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Business Segment Reporting | 9 Months Ended
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Feb. 27, 2022
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 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 Curation Foods business includes (i) three natural food brands, including O Olive Oil & Vinegar, Yucatan Foods, and Cabo Fresh, and (ii) BreatheWay® activities. The Curation Foods segment 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 brands Yucatan Foods and Cabo Fresh. In December 2021, the Company completed the Eat Smart Disposition. As a result, the Company met the requirements of ASC 205-20 to report the results of the Eat Smart business as discontinued operations. The operating results for the Eat Smart business, in all periods presented, have been reclassified to discontinued operations and are no longer reported in the Curation Foods business segment. See Note 1 – Organization, Basis of Presentation, and Summary of Significant Accounting Policies – Eat Smart Sale and Discontinued Operations for further discussion. The Other segment includes corporate general and administrative expenses, non-Curation Foods and non-Lifecore interest expense, 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 its Yucatan production facility in Mexico. The Company’s international sales by geography are based on the billing address of the customer and were as follows, excluding discontinued operations:
| Three Months Ended |  | Nine Months Ended |  |
(In millions) | February 27, 2022 |  | February 28, 2021 |  | February 27, 2022 |  | February 28, 2021 |  |  |  |
Switzerland | $ | 8.2 |  |  | $ | 1.6 |  |  | $ | 13.6 |  |  | $ | 2.4 |  |  |  |  |
Canada | 3.0 |  |  | 2.7 |  |  | 9.5 |  |  | 8.3 |  |  |  |  |
Belgium | — |  |  | 6.0 |  |  | — |  |  | 12.6 |  |  |  |  |
All Other Countries | 3.7 |  |  | 3.9 |  |  | 3.2 |  |  | 3.2 |  |  |  |  |
Operations by business segment consisted of the following:
(In thousands) | Lifecore |  | Curation Foods |  | Other |  | Total
Three Months Ended February 27, 2022 |  |  |  |  |  |  |
Net sales | $ | 34,808 |  |  | $ | 18,266 |  |  | $ | — |  |  | $ | 53,074 |
Gross profit | 12,905 |  |  | 990 |  |  | — |  |  | 13,895 |
Net (loss) income from continuing operations | 5,054 |  |  | (5,848) |  |  | (6,312) |  |  | (7,106) |
Loss from discontinued operations, net of tax | — |  |  | (2,703) |  |  | (3,041) |  |  | (5,744) |
Depreciation and amortization | 1,674 |  |  | 1,142 |  |  | 18 |  |  | 2,834 |
Interest income | 18 |  |  | — |  |  | 2 |  |  | 20 |
Interest expense | — |  |  | 26 |  |  | 4,079 |  |  | 4,105 |
Income tax (benefit) expense | 1,596 |  |  | (1,867) |  |  | (5) |  |  | (276) |
Corporate overhead allocation | 1,175 |  |  | 289 |  |  | (1,464) |  |  | — |
Nine Months Ended February 27, 2022 |  |  |  |  |  |  |
Net sales | $ | 81,707 |  |  | $ | 56,451 |  |  | $ | — |  |  | $ | 138,158 |
Gross profit | 30,384 |  |  | 8,661 |  |  | — |  |  | 39,045 |
Net (loss) income from continuing operations | 11,317 |  |  | 5,513 |  |  | (27,340) |  |  | (10,510) |
Loss from discontinued operations, net of tax | — |  |  | (47,217) |  |  | (3,041) |  |  | (50,258) |
Depreciation and amortization | 4,894 |  |  | 3,095 |  |  | 70 |  |  | 8,059 |
Interest income | 56 |  |  | — |  |  | 10 |  |  | 66 |
Interest expense | — |  |  | 301 |  |  | 13,576 |  |  | 13,877 |
Income tax (benefit) expense | 3,574 |  |  | (12,843) |  |  | 4,257 |  |  | (5,012) |
Corporate overhead allocation | 3,389 |  |  | 778 |  |  | (4,167) |  |  | — |
Three Months Ended February 28, 2021 |  |  |  |  |  |  |
Net sales | $ | 27,225 |  |  | $ | 17,465 |  |  | $ | — |  |  | $ | 44,690 |
Gross profit | 11,561 |  |  | 2,880 |  |  | — |  |  | 14,441 |
Net (loss) income from continuing operations | 5,104 |  |  | (394) |  |  | (6,175) |  |  | (1,465) |
Loss from discontinued operations, net of tax | — |  |  | (4,033) |  |  | — |  |  | (4,033) |
Depreciation and amortization | 1,385 |  |  | 830 |  |  | 22 |  |  | 2,237 |
Interest income | — |  |  | — |  |  | 13 |  |  | 13 |
Interest expense | — |  |  | 136 |  |  | 2,803 |  |  | 2,939 |
Income tax (benefit) expense | 1,612 |  |  | (1,614) |  |  | (56) |  |  | (58) |
Corporate overhead allocation | 1,102 |  |  | 87 |  |  | (1,189) |  |  | — |
Nine Months Ended February 28, 2021 |  |  |  |  |  |  |
Net sales | $ | 72,248 |  |  | $ | 54,381 |  |  | $ | — |  |  | $ | 126,629 |
Gross profit | 27,036 |  |  | 8,854 |  |  | — |  |  | 35,890 |
Net (loss) income from continuing operations | 9,708 |  |  | (1,346) |  |  | (17,151) |  |  | (8,789) |
Loss from discontinued operations, net of tax | — |  |  | (21,010) |  |  | — |  |  | (21,010) |
Depreciation and amortization | 4,055 |  |  | 2,451 |  |  | 76 |  |  | 6,582 |
Interest income | — |  |  | — |  |  | 31 |  |  | 31 |
Interest expense | — |  |  | 410 |  |  | 6,199 |  |  | 6,609 |
Income tax (benefit) expense | 3,066 |  |  | (2,095) |  |  | (1,996) |  |  | (1,025) |
Corporate overhead allocation | 3,668 |  |  | 621 |  |  | (4,289) |  |  | — |
During the nine months ended February 27, 2022 and February 28, 2021, the Company had sales concentrations of 10% or greater from two customers. The Company’s top two customers, from the Lifecore segment, accounted for 17% and 13% of revenues for the nine months ended February 27, 2022, and 20% and 12%, respectively, for the nine months ended February 28, 2021. The Company’s same two customers had accounts receivable concentrations of 10% or greater, accounting for 25% and 19% of accounts receivable as of February 27, 2022, and 19% and 12% as of February 28, 2021.

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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