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Note 9 - Business Segment Reporting | 9 Months Ended
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Feb. 25, 2018
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 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 fruit and vegetables, the majority of which incorporate the BreatheWay specialty packaging for the retail grocery, club st ore 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 |  |  | Nine Months Ended |
|  | February 25, 2018 |  |  | February 26, 2017 |  |  | February 25, 2018 |  |  | February 26, 2017 |
Canada |  | $ | 20.3 |  |  | $ | 16.6 |  |  | $ | 56.0 |  |  | $ | 50.6 |
Taiwan |  | $ | 1.4 |  |  | $ | 3.0 |  |  | $ | 12.7 |  |  | $ | 27.9 |
Belgium |  | $ | 11.5 |  |  | $ | 12.9 |  |  | $ | 14.3 |  |  | $ | 19.8 |
Ja pan |  | $ | 1.6 |  |  | $ | 1.3 |  |  | $ | 4.8 |  |  | $ | 11.8 |
Indonesia |  | $ | 0.2 |  |  | $ | 1.5 |  |  | $ | 4.0 |  |  | $ | 6.6 |
Philippines |  | $ | 0.5 |  |  | $ | 0.6 |  |  | $ | 1.5 |  |  | $ | 6.2 |
China |  | $ | 0.3 |  |  | $ | 0.4 |  |  | $ | 1.6 |  |  | $ | 1.9 |
Al l Other Countries |  | $ | 2.1 |  |  | $ | 2.8 |  |  | $ | 6.7 |  |  | $ | 8.5 |
Operations by business segment consisted of the following (in thousands):
Three Months Ended February 25, 2018 |  | Packaged Fresh Vegetables |  |  | Food Export |  |  | Biomaterials |  |  | Other |  |  | Total |
Net sales |  | $ | 120,942 |  |  | $ | 4,414 |  |  | $ | 22,959 |  |  | $ | 1,008 |  |  | $ | 149,323 |
International sales |  | $ | 20,285 |  |  | $ | 4,414 |  |  | $ | 13,156 |  |  | $ | 51 |  |  | $ | 37,906 |
Gross profit |  | $ | 7,944 |  |  | $ | 318 |  |  | $ | 11,609 |  |  | $ | 257 |  |  | $ | 20,128 |
Net (loss) income |  | $ | (2,545 | ) |  | $ | (216 | ) |  | $ | 6,175 |  |  | $ | 12,674 |  |  | $ | 16,088 |
Depreciation and amortization |  | $ | 2,120 |  |  | $ | — |  |  | $ | 940 |  |  | $ | 82 |  |  | $ | 3,142 |
Dividend income |  | $ | 413 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 413 |
Interest income |  | $ | 32 |  |  | $ | — |  |  | $ | — |  |  | $ | 55 |  |  | $ | 87 |
Interest expense , net |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 531 |  |  | $ | 531 |
Income tax (benefit) expense |  | $ | (630 | ) |  | $ | (61 | ) |  | $ | 1,763 |  |  | $ | (13,981 | ) |  | $ | (12,909 | )
Three Months Ended February 26, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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 (loss) income |  | $ | (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 (benefit) expense, net |  | $ | (77 | ) |  | $ | — |  |  | $ | — |  |  | $ | 477 |  |  | $ | 400 |
Income tax (benefit) expense |  | $ | (594 | ) |  | $ | (33 | ) |  | $ | 2,031 |  |  | $ | 152 |  |  | $ | 1,556 |
Nine Months Ended February 25, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales |  | $ | 330,662 |  |  | $ | 25,982 |  |  | $ | 49,236 |  |  | $ | 3,257 |  |  | $ | 409,137 |
International sales |  | $ | 56,135 |  |  | $ | 25,982 |  |  | $ | 19,330 |  |  | $ | 124 |  |  | $ | 101,571 |
Gross profit |  | $ | 32,404 |  |  | $ | 1,628 |  |  | $ | 20,348 |  |  | $ | 786 |  |  | $ | 55,166 |
Net income (loss) |  | $ | 968 |  |  | $ | (264 | ) |  | $ | 7,280 |  |  | $ | 10,737 |  |  | $ | 18,721 |
Depreciation and amortization |  | $ | 6,050 |  |  | $ | — |  |  | $ | 2,715 |  |  | $ | 311 |  |  | $ | 9,076 |
Dividend income |  | $ | 1,238 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,238 |  |  | $ | 1,238 |
Interest income |  | $ | 61 |  |  | $ | — |  |  | $ | — |  |  | $ | 100 |  |  | $ | 161 |
Interest expense , net |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,415 |  |  | $ | 1,415 |
Income tax expense (benefit) |  | $ | 372 |  |  | $ | (75 | ) |  | $ | 2,110 |  |  | $ | (13,858 | ) |  | $ | (11,451 | )
Nine Months 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 (loss) income |  | $ | (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 (benefit) expense |  | $ | (81 | ) |  | $ | 229 |  |  | $ | 2,769 |  |  | $ | 1,221 |  |  | $ | 4,138 |
During the nine months ended February 25, 2018 and February 26, 2017, sales to the Company’s top five customers accounted for 46% and 43%, 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 18% and 17% of revenues, respectively, for the nine months ended February 25, 2018 , and 17% and 14% respectively, for the nine months ended February 26, 2017. 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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