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Property and Equipment | 12 Months Ended
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May 30, 2021
Property, Plant and Equipment [Abstract] |
Property and Equipment | Property and Equipment Property and equipment consists of the following (in thousands):
| Years of Useful Life |  | Year Ended
|  | May 30, 2021 |  | May 31, 2020
Land |  |  |  |  | $ | 15,027 |  |  | $ | 13,212 |
Buildings | 15 | - | 40 |  | 79,927 |  |  | 89,492 |
Leasehold improvements | 3 | - | 20 |  | 6,879 |  |  | 6,834 |
Computers, capitalized software, machinery, equipment and autos | 3 | - | 20 |  | 141,528 |  |  | 146,659 |
Furniture and fixtures | 3 | - | 7 |  | 2,914 |  |  | 2,603 |
Construction in process |  |  |  |  | 35,882 |  |  | 28,454 |
Gross property and equipment |  |  |  |  | 282,157 |  |  | 287,254 |
Less accumulated depreciation and amortization |  |  |  |  | (102,598) |  |  | (94,916) |
Property and equipment, net |  |  |  |  | $ | 179,559 |  |  | $ | 192,338 |
Depreciation and amortization expense for property and equipment for the fiscal years ended May 30, 2021, May 31, 2020 and May 26, 2019 was $16.0 million, $16.3 million and $13.1 million, respectively. Amortization related to finance leases, which is included in depreciation expense, was $0.1 million for each of the fiscal years ended May 30, 2021, May 31, 2020 and May 26, 2019, respectively. During fiscal years 2021, 2020 and 2019, the Company capitalized $1.0 million, $3.1 million, and $1.0 million in software development costs, respectively. Amortization related to capitalized software was $1.1 million, $0.8 million, and $0.9 million for fiscal years ended May 30, 2021, May 31, 2020 and May 26, 2019, respectively. The unamortized computer software costs as of May 30, 2021 and May 31, 2020 were $4.7 million and $5.0 million, respectively. Capitalized interest was $0.5 million, $1.2 million, and $0.7 million for fiscal years ended May 30, 2021, May 31, 2020 and May 26, 2019, respectively. As disclosed in Note 1, an impairment of property and equipment related to the O reporting unit of $1.3 million was recorded in Selling, general and administrative in the accompanying Consolidated Statements of Operations for the year ended May 31, 2020. Assets Held for Sale In June 2019, the Company designated the Santa Maria office as the Curation Foods headquarters, and decided to close and put up for sale the Curation Foods office in San Rafael, California. During the fiscal year ended May 31, 2020, the Company closed escrow on the San Rafael property and recognized a $0.4 million impairment loss, which is included in restructuring costs within the Consolidated Statements of Operations. The Company received net cash proceeds of $2.4 million in connection with the sale. In January 2020, the Company decided to seek to divest its Curation Foods salad dressing plant in Ontario, California. During the fiscal year ended May 31, 2020, the Company (1) designated the fixed assets of its office and manufacturing space located in Ontario, California, as assets held for sale, and (2) recognized a $10.9 million impairment loss, which is included in restructuring costs within the Consolidated Statements of Operations for the Curation Foods segment. The remaining net carrying value of $2.6 million is included in property and equipment, net within the Consolidated Balance Sheets as of May 31, 2020. Liabilities of $0.3 million and $2.9 million related to these assets are included in Current portion of lease liabilities and Long-term lease liabilities, respectively, within the Consolidated Balance Sheet as of May 31, 2020. In the first quarter of fiscal year 2021, the Company sold its interest in Ontario. The Company received net cash proceeds of $4.9 million in connection with the sale and recorded a gain of $2.8 million during the fiscal year ended May 30, 2021, which is included in restructuring costs within the Consolidated Statements of Operations. On June 25, 2020 the Board of Directors approved a plan to close Curation Foods’ underutilized manufacturing operations in Hanover, Pennsylvania (“Hanover”), sell the building and assets related thereto, and consolidate its operations into its manufacturing facilities in Guadalupe, California and Bowling Green, Ohio. The $17.2 million carrying value of these assets was included in property and equipment, net on the consolidated Balance Sheets as of May 31, 2020, and was not classified as assets held for sale as the plan to sell was not finalized until subsequent to fiscal year end 2020. In the first quarter of fiscal year 2021, the Company recognized an $8.8 million impairment loss, which is included in Restructuring costs within the Consolidated Statements of Operations. During the second quarter of fiscal year 2021, the Company sold the Hanover building and assets related thereto for net proceeds of $8.0 million, no gain or loss was recorded upon sale. In May 2021 the Board of Directors approved a plan to sell Curation Foods’ Rock Hill, South Carolina distribution facility. The $0.5 million carrying value of this asset is included in prepaid expenses and other current assets on the Consolidated Balance Sheets as of May 30, 2021, and was classified as an asset held for sale. There was no impairment recorded in fiscal year 2021. The asset was sold subsequent to fiscal year end on June 9, 2021 for gross proceeds of $1.1 million.

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- Definition The entire disclosure for long-lived, physical asset used in normal conduct of business and not intended for resale. Includes, but is not limited to, work of art, historical treasure, and similar asset classified as collections. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 360 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=120429125&loc=d3e99893-112916 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 360 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=120429125&loc=SL120174063-112916 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 360 -Section 50 -Paragraph 1 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120429125&loc=d3e99779-112916 + Details
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