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Note 11 - Business Segment Reporting
 9 Months Ended
Mar. 01, 2015
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
1
1
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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 retail grocery, club store and food services industries. 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. 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. 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
  
   
March 1,
    
February 23,
    
March 1,
    
February 23,
  
   
2015
    
2014
    
2015
    
2014
  
Canada
   $ 21.6     $ 12.1     $ 56.8     $ 31.8  
Taiwan
   $ 2.2     $ 2.6     $ 27.8     $ 27.2  
Indonesia
   $ 1.6     $ 2.2     $ 8.1     $ 7.1  
China   $ 0.4     $ 1.3     $ 7.7     $ 6.6  
Japan
   $ 1.1     $ 1.8     $ 6.2     $ 7.1  
Belgium
   $ 5.7     $ 11.1     $ 5.8     $ 13.1  
All Other Countries
   $ 5.3     $ 2.2     $ 13.5     $ 12.3  
 
Operations by segment consisted of the following (in thousands):
 
Three Months Ended March 1, 2015
  
Food Products Technology
    
Food Export
    
HA-based Biomaterials
    
Corporate
   
TOTAL
  
Net sales
   $ 115,392     $ 8,199     $ 14,799     $ 140     $ 138,530  
International sales
   $ 21,423     $ 8,086     $ 8,394     $ —     $ 37,903  
Gross profit
   $ 9,735     $ 771     $ 6,258     $ 121     $ 16,885  
Net income (loss)
   $ 2,949     $ (6 )   $ 3,047     $ (2,218 )   $ 3,772  
Depreciation and amortization
   $ 1,232     $ 1     $ 568     $ 33     $ 1,834  
Dividend income
   $ 413     $ —     $ —     $ —     $ 413  
Interest income
   $ 5     $ —     $ 73     $ 7     $ 85  
Interest expense
   $ 467     $ —     $ 43     $ —     $ 510  
Income tax expense
  $ 323     $ —     $ 496     $ 1,505     $ 2,324  
                                         
Three Months Ended February 23, 2014
                                        
Net sales
   $ 95,431     $ 10,676     $ 20,176     $ 96     $ 126,379  
International sales
   $ 12,013     $ 10,676     $ 10,613     $ —     $ 33,302  
Gross profit
   $ 7,282     $ 990     $ 11,787     $ 96     $ 20,155  
Net income (loss)
   $ 131     $ 206     $ 7,192     $ (1,129 )   $ 6,400  
Depreciation and amortization
   $ 1,040     $ 1     $ 504     $ 32     $ 1,577  
Dividend income
   $ 281     $ —     $ —     $ —     $ 281  
Interest income
   $ 3     $ —     $ 74     $ 1     $ 78  
Interest expense
   $ 332     $ —     $ 58     $ —     $ 390  
Income tax expense
  $ 468     $ 58     $ 2,028     $ 1,125     $ 3,679  
                                         
Nine Months Ended March 1, 2015
                                        
Net sales
   $ 317,577     $ 56,902     $ 29,928     $ 402     $ 404,809  
International sales
   $ 57,334     $ 56,779     $ 11,762     $ —     $ 125,875  
Gross profit
   $ 32,739     $ 3,507     $ 10,110     $ 382     $ 46,738  
Net income (loss)
   $ 10,239     $ 847     $ 1,493     $ (3,231 )   $ 9,348  
Depreciation and amortization
   $ 3,479     $ 3     $ 1,600     $ 95     $ 5,177  
Dividend income
   $ 1,015     $ —     $ —     $ —     $ 1,015  
Interest income
   $ 31     $ —     $ 211     $ 27     $ 269  
Interest expense
   $ 1,230     $ —     $ 135     $ —     $ 1,365  
Income tax expense
  $ 1,633     $ 139     $ 243     $ 3,394     $ 5,409  
                                         
Nine Months Ended February 23, 2014
                                        
Net sales
   $ 262,957     $ 55,106     $ 37,539     $ 282     $ 355,884  
International sales
   $ 31,836     $ 55,005     $ 18,356     $ —     $ 105,197  
Gross profit
   $ 24,383     $ 4,015     $ 17,800     $ 223     $ 46,421  
Net income (loss)
   $ 9,402     $ 1,209     $ 7,427     $ (3,435 )   $ 14,603  
Depreciation and amortization
   $ 3,566     $ 3     $ 1,692     $ 103     $ 5,364  
Dividend income
   $ 844     $ —     $ —     $ —     $ 844  
Interest income
   $ 8     $ —     $ 174     $ 1     $ 183  
Interest expense
   $ 1,064     $ —     $ 193     $ —     $ 1,257  
Income tax expense
  $ 2,434     $ 341     $ 2,094     $ 3,159     $ 8,028  
 
During the nine months ended March 1, 2015 and February 23, 2014, sales to the Company’s top five customers accounted for 45% and 43%, respectively, of revenues. The Company’s top two customers, Costco Wholesale Corporation and Wal-Mart Stores, Inc., from the Food Products Technology segment accounted for 21% and 11% of revenues, respectively, for the nine months ended March 1, 2015 and 20% and 12% of revenues, respectively, for the nine months ended
February 23, 2014. 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.