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SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended
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Jun. 01, 2013
Property Plant and Equipment | Property, plant and equipment consist of the following (in thousands):
|  | June 1, 2013 |  |  | June 2, 2012 |
Land and improvements |  | $ | 1,503 |  |  | $ | 1,447 |
Buildings and improvements |  |  | 18,384 |  |  |  | 18,394 |
Computer and communications equipment |  |  | 1,676 |  |  |  | 1,698 |
Construction in progress (1) |  |  | 1,305 |  |  |  | — |
Machinery and other equipment |  |  | 4,963 |  |  |  | 4,772 |
|  | $ | 27,831 |  |  | $ | 26,311 |
Accumulated depreciation |  |  | (22,758 | ) |  |  | (21,936 | )
Property, plant, and equipment, net |  | $ | 5,073 |  |  | $ | 4,375 |
| (1) | Relates primarily to IT Infrastructure for our ERP Implementation.
Supplemental Disclosure Information of Estimated Useful Life of Asset | Supplemental disclosure information of the estimated useful life of the asset:
Land improvements |  | 10 years
Buildings and improvements |  | 10 - 30 years
Computer and communications equipment |  | 3 - 10 years
Machinery and other equipment |  | 3 - 10 years
Accrued Liabilities | Accrued liabilities consist of the following (in thousands):
|  | June 1, 2013 |  |  | June 2, 2012 |
Compensation and payroll taxes |  | $ | 4,138 |  |  | $ | 3,442 |
Income taxes |  |  | 1,191 |  |  |  | 1,196 |
Professional fees |  |  | 811 |  |  |  | 603 |
Other accrued expenses |  |  | 3,426 |  |  |  | 3,225 |
Accrued Liabilities |  | $ | 9,566 |  |  | $ | 8,466 |
Changes in Warranty Reserve | Changes in the warranty reserve during fiscal 2013 and 2012 were as follows (in thousands):
|  | Warranty Reserve |
Balance at May 28, 2011 |  | $ | 138 |
Accruals for products sold |  |  | 328 |
Utilization |  |  | (305 | )
Adjustment |  |  | (10 | )
Foreign exchange |  |  | (3 | )
Balance at June 2, 2012 |  | $ | 148 |
Accruals for products sold |  |  | 259 |
Utilization |  |  | (215 | )
Adjustment |  |  | (4 | )
Foreign exchange |  |  | — |
Balance at June 1, 2013 |  | $ | 188 |
Summary of Option Activities | A summary of stock option activity is as follows (in thousands, except option prices and years):
|  | Number of Options |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Life |  |  | Aggregate Intrinsic Value |
Options Outstanding at May 29, 2010 |  |  | 1,683 |  |  | $ | 8.09 |  |  |  |  |  |  |  |  |
Granted |  |  | 209 |  |  |  | 12.94 |  |  |  |  |  |  |  |  |
Exercised |  |  | (699 | ) |  |  | 7.77 |  |  |  |  |  |  |  |  |
Forfeited |  |  | (114 | ) |  |  | 5.99 |  |  |  |  |  |  |  |  |
Cancelled |  |  | (196 | ) |  |  | 13.69 |  |  |  |  |  |  |  |  |
Options Outstanding at May 28, 2011 |  |  | 883 |  |  | $ | 8.51 |  |  |  |  |  |  |  |  |
Granted |  |  | 140 |  |  |  | 12.87 |  |  |  |  |  |  |  |  |
Exercised |  |  | (121 | ) |  |  | 6.68 |  |  |  |  |  |  |  |  |
Forfeited |  |  | (62 | ) |  |  | 8.91 |  |  |  |  |  |  |  |  |
Cancelled |  |  | (74 | ) |  |  | 7.92 |  |  |  |  |  |  |  |  |
Options Outstanding at June 2, 2012 |  |  | 766 |  |  | $ | 9.52 |  |  |  |  |  |  |  |  |
Granted |  |  | 225 |  |  |  | 11.70 |  |  |  |  |  |  |  |  |
Exercised |  |  | (31 | ) |  |  | 6.37 |  |  |  |  |  |  |  |  |
Forfeited |  |  | (14 | ) |  |  | 10.40 |  |  |  |  |  |  |  |  |
Cancelled |  |  | (2 | ) |  |  | 12.43 |  |  |  |  |  |  |  |  |
Options Outstanding at June 1, 2013 |  |  | 944 |  |  | $ | 10.13 |  |  |  | 6.7 |  |  | $ | 2,087 |
Options Vested at June 1, 2013 |  |  | 468 |  |  | $ | 9.17 |  |  |  | 5.1 |  |  | $ | 1,449 |
