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Note 12 - Business Segment Reporting
 9 Months Ended
Feb. 28, 2016
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
12
.
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
    
Nine Months Ended
  
   
February 28,
    
March 1,
    
February 28,
    
March 1,
  
   
2016
    
2015
    
2016
    
2015
  
Canada
   $ 20.3     $ 21.6     $ 60.6     $ 56.7  
Taiwan
   $ 1.2     $ 2.2     $ 26.6     $ 27.8  
China
   $ 0.3     $ 0.4     $ 7.6     $ 7.6  
Indonesia
   $ 2.4     $ 1.6     $ 6.3     $ 8.2  
Japan
   $ 1.0     $ 1.1     $ 4.6     $ 6.3  
Philippines
   $ 0.5     $ 1.0     $ 2.1     $ 3.8  
Belgium
   $ 6.2     $ 5.7     $ 7.3     $ 5.8  
All Other Countries
   $ 3.4     $ 4.3     $ 10.5     $ 9.7  
 
Operations by segment consisted of the following (in thousands):
 
 
Three Months Ended Feb. 28, 2016
  
Packaged Fresh Vegetables
    
 
Food Export
    
 
Biomaterials
   
 
Corporate
   
 
TOTAL
  
Net sales
   $ 107,348     $ 6,389     $ 15,701     $ 552     $ 129,990  
International sales
   $ 20,343     $ 6,389     $ 8,576     $ —     $ 35,308  
Gross profit
   $ 4,334     $ 521     $ 7,618     $ 458     $ 12,931  
Net income (loss)
   $ (36,963 )   $ (27 )   $ 3,450     $ 12,350     $ (21,190 )
Depreciation and amortization
   $ 1,455     $ —     $ 656     $ 36     $ 2,147  
Dividend income
   $ 413     $ —     $ —     $ —     $ 413  
Interest income
   $ 17     $ —     $ —     $ —     $ 17  
Interest expense
   $ (427 )   $ —     $ (57 )   $ —     $ (484 )
Income tax benefit (expense)
  $ 905     $ 189     $ (973 )   $ 12,389     $ 12,510  
                                         
Three Months Ended March 1, 2015
                                        
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 )
                                         
Nine Months Ended Feb. 28, 2016
                                        
Net sales
   $ 318,218     $ 50,873     $ 34,748     $ 1,947     $ 405,786  
International sales
   $ 60,948     $ 50,873     $ 13,735     $ —     $ 125,556  
Gross profit
   $ 27,565     $ 3,200     $ 15,713     $ 1,695     $ 48,173  
Net income (loss)
   $ (34,361 )   $ 1,250     $ 4,911     $ 11,830     $ (16,370 )
Depreciation and amortization
   $ 4,470     $ 1     $ 1,902     $ 113     $ 6,486  
Dividend income
   $ 1,238     $ —     $ —     $ —     $ 1,238  
Interest income
   $ 39     $ —     $ 25     $ —     $ 64  
Interest expense
   $ (1,304 )   $ —     $ (121 )   $ —     $ (1,425 )
Income tax benefit (expense)
  $ —     $ —     $ (1,385 )   $ 11,135     $ 9,750  
                                         
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 )
 
During the nine months ended February 28, 2016 and March 1, 2015, sales to the Company’s top five customers accounted for 45% and 45%, 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 12% of revenues, respectively, for the nine months ended February 28, 2016 and 21% and 11% of revenues, respectively, for the nine months ended March 1, 2015. 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.