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Note 10 - Business Segment Reporting
 6 Months Ended
Nov. 29, 2015
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
10
.
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
    
Six Months Ended
  
   
November 29,
    
November 30,
    
November 29,
    
November 30,
  
   
2015
    
2014
    
2015
    
2014
  
Canada
   $ 20.0     $ 17.5     $ 40.4     $ 35.2  
Taiwan
   $ 12.4     $ 9.4     $ 25.4     $ 25.6  
China
   $ 3.3     $ 2.9     $ 7.3     $ 7.3  
Indonesia
   $ 2.5     $ 4.9     $ 3.9     $ 6.5  
Japan
   $ 1.6     $ 2.3     $ 3.6     $ 5.1  
Philippines
   $ 0.6     $ 1.8     $ 1.5     $ 2.8  
Belgium
   $ 0.2     $ —     $ 1.0     $ —  
All Other Countries
   $ 3.4     $ 2.8     $ 7.1     $ 5.5  
 
Operations by segment consisted of the following (in thousands):
 
Three Months Ended Nov. 29, 2015
  
Packaged Fresh Vegetables
    
Food Export
    
Biomaterials
   
Corporate
   
TOTAL
  
Net sales
   $ 107,164     $ 22,140     $ 10,249     $ 888     $ 140,441  
International sales
   $ 19,800     $ 22,140     $ 2,032     $ —     $ 43,972  
Gross profit
   $ 9,979     $ 1,676     $ 4,881     $ 729     $ 17,265  
Net income (loss)
   $ (658 )   $ 1,176     $ 1,393     $ (43 )   $ 1,868  
Depreciation and amortization
   $ 1,448     $ —     $ 641     $ 39     $ 2,128  
Dividend income
   $ 413     $ —     $ —     $ —     $ 413  
Interest income
   $ 16     $ —     $ —     $ —     $ 16  
Interest expense
   $ 410     $ —     $ 29     $ —     $ 439  
Income tax expense
  $ (16 )   $ 161     $ 393     $ 531     $ 1,069  
                                         
Three Months Ended Nov. 30, 2014
                                        
Net sales
   $ 102,079     $ 22,106     $ 8,318     $ 162     $ 132,665  
International sales
   $ 17,760     $ 22,106     $ 1,734     $ —     $ 41,600  
Gross profit
   $ 11,151     $ 1,550     $ 2,804     $ 161     $ 15,666  
Net income (loss)
   $ 3,644     $ 582     $ (12 )   $ (991 )   $ 3,223  
Depreciation and amortization
   $ 1,237     $ 1     $ 561     $ 31     $ 1,830  
Dividend income
   $ 321     $ —     $ —     $ —     $ 321  
Interest income
   $ 15     $ —     $ 67     $ 9     $ 91  
Interest expense
   $ 425     $ —     $ 47     $ —     $ 472  
Income tax expense
  $ 440     $ 95     $ (2 )   $ 1,252     $ 1,785  
                                         
Six Months Ended Nov. 29, 2015
                                        
Net sales
   $ 210,870     $ 44,484     $ 19,047     $ 1,395     $ 275,796  
International sales
   $ 40,605     $ 44,484     $ 5,159     $ —     $ 90,248  
Gross profit
   $ 23,231     $ 2,679     $ 8,096     $ 1,236     $ 35,242  
Net income (loss)
   $ 2,602     $ 1,277     $ 1,461     $ (520 )   $ 4,820  
Depreciation and amortization
   $ 3,015     $ 1     $ 1,246     $ 77     $ 4,339  
Dividend income
   $ 825     $ —     $ —     $ —     $ 825  
Interest income
   $ 22     $ —     $ 25     $ —     $ 47  
Interest expense
   $ 877     $ —     $ 64     $ —     $ 941  
Income tax expense
  $ 905     $ 189     $ 412     $ 1,254     $ 2,760  
                                         
Six Months Ended Nov. 30, 2014
                                        
Net sales
   $ 202,185     $ 48,703     $ 15,129     $ 262     $ 266,279  
International sales
   $ 35,911     $ 48,693     $ 3,368     $ —     $ 87,972  
Gross profit
   $ 23,005     $ 2,736     $ 3,852     $ 261     $ 29,854  
Net income (loss)
   $ 7,290     $ 853     $ (1,554 )   $ (1,013 )   $ 5,576  
Depreciation and amortization
   $ 2,247     $ 2     $ 1,032     $ 62     $ 3,343  
Dividend income
   $ 602     $ —     $ —     $ —     $ 602  
Interest income
   $ 26     $ —     $ 138     $ 20     $ 184  
Interest expense
   $ 763     $ —     $ 92     $ —     $ 855  
Income tax expense
  $ 1,310     $ 139     $ (253 )   $ 1,890     $ 3,086  
 
During the six months ended November 29, 2015 and November 30, 2014, sales to the Company’s top five customers accounted for 45% and 44%, 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 19% and 11% of revenues, respectively, for the six months ended November 29, 2015 and 20% and 11% of revenues, respectively, for the six months ended November 30, 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.