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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, netMay 29, 2022May 30, 2021
United States$115.0 $105.3 
Mexico3.5 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, 2022May 30, 2021May 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 restatedAs restated
Year Ended May 29, 2022LifecoreCuration FoodsOtherTotal
Product sales$109,320 $76,466 $— $185,786 
Gross profit43,746 6,624 — 50,370 
Net income (loss) from continuing operations16,675 (47,783)(32,416)(63,524)
Loss from discontinued operations, net of tax— (48,114)(3,041)(51,155)
Identifiable assets213,969 59,594 4,243 277,806 
Depreciation and amortization6,673 4,004 80 10,757 
Capital expenditures23,552 2,674 — 26,226 
Interest income72 — 9 81 
Interest expense, net— (299)(17,058)(17,357)
Income tax (benefit) expense5,266 (13,831)2,620 (5,945)
Corporate overhead allocation4,484 1,092 (5,576)— 
Year Ended May 30, 2021    
Product sales$98,087 $73,459 $— $171,546 
Gross profit38,265 12,206 — 50,471 
Net income (loss) from continuing operations14,461 (357)(23,673)(9,569)
Loss from discontinued operations, net of tax— (23,096)— (23,096)
Identifiable assets185,417 121,069 4,680 311,166 
Depreciation and amortization5,502 2,972 97 8,571 
Capital expenditures16,222 3,042 — 19,264 
Interest income— — 48 48 
Interest expense, net— (545)(9,842)(10,387)
Income tax (benefit) expense4,568 (3,020)(3,451)(1,903)
Corporate overhead allocation4,773 946 (5,719)— 
Year Ended May 31, 2020    
Product sales$85,833 $74,233 $— $160,066 
Gross profit32,883 6,504 — 39,387 
Net income (loss) from continuing operations11,749 (17,728)(15,892)(21,871)
Loss from discontinued operations, net of tax— (16,320)— (16,320)
Identifiable assets165,461 117,427 10,613 293,501 
Depreciation and amortization5,008 3,282 96 8,386 
Capital expenditures10,612 1,472 130 12,214 
Interest income— 6 66 72 
Interest expense, net— (547)(4,099)(4,646)
Income tax (benefit) expense3,346 (8,686)(3,434)(8,774)
Corporate overhead allocation4,190 868 (5,058)—