Fair Value of Stock Options Estimated Using Black-Scholes Option-Pricing Model with Following Weighted Average Assumptions | The fair value of stock options is estimated using the Black-Scholes option-pricing model with the following weighted average assumptions:
|  | Fiscal Year Ended |
|  | June 1, 2013 |  |  | June 2, 2012 |  |  | May 28, 2011 |
Expected volatility |  |  | 50.79 | % |  |  | 53.91 | % |  |  | 54.56 | %
Risk-free interest rate |  |  | 1.12 | % |  |  | 1.52 | % |  |  | 2.73 | %
Expected lives (years) |  |  | 6.37 |  |  |  | 6.29 |  |  |  | 6.32 |
Annual cash dividend |  | $ | 0.24 |  |  | $ | 0.20 |  |  | $ | 0.11 |
Summary of Options Outstanding | The following table summarizes information about stock options outstanding at June 1, 2013 (in thousands, except option prices and years):
|  | Outstanding |  |  | Vested |
Exercise Price Range |  | Shares |  |  | Price |  |  | Life |  |  | Aggregate Intrinsic Value |  |  | Shares |  |  | Price |  |  | Life |  |  | Aggregate Intrinsic Value |
$4.18 to $7.24 |  |  | 254 |  |  | $ | 5.72 |  |  |  | 5.6 |  |  | $ | 1,587 |  |  |  | 166 |  |  | $ | 5.84 |  |  |  | 5.4 |  |  | $ | 1,015 |
$7.32 to $11.00 |  |  | 138 |  |  | $ | 8.96 |  |  |  | 3.3 |  |  | $ | 414 |  |  |  | 138 |  |  | $ | 8.96 |  |  |  | 3.3 |  |  | $ | 413 |
$11.12 to $13.76 |  |  | 552 |  |  | $ | 12.45 |  |  |  | 8.1 |  |  | $ | 86 |  |  |  | 164 |  |  | $ | 12.72 |  |  |  | 6.4 |  |  | $ | 21 |
Total |  |  | 944 |  |  | $ | 10.13 |  |  |  | 6.7 |  |  | $ | 2,087 |  |  |  | 468 |  |  | $ | 9.17 |  |  |  | 5.1 |  |  | $ | 1,449 |
Summary of Restricted Stock Award Transactions | A summary of restricted stock award transactions was as follows (in thousands):
|  | Shares |
Unvested at May 29, 2010 |  |  | 4 |
Granted |  |  | — |
Vested |  |  | (4 | )
Cancelled |  |  | — |
Unvested at May 28, 2011 |  |  | — |
Granted |  |  | — |
Vested |  |  | — |
Cancelled |  |  | — |
Unvested at June 2, 2012 |  |  | — |
Granted |  |  | 10 |
Vested |  |  | — |
Cancelled |  |  | — |
Unvested at June 1, 2013 |  |  | 10 |
Earnings per share | The per share amounts presented in the consolidated statements of comprehensive income are based on the following (amounts in thousands, except per share amounts):
|  | For the Fiscal Year Ended |
|  | June 1, 2013 |  |  | June 2, 2012 |  |  | May 28, 2011 |
|  | Basic |  |  | Diluted |  |  | Basic |  |  | Diluted |  |  | Basic |  |  | Diluted |
Numerator for Basic and Diluted EPS: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income from continuing operations |  | $ | 482 |  |  | $ | 482 |  |  | $ | 7,990 |  |  | $ | 7,990 |  |  | $ | 1,982 |  |  | $ | 1,982 |
Less dividends: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock |  |  | 2,971 |  |  |  | 2,971 |  |  |  | 2,787 |  |  |  | 2,787 |  |  |  | 1,647 |  |  |  | 1,647 |
Class B common stock |  |  | 600 |  |  |  | 600 |  |  |  | 528 |  |  |  | 528 |  |  |  | 299 |  |  |  | 299 |
Undistributed earnings (losses) |  | $ | (3,089 | ) |  | $ | (3,089 | ) |  | $ | 4,675 |  |  | $ | 4,675 |  |  | $ | 36 |  |  | $ | 36 |
Common stock undistributed earnings (losses) |  | $ | (2,570 | ) |  | $ | (2,575 | ) |  | $ | 3,933 |  |  | $ | 3,939 |  |  | $ | 30 |  |  | $ | 31 |
Class B common stock undistributed earnings (losses) |  |  | (519 | ) |  |  | (514 | ) |  |  | 742 |  |  |  | 736 |  |  |  | 6 |  |  |  | 5 |
Total undistributed earnings (losses) |  | $ | (3,089 | ) |  | $ | (3,089 | ) |  | $ | 4,675 |  |  | $ | 4,675 |  |  | $ | 36 |  |  | $ | 36 |
Income from discontinued operations |  | $ | 766 |  |  | $ | 766 |  |  | $ | 536 |  |  | $ | 536 |  |  | $ | 85,966 |  |  | $ | 85,966 |
Less dividends: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock |  |  | 2,971 |  |  |  | 2,971 |  |  |  | 2,787 |  |  |  | 2,787 |  |  |  | 1,647 |  |  |  | 1,647 |
