XML 30 R19.htm IDEA: XBRL DOCUMENT
v3.22.4

Business Segment Reporting | 12 Months Ended
--- | ---
May 29, 2022
Segment Reporting [Abstract] |
Business Segment Reporting | Business Segment Reporting, As Restated 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 Lifecore segment, the Curation Foods segment, and the Other segment. As discussed in Note 1 - Correction of Error in Previously Reported Fiscal Year 2022 Annual Financial Statements, the Company recorded an impairment charge of $20.0 million related to its Yucatan Foods goodwill. The Company also recorded impairment charges of $8.4 million, $11.9 million, and $5.8 million related to its Yucatan Foods trademarks/tradenames, property and equipment, and customer relationships, intangible assets respectively, in the Curation Foods business segment for the year ended May 29, 2022. 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-Lifecore and non-Curation Foods 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 following table presents our property and equipment, net by geographic region (in millions):
| Year Ended
| As restated |  |
Property and equipment, net | May 29, 2022 |  | May 30, 2021
United States | $ | 115.0 |  |  | $ | 105.3 |
Mexico | 3.5 |  |  | 15.0 |
Total property and equipment, net | $ | 118.5 |  |  | $ | 120.3 |
The Company’s international sales by geography are based on the billing address of the customer and were as follows (in millions):
| Year Ended
| May 29, 2022 |  | May 30, 2021 |  | May 31, 2020
Switzerland | $ | 16.8 |  |  | $ | 4.7 |  |  | $ | 1.7 |
Canada | $ | 12.6 |  |  | $ | 10.7 |  |  | $ | 9.7 |
Czech Republic | $ | 3.5 |  |  | $ | 3.5 |  |  | $ | 1.4 |
United Kingdom | $ | 2.9 |  |  | $ | 1.9 |  |  | $ | 1.1 |
Ireland | $ | 2.2 |  |  | $ | 2.0 |  |  | $ | 4.0 |
Belgium | $ | — |  |  | $ | 13.7 |  |  | $ | 13.8 |
All Other Countries | $ | 2.0 |  |  | $ | 1.9 |  |  | $ | 2.2 |
Operations by segment consisted of the following (in thousands):
|  |  |  | As restated |  |  |  | As restated
Year Ended May 29, 2022 |  | Lifecore |  | Curation Foods |  | Other |  | Total
Product sales |  | $ | 109,320 |  |  | $ | 76,466 |  |  | $ | — |  |  | $ | 185,786 |
Gross profit |  | 43,746 |  |  | 6,624 |  |  | — |  |  | 50,370 |
Net income (loss) from continuing operations |  | 16,675 |  |  | (47,783) |  |  | (32,416) |  |  | (63,524) |
Loss from discontinued operations, net of tax |  | — |  |  | (48,114) |  |  | (3,041) |  |  | (51,155) |
Identifiable assets |  | 213,969 |  |  | 59,594 |  |  | 4,243 |  |  | 277,806 |
Depreciation and amortization |  | 6,673 |  |  | 4,004 |  |  | 80 |  |  | 10,757 |
Capital expenditures |  | 23,552 |  |  | 2,674 |  |  | — |  |  | 26,226 |
Interest income |  | 72 |  |  | — |  |  | 9 |  |  | 81 |
Interest expense, net |  | — |  |  | (299) |  |  | (17,058) |  |  | (17,357) |
Income tax (benefit) expense |  | 5,266 |  |  | (13,831) |  |  | 2,620 |  |  | (5,945) |
Corporate overhead allocation |  | 4,484 |  |  | 1,092 |  |  | (5,576) |  |  | — |
Year Ended May 30, 2021 |  |  |  |  |  |  |  |
Product sales |  | $ | 98,087 |  |  | $ | 73,459 |  |  | $ | — |  |  | $ | 171,546 |
Gross profit |  | 38,265 |  |  | 12,206 |  |  | — |  |  | 50,471 |
Net income (loss) from continuing operations |  | 14,461 |  |  | (357) |  |  | (23,673) |  |  | (9,569) |
Loss from discontinued operations, net of tax |  | — |  |  | (23,096) |  |  | — |  |  | (23,096) |
Identifiable assets |  | 185,417 |  |  | 121,069 |  |  | 4,680 |  |  | 311,166 |
Depreciation and amortization |  | 5,502 |  |  | 2,972 |  |  | 97 |  |  | 8,571 |
Capital expenditures |  | 16,222 |  |  | 3,042 |  |  | — |  |  | 19,264 |
Interest income |  | — |  |  | — |  |  | 48 |  |  | 48 |
Interest expense, net |  | — |  |  | (545) |  |  | (9,842) |  |  | (10,387) |
Income tax (benefit) expense |  | 4,568 |  |  | (3,020) |  |  | (3,451) |  |  | (1,903) |
Corporate overhead allocation |  | 4,773 |  |  | 946 |  |  | (5,719) |  |  | — |
Year Ended May 31, 2020 |  |  |  |  |  |  |  |
Product sales |  | $ | 85,833 |  |  | $ | 74,233 |  |  | $ | — |  |  | $ | 160,066 |
Gross profit |  | 32,883 |  |  | 6,504 |  |  | — |  |  | 39,387 |
Net income (loss) from continuing operations |  | 11,749 |  |  | (17,728) |  |  | (15,892) |  |  | (21,871) |
Loss from discontinued operations, net of tax |  | — |  |  | (16,320) |  |  | — |  |  | (16,320) |
Identifiable assets |  | 165,461 |  |  | 117,427 |  |  | 10,613 |  |  | 293,501 |
Depreciation and amortization |  | 5,008 |  |  | 3,282 |  |  | 96 |  |  | 8,386 |
Capital expenditures |  | 10,612 |  |  | 1,472 |  |  | 130 |  |  | 12,214 |
Interest income |  | — |  |  | 6 |  |  | 66 |  |  | 72 |
Interest expense, net |  | — |  |  | (547) |  |  | (4,099) |  |  | (4,646) |
Income tax (benefit) expense |  | 3,346 |  |  | (8,686) |  |  | (3,434) |  |  | (8,774) |
Corporate overhead allocation |  | 4,190 |  |  | 868 |  |  | (5,058) |  |  | — |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration