Table:
|  | Fiscal Years Ended |  |  |  |
| --- | --- | --- | --- | --- |
| (Amounts in thousands) | June 1, 2019 | June 2, 2018 | Change | Percent Change |
| Specialty egg | $53,263 | $54,300 | $(1,037) | (1.9)% |
| Delivery expense | 53,595 | 53,177 | 418 | 0.8% |
| Payroll and overhead | 38,343 | 37,191 | 1,152 | 3.1% |
| Stock compensation | 3,619 | 3,467 | 152 | 4.4% |
| Other expenses | 25,975 | 31,181 | (5,206) | (16.7)% |
| Total | $174,795 | $179,316 | $(4,521) | (2.5)% |
Paragraphs:
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES
Payroll and overhead increased $1.2 million, or 3.1%, compared to the same period of last year primarily due to annual salary increases. As a percentage of net sales, payroll and overhead is 2.8% and 2.5% for fiscal 2019 and 2018, respectively. As a percentage of net sales, delivery expense is 3.9% and 3.5% for fiscal 2019 and 2018, respectively. Other expenses decreased $5.2 million, or 16.7%, primarily due to reduced legal expense as a result of the Company's settlement of several antitrust claims in the prior year. The fiscal 2018 amount also included costs associated with preparation for the Company's special shareholders meeting held in July 2018. Insurance expense, which is also a part of other expenses, was flat year over year due to decreases in the Company's liability for incurred but not reported claims being offset by overall increases in premiums for fiscal 2019 compared with fiscal 2018. Selling, general and administrative expenses ("SG&A"), which include costs of marketing, distribution, accounting and corporate overhead, were $174.8 million in fiscal 2019, a decrease of $4.5 million, or 2.5%, compared to fiscal 2018. As a percent of net sales, selling, general and administrative expense increased from 11.9% in fiscal 2018 to 12.8% in fiscal 2019, due to the decrease in net sales in fiscal 2019. Selling, general and administrative expenses ("SG&A"), which include costs of marketing, distribution, accounting and corporate overhead, were $174.8 million in fiscal 2019, a decrease of $4.5 million, or 2.5%, compared to fiscal 2018. As a percent of net sales, selling, general and administrative expense increased from 11.9% in fiscal 2018 to 12.8% in fiscal 2019, due to the decrease in net sales in fiscal 2019.
Payroll and overhead increased $1.2 million, or 3.1%, compared to the same period of last year primarily due to annual salary increases. As a percentage of net sales, payroll and overhead is 2.8% and 2.5% for fiscal 2019 and 2018, respectively. As a percentage of net sales, delivery expense is 3.9% and 3.5% for fiscal 2019 and 2018, respectively. Other expenses decreased $5.2 million, or 16.7%, primarily due to reduced legal expense as a result of the Company's settlement of several antitrust claims in the prior year. The fiscal 2018 amount also included costs associated with preparation for the Company's special shareholders meeting held in July 2018. Insurance expense, which is also a part of other expenses, was flat year over year due to decreases in the Company's liability for incurred but not reported claims being offset by overall increases in premiums for fiscal 2019 compared with fiscal 2018. Payroll and overhead increased $1.2 million, or 3.1%, compared to the same period of last year primarily due to annual salary increases. As a percentage of net sales, payroll and overhead is 2.8% and 2.5% for fiscal 2019 and 2018, respectively. As a percentage of net sales, delivery expense is 3.9% and 3.5% for fiscal 2019 and 2018, respectively. Other expenses decreased $5.2 million, or 16.7%, primarily due to reduced legal expense as a result of the Company's settlement of several antitrust claims in the prior year. The fiscal 2018 amount also included costs associated with preparation for the Company's special shareholders meeting held in July 2018. Insurance expense, which is also a part of other expenses, was flat year over year due to decreases in the Company's liability for incurred but not reported claims being offset by overall increases in premiums for fiscal 2019 compared with fiscal 2018. Payroll and overhead increased $1.2 million, or 3.1%, compared to the same period of last year primarily due to annual salary increases. As a percentage of net sales, payroll and overhead is 2.8% and 2.5% for fiscal 2019 and 2018, respectively. As a percentage of net sales, delivery expense is 3.9% and 3.5% for fiscal 2019 and 2018, respectively. Other expenses decreased $5.2 million, or 16.7%, primarily due to reduced legal expense as a result of the Company's settlement of several antitrust claims in the prior year. The fiscal 2018 amount also included costs associated with preparation for the Company's special shareholders meeting held in July 2018. Insurance expense, which is also a part of other expenses, was flat year over year due to decreases in the Company's liability for incurred but not reported claims being offset by overall increases in premiums for fiscal 2019 compared with fiscal 2018.
SG&A expense was $42.3 million for the thirteen weeks ended June 1, 2019, a decrease of $7.4 million, or 14.8%,
compared to $49.7 million for the thirteen weeks ended June 2, 2018. The decrease in specialty egg expense for the
fiscal 2019 fourth quarter is attributable to the timing of advertising and promotions as well as a decrease in specialty
egg dozens sold resulting in decreased franchise expense. Payroll and overhead decreased $526,000, or 5.2%, compared
to the same period of last year due to timing of bonus accruals. Stock compensation expense relates to the amortization
of compensation expense for grants of restricted stock and is dependent on the closing prices of the Company's stock
on the grant dates. The weighted average grant date fair value of our restricted stock awards at June 1, 2019, was
$43.20, a 2.1% increase over the value of $42.30 at June 2, 2018. Other expenses decreased 27.6% from $8.4 million
for the thirteen weeks ended June 2, 2018 to $6.1 million for the same period of fiscal 2019 primarily due to a reduction
in the liability for incurred but not reported insurance claims at June 1, 2019 as well as a reduction in legal expenses.
Question:
What caused the increase in payroll and overhead expenses in 2019?
Answer: due to annual salary increase