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Organization, Basis of Presentation, and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Nov. 24, 2019

Accounting Policies [Abstract]

Schedule of Cash and Cash Equivalents

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows:

(In thousands)	November 24, 2019				May 26, 2019				November 25, 2018				May 27, 2018
Cash and cash equivalents	$	1,594			$	1,080			$	1,514			$	2,899
Restricted cash	385				385				325				325
Cash, discontinued operations	—				—				—				(8		)
Cash, cash equivalents and restricted cash	$	1,979			$	1,465			$	1,839			$	3,216

Schedule of Inventory, Current

Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value and consist of the following:

(In thousands)	November 24, 2019				May 26, 2019
Raw materials	$	27,271			$	23,195
Work in progress	4,405				4,189
Finished goods	26,887				26,748
Total	$	58,563			$	54,132

Comprehensive Income (Loss)

The components of AOCI, net of tax, are as follows:

(In thousands)	AOCI
Accumulated OCI, net, as of May 26, 2019	$	64
Unrealized losses on interest rate swap contracts, net of tax effect	(485		)
Accumulated OCI, net, as of November 24, 2019	$	(421	)

Schedule of Effect of Significant Unobservable Inputs for Contingent Liability

In determining the fair value of the Company’s contingent consideration liability, the Company utilizes the following significant unobservable inputs in the discounted cash flow models:

	At November 24, 2019		At May 26, 2019
Cost of debt	5.1% to 5.5%		5.1% to 5.5%
Market price of risk adjustment	14%		14%
EBITDA volatility	28%		28%

Schedule of Effect of Significant Unobservable Inputs for Investment

In determining the fair value of the investment in Windset, the Company utilizes the following significant unobservable inputs in the discounted cash flow models:

	At November 24, 2019		At May 26, 2019
Revenue growth rates	6% to 7%		6%
Expense growth rates	5% to 7%		6%
Income tax rates	15%		15%
Discount rates	12%		12%

Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets

The discounted cash flow valuation model used by the Company has the following sensitivity to changes in inputs and assumptions:

(In thousands)	Impact on value of investment in Windset as of November 24, 2019
10% increase in revenue growth rates	$	5,400
10% increase in expense growth rates	$	(4,200	)
10% increase in income tax rates	$	(500	)
10% increase in discount rates	$	(3,600	)

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table summarizes the fair value of the Company’s assets and liabilities that are measured at fair value on a recurring basis:

(In thousands)	Fair Value at November 24, 2019												Fair Value at May 26, 2019
Assets:	Level 1				Level 2				Level 3				Level 1				Level 2				Level 3
Interest rate swap contracts	$	—			$	161			$	—			$	—			$	644			$	—
Investment in non-public company	—				—				61,300				—				—				61,100
Total assets	$	—			$	161			$	61,300			$	—			$	644			$	61,100
Liabilities:
Interest rate swap contracts	$	—			$	710			$	—			$	—			$	482			$	—
Contingent consideration liability	—				—				—				—				—				500
Total liabilities	$	—			$	710			$	—			$	—			$	482			$	500

Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table reflects the fair value roll forward reconciliation of Level 3 assets and liabilities measured at fair value for the six months ended November 24, 2019:

(In thousands)	Windset Investment				Contingent Consideration Liability
Balance as of May 26, 2019	$	61,100			$	500
Fair value change	200				(500		)
Balance as of November 24, 2019	$	61,300			$	—

Disaggregation of Revenue

The following tables disaggregate segment revenue by major product lines:

(In thousands)	Three Months Ended								Six Months Ended
Curation Foods:	November 24, 2019				November 25, 2018				November 24, 2019				November 25, 2018
Salads	$	48,156			$	41,950			$	99,417			$	91,030
Core vegetables	56,286				64,492				113,634				126,242
Emerging brands	15,309				2,669				33,373				3,890
Total	$	119,751			$	109,111			$	246,424			$	221,162

	Three Months Ended								Six Months Ended
Lifecore:	November 24, 2019				November 25, 2018				November 24, 2019				November 25, 2018
Aseptic	$	9,753			$	8,128			$	15,440			$	13,894
Fermentation	5,031				1,915				5,769				4,985
Development services	8,058				5,403				13,674				9,184
Total	$	22,842			$	15,446			$	34,883			$	28,063

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