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Business Segment Reporting
 6 Months Ended
Nov. 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 Lifecore segment, the Curation Foods 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 activities from three natural food brands, including O Olive Oil & Vinegar, Yucatan Foods, and Cabo Fresh. The Curation Foods segment includes 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 Company’s international sales by geography are based on the billing address of the customer and were as follows, excluding discontinued operations:
Three Months EndedSix Months Ended
(In millions)November 27, 2022November 28, 2021November 27, 2022November 28, 2021
Switzerland$4.0 $2.0 $8.0 $5.4 
Canada2.6 2.9 6.2 6.4 
Czech Republic1.0 0.8 1.7 1.7 
Ireland1.0 0.7 1.7 0.8 
All Other Countries0.5 0.9 1.0 1.7 

Operations by business segment consisted of the following:
(In thousands)LifecoreCuration FoodsOtherTotal
Three Months Ended November 27, 2022
Net sales$21,691 $17,111 $— $38,802 
Gross profit6,675 433 — 7,108 
Net (loss) income from continuing operations916 (3,295)(10,070)(12,449)
Loss from discontinued operations, net of tax— — — — 
Depreciation and amortization1,843 588 11 2,442 
Interest income16 — — 16 
Interest expense— — 4,219 4,219 
Income tax (benefit) expense290 (836)550 4 
Corporate overhead allocation1,022 283 (1,305)— 
Six Months Ended November 27, 2022
Net sales$45,393 $36,764 $— $82,157 
Gross profit12,776 584 — 13,360 
Net (loss) income from continuing operations1,419 (6,017)(19,202)(23,800)
Loss from discontinued operations, net of tax— — — — 
Depreciation and amortization3,614 2,756 21 6,391 
Dividend income— — — — 
Interest income31 — — 31 
Interest expense— 1 7,896 7,897 
Income tax (benefit) expense448 (1,901)1,461 8 
Corporate overhead allocation2,060 617 (2,677)— 
(In thousands)LifecoreCuration FoodsOtherTotal
Three Months Ended November 28, 2021
Net sales$24,946 $18,506 $— $43,452 
Gross profit11,715 3,000 — 14,715 
Net (loss) income from continuing operations5,682 (747)(706)4,229 
Loss from discontinued operations, net of tax— (42,670)— (42,670)
Depreciation and amortization1,673 886 26 2,585 
Interest income19 — — 19 
Interest expense— 136 2,958 3,094 
Income tax (benefit) expense1,794 (579)(4,300)(3,085)
Corporate overhead allocation1,078 1,231 (2,309)— 
Six Months Ended November 28, 2021
Net sales$46,898 $38,186 $— $85,084 
Gross profit17,479 7,671 — 25,150 
Net (loss) income from continuing operations6,262 (1,030)(8,636)(3,404)
Loss from discontinued operations, net of tax— (44,514)— (44,514)
Depreciation and amortization3,220 1,767 52 5,039 
Dividend income— — — — 
Interest income39 — 7 46 
Interest expense— 273 9,499 9,772 
Income tax (benefit) expense1,977 (797)(5,916)(4,736)
Corporate overhead allocation2,215 2,702 (4,917)— 
During the six months ended November 27, 2022 and November 28, 2021, the Company had sales concentrations of 10% or greater from two customers. The Company’s top two customers accounted for 19% and 10% of revenues for the six months ended November 27, 2022, and 13% and 12% for the six months ended November 28, 2021. The Company had accounts receivable concentrations of 10% or greater from three customers accounting for 21%, 14%, and 10% of accounts receivable as of November 27, 2022, and two customers as of November 28, 2021 accounting for 14% and 10%.