11 .	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 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 from its acquisition date of

March 1, 2017

through Mary

28,

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):

	Year Ended
	May 28, 2017		May 29, 2016		May 31, 2015
Canada	$	69.3	$	80.6	$	79.7
Taiwan	$	30.0	$	32.3	$	32.1
Belgium	$	21.0	$	13.4	$	6.8
China	$	12.1	$	8.3	$	9.0
Indonesia	$	8.5	$	9.4	$	9.0
Japan	$	7.4	$	6.4	$	8.5
All Other Countries	$	13.0	$	17.0	$	18.4

Operations by segment consisted of the following (in thousands):

Year Ended May 28, 2017	Packaged Fresh Vegetables			Food Export		Biomaterials		Other			Total
Net sales	$	408,021		$	62,481	$	59,392	$	2,363		$	532,257
International sales	$	69,802		$	62,481	$	29,053	$	—		$	161,336
Gross profit	$	51,148		$	3,974	$	26,755	$	1,309		$	83,186
Net income (loss)	$	2,722		$	669	$	10,228	$	(3,029	)	$	10,590
Identifiable assets	$	211,381		$	27,087	$	104,492	$	15,648		$	358,608
Depreciation and amortization	$	7,312		$	—	$	3,054	$	311		$	10,677
Capital expenditures	$	12,150		$	—	$	9,902	$	540		$	22,592
Dividend income	$	1,650		$	—	$	—	$	—		$	1,650
Interest income	$	16		$	—	$	—	$	—		$	16
Interest expense, net	$	674		$	—	$	13	$	1,139		$	1,826
Income tax expense	$	823		$	189	$	2,938	$	385		$	4,335

Year Ended May 29, 2016
Net sales	$	423,859		$	64,181	$	50,470	$	2,589		$	541,099
International sales	$	81,242		$	64,181	$	21,993	$	—		$	167,416
Gross profit	$	40,479		$	4,176	$	24,081	$	2,221		$	70,957
Net income (loss)	$	(31,975	)	$	699	$	9,499	$	10,136		$	(11,641	)
Identifiable assets	$	212,524		$	29,124	$	98,986	$	2,019		$	342,653
Depreciation and amortization	$	6,648		$	1	$	2,606	$	140		$	9,395
Capital expenditures	$	26,892		$	—	$	13,975	$	—		$	40,867
Dividend income	$	1,650		$	—	$	—	$	—		$	1,650
Interest income	$	46		$	—	$	25	$	—		$	71
Interest expense, net	$	1,721		$	—	$	266	$	—		$	1,987
Income tax expense (benefit)	$	415		$	143	$	1,946	$	(9,908	)	$	(7,404	)

Year Ended May 31, 2015
Net sales	$	430,415		$	67,837	$	40,432	$	573		$	539,257
International sales	$	80,500		$	67,714	$	15,246	$	—		$	163,460
Gross profit	$	45,993		$	4,252	$	14,609	$	553		$	65,407
Net income (loss)	$	17,145		$	1,041	$	3,838	$	(8,480	)	$	13,544
Identifiable assets	$	228,672		$	27,746	$	85,779	$	4,268		$	346,465
Depreciation and amortization	$	4,766		$	6	$	2,184	$	134		$	7,090
Capital expenditures	$	12,895		$	—	$	4,499	$	117		$	17,511
Dividend income	$	1,417		$	—	$	—	$	—		$	1,417
Interest income	$	32		$	—	$	254	$	29		$	315
Interest expense, net	$	1,655		$	—	$	174	$	—		$	1,829
Income tax expense	$	792		$	48	$	177	$	6,729		$	7,746