XML 26 R14.htm IDEA: XBRL DOCUMENT v3.20.2
Business Segment Reporting
 3 Months Ended
Aug. 30, 2020
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 Curation Foods business includes (i) four natural food brands, including Eat Smart, O Olive Oil & Vinegar, Yucatan Foods, and Cabo Fresh, (ii) BreatheWay® activities, and (iii) activity related to our 26.9% investment in Windset. The Curation Foods segment includes (a) activities to market and pack specialty packaged whole and fresh-cut fruits and vegetables, the majority of which incorporate the BreatheWay specialty packaging under either the Eat Smart brand or various private labels, (b) O brand of olive oils and vinegars, and (c)Yucatan Foods and Cabo Fresh brand of avocado products.
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 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:

Three Months Ended
(In millions)August 30, 2020August 25, 2019
Canada$16.5 $20.7 
Belgium3.9 — 
Ireland0.8 1.4 
All Other Countries1.7 1.7 
Operations by business segment consisted of the following:

(In thousands)Curation FoodsLifecoreOtherTotal
Three Months Ended August 30, 2020
Net sales$113,839 $21,804 $— $135,643 
Gross profit11,345 5,002 — 16,347 
Net (loss) income(8,271)112 (2,841)(11,000)
Depreciation and amortization3,410 1,310 28 4,748 
Dividend income281 — — 281 
Interest income— — 8 8 
Interest expense1,376 — 1,733 3,109 
Income tax (benefit) expense(2,612)35 (1,732)(4,309)
Corporate overhead allocation1,856 1,403 (3,259)— 
Three Months Ended August 25, 2019
Net sales$126,673 $12,041 $— $138,714 
Gross profit12,822 2,514 — 15,336 
Net loss(2,171)(1,395)(1,218)(4,784)
Depreciation and amortization3,205 1,185 23 4,413 
Dividend income281 — — 281 
Interest income20 — 5 25 
Interest expense1,376 — 699 2,075 
Income tax benefit(586)(465)(314)(1,365)
Corporate overhead allocation1,696 976 (2,672)— 

During the three months ended August 30, 2020 and August 25, 2019, sales to the Company’s top five customers accounted for 51% and 49% of sales, respectively. The Company’s top two customers, Costco Wholesale Corporation and Walmart Stores, Inc., from the Curation Foods segment, accounted for 19% and 14%, respectively, of revenues for the three months ended August 30, 2020, and 14% and 20%, respectively, for the three months ended August 25, 2019.