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Note 11 - Commitments and Contingencies
 12 Months Ended
May 27, 2012
Commitments and Contingencies Disclosure [Text Block]
11.          Commitments and Contingencies

Operating Leases

Landec leases facilities and equipment under operating lease agreements with various terms and conditions, which expire at various dates through fiscal year 2019.

The approximate future minimum lease payments under these operating leases, excluding land leases, at May 27, 2012 are as follows (in thousands):

   
Amount
 
FY2013
  $ 1,543  
FY2014
    1,210  
FY2015
    892  
FY2016
    717  
FY2017
    508  
Thereafter
    371  
    $ 5,241  

Rent expense for operating leases, including month to month arrangements was $1.5 million for the fiscal year ended May 27, 2012, $1.2 million for the fiscal year ended May 29, 2011 and $1.5 million for the fiscal year ended May 30, 2010.

Capital Leases

Landec leases equipment under capital lease agreements with various terms and conditions, which expire at various dates through fiscal year 2013 and the minimum lease payment for 2013 is $158,000.

Employment Agreements

Landec has entered into employment agreements with certain key employees.  These agreements provide for these employees to receive incentive bonuses based on the financial performance of certain divisions in addition to their annual base salaries.  The accrued incentive bonuses amounted to $1.6 million at May 27, 2012 and $347,000 at May 29, 2011.

Purchase Commitments

At May 27, 2012, the Company was committed to purchase $1.9 million of produce during fiscal year 2013 in accordance with contractual terms at market rates.  Payments of $8.7 million were made in fiscal year 2012 under these arrangements.

Loss Contingencies

As of May 27, 2012, the Company is not a party to any legal proceedings.