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Note 14 - Business Segment Reporting
 9 Months Ended
Feb. 24, 2013
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 remainder of that business into the Corporate segment.  As a result of this change, the segment information for the three and nine months ended February 26, 2012 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 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
   
Nine Months Ended
 
   
February 24,
2013
   
February 26,
2012
   
February 24,
2013
   
February 26,
2012
 
Taiwan
  $ 2.9     $ 2.0     $ 28.7     $ 20.9  
Canada
  $ 7.4     $ 5.4     $ 19.7     $ 15.2  
Indonesia
  $ 4.1     $ 5.4     $ 17.6     $ 19.3  
Belgium
  $ 10.6     $ 6.0     $ 15.2     $ 14.1  
Japan
  $ 1.5     $ 1.6     $ 7.4     $ 7.8  
All Other Countries
  $ 7.8     $ 4.5     $ 20.2     $ 14.5  

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

Three Months Ended February 24, 2013
 
Food Products Technology
   
Food Export
   
HA-based Biomaterials
   
Corporate
   
TOTAL
 
Net sales
  $ 86,707     $ 13,381     $ 17,331     $ 448     $ 117,867  
International sales
  $ 7,293     $ 13,381     $ 13,579     $ —     $ 34,253  
Gross profit
  $ 5,846     $ 1,031     $ 10,243     $ 388     $ 17,508  
Net income (loss)
  $ 338     $ 228     $ 5,687     $ (1,464 )   $ 4,789  
Depreciation and amortization
  $ 1,224     $ 1     $ 602     $ 39     $ 1,866  
Dividend Income
  $ 281     $ —     $ —       —     $ 281  
Interest income
  $ 4     $ —     $ 42     $ —     $ 46  
Interest expense
  $ 421     $ —     $ 66     $ —     $ 487  
Income tax expense
  $ 113     $ 76     $ 1,895     $ 670     $ 2,754  
                                         
Three Months Ended February 26, 2012
                                       
Net sales
  $ 56,456     $ 12,388     $ 11,066     $ 154     $ 80,064  
International sales
  $ 5,179     $ 12,159     $ 7,600     $ —     $ 24,938  
Gross profit
  $ 5,478     $ 917     $ 6,623     $ 154     $ 13,172  
Net income (loss)
  $ 5,851     $ 339     $ 3,970     $ (5,395 )   $ 4,765  
Depreciation and amortization
  $ 762     $ 2     $ 572     $ 46     $ 1,382  
Dividend Income
  $ 281     $ —     $ —     $ —     $ 281  
Interest income
  $ 12     $ —     $ 43     $ 8     $ 63  
Interest expense
  $ —     $ —     $ 153     $ —     $ 153  
Income tax expense
  $ —     $ —     $ —     $ 2,920     $ 2,920  
                                         
Nine Months Ended February 24, 2013
                                       
Net sales
  $ 233,931     $ 66,854     $ 33,043     $ 767     $ 334,595  
International sales
  $ 19,475     $ 66,747     $ 22,603     $ —     $ 108,825  
Gross profit
  $ 28,891     $ 4,407     $ 15,725     $ 707     $ 49,730  
Net income (loss)
  $ 15,466     $ 1,403     $ 5,713     $ (4,514 )   $ 18,068  
Depreciation and amortization
  $ 3,634     $ 3     $ 1,777     $ 113     $ 5,527  
Dividend Income
  $ 844     $ —     $ —     $ —     $ 844  
Interest income
  $ 12     $ —     $ 92     $ —     $ 104  
Interest expense
  $ 1,303     $ —     $ 223     $ —     $ 1,526  
Income tax expense
  $ 3,846     $ 467     $ 1,904     $ 2,021     $ 8,238  
                                         
Nine Months Ended February 26, 2012
                                       
Net sales
  $ 146,512     $ 57,972     $ 27,422     $ 3,029     $ 234,935  
International sales
  $ 14,890     $ 57,619     $ 19,250     $ —     $ 91,759  
Gross profit
  $ 16,068     $ 3,733     $ 14,602     $ 3,029     $ 37,432  
Net income (loss)
  $ 11,846     $ 1,729     $ 7,270     $ (10,928 )   $ 9,917  
Depreciation and amortization
  $ 2,313     $ 6     $ 1,655     $ 137     $ 4,111  
Dividend Income
  $ 844     $ —     $ —     $ —     $ 844  
Interest income
  $ 42     $ —     $ 148     $ 29     $ 219  
Interest expense
  $ —     $ —     $ 492     $ —     $ 492  
Income tax expense
  $ —     $ —     $ —     $ 6,079     $ 6,079  

During the nine months ended February 24, 2013 and February 26, 2012, sales to the Company’s top five customers accounted for 39% and 44%, respectively, of revenues.  The Company’s top customer from the Food Products Technology segment accounting for 14% and 17% for the nine months ended February 24, 2013 and February 26, 2012, 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.