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Note 2 - Restatement of Previously Reported Consolidated Financial Statements
 3 Months Ended
Aug. 26, 2012
Accounting Changes and Error Corrections [Text Block]
2.           Restatement of Previously Reported Consolidated Financial Statements

The Company is restating its previously reported financial statements for the quarter ended August 26, 2012 to correct the previously reported balance of its investment in Windsest and related other income to properly reflect the fair value of the investment under the guidance of ASC 820, Fair Value Measurement.

As reported in our critical accounting policies in our Annual Report on Form 10-K,we have elected to report our investment in Windset at fair value under ASC 820. The fair value of the Company’s investment in Windset is determined utilizing a discounted cash flow model based on projections developed by Windset, and considers the related put and call feature. This feature impacts the duration of the cash flows utilized to derive the estimated fair value of the investment.  Assumptions included in the discounted cash flow model are evaluated quarterly based on Windset’s actual and projected operating results to determine the change in fair value.

               While updating the valuation of the Windset investment for the second quarter ended November 25, 2012, the Company became aware of an error in the net present value calculation for determining the fair value of its Windset investment in the first quarter ended August 26, 2012.  This error resulted in an understatement of the recorded value of the Windset investment and related investment income by $2.9 million, and, after the related income tax effect, an understatement of net income by $1.8 million for the quarter ended August 26, 2012.  

The following table details the impact of the restatement on the Company’s Consolidated Statements of Income and Consolidated Balance Sheets for and as of  the quarter ended August 26, 2012 (in thousands).

Consolidated Statements of Income
 
As Reported
   
Adjustment
   
As Restated
 
Operating income
  $ 3,003     $ —     $ 3,003  
Dividend income
    281       —       281  
Interest income
    26       —       26  
Interest expense
    (541 )     —       (541 )
Other income
    1,359       2,900       4,259  
Net income before taxes
    4,128       2,900       7,028  
Income tax expense
    (1,492 )     (1,073 )     (2,565 )
Consolidated net income
    2,636       1,827       4,463  
Non controlling interest
    (97 )     —       (97 )
Net income applicable to Common Stockholders
  $ 2,539     $ 1,827     $ 4,366  
                         
Basic net income per share
  $ 0.10     $ 0.07     $ 0.17  
Diluted net income per share
  $ 0.10     $ 0.07     $ 0.17  

Consolidated Balance Sheets
 
As Reported
   
Adjustment
   
As Restated
 
Investment in non-public company, fair value
  $ 22,896     $ 2,900     $ 25,796  
Total Assets
  $ 267,960     $ 2,900     $ 270,860  
Deferred taxes – noncurrent
  $ 18,906     $ 1,073     $ 19,979  
Retained earnings
  $ 32,361     $ 1,827     $ 34,188  
Total Stockholders’ Equity
  $ 153,287     $ 1,827     $ 155,114  
Total Equity
  $ 155,200     $ 1,827     $ 157,027  
Total Liabilities and Stockholders’ Equity
  $ 267,960     $ 2,900     $ 270,860  

There was no impact to cash flow from investing or financing activities. For the cash flow from operating activities, net income increased $1.8 million, deferred taxes increased $1.1 million and the change in the line item “investment in non-public company, fair value” decreased $2.9 million, resulting in no net change to cash flow from operations.