XML 41 R24.htm IDEA: XBRL DOCUMENT
v3.7.0.1

SIGNIFICANT ACCOUNTING POLICIES AND DISCLOSURES (Tables) | 12 Months Ended
--- | ---
May 27, 2017
Accounting Policies [Abstract] |
Schedule of property, plant and equipment | Property, plant and equipment consist of the following (in thousands):
|  | May 27, 2017 |  |  | May 28, 2016 |
Land and improvements |  | $ | 1,301 |  |  | $ | 1,301 |
Buildings and improvements |  |  | 19,885 |  |  |  | 19,023 |
Computer and communications equipment |  |  | 8,551 |  |  |  | 6,810 |
Construction in progress |  |  | 2,063 |  |  |  | 2,721 |
Machinery and other equipment |  |  | 10,387 |  |  |  | 8,080 |
|  | $ | 42,187 |  |  | $ | 37,935 |
Accumulated depreciation |  |  | (26,374 | ) |  |  | (24,949 | )
Property, plant, and equipment, net |  | $ | 15,813 |  |  | $ | 12,986 |
Schedule of property plant and equipment estimated useful lives | Supplemental disclosure information of the estimated useful life of the assets:
Land improvements | 10 years
Buildings and improvements | 10 - 30 years
Computer and communications equipment | 3 - 10 years
Machinery and other equipment | 3 - 10 years
Schedule of accrued liabilities | Accrued liabilities consist of the following (in thousands):
|  | May 27, 2017 |  |  | May 28, 2016 |
Compensation and payroll taxes |  | $ | 3,250 |  |  | $ | 3,404 |
Accrued severance (1) |  |  | 706 |  |  |  | 650 |
Professional fees |  |  | 535 |  |  |  | 775 |
Deferred revenue |  |  | 1,460 |  |  |  | 1,879 |
Other accrued expenses |  |  | 2,360 |  |  |  | 2,427 |
Accrued Liabilities |  | $ | 8,311 |  |  | $ | 9,135 |
(1) In the second quarter of fiscal year 2017, the Company executed a reduction in headcount to streamline operations and reduce costs and recorded $1.3 million of expense included in selling, general and administrative expenses for employee termination costs payable to terminated employees with employment and/or separation agreements with the Company. The changes in the severance accrual for fiscal year 2017 included provisions and payments of $1.3 million and $1.2 million, respectively.
Schedule of warranty reserve | Changes in the warranty reserve during fiscal 2017 and 2016 were as follows (in thousands):
|  | Warranty Reserve |
Balance at May 30, 2015 |  | $ | 188 |
Accruals for products sold |  |  | 108 |
Utilization |  |  | (86 | )
Balance at May 28, 2016 |  | $ | 210 |
Accruals for products sold |  |  | 89 |
Utilization |  |  | (78 | )
Recovery |  |  | (115 | )
Balance at May 27, 2017 |  | $ | 106 |
Schedule of share-based compensation, stock options, activity | 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 31, 2014 |  |  | 1,065 |  |  | $ | 10.37 |  |  |  |  |  |  |  |  |
Granted |  |  | 225 |  |  |  | 9.92 |  |  |  |  |  |  |  |  |
Exercised |  |  | (47 | ) |  |  | 6.53 |  |  |  |  |  |  |  |  |
Forfeited |  |  | (34 | ) |  |  | 11.42 |  |  |  |  |  |  |  |  |
Cancelled |  |  | (72 | ) |  |  | 11.19 |  |  |  |  |  |  |  |  |
Options Outstanding at May 30, 2015 |  |  | 1,137 |  |  | $ | 10.35 |  |  |  |  |  |  |  |  |
Granted |  |  | 122 |  |  |  | 5.88 |  |  |  |  |  |  |  |  |
Exercised |  |  | (28 | ) |  |  | 5.18 |  |  |  |  |  |  |  |  |
Forfeited |  |  | (105 | ) |  |  | 10.98 |  |  |  |  |  |  |  |  |
Cancelled |  |  | (107 | ) |  |  | 9.97 |  |  |  |  |  |  |  |  |
Options Outstanding at May 28, 2016 |  |  | 1,019 |  |  | $ | 9.93 |  |  |  |  |  |  |  |  |
Granted |  |  | 190 |  |  |  | 6.90 |  |  |  |  |  |  |  |  |
Exercised |  |  | (5 | ) |  |  | 5.61 |  |  |  |  |  |  |  |  |
Forfeited |  |  | (43 | ) |  |  | 8.39 |  |  |  |  |  |  |  |  |
Cancelled |  |  | (88 | ) |  |  | 11.17 |  |  |  |  |  |  |  |  |
Options Outstanding at May 27, 2017 |  |  | 1,073 |  |  | $ | 9.38 |  |  |  | 6.0 |  |  | $ | 85 |
Options Vested at May 27, 2017 |  |  | 628 |  |  | $ | 10.21 |  |  |  | 4.4 |  |  | $ | 68 |
Schedule of share-based payment award, stock options, valuation 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 |
|  | May 27, 2017 |  |  | May 28, 2016 |  |  | May 30, 2015 |
Expected volatility |  |  | 25.41 | % |  |  | 32.21 | % |  |  | 46.12 | %
Risk-free interest rate |  |  | 1.46 | % |  |  | 1.78 | % |  |  | 2.12 | %
Expected lives (years) |  |  | 6.50 |  |  |  | 6.50 |  |  |  | 6.47 |
Annual cash dividend |  | $ | 0.24 |  |  | $ | 0.24 |  |  | $ | 0.24 |
Schedule of share-based compensation, shares outstanding under stock option plans, by exercise price range | The following table summarizes information about stock options outstanding at May 27, 2017 (in thousands, except option prices and years):
|  |  | Outstanding |  |  | Vested |
Exercise Price Range |  |  | Shares |  |  | Weighted Average Exercise Price |  |  | Weighted Average Life |  |  | Aggregate Intrinsic Value |  |  | Shares |  |  | Weighted Average Exercise Price |  |  | Weighted Average Life |  |  | Aggregate Intrinsic Value |
$5.03 to $8.58 |  |  |  | 429 |  |  | $ | 6.28 |  |  |  | 6.5 |  |  | $ | 85 |  |  |  | 168 |  |  | $ | 5.84 |  |  |  | 2.6 |  |  | $ | 68 |
$9.48 to $11.14 |  |  |  | 350 |  |  | $ | 10.50 |  |  |  | 6.7 |  |  | $ | — |  |  |  | 184 |  |  | $ | 10.62 |  |  |  | 6.5 |  |  | $ | — |
$11.50 to $13.76 |  |  |  | 294 |  |  | $ | 12.55 |  |  |  | 4.3 |  |  | $ | — |  |  |  | 276 |  |  | $ | 12.60 |  |  |  | 4.2 |  |  | $ | — |
Total |  |  |  | 1,073 |  |  | $ | 9.38 |  |  |  | 6.0 |  |  | $ | 85 |  |  |  | 628 |  |  | $ | 10.21 |  |  |  | 4.4 |  |  | $ | 68 |
Schedule of earnings per share, basic and diluted | The per share amounts presented in the consolidated statements of comprehensive loss are based on the following (amounts in thousands, except per share amounts):
|  | For the Fiscal Year Ended |
|  | May 27, 2017 |  |  | May 28, 2016 |  |  | May 30, 2015 |
|  | Basic |  |  | Diluted |  |  | Basic |  |  | Diluted |  |  | Basic |  |  | Diluted |
Numerator for Basic and Diluted EPS: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loss from continuing operations |  | $ | (6,928 | ) |  | $ | (6,928 | ) |  | $ | (6,766 | ) |  | $ | (6,766 | ) |  | $ | (5,528 | ) |  | $ | (5,528 | )
Less dividends: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock |  |  | 2,567 |  |  |  | 2,567 |  |  |  | 2,615 |  |  |  | 2,615 |  |  |  | 2,794 |  |  |  | 2,794 |
Class B common stock |  |  | 464 |  |  |  | 464 |  |  |  | 464 |  |  |  | 464 |  |  |  | 466 |  |  |  | 466 |
Undistributed losses |  | $ | (9,959 | ) |  | $ | (9,959 | ) |  | $ | (9,845 | ) |  | $ | (9,845 | ) |  | $ | (8,788 | ) |  | $ | (8,788 | )
Common stock undistributed losses |  | $ | (8,440 | ) |  | $ | (8,440 | ) |  | $ | (8,367 | ) |  | $ | (8,367 | ) |  | $ | (7,539 | ) |  | $ | (7,539 | )
Class B common stock undistributed losses |  |  | (1,519 | ) |  |  | (1,519 | ) |  |  | (1,478 | ) |  |  | (1,478 | ) |  |  | (1,249 | ) |  |  | (1,249 | )
