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Note 9 - Business Segment Reporting | 3 Months Ended
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Aug. 27, 2017
Notes to Financial Statements |
Segment Reporting Disclosure [Text Block] |
9 . | Business Segment Reporting
The Company manages its business operations through three strategic business units and an Other segment. 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 Packa ged 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 fruit and vegetables, the majority of which incorporate the BreatheWay spec ialty packaging for the retail grocery, club store and food services industry. 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 predominantly 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. Other includes licensing and R&D activities from Landec’s Intelimer polymers for agricultural products, personal care products and other industrial products and from the operations of the O Olive business which was acquired on March 1, 2017. The Other segment also includes corporate 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 by geography are based on the billing address of the customer and were as follows (in millions):
|  | Three Months Ended |
|  | August 27, 2017 |  |  | August 28, 2016 |
Canada |  | $ | 18.1 |  |  | $ | 17.8 |
Taiwan |  | $ | 3.8 |  |  | $ | 13.7 |
Belgium |  | $ | 2.2 |  |  | $ | 5.3 |
China |  | $ | 0.2 |  |  | $ | 5.2 |
Indonesia |  | $ | 1.3 |  |  | $ | 1.5 |
Japan |  | $ | 1.6 |  |  | $ | 2.0 |
All Other Countries |  | $ | 2.0 |  |  | $ | 2.7 |
Operations by business segment consisted of the following (in thousands):
Three Months Ended August 27, 2017 |  | Packaged Fresh Vegetables |  |  | Food Export |  |  | Biomaterials |  |  | Other |  |  | Total |
Net sales |  | $ | 102,568 |  |  | $ | 7,576 |  |  | $ | 12,164 |  |  | $ | 1,049 |  |  | $ | 123,357 |
International sales |  | $ | 18,142 |  |  | $ | 7,576 |  |  | $ | 3,499 |  |  | $ | 32 |  |  | $ | 29,249 |
Gross profit |  | $ | 15,015 |  |  | $ | 484 |  |  | $ | 3,522 |  |  | $ | 265 |  |  | $ | 19,286 |
Net income (loss) |  | $ | 3,783 |  |  | $ | (158 | ) |  | $ | (155 | ) |  | $ | (1,324 | ) |  | $ | 2,146 |
Depreciation and amortization |  | $ | 1,972 |  |  | $ | — |  |  | $ | 865 |  |  | $ | 117 |  |  | $ | 2,954 |
Dividend income |  | $ | 413 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 413 |
Interest income |  | $ | 11 |  |  | $ | — |  |  | $ | — |  |  | $ | 20 |  |  | $ | 31 |
Interest expense , net |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 404 |  |  | $ | 404 |
Income tax expense (benefit) |  | $ | 1,096 |  |  | $ | (45 | ) |  | $ | (27 | ) |  | $ | 226 |  |  | $ | 1,250 |
Three Months Ended August 28, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales |  | $ | 95,945 |  |  | $ | 23,339 |  |  | $ | 12,332 |  |  | $ | 778 |  |  | $ | 132,394 |
International sales |  | $ | 17,844 |  |  | $ | 23,339 |  |  | $ | 7,042 |  |  | $ | — |  |  | $ | 48,225 |
Gross profit |  | $ | 14,406 |  |  | $ | 1,028 |  |  | $ | 5,122 |  |  | $ | 588 |  |  | $ | 21,144 |
Net income (loss) |  | $ | 2,323 |  |  | $ | 194 |  |  | $ | 1,243 |  |  | $ | (448 | ) |  | $ | 3,312 |
Depreciation and amortization |  | $ | 1,820 |  |  | $ | 1 |  |  | $ | 712 |  |  | $ | 17 |  |  | $ | 2,550 |
Dividend income |  | $ | 413 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 413 |
Interest income |  | $ | 4 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 4 |
Interest expense , net |  | $ | 550 |  |  | $ | — |  |  | $ | 103 |  |  | $ | — |  |  | $ | 653 |
Income tax expense |  | $ | 655 |  |  | $ | 55 |  |  | $ | 350 |  |  | $ | 829 |  |  | $ | 1,889 |
During both the three months ended August 27, 2017 and August 28, 2016, sales to the Company’s top five customers accounted for 47% of sales. The Company’s top two customers, Costco Wholesale Corporation and Wal-Mart Stores, Inc., from the Packaged Fresh Vegetables segment, both accounted for 18% of revenues for the three months ended August 27, 2017 , and 17% and 13% respectively, for the three months ended August 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 revenues .

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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 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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