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Business Segment Reporting
 9 Months Ended
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 EndedNine Months Ended
(In millions)February 27, 2022February 28, 2021February 27, 2022February 28, 2021
Switzerland$8.2 $1.6 $13.6 $2.4 
Canada3.0 2.7 9.5 8.3 
Belgium— 6.0 — 12.6 
All Other Countries3.7 3.9 3.2 3.2 
Operations by business segment consisted of the following:
(In thousands)LifecoreCuration FoodsOtherTotal
Three Months Ended February 27, 2022
Net sales$34,808 $18,266 $— $53,074 
Gross profit12,905 990 — 13,895 
Net (loss) income from continuing operations5,054 (5,848)(6,312)(7,106)
Loss from discontinued operations, net of tax— (2,703)(3,041)(5,744)
Depreciation and amortization1,674 1,142 18 2,834 
Interest income18 — 2 20 
Interest expense— 26 4,079 4,105 
Income tax (benefit) expense1,596 (1,867)(5)(276)
Corporate overhead allocation1,175 289 (1,464)— 
Nine Months Ended February 27, 2022
Net sales$81,707 $56,451 $— $138,158 
Gross profit30,384 8,661 — 39,045 
Net (loss) income from continuing operations11,317 5,513 (27,340)(10,510)
Loss from discontinued operations, net of tax— (47,217)(3,041)(50,258)
Depreciation and amortization4,894 3,095 70 8,059 
Interest income56 — 10 66 
Interest expense— 301 13,576 13,877 
Income tax (benefit) expense3,574 (12,843)4,257 (5,012)
Corporate overhead allocation3,389 778 (4,167)— 
Three Months Ended February 28, 2021
Net sales$27,225 $17,465 $— $44,690 
Gross profit11,561 2,880 — 14,441 
Net (loss) income from continuing operations5,104 (394)(6,175)(1,465)
Loss from discontinued operations, net of tax— (4,033)— (4,033)
Depreciation and amortization1,385 830 22 2,237 
Interest income— — 13 13 
Interest expense— 136 2,803 2,939 
Income tax (benefit) expense1,612 (1,614)(56)(58)
Corporate overhead allocation1,102 87 (1,189)— 
Nine Months Ended February 28, 2021
Net sales$72,248 $54,381 $— $126,629 
Gross profit27,036 8,854 — 35,890 
Net (loss) income from continuing operations9,708 (1,346)(17,151)(8,789)
Loss from discontinued operations, net of tax— (21,010)— (21,010)
Depreciation and amortization4,055 2,451 76 6,582 
Interest income— — 31 31 
Interest expense— 410 6,199 6,609 
Income tax (benefit) expense3,066 (2,095)(1,996)(1,025)
Corporate overhead allocation3,668 621 (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.