pacific Plan [Member] $ in Millions | 3 Months Ended |
Aug. 29, 2020USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs incurred to date | $ 6 |
Employee Termination Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs incurred to date | 4.9 |
Expected restructuring costs | 0.4 |
Real Estate Exit Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Impairment of operating right-of-use assets | 1.1 |
Impairment Of Operating Right Of Use Assets [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Impairment of operating right-of-use assets | 0.6 |
Gain Loss On Disposal Of Fixed Assets [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs incurred to date | $ 0.5 |
Restructuring Activities (Summa
Restructuring Activities (Summary Of Restructuring Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Aug. 29, 2020 | May 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 1,016 | |
Employee Termination Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 938 | $ 3,927 |
Real Estate Exit Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 22 | |
Other Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 56 |
Restructuring Activities (Sum_2
Restructuring Activities (Summary Of Employee Separation Activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Aug. 29, 2020 | May 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Increase in liability (restructuring costs) | $ 1,016 | |
Employee Termination Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Liability balance, beginning of period | 1,874 | |
Increase in liability (restructuring costs) | 938 | $ 3,927 |
Reduction in liability (payments and others) | (1,409) | (2,053) |
Liability balance, end of period | $ 1,403 | $ 1,874 |
Supplemental Disclosure Of Ca_3
Supplemental Disclosure Of Cash Flow Information (Schedule Of Additional Information Regarding Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 29, 2020 | Aug. 24, 2019 | |
Supplemental Disclosure Of Cash Flow Information [Abstract] | ||
Income taxes paid | $ 873 | $ 1,432 |
Interest paid | 460 | 477 |
Liability for contingent consideration | 10,400 | |
Dividends declared, not paid | $ 4,509 | $ 4,476 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Aug. 29, 2020USD ($)shares | Aug. 24, 2019USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock, shares granted | 0 | |
Restricted stock, shares vested | 0 | |
Restricted stock, shares forfeited | 0 | |
Stock-based compensation expense | $ | $ 1,397 | $ 1,515 |
Stock Incentive Plan 2014 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for grant | 1,724,000 | |
Employee Stock Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares of common stock made available for awards | 1,825,000 | |
Shares available for grant | 1,396,000 | |
Percentage of exercise price per share out of fair market value | 85.00% | |
Common stock issued | 245,000 | 215,000 |
Stock Options [Member] | Stock Incentive Plan 2014 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options vesting period | 4 years | |
Stock options termination period | 10 years | |
Unrecognized compensation cost related to stock-based compensation | $ | $ 6,400 | |
Weighted-average period of cost to be recognized | 1 year 8 months 12 days | |
Restricted Stock [Member] | Stock Incentive Plan 2014 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Rate at which available shares are reduced | 2.5 | |
Weighted-average period of cost to be recognized | 1 year 8 months 1 day | |
Total unrecognized compensation cost | $ | $ 1,700 | |
Unvested restricted shares | 89,907 | |
Restricted Stock [Member] | Directors Deferred Compensation Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested restricted shares | 86,402 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans (Summary Of Stock Option Activity) (Details) shares in Thousands | 3 Months Ended |
Aug. 29, 2020$ / sharesshares | |
Stock-Based Compensation Plans [Abstract] | |
Outstanding, Beginning balance | shares | 5,755 |
Exercised | shares | (44) |
Forfeited | shares | (131) |
Expired | shares | (141) |
Outstanding, Ending balance | shares | 5,439 |
Exercisable | shares | 3,179 |
Vested and expected to vest | shares | 5,280 |
Beginning balance, Weighted Average Exercise Price (per share) | $ / shares | $ 16.07 |
