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Note 14 - Business Segment Reporting
 3 Months Ended
Aug. 26, 2012
Segment Reporting Disclosure [Text Block]
14.          Business Segment Reporting

The Company manages its business operations through three strategic business units.  Based upon the information reported to the chief operating decision maker, who is the Chief Executive Officer, the Company has the following reportable segments: the Food Products Technology segment, the Food Export segment and the Hyaluronan-based Biomaterials segment.

The Food Products Technology segment markets and packs specialty packaged whole and fresh-cut vegetables that incorporate the BreatheWay specialty packaging for the retail grocery, club store and food services industry.  In addition, the Food Products Technology segment sells BreatheWay packaging to partners for non-vegetable products.  The Food Export segment consists of revenues generated from the purchase and sale of primarily whole commodity fruit and vegetable products to Asia and domestically.  The HA-based Biomaterials segment sells products utilizing hyaluronan, a naturally occurring polysaccharide that is widely distributed in the extracellular matrix of connective tissues in both animals and humans, for medical use primarily in the Ophthalmic, Orthopedic and Veterinary markets.  As a result of the sale of Landec Ag to INCOTEC and the termination of the Monsanto Agreement in fiscal year 2012, the Company has eliminated the Technology Licensing segment and combined the results of that business into the Corporate segment.  As a result of this change, the segment information for the three months ended August 28, 2011 has been reclassified to conform with the current year classification.  Corporate licenses Landec’s patented Intellicoat seed coatings to the farming industry and licenses the Company’s Intelimer polymers for personal care products and other industrial products.  Corporate also includes general and administrative expenses, non Food Products Technology and non HA-based Biomaterials interest income and Company-wide income tax expenses.  Beginning in the first quarter of fiscal year 2013, the Food Products Technology, the Food Export and the Hyaluronan-based Biomaterials segments include charges for corporate services and tax sharing allocated from the Corporate segment.  All of the assets of the Company are located within the United States of America.  The Company’s international sales were as follows (in millions):

   
Three Months Ended
 
   
August 26, 2012
   
August 28, 2011
 
Taiwan
  $ 12.9     $ 9.4  
Indonesia
  $ 6.1     $ 7.4  
Canada
  $ 6.2     $ 5.2  
Japan
  $ 3.1     $ 2.5  
Belgium
  $ 3.0     $ 1.9  
All Other Countries
  $ 5.0     $ 3.7  

Operations and identifiable assets by business segment consisted of the following (in thousands):

Three Months Ended August 26, 2012  
Food Products
Technology
   
________________
Food Export
   
HA-based
Biomaterials
    Corporate     TOTAL  
Net sales
  $ 68,631     $ 25,358     $ 7,973     $ 112     $ 102,074  
International sales
  $ 6,223     $ 25,311     $ 4,802     $ ¾     $ 36,336  
Gross profit
  $ 9,942     $ 1,343     $ 2,366     $ 112     $ 13,763  
Net income (loss)
  $ 3,741     $ 309     $ (312 )   $ (1,199 )   $ 2,539  
Depreciation and amortization
  $ 1,236     $ 1     $ 583     $ 36     $ 1,856  
Dividend Income
  $ 281     $ —     $ —     $ —     $ 281  
Interest income
  $ 1     $ —     $ 25     $ —     $ 26  
Interest expense
  $ 455     $ —     $ 86     $ —     $ 541  
Income tax expense
  $ 1,247     $ 103     $ (104 )   $ 246     $ 1,492  
                                         
 
Three Months Ended August 28, 2011
                                       
Net sales
  $ 43,363     $ 21,355     $ 7,121     $ 1,462     $ 73,301  
International sales
  $ 5,071     $ 21,310     $ 3,766     $ ¾     $ 30,147  
Gross profit
  $ 6,059     $ 1,014     $ 2,715     $ 1,462     $ 11,250  
Net income (loss)
  $ 3,358     $ 297     $ 462     $ (2,305 )   $ 1,812  
Depreciation and amortization
  $ 780     $ 2     $ 528     $ 45     $ 1,355  
Dividend Income
  $ 281     $ —     $ —     $ —     $ 281  
Interest income
  $ 8     $ —     $ 47     $ 21     $ 76  
Interest expense
  $ —     $ —     $ 176     $ —     $ 176  
Income tax expense
  $ —     $ —     $ —     $ 1,110     $ 1,110  

During the three months ended August 26, 2012 and August 28, 2011, sales to the Company’s top five customers accounted for 36% and 43%, respectively, of revenues with the Company’s top customer from the Food Products Technology segment accounting for 12% and 16% for the three months ended August 26, 2012 and August 28, 2011, respectively.  The Company expects that, for the foreseeable future, a limited number of customers may continue to account for a significant portion of its net revenues.