Note 10 - Subsequent Events

6 Months Ended

Nov. 26, 2017

Notes to Financial Statements

Subsequent Events [Text Block]

Subsequent Events

December 22, 2017,

the U.S. Government enacted the reconciled tax reform bill, commonly known as the Tax

Cuts and Jobs Act of

2017

(the “TCJA”), which became effective on

January 1, 2018.

Among other tax related changes, the Company’s federal statutory tax rate will be reduced from

35%,

to an average rate of

29%

for the fiscal year ended

May 27, 2018,

and then

21%

for fiscal years thereafter. Additionally, as of

November 26, 2017,

the Company had a deferred tax liability of

$26.0

million based on a U.S. federal tax rate of

35%.

Given the reduction in the U.S. corporate statutory tax rate, the Company will remeasure its deferred tax liability and anticipates a

million to

million benefit to its income tax expense with a corresponding reduction to its deferred tax liability. This impact will be recognized in the Company’s

third

fiscal quarter of

2018,

which is the period the TCJA was enacted.