XML 45 R23.htm IDEA: XBRL DOCUMENT
v3.25.2

Leases | 12 Months Ended
--- | ---
May 25, 2025
Leases [Abstract] |
Leases | Leases Substantially all current lease activity comes from two active facilities near the Company’s owned headquarters facility in Chaska, Minnesota. Additionally, an operating lease liability for the abandoned headquarters of the Curation Foods business in Santa Maria, California was settled with the landlord in the March 2025 for a gain of $2,642. None of the Company’s other leases are material to the periods presented. In January 2016, a lease commenced for the Company’s warehouse and final packaging building in Chaska, Minnesota. The lease has since been amended twice to accomplish the following: (i) to extend the term of the lease to September 2034, (ii) to add a buyout option equal to the balance of the lessor’s mortgage loan, valued at $3,100 as of May 25, 2025; and (iii) to provide a $2,400 cash payment to the Company in fiscal year 2024 in exchange for an increased rent payment schedule and an updated purchase option. The lease is classified as a finance lease and has a discount rate of 9%, which was the Company’s incremental borrowing rate at the time of the most recent amendment to the lease in August 2024. In January 2021, a lease commenced for the Company’s warehouse and office space in Chanhassen, Minnesota. The lease term extends through March 2033. The lease is classified as an operating lease and has a discount rate of 3%, which was the Company’s incremental borrowing rate at lease inception. The components of lease cost were as follows:
| Year ended
| May 25, 2025 |  | May 26, 2024
Finance lease cost: |  |  |
Amortization of leased assets | $ | 160 |  |  | $ | 137 |
Interest on lease liabilities | 456 |  |  | 373 |
Operating lease cost | 336 |  |  | 344 |
Variable lease cost | — |  |  | 306 |
Sublease income | — |  |  | (148) |
Total lease cost | $ | 952 |  |  | $ | 1,012 |
The Company’s maturity analysis of operating and finance lease liabilities as of May 25, 2025 are as follows:
| Operating leases |  | Finance leases
Fiscal year: |  |  |
2026 | $ | 433 |  |  | $ | 682 |
2027 | 416 |  |  | 698 |
2028 | 302 |  |  | 715 |
2029 | 146 |  |  | 732 |
2030 | 150 |  |  | 722 |
Thereafter | 436 |  |  | 6,396 |
Total lease payments | 1,883 |  |  | 9,945 |
Less: interest | (153) |  |  | (3,980) |
Present value of lease liabilities | $ | 1,730 |  |  | $ | 5,965 |
Classification on consolidated balance sheet: |  |  |
Accrued expenses and other current liabilities (see note 7) | $ | 387 |  |  | $ | 164 |
Debt, net of current portion | — |  |  | 5,801 |
Other liabilities | 1,343 |  |  | — |
Present value of lease liabilities | $ | 1,730 |  |  | $ | 5,965 |
Supplemental cash flow information related to leases are as follows:
| Year ended
| May 25, 2025 |  | May 26, 2024
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases | $ | 445 |  |  | $ | 761 |
Operating cash flows from finance leases | 443 |  |  | 373 |
Financing cash flows from finance leases | (2,230) |  |  | 136 |
Lease liabilities arising from obtaining right-of-use assets: |  |  |
Finance leases | 2,737 |  |  | — |
Leases | Leases Substantially all current lease activity comes from two active facilities near the Company’s owned headquarters facility in Chaska, Minnesota. Additionally, an operating lease liability for the abandoned headquarters of the Curation Foods business in Santa Maria, California was settled with the landlord in the March 2025 for a gain of $2,642. None of the Company’s other leases are material to the periods presented. In January 2016, a lease commenced for the Company’s warehouse and final packaging building in Chaska, Minnesota. The lease has since been amended twice to accomplish the following: (i) to extend the term of the lease to September 2034, (ii) to add a buyout option equal to the balance of the lessor’s mortgage loan, valued at $3,100 as of May 25, 2025; and (iii) to provide a $2,400 cash payment to the Company in fiscal year 2024 in exchange for an increased rent payment schedule and an updated purchase option. The lease is classified as a finance lease and has a discount rate of 9%, which was the Company’s incremental borrowing rate at the time of the most recent amendment to the lease in August 2024. In January 2021, a lease commenced for the Company’s warehouse and office space in Chanhassen, Minnesota. The lease term extends through March 2033. The lease is classified as an operating lease and has a discount rate of 3%, which was the Company’s incremental borrowing rate at lease inception. The components of lease cost were as follows:
| Year ended
| May 25, 2025 |  | May 26, 2024
Finance lease cost: |  |  |
Amortization of leased assets | $ | 160 |  |  | $ | 137 |
Interest on lease liabilities | 456 |  |  | 373 |
Operating lease cost | 336 |  |  | 344 |
Variable lease cost | — |  |  | 306 |
Sublease income | — |  |  | (148) |
Total lease cost | $ | 952 |  |  | $ | 1,012 |
The Company’s maturity analysis of operating and finance lease liabilities as of May 25, 2025 are as follows:
| Operating leases |  | Finance leases
Fiscal year: |  |  |
2026 | $ | 433 |  |  | $ | 682 |
2027 | 416 |  |  | 698 |
2028 | 302 |  |  | 715 |
2029 | 146 |  |  | 732 |
2030 | 150 |  |  | 722 |
Thereafter | 436 |  |  | 6,396 |
Total lease payments | 1,883 |  |  | 9,945 |
Less: interest | (153) |  |  | (3,980) |
Present value of lease liabilities | $ | 1,730 |  |  | $ | 5,965 |
Classification on consolidated balance sheet: |  |  |
Accrued expenses and other current liabilities (see note 7) | $ | 387 |  |  | $ | 164 |
Debt, net of current portion | — |  |  | 5,801 |
Other liabilities | 1,343 |  |  | — |
Present value of lease liabilities | $ | 1,730 |  |  | $ | 5,965 |
Supplemental cash flow information related to leases are as follows:
| Year ended
| May 25, 2025 |  | May 26, 2024
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases | $ | 445 |  |  | $ | 761 |
Operating cash flows from finance leases | 443 |  |  | 373 |
Financing cash flows from finance leases | (2,230) |  |  | 136 |
Lease liabilities arising from obtaining right-of-use assets: |  |  |
Finance leases | 2,737 |  |  | — |

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

X
- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration