XML 34 R19.htm IDEA: XBRL DOCUMENT v3.20.2
Business Segment Reporting
 12 Months Ended
May 31, 2020
Segment Reporting [Abstract]  
Business Segment Reporting Business Segment Reporting
The Company operates using three strategic reportable business segments, aligned with how the Chief Executive Officer, who is the chief operating decision maker (“CODM”), manages the business: the Curation Foods segment, the Lifecore segment, and the Other segment.
The Curation Foods business includes (i) four natural food brands, including Eat Smart, O Olive Oil & Vinegar, Yucatan Foods, and Cabo Fresh, (ii) BreatheWay® activities, and (iii) activity related to our 26.9% investment in Windest. 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, sales of avocado products under the brands Yucatan Foods and Cabo Fresh, and activity related to our investment in Windset.
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. Corporate overhead is allocated between segments based on actual utilization and relative size.
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, netMay 31, 2020May 26, 2019
United States$179.1  $186.3  
Mexico13.2  13.7  
Total property and equipment, net$192.3  $200.0  
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 31, 2020May 26, 2019May 27, 2018
Canada$76.4  $83.6  $78.0  
Belgium$13.8  $15.1  $17.2  
Ireland$4.0  $5.0  $4.1  
All Other Countries$7.8  $5.1  $3.6  
Operations by segment consisted of the following (in thousands): 
Year Ended May 31, 2020Curation FoodsLifecoreOtherTotal
Product sales$504,533  $85,833  $—  $590,366  
Gross profit42,105  32,883  —  74,988  
Net income (loss) from continuing operations(39,088) 11,749  (10,852) (38,191) 
Identifiable assets249,217  165,461  126,635  541,313  
Depreciation and amortization13,240  5,008  96  18,344  
Capital expenditures15,944  10,612  130  26,686  
Dividend income1,125  —  —  1,125  
Interest income37  —  66  103  
Interest expense, net5,504  —  4,099  9,603  
Income tax (benefit) expense(13,028) 3,346  (3,434) (13,116) 
Year Ended May 26, 2019    
Product sales$481,686  $75,873  $—  $557,559  
Gross profit49,305  31,698  —  81,003  
Net income (loss) from continuing operations(6,229) 12,070  (3,719) 2,122  
Identifiable assets367,352  145,558  6,181  519,091  
Depreciation and amortization10,360  4,140  730  15,230  
Capital expenditures30,583  12,965  1,186  44,734  
Dividend income1,650  —  —  1,650  
Interest income112  —  33  145  
Interest expense, net3,278  —  1,952  5,230  
Income tax (benefit) expense(1,373) 4,024  (1,133) 1,518  
Year Ended May 27, 2018    
Product sales$458,800  $65,427  $—  $524,227  
Gross profit49,770  28,568  —  78,338  
Net income (loss) from continuing operations17,010  11,631  (2,880) 25,761  
Identifiable assets264,067  129,342  11,294  404,703  
Depreciation and amortization8,196  3,679  537  12,412  
Capital expenditures13,052  16,454  4,084  33,590  
Dividend income1,650  —  —  1,650  
Interest income93  —  118  211  
Interest expense, net1,554  —  396  1,950  
Income tax (benefit) expense(9,748) 2,638  (2,253) (9,363)