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Note 8 - Stockholders' Equity | 12 Months Ended
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May 25, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 8. Stockholders’ Equity Holders of Common Stock are entitled to one vote per share. Convertible Preferred Stock The Company has authorized two million shares of preferred stock, and as of May 25, 2014 has no outstanding preferred stock. Common Stock and Stock Option Plans At May 25, 2014, the Company had 2.0 million common shares reserved for future issuance under Landec equity incentive plans. On October 10, 2013, following stockholder approval at the Annual Meeting of Stockholders of the Company, the 2013 Stock Incentive Plan (the “Plan”) became effective and replaced the Company’s 2009 Stock Incentive Plan. Employees (including officers), consultants and directors of the Company and its subsidiaries and affiliates are eligible to participate in the Plan. The Plan provides for the grant of stock options (both nonstatutory and incentive stock options), stock grants, stock units and stock appreciation rights. Awards under the Plan will be evidenced by an agreement with the Plan participants and 2.0 million shares of the Company’s Common Stock (“Shares”) were initially available for award under the Plan. Under the Plan, no recipient may receive awards during any fiscal year that exceeds the following amounts: (i) stock options covering in excess of 500,000 Shares; (ii) stock grants and stock units covering in excess of 250,000 Shares in the aggregate; or (iii) stock appreciation rights covering more than 500,000 Shares. In addition, awards to non-employee directors are discretionary. However, a non-employee director may not be granted awards in excess of 30,000 Shares in the aggregate during any fiscal year. The exercise price of the options is the fair market value of the Company’s Common Stock on the date the options are granted. On October 15, 2009, following stockholder approval at the Annual Meeting of Stockholders of the Company, the 2009 Stock Incentive Plan (the “2009 Plan”) became effective and replaced the Company’s 2005 Stock Incentive Plan. Employees (including officers), consultants and directors of the Company and its subsidiaries and affiliates are eligible to participate in the 2009 Plan. The 2009 Plan provides for the grant of stock options (both nonstatutory and incentive stock options), stock grants, stock units and stock appreciation rights. Under the 2009 Plan, 1.9 million Shares were initially available for awards and as of May 25, 2014, 1.0 million options to purchase shares and restricted stock units (RSUs) were outstanding. On October 14, 2005, following stockholder approval at the Annual Meeting of Stockholders of the Company, the 2005 Stock Incentive Plan (“2005 Plan”) became effective. The 2005 Plan replaced the Company’s four then existing equity plans and no shares remain available for grant under those plans. Employees (including officers), consultants and directors of the Company and its subsidiaries and affiliates were eligible to participate in the 2005 Plan. The 2005 Plan provided for the grant of stock options (both nonstatutory and incentive stock options), stock grants, stock units and stock appreciation rights. Under the 2005 Plan, 861,038 Shares were initially available for awards, and as of May 25, 2014, 283,250 options to purchase shares were outstanding. The exercise price of the options was the fair market value of the Company’s Common Stock on the date the options were granted. The 1995 Directors’ Stock Option Plan (the “Directors’ Plan”) provided that each person who became a non- employee director of the Company, who had not received a previous grant, be granted a nonstatutory stock option to purchase 20,000 shares of Common Stock on the date on which the optionee first became a non-employee director of the Company. Thereafter, on