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Note 11 - Business Segment Reporting | 9 Months Ended
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Feb. 26, 2017
Notes to Financial Statements |
Segment Reporting Disclosure [Text Block] |
1 1 . | 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 segment, the Food Export segment , and the 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 the retail grocery, club store , and food services industries. In addition, the Packaged Fresh Vegetables segment sells BreatheWay packaging to partners for fruit and vegetable products. The Food Export segment consists of revenues generated from the purchase and sale of primarily whole commodity fruit and vegetable products primarily to Asia. 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 other markets. Corporate licenses Landec’s Intelimer polymers for agricultural products, 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 26, 2017 |  |  | February 28, 2016 |  |  | February 26, 2017 |  |  | February 28, 2016 |
Canada |  | $ | 16.6 |  |  | $ | 20.3 |  |  | $ | 50.6 |  |  | $ | 60.6 |
Taiwan |  | $ | 3.0 |  |  | $ | 1.2 |  |  | $ | 27.9 |  |  | $ | 26.6 |
Belgium |  | $ | 12.9 |  |  | $ | 6.2 |  |  | $ | 19.8 |  |  | $ | 7.3 |
China |  | $ | 0.4 |  |  | $ | 0.3 |  |  | $ | 11.8 |  |  | $ | 7.6 |
Indonesia |  | $ | 1.5 |  |  | $ | 2.4 |  |  | $ | 6.6 |  |  | $ | 6.3 |
Japan |  | $ | 1.3 |  |  | $ | 1.0 |  |  | $ | 6.2 |  |  | $ | 4.6 |
Philippines |  | $ | 0.6 |  |  | $ | 0.5 |  |  | $ | 1.9 |  |  | $ | 2.1 |
All Other Countries |  | $ | 2.8 |  |  | $ | 3.4 |  |  | $ | 8.5 |  |  | $ | 10.5 |
Operations by business segment consisted of the following (in thousands):
Three Months Ended February 26, 2017 |  | Packaged Fresh Vegetables |  |  | Food Export |  |  | Biomaterials |  |  | Corporate |  |  | Total |
Net sales |  | $ | 105,447 |  |  | $ | 7,276 |  |  | $ | 23,532 |  |  | $ | 313 |  |  | $ | 136,568 |
International sales |  | $ | 16,802 |  |  | $ | 7,276 |  |  | $ | 15,024 |  |  | $ | — |  |  | $ | 39,102 |
Gross profit |  | $ | 10,114 |  |  | $ | 558 |  |  | $ | 12,581 |  |  | $ | 179 |  |  | $ | 23,432 |
Net income (loss) |  | $ | (2,492 | ) |  | $ | (116 | ) |  | $ | 7,135 |  |  | $ | (1,027 | ) |  | $ | 3,500 |
Depreciation and amortization |  | $ | 1,862 |  |  | $ | — |  |  | $ | 794 |  |  | $ | 61 |  |  | $ | 2,717 |
Dividend income |  | $ | 413 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 413 |
Interest income |  | $ | 8 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 8 |
Interest expense, net |  | $ | (77 | ) |  | $ | — |  |  | $ | — |  |  | $ | 477 |  |  | $ | 400 |
Income tax expense (benefit) |  | $ | (594 | ) |  | $ | (33 | ) |  | $ | 2,031 |  |  | $ | 152 |  |  | $ | 1,556 |
Three Mont hs Ended February 28, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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, net |  | $ | 427 |  |  | $ | — |  |  | $ | 57 |  |  | $ | — |  |  | $ | 484 |
Income tax expense (benefit) |  | $ | (905 | ) |  | $ | (189 | ) |  | $ | 973 |  |  | $ | (12,389 | ) |  | $ | (12,510 | )
Nine Month s Ended February 26, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales |  | $ | 299,370 |  |  | $ | 56,316 |  |  | $ | 47,795 |  |  | $ | 1,346 |  |  | $ | 404,827 |
International sales |  | $ | 51,073 |  |  | $ | 56,316 |  |  | $ | 25,896 |  |  | $ | — |  |  | $ | 133,285 |
Gross profit |  | $ | 36,522 |  |  | $ | 3,436 |  |  | $ | 22,640 |  |  | $ | 931 |  |  | $ | 63,529 |
Net income (loss) |  | $ | (419 | ) |  | $ | 812 |  |  | $ | 9,690 |  |  | $ | (1,945 | ) |  | $ | 8,138 |
Depreciation and amortization |  | $ | 5,474 |  |  | $ | 3 |  |  | $ | 2,225 |  |  | $ | 125 |  |  | $ | 7,827 |
Dividend income |  | $ | 1,238 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,238 |
Interest income |  | $ | 15 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 15 |
Interest expense, net |  | $ | 594 |  |  | $ | — |  |  | $ | 13 |  |  | $ | 825 |  |  | $ | 1,432 |
Income tax expense (benefit) |  | $ | (81 | ) |  | $ | 229 |  |  | $ | 2,769 |  |  | $ | 1,221 |  |  | $ | 4,138 |
Nine Months Ended February 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, net |  | $ | 1,304 |  |  | $ | — |  |  | $ | 121 |  |  | $ | — |  |  | $ | 1,425 |
Income tax expense (benefit) |  | $ | — |  |  | $ | — |  |  | $ | 1,385 |  |  | $ | (11,135 | ) |  | $ | (9,750 | )
During the nine months ended February 26, 2017 and February 28, 2016, sales to the Company’s top five customers accounted for 43% and 45%, respectively, of sales. The Company’s top two customers, Costco Wholesale Corporation and Wal-Mart Stores, Inc., from the Packaged Fresh Vegetables segment accounted for 17% and 14% of revenues, respectively, for the nine months ended February 26, 2017 , and 20% and 12% respectively, for the nine months ended February 28, 2016. The Company expects that, for the foreseeable future, a limited number of customers may continue to account for a significant portion of its net sales .

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
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