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Leases
 12 Months Ended
May 29, 2022
Leases [Abstract]  
Leases Leases
Operating Leases
The Company has entered into various non-cancellable operating lease agreements for manufacturing and distribution facilities, vehicles, equipment and office space. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use
assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. Landec leases facilities and equipment under operating lease agreements with various terms and conditions, which expire at various dates through fiscal year 2033. Certain of these leases have renewal options.
Finance Leases
On September 3, 2015, Lifecore leased an 80,950 square foot building in Chaska, MN, two miles from its current facility. The initial term of the lease is seven years with two five-year renewal options. The lease contains a buyout option at any time after year seven with the purchase price equal to the mortgage balance on the lessor’s loan secured by the building. Gross assets recorded under finance leases, included in property and equipment, net, were $3.8 million as of both May 29, 2022 and May 30, 2021. Accumulated amortization associated with finance leases was $0.7 million and $0.6 million as of May 29, 2022 and May 30, 2021, respectively. The monthly lease payment was initially $34,000 and increases by 2.4% per year. Lifecore and the lessor made capital improvements prior to occupancy and thus the lease did not become effective until January 1, 2016. Lifecore is currently using the building for warehousing and final packaging.
The components of lease cost were as follows:
Year EndedYear Ended
(In thousands, except term and discount rate)May 29, 2022May 30, 2021
Finance lease cost:
Amortization of leased assets$113$117
Interest on lease liabilities335348
Operating lease cost2,2122,291
Variable lease cost and other13415
Sublease income(90)(90)
Total lease cost$2,704$2,681
Weighted-average remaining lease term:
Operating leases7.4114.35
Finance leases0.591.60
Weighted-average discount rate:
Operating leases4.78 %5.00 %
Finance leases10.00 %10.00 %

The Company’s leases have original lease periods ending between 2022 and 2033. The Company’s maturity analysis of operating and finance lease liabilities as of May 29, 2022 are as follows:
(in thousands)Operating LeasesFinance LeasesTotal
2023$2,330 $3,475 $5,805 
20242,243 10 2,253 
20252,002 — 2,002 
20261,928 — 1,928 
20271,409 — 1,409 
Thereafter3,793 — 3,793 
Total lease payments13,705 3,485 17,190 
Less: interest(1,991)(190)(2,181)
Present value of lease liabilities11,714 3,295 15,009 
Less: current obligation of lease liabilities(1,743)(3,283)(5,026)
Total long-term lease liabilities$9,971 $12 $9,983 

Supplemental cash flow information related to leases are as follows:
Year EndedYear Ended
(in thousands)May 29, 2022May 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $2,454 $2,089 
Operating cash flows from finance leases 335 348 
Financing cash flows from finance leases 129 110 
Lease liabilities arising from obtaining right-of-use assets:
Operating leases $37 $3,137 
During May 2021 we entered into a transportation management, warehousing, and transportation services agreement with Castellini Company, LLC to outsource Curation Foods’ fresh packaged salads and vegetables logistics management, including transportation, warehousing and distribution. In connection with this arrangement, during the fiscal year ended May 30, 2021 the Company recorded a $1.7 million impairment of our operating lease right-of-use assets related to certain vehicle leases, which is included in Loss from discontinued operations within the Consolidated Statements of Operations.
As disclosed in Note 13 - Restructuring Costs, impairments of our operating lease right-of-use assets related to the Curation Foods Santa Maria office lease of $1.6 million and our Curation Foods Los Angeles, California office lease of $0.4 million were recorded in Restructuring cost in the accompanying Consolidated Statements of Operations for the year ended May 29, 2022.
Leases Leases
Operating Leases
The Company has entered into various non-cancellable operating lease agreements for manufacturing and distribution facilities, vehicles, equipment and office space. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use
assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. Landec leases facilities and equipment under operating lease agreements with various terms and conditions, which expire at various dates through fiscal year 2033. Certain of these leases have renewal options.
Finance Leases
On September 3, 2015, Lifecore leased an 80,950 square foot building in Chaska, MN, two miles from its current facility. The initial term of the lease is seven years with two five-year renewal options. The lease contains a buyout option at any time after year seven with the purchase price equal to the mortgage balance on the lessor’s loan secured by the building. Gross assets recorded under finance leases, included in property and equipment, net, were $3.8 million as of both May 29, 2022 and May 30, 2021. Accumulated amortization associated with finance leases was $0.7 million and $0.6 million as of May 29, 2022 and May 30, 2021, respectively. The monthly lease payment was initially $34,000 and increases by 2.4% per year. Lifecore and the lessor made capital improvements prior to occupancy and thus the lease did not become effective until January 1, 2016. Lifecore is currently using the building for warehousing and final packaging.
The components of lease cost were as follows:
Year EndedYear Ended
(In thousands, except term and discount rate)May 29, 2022May 30, 2021
Finance lease cost:
Amortization of leased assets$113$117
Interest on lease liabilities335348
Operating lease cost2,2122,291
Variable lease cost and other13415
Sublease income(90)(90)
Total lease cost$2,704$2,681
Weighted-average remaining lease term:
Operating leases7.4114.35
Finance leases0.591.60
Weighted-average discount rate:
Operating leases4.78 %5.00 %
Finance leases10.00 %10.00 %

The Company’s leases have original lease periods ending between 2022 and 2033. The Company’s maturity analysis of operating and finance lease liabilities as of May 29, 2022 are as follows:
(in thousands)Operating LeasesFinance LeasesTotal
2023$2,330 $3,475 $5,805 
20242,243 10 2,253 
20252,002 — 2,002 
20261,928 — 1,928 
20271,409 — 1,409 
Thereafter3,793 — 3,793 
Total lease payments13,705 3,485 17,190 
Less: interest(1,991)(190)(2,181)
Present value of lease liabilities11,714 3,295 15,009 
Less: current obligation of lease liabilities(1,743)(3,283)(5,026)
Total long-term lease liabilities$9,971 $12 $9,983 

Supplemental cash flow information related to leases are as follows:
Year EndedYear Ended
(in thousands)May 29, 2022May 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $2,454 $2,089 
Operating cash flows from finance leases 335 348 
Financing cash flows from finance leases 129 110 
Lease liabilities arising from obtaining right-of-use assets:
Operating leases $37 $3,137 
During May 2021 we entered into a transportation management, warehousing, and transportation services agreement with Castellini Company, LLC to outsource Curation Foods’ fresh packaged salads and vegetables logistics management, including transportation, warehousing and distribution. In connection with this arrangement, during the fiscal year ended May 30, 2021 the Company recorded a $1.7 million impairment of our operating lease right-of-use assets related to certain vehicle leases, which is included in Loss from discontinued operations within the Consolidated Statements of Operations.
As disclosed in Note 13 - Restructuring Costs, impairments of our operating lease right-of-use assets related to the Curation Foods Santa Maria office lease of $1.6 million and our Curation Foods Los Angeles, California office lease of $0.4 million were recorded in Restructuring cost in the accompanying Consolidated Statements of Operations for the year ended May 29, 2022.