Total undistributed losses |  | $ | (9,959 | ) |  | $ | (9,959 | ) |  | $ | (9,845 | ) |  | $ | (9,845 | ) |  | $ | (8,788 | ) |  | $ | (8,788 | )
Loss from discontinued operations |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (31 | ) |  | $ | (31 | )
Less dividends: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock |  |  | 2,567 |  |  |  | 2,567 |  |  |  | 2,615 |  |  |  | 2,615 |  |  |  | 2,794 |  |  |  | 2,794 |
Class B common stock |  |  | 464 |  |  |  | 464 |  |  |  | 464 |  |  |  | 464 |  |  |  | 466 |  |  |  | 466 |
Undistributed losses |  | $ | (3,031 | ) |  | $ | (3,031 | ) |  | $ | (3,079 | ) |  | $ | (3,079 | ) |  | $ | (3,291 | ) |  | $ | (3,291 | )
Common stock undistributed losses |  | $ | (2,567 | ) |  | $ | (2,567 | ) |  | $ | (2,615 | ) |  | $ | (2,615 | ) |  | $ | (2,823 | ) |  | $ | (2,823 | )
Class B common stock undistributed losses |  |  | (464 | ) |  |  | (464 | ) |  |  | (464 | ) |  |  | (464 | ) |  |  | (468 | ) |  |  | (468 | )
Total undistributed losses |  | $ | (3,031 | ) |  | $ | (3,031 | ) |  | $ | (3,079 | ) |  | $ | (3,079 | ) |  | $ | (3,291 | ) |  | $ | (3,291 | )
Net loss |  | $ | (6,928 | ) |  | $ | (6,928 | ) |  | $ | (6,766 | ) |  | $ | (6,766 | ) |  | $ | (5,559 | ) |  | $ | (5,559 | )
Less dividends: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock |  |  | 2,567 |  |  |  | 2,567 |  |  |  | 2,615 |  |  |  | 2,615 |  |  |  | 2,794 |  |  |  | 2,794 |
Class B common stock |  |  | 464 |  |  |  | 464 |  |  |  | 464 |  |  |  | 464 |  |  |  | 466 |  |  |  | 466 |
Undistributed losses |  | $ | (9,959 | ) |  | $ | (9,959 | ) |  | $ | (9,845 | ) |  | $ | (9,845 | ) |  | $ | (8,819 | ) |  | $ | (8,819 | )
Common stock undistributed losses |  | $ | (8,440 | ) |  | $ | (8,440 | ) |  | $ | (8,367 | ) |  | $ | (8,367 | ) |  | $ | (7,565 | ) |  | $ | (7,565 | )
Class B common stock undistributed losses |  |  | (1,519 | ) |  |  | (1,519 | ) |  |  | (1,478 | ) |  |  | (1,478 | ) |  |  | (1,254 | ) |  |  | (1,254 | )
Total undistributed losses |  | $ | (9,959 | ) |  | $ | (9,959 | ) |  | $ | (9,845 | ) |  | $ | (9,845 | ) |  | $ | (8,819 | ) |  | $ | (8,819 | )
Denominator for Basic and Diluted EPS: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock weighted average shares |  |  | 10,705 |  |  |  | 10,705 |  |  |  | 10,908 |  |  |  | 10,908 |  |  |  | 11,682 |  |  |  | 11,682 |
Class B common stock weighted average shares, and shares under if-converted method for diluted EPS |  |  | 2,140 |  |  |  | 2,140 |  |  |  | 2,141 |  |  |  | 2,141 |  |  |  | 2,151 |  |  |  | 2,151 |
Effect of dilutive stock options |  |  |  |  |  |  | — |  |  |  |  |  |  |  | — |  |  |  |  |  |  |  | — |
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions |  |  |  |  |  |  | 12,845 |  |  |  |  |  |  |  | 13,049 |  |  |  |  |  |  |  | 13,833 |
Loss from continuing operations per share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock |  | $ | (0.55 | ) |  | $ | (0.55 | ) |  | $ | (0.53 | ) |  | $ | (0.53 | ) |  | $ | (0.41 | ) |  | $ | (0.41 | )
Class B common stock |  | $ | (0.49 | ) |  | $ | (0.49 | ) |  | $ | (0.47 | ) |  | $ | (0.47 | ) |  | $ | (0.36 | ) |  | $ | (0.36 | )
Income from discontinued operations per share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Class B common stock |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Net loss per share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock |  | $ | (0.55 | ) |  | $ | (0.55 | ) |  | $ | (0.53 | ) |  | $ | (0.53 | ) |  | $ | (0.41 | ) |  | $ | (0.41 | )
Class B common stock |  | $ | (0.49 | ) |  | $ | (0.49 | ) |  | $ | (0.47 | ) |  | $ | (0.47 | ) |  | $ | (0.36 | ) |  | $ | (0.36 | )
Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for fiscal 2017, fiscal 2016, and fiscal 2015 were 848; 890; and 881 respectively.

X
- Definition Property Plant And Equipment Estimated Useful Lives Table + References No definition available. + Details
Name: | rell_PropertyPlantAndEquipmentEstimatedUsefulLivesTableTextBlock
Namespace Prefix: | rell_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_AccountingPoliciesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, balances by class of assets, depreciation and depletion expense and method used, including composite depreciation, and accumulated deprecation. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6391035&loc=d3e2868-110229 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(13)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
Name: | us-gaap_PropertyPlantAndEquipmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of accrued liabilities. + References No definition available. + Details
Name: | us-gaap_ScheduleOfAccruedLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of an entity's basic and diluted earnings per share calculations, including a reconciliation of numerators and denominators of the basic and diluted per-share computations for income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257 + Details
Name: | us-gaap_ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the changes in the guarantor's aggregate product warranty liability, including the beginning balance of the aggregate product warranty liability, the aggregate reductions in that liability for payments made (in cash or in kind) under the warranty, the aggregate changes in the liability for accruals related to product warranties issued during the reporting period, the aggregate changes in the liability for accruals related to preexisting warranties (including adjustments related to changes in estimates), and the ending balance of the aggregate product warranty liability. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 460 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=68068213&loc=d3e12565-110249 + Details
Name: | us-gaap_ScheduleOfProductWarrantyLiabilityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of option exercise prices, by grouped ranges, including the upper and lower limits of the price range, the number of shares under option, weighted average exercise price and remaining contractual option terms. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=96867065&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for stock option plans. Includes, but is not limited to, outstanding awards at beginning and end of year, grants, exercises, forfeitures, and weighted-average grant date fair value. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=96867065&loc=d3e5070-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=96867065&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1) -URI http://asc.fasb.org/extlink&oid=96867065&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2) -URI http://asc.fasb.org/extlink&oid=96867065&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration