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Business Segment Reporting | 12 Months Ended
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May 26, 2019
Segment Reporting [Abstract] |
Business Segment Reporting | Business Segment Reporting Prior to May 2018, the Company managed its business operations through three strategic reportable business segments: Packaged Fresh Vegetables, Food Export, and Biomaterials. These segments were based upon the information reported to the Chief Executive Officer, who is the chief operating decision maker (“CODM”). However, in May 2018, the Company discontinued its Food Export business segment. As a result, the Company met the requirements of ASC 205-20 and ASC 360 to report the results of the Food Export business segment as discontinued operations. The operating results for the Food Export business segment, for the twelve months ended May 27, 2018 and May 28, 2017, have been reclassified to discontinued operations and are no longer reported as a separate segment. Beginning in fiscal year 2019, the Company realigned the management of its business and started using three strategic reportable business segments: the Curation Foods segment, the Lifecore segment, and the Other segment (previously known as Natural Foods, Biomaterials, and Other segments until the third quarter of fiscal 2019 when the Company completed the rebranding of its natural food business by announcing the new name Curation Foods. See Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies for more information). The Company decided to discontinue its Now Planting business during the fourth quarter of fiscal year 2019. As a result, the operating results for the Now Planting business are presented as a discontinued operations in the Company's accompanying Consolidated Financial Statements and the financial results for fiscal years 2019 have been reclassified to present the Now Planting business as a discontinued operation. Curation Foods business includes (i) four natural food brands, including the Company’s two existing brands, Eat Smart and O Olive Oil & Vinegar, as well as two new brands, Yucatan and Cabo Fresh acquired by the Company through the acquisition of Yucatan Foods during the third quarter of fiscal 2019 (see the Note 2 - Acquisitions for more details on this transaction), and (ii) BreatheWay® activities. The Curation Foods segment includes activities to market and pack specialty packaged whole and fresh-cut fruit and vegetables, the majority of which incorporate the BreatheWay specialty packaging for the retail grocery, club store and food services industry and are sold primarily under the Eat Smart brand and various private labels. The Curation Foods segment also includes sales of BreatheWay packaging to partners for fruit and vegetable products, sales of olive oils and wine vinegars under the O brand, and sales of avocado products under the recently acquired brands Yucatan and Cabo Fresh. The Lifecore 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. The Other segment includes corporate general and administrative expenses, non-Curation Foods and non-Lifecore interest income and income tax expenses. All of the Company's assets are located within the United States of America except for the production facility in Mexico, which was acquired by the Company as a result of the Yucatan Foods acquisition. The following table presents our property and equipment, net by geographic region (in millions):
| Year Ended
Property and equipment, net | May 26, 2019 |  |  | May 27, 2018 |
United States | $ | 186.3 |  |  | $ | 159.6 |
Mexico | 13.7 |  |  | — |
Total property and equipment, net | $ | 200.0 |  |  | $ | 159.6 |
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 26, 2019 |  | May 27, 2018 |  | May 28, 2017
Canada | $ | 83.6 |  |  | $ | 78.0 |  |  | $ | 69.3 |
Belgium | $ | 15.1 |  |  | $ | 17.2 |  |  | $ | 21.0 |
Ireland | $ | 5.0 |  |  | $ | 4.1 |  |  | $ | 4.0 |
All Other Countries | $ | 5.1 |  |  | $ | 3.6 |  |  | $ | 4.6 |
Operations by segment consisted of the following (in thousands):
Year Ended May 26, 2019 |  | Curation Foods (1) |  | Lifecore |  | Other (2) |  | Total
Net sales |  | $ | 481,686 |  |  | $ | 75,873 |  |  | $ | — |  |  | $ | 557,559 |
Gross profit |  | 49,305 |  |  | 31,698 |  |  | — |  |  | 81,003 |
Net income (loss) from continuing operations |  | (6,229 | ) |  | 12,070 |  |  | (3,719 | ) |  | 2,122 |
Identifiable assets |  | 367,352 |  |  | 145,558 |  |  | 6,181 |  |  | 519,091 |
Depreciation and amortization |  | 10,360 |  |  | 4,140 |  |  | 730 |  |  | 15,230 |
Capital expenditures |  | 30,583 |  |  | 12,965 |  |  | 1,186 |  |  | 44,734 |
Dividend income |  | 1,650 |  |  | — |  |  | — |  |  | 1,650 |
Interest income |  | 112 |  |  | — |  |  | 33 |  |  | 145 |
Interest expense, net |  | 3,278 |  |  | — |  |  | 1,952 |  |  | 5,230 |
Income tax (benefit) expense |  | (1,373 | ) |  | 4,024 |  |  | (1,133 | ) |  | 1,518 |
Year Ended May 27, 2018 |  |  |  |  |  |  |  |
Net sales |  | $ | 458,800 |  |  | $ | 65,427 |  |  | $ | — |  |  | $ | 524,227 |
Gross profit |  | 49,770 |  |  | 28,568 |  |  | — |  |  | 78,338 |
Net income (loss) from continuing operations |  | 17,010 |  |  | 11,631 |  |  | (2,880 | ) |  | 25,761 |
Identifiable assets (3) |  | 264,067 |  |  | 129,342 |  |  | 11,294 |  |  | 404,703 |
Depreciation and amortization |  | 8,196 |  |  | 3,679 |  |  | 537 |  |  | 12,412 |
Capital expenditures |  | 13,052 |  |  | 16,454 |  |  | 4,084 |  |  | 33,590 |
Dividend income |  | 1,650 |  |  | — |  |  | — |  |  | 1,650 |
Interest income |  | 93 |  |  | — |  |  | 118 |  |  | 211 |
Interest expense, net |  | 1,554 |  |  | — |  |  | 396 |  |  | 1,950 |
Income tax (benefit) expense |  | (9,748 | ) |  | 2,638 |  |  | (2,253 | ) |  | (9,363 | )
Year Ended May 28, 2017 |  |  |  |  |  |  |  |
Net sales |  | $ | 410,384 |  |  | $ | 59,392 |  |  | $ | — |  |  | $ | 469,776 |
Gross profit |  | 52,457 |  |  | 26,755 |  |  | — |  |  | 79,212 |
Net income (loss) from continuing operations |  | 2,410 |  |  | 10,228 |  |  | (2,503 | ) |  | 10,135 |
Identifiable assets (3) |  | 219,739 |  |  | 104,492 |  |  | 34,377 |  |  | 358,608 |
Depreciation and amortization |  | 7,312 |  |  | 3,054 |  |  | 311 |  |  | 10,677 |
Capital expenditures |  | 11,476 |  |  | 11,169 |  |  | 358 |  |  | 23,003 |
Dividend income |  | 1,650 |  |  | — |  |  | — |  |  | 1,650 |
Interest income |  | 16 |  |  | — |  |  | — |  |  | 16 |
Interest expense, net |  | 674 |  |  | 13 |  |  | 1,139 |  |  | 1,826 |
Income tax expense |  | 823 |  |  | 2,938 |  |  | 279 |  |  | 4,040 |
(1) The Curation segment operating results for the year ended May 26, 2019 reflect the reclassification of the Now Planting brand to discontinued operations. (2) The Other segment operating results for the year ended May 26, 2019, May 27, 2018, and May 28, 2017 have been restated to reflect the reclassification of the Now Planting brand and the Food Export segment to discontinued operations, and the reclassification of O operating results from the Other segment to the Curation Foods segment. (3) Assets of discontinued operations are included in Other for the years ended May 27, 2018 and May 28, 2017.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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