Exercised, Weighted Average Exercise Price (per share) | $ / shares | 11.36 |
Forfeited, Weighted Average Exercise Price (per share) | $ / shares | 17.36 |
Expired, Weighted Average Exercise Price (per share) | $ / shares | 16.04 |
Ending balance, Weighted Average Exercise Price (per share) | $ / shares | 16.08 |
Exercisable, Weighted Average Exercise Price (per share) | $ / shares | 15.11 |
Vested and expected to vest, Weighted Average Exercise Price (per share) | $ / shares | $ 16.03 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) $ in Thousands | Sep. 21, 2020 | Sep. 03, 2020 | Sep. 30, 2020 | Aug. 29, 2020 | Aug. 24, 2019 |
Subsequent Event [Line Items] | |||||
Repayment of Revolving Credit Facility | $ 5,000 | ||||
Subsequent Event [Member] | European Restructuring [Member] | |||||
Subsequent Event [Line Items] | |||||
Planned workforce reduction | 40.00% | ||||
Credit Facility [Member] | |||||
Subsequent Event [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 120,000 | ||||
Credit facility, outstanding balance | 88,000 | ||||
Credit Facility [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Repayment of Revolving Credit Facility | $ 20,000 | ||||
Credit facility, outstanding balance | $ 68,000 | ||||
Revolving Credit Facility [Member] | Credit Facility [Member] | |||||
Subsequent Event [Line Items] | |||||
Credit facility, maximum borrowing capacity | 90,000 | ||||
Revolving Credit Facility [Member] | Credit Facility [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 120,000 | ||||
Credit facility, increase in borrowing capacity | $ 30,000 | ||||
Reducing Revolving Credit Facility [Member] | Credit Facility [Member] | |||||
Subsequent Event [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 30,000 | ||||
Base Rate [Member] | Credit Facility [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Interest rate increase | 0.25% | ||||
Federal Funds Rate [Member] | Credit Facility [Member] | |||||
Subsequent Event [Line Items] | |||||
Interest spread on variable rate | 0.50% | ||||
Eurodollar Rate [Member] | Credit Facility [Member] | |||||
Subsequent Event [Line Items] | |||||
Interest spread on variable rate | 1.00% | ||||
Minimum [Member] | Credit Facility [Member] | |||||
Subsequent Event [Line Items] | |||||
Credit facility, effective interest rate | 1.98% | ||||
Minimum [Member] | LIBOR [Member] | Credit Facility [Member] | |||||
Subsequent Event [Line Items] | |||||
Credit facility, effective interest rate | 0.00% | ||||
Interest spread on variable rate | 1.25% | ||||
Minimum [Member] | LIBOR [Member] | Credit Facility [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Credit facility, effective interest rate | 0.25% | ||||
Minimum [Member] | Base Rate [Member] | Credit Facility [Member] | |||||
Subsequent Event [Line Items] | |||||
Interest spread on variable rate | 0.25% | ||||
Maximum [Member] | Credit Facility [Member] | |||||
Subsequent Event [Line Items] | |||||
Credit facility, effective interest rate | 2.49% | ||||
Maximum [Member] | LIBOR [Member] | Credit Facility [Member] | |||||
Subsequent Event [Line Items] | |||||
Interest spread on variable rate | 1.50% | ||||
Maximum [Member] | Base Rate [Member] | Credit Facility [Member] | |||||
Subsequent Event [Line Items] | |||||
Interest spread on variable rate | 0.50% | ||||
Employee Termination Costs [Member] | Minimum [Member] | Subsequent Event [Member] | European Restructuring [Member] | |||||
Subsequent Event [Line Items] | |||||
Expected restructuring costs | $ 5,500 | ||||
Estimated pre-tax savings | 6,000 | ||||
Employee Termination Costs [Member] | Maximum [Member] | Subsequent Event [Member] | European Restructuring [Member] | |||||
Subsequent Event [Line Items] | |||||
Expected restructuring costs | 6,500 | ||||
Estimated pre-tax savings | 7,000 | ||||
Real Estate Exit Costs [Member] | Minimum [Member] | Subsequent Event [Member] | European Restructuring [Member] | |||||
Subsequent Event [Line Items] | |||||
Expected restructuring costs | 2,500 | ||||
Estimated pre-tax savings | 1,000 | ||||
Real Estate Exit Costs [Member] | Maximum [Member] | Subsequent Event [Member] | European Restructuring [Member] | |||||
Subsequent Event [Line Items] | |||||
Expected restructuring costs | 3,500 | ||||
Estimated pre-tax savings | $ 2,000 |