the date of each annual meeting of the stockholders each non-employee director was granted an additional option to purchase 10,000 shares of Common Stock if, on such date, he or she had served on the Company’s Board of Directors for at least six months prior to the date of such annual meeting. The exercise price of the options was the fair market value of the Company’s Common Stock on the date the options were granted. Options granted under this plan were exercisable and vested upon grant. No shares remain available for grant under the Directors’ Plan. Activity under all Landec equity incentive plans is as follows: Stock-Based Compensation Activity
|  |  |  |  | Restricted Stock Outstanding |  |  | Stock Options Outstanding |
|  | RSUs and Options Available for Grant |  |  | Number of Restricted Shares |  |  | Weighted Average Grant Date Fair Value |  |  | Number of Stock Options |  |  | Weighted Average Exercise Price |
Balance at May 29, 2011 |  |  | 640,976 |  |  |  | 415,085 |  |  | $ | 5.96 |  |  |  | 2,318,753 |  |  | $ | 6.34 |
Granted |  |  | (191,333 | ) |  |  | 47,833 |  |  | $ | 6.67 |  |  |  | 143,500 |  |  | $ | 6.67 |
Awarded/Exercised |  |  | — |  |  |  | (111,252 | ) |  | $ | 6.36 |  |  |  | (371,727 | ) |  | $ | 5.40 |
Forfeited |  |  | — |  |  |  | (3,500 | ) |  | $ | 5.84 |  |  |  | (5,657 | ) |  | $ | 5.76 |
Plan shares expired |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (38,437 | ) |  | $ | 8.23 |
Balance at May 27, 2012 |  |  | 449,643 |  |  |  | 348,166 |  |  | $ | 5.93 |  |  |  | 2,046,432 |  |  | $ | 6.50 |
Granted |  |  | (26,666 | ) |  |  | 6,666 |  |  | $ | 9.01 |  |  |  | 20,000 |  |  | $ | 9.01 |
Awarded/Exercised |  |  | — |  |  |  | (231,086 | ) |  | $ | 5.74 |  |  |  | (671,563 | ) |  | $ | 6.30 |
Forfeited |  |  | — |  |  |  | (28,416 | ) |  | $ | 6.20 |  |  |  | (44,977 | ) |  | $ | 6.34 |
Plan shares expired |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (10,000 | ) |  | $ | 13.32 |
Balance at May 26, 2013 |  |  | 422,977 |  |  |  | 95,330 |  |  | $ | 6.52 |  |  |  | 1,339,892 |  |  | $ | 6.58 |
Additional shares reserved |  |  | 2,000,000 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Granted |  |  | (420,131 | ) |  |  | 128,631 |  |  | $ | 14.30 |  |  |  | 291,500 |  |  | $ | 14.30 |
Awarded/Exercised |  |  | — |  |  |  | (62,499 | ) |  | $ | 6.18 |  |  |  | (398,080 | ) |  | $ | 6.45 |
Forfeited |  |  | — |  |  |  | (12,162 | ) |  | $ | 8.86 |  |  |  | (12,452 | ) |  | $ | 6.66 |
Plan shares expired |  |  | (2,846 | ) |  |  | — |  |  |  | — |  |  |  | (5,000 | ) |  | $ | 13.32 |
Balance at May 25, 2014 |  |  | 2,000,000 |  |  |  | 149,300 |  |  | $ | 13.17 |  |  |  | 1,215,860 |  |  | $ | 8.45 |
Upon vesting of certain RSUs and the exercise of certain options during fiscal years 2014, 2013 and 2012, certain RSUs and exercised options were net share-settled to cover the required exercise price and withholding tax and the remaining amounts were converted into an equivalent number of shares of Common Stock. The Company withheld shares with value equivalent to the exercise price for options and the employees' minimum statutory obligation for the applicable income and other employment taxes, and remitted the cash to the appropriate taxing authorities. The total shares withheld for fiscal years 2014, 2013 and 2012 were 47,573, 145,159 and 326,954 RSUs and options, respectively, which was based on the value of the option and/or RSUs on their exercise or vesting date as determined by the Company's closing stock price. Total payments for the employees' tax obligations to the taxing authorities during fiscal years 2014 and 2013 were approximately $1.3 million and $49,000, respectively. These net-share settlements had the effect of share repurchases by the Company as they reduced and retired the number of shares that would have otherwise have been issued as a result of the vesting and did not represent an expense to the Company. The following table summarizes information concerning stock options outstanding and exercisable at May 25, 2014:
