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Note 10 - Business Segment Reporting
 3 Months Ended
Aug. 30, 2015
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
1
0
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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 Packaged Fresh Vegetables (formerly known as Food Products Technology) segment, the Food Export segment and the Biomaterials (formerly known as HA-based Biomaterials) segment.
 
The Packaged Fresh Vegetables segment markets and packs specialty packaged whole and fresh-cut vegetables, the majority of which incorporate the BreatheWay specialty packaging for retail grocery, club store and food services industries. In addition, the Packaged Fresh Vegetables 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 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, and non-HA products for medical use primarily in the Ophthalmic, Orthopedic and Veterinary/Other 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-Packaged Fresh Vegetables and non-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
  
   
August 30, 2015
    
August 31, 2014
  
Canada
   $ 20.7     $ 17.7  
Taiwan
   $ 13.0     $ 16.2  
China
   $ 4.0     $ 4.4  
Japan
   $ 2.0     $ 2.8  
Indonesia
   $ 1.5     $ 1.6  
Belgium
   $ 0.8     $ —  
All Other Countries
   $ 4.3     $ 3.7  
 
Operations and identifiable assets by business segment consisted of the following (in thousands):
 
   
Packaged Fresh Vegetables
    
Food Export
    
Biomaterials
    
Corporate
    
Total
  
Three Months Ended August 30, 2015
                                        
Net sales
   $ 103,706     $ 22,344     $ 8,798     $ 507     $ 135,355  
International sales
   $ 20,805     $ 22,344     $ 3,127     $ —     $ 46,276  
Gross profit
   $ 13,252     $ 1,003     $ 3,215     $ 507     $ 17,977  
Net income (loss)
   $ 3,260     $ 101     $ 67     $ (476 )   $ 2,952  
Depreciation and amortization
   $ 1,567     $ 1     $ 605     $ 38     $ 2,211  
Dividend Income
   $ 413     $ —     $ —     $ —     $ 413  
Interest income
   $ 6     $ —     $ 25     $ —     $ 31  
Interest expense
   $ 467     $ —     $ 35     $ —     $ 502  
Income tax expense
   $ 921     $ 28     $ 19     $ 723     $ 1,691  
                                         
Three Months Ended August 31, 2014
                                        
Net sales
   $ 100,106     $ 26,597     $ 6,811     $ 100     $ 133,614  
International sales
   $ 18,151     $ 26,587     $ 1,634     $ —     $ 46,372  
Gross profit
   $ 11,854     $ 1,186     $ 1,048     $ 100     $ 14,188  
Net income (loss)
   $ 3,646     $ 271     $ (1,542 )   $ (22 )   $ 2,353  
Depreciation and amortization
   $ 1,010     $ 1     $ 471     $ 31     $ 1,513  
Dividend Income
   $ 281     $ —     $ —     $ —     $ 281  
Interest income
   $ 11     $ —     $ 71     $ 11     $ 93  
Interest expense
   $ 338     $ —     $ 45     $ —     $ 383  
Income tax expense (benefit)
  $ 870     $ 44     $ (251 )   $ 638     $ 1,301  
 
During the three months ended August 30, 2015 and August 31, 2014, sales to the Company’s top five customers accounted for 47% and 46%, respectively, of revenues. The Company’s top two customers, Costco Wholesale Corporation and Wal-Mart Stores, Inc., from the Packaged Fresh Vegetables segment accounted for 20% and 11% of revenues, respectively, for both the three months ended August 30, 2015 and August 31, 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.