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Note 14 - Business Segment Reporting
 12 Months Ended
May 26, 2013
Segment Reporting [Abstract]  
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 fruit and vegetables, the majority of which 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 remainder of that business into the Corporate segment. As a result of this change, the segment information for fiscal years 2012 and 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. The Corporate segment also includes general and administrative expenses, non-Food Products Technology and non HA-based Biomaterials interest income and income tax expenses. Beginning in 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):


   

May 26, 2013

   

May 27, 2012

   

May 29, 2011

 

Taiwan

  $ 31.0     $ 22.7     $ 21.3  

Indonesia

  $ 21.0     $ 23.0     $ 20.2  

Canada

  $ 27.8     $ 20.8     $ 18.4  

Belgium

  $ 16.6     $ 15.6     $ 16.7  

Japan

  $ 10.6     $ 11.1     $ 8.4  

All Other Countries

  $ 25.8     $ 21.3     $ 18.8  

Operations by segment consisted of the following (in thousands): 


 

 

Fiscal Year Ended May 26, 2013

 

 

Food Products

Technology

   

 

 

Food Export

   

Hyaluronan-

based

Biomaterials

   

 

 

Corporate

   

 

 

TOTAL

 

Net sales

  $ 320,447     $ 78,568     $ 41,281     $ 1,412     $ 441,708  

International sales

  $ 27,532     $ 78,442     $ 26,792     $ —     $ 132,766  

Gross profit

  $ 37,077     $ 5,274     $ 19,102     $ 1,307     $ 62,760  

Net income (loss)

  $ 20,526     $ 1,660     $ 6,835     $ (6,434 )   $ 22,587  

Identifiable assets

  $ 180,104     $ 21,737     $ 80,940     $ 8,161     $ 290,942  

Depreciation and amortization

  $ 4,761     $ 4     $ 2,379     $ 151     $ 7,295  

Capital expenditures

  $ 5,598     $ —     $ 3,190     $ 89     $ 8,877  

Dividend income

  $ 1,125     $ —     $ —     $ —     $ 1,125  

Interest income

  $ 42     $ —     $ 137     $ —     $ 179  

Interest expense

  $ 1,707     $ —     $ 301     $ —     $ 2,008  

Income tax expense

  $ 3,399     $ 339     $ 1,400     $ 4,314     $ 9,452  
                                         

Fiscal Year Ended May 27, 2012

                                       

Net sales

  $ 207,582     $ 71,485     $ 34,283     $ 4,202     $ 317,552  

International sales

  $ 20,528     $ 71,054     $ 22,904     $ —     $ 114,486  

Gross profit

  $ 25,237     $ 4,900     $ 17,994     $ 4,007     $ 52,138  

Net income (loss)

  $ 17,527     $ 2,269     $ 7,672     $ (14,772 )   $ 12,696  

Identifiable assets

  $ 169,541     $ 18,425     $ 81,927     $ 7,799     $ 277,692  

Depreciation and amortization

  $ 3,191     $ 7     $ 2,242     $ 181     $ 5,621  

Capital expenditures

  $ 2,498     $ —     $ 2,798     $ 75     $ 5,371  

Dividend income

  $ 1,125     $ —     $ —     $ —     $ 1,125  

Interest income

  $ 30     $ —     $ 129     $ 21     $ 180  

Interest expense

  $ 178     $ —     $ 751     $ —     $ 929  

Income tax expense

  $ —     $ —     $ —     $ 7,185     $ 7,185  
                                         

Fiscal Year Ended May 29, 2011

                                       

Net sales

  $ 175,664     $ 61,663     $ 32,505     $ 6,897     $ 276,729  

International sales

  $ 18,580     $ 61,214     $ 24,024     $ —     $ 103,818  

Gross profit

  $ 18,888     $ 3,901     $ 17,231     $ 6,675     $ 46,695  

Net income (loss)

  $ 8,200     $ 1,617     $ 7,278     $ (13,175 )   $ 3,920  

Identifiable assets

  $ 88,241     $ 16,320     $ 83,954     $ 17,797     $ 206,312  

Depreciation and amortization

  $ 3,174     $ 8     $ 1,972     $ 159     $ 5,313  

Capital expenditures

  $ 3,620     $ —     $ 2,817     $ 247     $ 6,684  

Dividend income

  $ 328     $ —     $ —     $ —     $ 328  

Interest income

  $ 129     $ —     $ 164     $ 137     $ 430  

Interest expense

  $ 2     $ —     $ 818     $ —     $ 820  

Income tax expense

  $ —     $ —     $ —     $ 4,181     $ 4,181