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

9 Months Ended

Feb. 23, 2020

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)			February 23, 2020						May 26, 2019						February 24, 2019						May 27, 2018
Cash and cash equivalents			$	2,607					$	1,080					$	1,722					$	2,899
Restricted cash			193						385						385						325
Cash, discontinued operations			—						—						—						(8)
Cash, cash equivalents and restricted cash			$	2,800					$	1,465					$	2,107					$	3,216

Schedule of Inventories

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

(In thousands)			February 23, 2020						May 26, 2019
Raw materials			$	29,893					$	23,195
Work in progress			4,343						4,189
Finished goods			32,823						26,748
Total			$	67,059					$	54,132

Accumulated Other 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			(896)
Accumulated OCI, net, as of February 23, 2020			$	(832)

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 February 23, 2020						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 February 23, 2020						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 February 23, 2020
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 and nonrecurring basis:

(In thousands)			Fair Value at February 23, 2020																														Fair Value at May 26, 2019
Assets:			Level 1						Level 2						Level 3						Level 1						Level 2						Level 3
Interest rate swap contracts			$	—					$	58					$	—					$	—					$	644					$	—
Assets held for sale - nonrecurring			—						—						2,607						—						—						—
Investment in non-public company			—						—						61,300						—						—						61,100
Total assets			$	—					$	58					$	63,907					$	—					$	644					$	61,100
Liabilities:
Interest rate swap contracts			$	—					$	1,145					$	—					$	—					$	482					$	—
Contingent consideration liability			—						—						—						—						—						500
Total liabilities			$	—					$	1,145					$	—					$	—					$	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 nine months ended February 23, 2020:

(In thousands)			Windset Investment						Contingent Consideration Liability
Balance as of May 26, 2019			$	61,100					$	500
Fair value change			200						(500)
Balance as of February 23, 2020			$	61,300					$	—

Disaggregation of Revenue

The following tables disaggregate segment revenue by major product lines:

(In thousands)			Three Months Ended																		Nine Months Ended
Curation Foods:			February 23, 2020						February 24, 2019						February 23, 2020						February 24, 2019
Salads			$	50,402					$	49,387					$	149,819					$	140,417
Core vegetables			61,050						68,071						174,684						195,203
Emerging brands			16,030						14,394						49,403						17,394
Total			$	127,482					$	131,852					$	373,906					$	353,014

			Three Months Ended																		Nine Months Ended
Lifecore:			February 23, 2020						February 24, 2019						February 23, 2020						February 24, 2019
Aseptic			$	6,802					$	7,432					$	22,242					$	21,326
Fermentation			11,442						11,450						17,211						16,436
Development services			7,202						4,820						20,876						14,003
Total			$	25,446					$	23,702					$	60,329					$	51,765

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