|  |  |  | Options Outstanding |  |  | Options Exercisable |
| Range of Exercise Prices |  |  | Number of Shares Outstanding |  |  | Weighted Average Remaining Contractual Life (in years) |  |  | Weighted Average Exercise Price |  |  | Aggregate Intrinsic Value |  |  | Number of Shares Exercisable |  |  | Weighted Average Exercise Price |  |  | Aggregate Intrinsic Value |
| $ |  | 5.63 | - | $5.63 |  |  |  | 287,219 |  |  |  | 3.01 |  |  | $ | 5.63 |  |  | $ | 1,832,457 |  |  |  | 287,219 |  |  | $ | 5.63 |  |  | $ | 1,832,457 |
| $ |  | 5.65 | - | $6.22 |  |  |  | 321,085 |  |  |  | 2.63 |  |  | $ | 6.15 |  |  | $ | 1,881,142 |  |  |  | 321,085 |  |  | $ | 6.15 |  |  | $ | 1,881,142 |
| $ |  | 6.35 | - | $7.50 |  |  |  | 230,056 |  |  |  | 2.63 |  |  | $ | 6.76 |  |  | $ | 1,207,945 |  |  |  | 214,612 |  |  | $ | 6.77 |  |  | $ | 1,125,386 |
| $ |  | 8.19 | - | $14.30 |  |  |  | 377,500 |  |  |  | 5.03 |  |  | $ | 13.58 |  |  | $ | 136,400 |  |  |  | 161,694 |  |  | $ | 12.94 |  |  | $ | 106,400 |
| $ |  | 5.63 | - | $14.30 |  |  |  | 1,215,860 |  |  |  | 3.46 |  |  | $ | 8.45 |  |  | $ | 5,057,944 |  |  |  | 984,610 |  |  | $ | 7.25 |  |  | $ | 4,945,385 |
At May 25, 2014 and May 26, 2013 options to purchase 984,610 and 1,262,934 shares of Landec’s Common Stock were vested, respectively and 231,250 and 76,958 were unvested, respectively. No options have been exercised prior to being vested. The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on the Company’s closing stock price of $12.01 on May 23, 2014, which would have been received by holders of stock options had all holders of stock options exercised their stock options that were in-the-money as of that date. The total number of in-the-money stock options exercisable as of May 25, 2014, was 852,916 shares. The aggregate intrinsic value of stock options exercised during the fiscal year 2014 was $2.3 million. Option Awards
|  | Outstanding Options |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contract Term (in years) |  |  | Aggregate Intrinsic Value |
Vested |  |  | 984,610 |  |  | $ | 7.25 |  |  |  | 2.88 |  |  | $ | 4,945,385 |
Expected to vest |  |  | 226,625 |  |  | $ | 13.56 |  |  |  | 5.93 |  |  |  | 110,308 |
Total |  |  | 1,211,235 |  |  | $ | 8.43 |  |  |  | 3.45 |  |  | $ | 5,055,693 |
As of May 25, 2014, there was $2.0 million of total unrecognized compensation expense related to unvested equity compensation awards granted under the Company’s incentive stock plans. Total expense is expected to be recognized over the weighted-average period of 1.9 years for both stock options and restricted stock awards. Stock Repurchase Plan On July 14, 2010, the Board of Directors of the Company approved the establishment of a stock repurchase plan which allows for the repurchase of up to $10 million of the Company’s Common Stock. The Company may repurchase its common stock from time to time in open market purchases or in privately negotiated transactions. The timing and actual number of shares repurchased is at the discretion of management of the Company and will depend on a variety of factors, including stock price, corporate and regulatory requirements, market conditions, the relative attractiveness of other capital deployment opportunities and other corporate priorities. The stock repurchase program does not obligate Landec to acquire any amount of its common stock and the program may be modified, suspended or terminated at any time at the Company's discretion without prior notice. During fiscal years 2014 and 2013, the Company did not purchase any shares on the open market. During fiscal year 2012, the Company purchased on the open market 917,244 shares of its Common Stock for $5.0 million and retired those shares.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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