Class B common stock |  |  | 600 |  |  |  | 600 |  |  |  | 528 |  |  |  | 528 |  |  |  | 299 |  |  |  | 299 |
Undistributed earnings (losses) |  | $ | (2,805 | ) |  | $ | (2,805 | ) |  | $ | (2,779 | ) |  | $ | (2,779 | ) |  | $ | 84,020 |  |  | $ | 84,020 |
Common stock undistributed earnings (losses) |  | $ | (2,334 | ) |  | $ | (2,338 | ) |  | $ | (2,338 | ) |  | $ | (2,342 | ) |  | $ | 71,081 |  |  | $ | 71,267 |
Class B common stock undistributed earnings (losses) |  |  | (471 | ) |  |  | (467 | ) |  |  | (441 | ) |  |  | (437 | ) |  |  | 12,939 |  |  |  | 12,753 |
Total undistributed earnings (losses) |  | $ | (2,805 | ) |  | $ | (2,805 | ) |  | $ | (2,779 | ) |  | $ | (2,779 | ) |  | $ | 84,020 |  |  | $ | 84,020 |
Net income |  | $ | 1,248 |  |  | $ | 1,248 |  |  | $ | 8,526 |  |  | $ | 8,526 |  |  | $ | 87,948 |  |  | $ | 87,948 |
Less dividends: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock |  |  | 2,971 |  |  |  | 2,971 |  |  |  | 2,787 |  |  |  | 2,787 |  |  |  | 1,647 |  |  |  | 1,647 |
Class B common stock |  |  | 600 |  |  |  | 600 |  |  |  | 528 |  |  |  | 528 |  |  |  | 299 |  |  |  | 299 |
Undistributed earnings (losses) |  | $ | (2,323 | ) |  | $ | (2,323 | ) |  | $ | 5,211 |  |  | $ | 5,211 |  |  | $ | 86,002 |  |  | $ | 86,002 |
Common stock undistributed earnings (losses) |  | $ | (1,933 | ) |  | $ | (1,937 | ) |  | $ | 4,384 |  |  | $ | 4,391 |  |  | $ | 72,757 |  |  | $ | 72,948 |
Class B common stock undistributed earnings (losses) |  |  | (390 | ) |  |  | (386 | ) |  |  | 827 |  |  |  | 820 |  |  |  | 13,245 |  |  |  | 13,054 |
Total undistributed earnings (losses) |  | $ | (2,323 | ) |  | $ | (2,323 | ) |  | $ | 5,211 |  |  | $ | 5,211 |  |  | $ | 86,002 |  |  | $ | 86,002 |
Denominator for basic and diluted EPS: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock weighted average shares |  |  | 12,448 |  |  |  | 12,448 |  |  |  | 14,025 |  |  |  | 14,025 |  |  |  | 14,926 |  |  |  | 14,926 |
Class B common stock weighted average shares, and shares under if-converted method for diluted EPS |  |  | 2,790 |  |  |  | 2,790 |  |  |  | 2,941 |  |  |  | 2,941 |  |  |  | 3,019 |  |  |  | 3,019 |
Effect of dilutive securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Dilutive stock options |  |  |  |  |  |  | 134 |  |  |  |  |  |  |  | 152 |  |  |  |  |  |  |  | 258 |
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions |  |  |  |  |  |  | 15,372 |  |  |  |  |  |  |  | 17,118 |  |  |  |  |  |  |  | 18,203 |
Income from continuing operations per share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock |  | $ | 0.03 |  |  | $ | 0.03 |  |  | $ | 0.48 |  |  | $ | 0.47 |  |  | $ | 0.11 |  |  | $ | 0.11 |
Class B common stock |  | $ | 0.03 |  |  | $ | 0.03 |  |  | $ | 0.43 |  |  | $ | 0.43 |  |  | $ | 0.10 |  |  | $ | 0.10 |
Income from discontinued operations per share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock |  | $ | 0.05 |  |  | $ | 0.05 |  |  | $ | 0.03 |  |  | $ | 0.03 |  |  | $ | 4.87 |  |  | $ | 4.72 |
Class B common stock |  | $ | 0.05 |  |  | $ | 0.05 |  |  | $ | 0.03 |  |  | $ | 0.03 |  |  | $ | 4.38 |  |  | $ | 4.32 |
Net income per share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock |  | $ | 0.08 |  |  | $ | 0.08 |  |  | $ | 0.51 |  |  | $ | 0.50 |  |  | $ | 4.98 |  |  | $ | 4.83 |
Class B common stock |  | $ | 0.08 |  |  | $ | 0.08 |  |  | $ | 0.46 |  |  | $ | 0.46 |  |  | $ | 4.48 |  |  | $ | 4.42 |
Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for fiscal 2013, fiscal 2012, and fiscal 2011 were 280,764, 272,864, and 237,064, respectively.

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