Property and Equipment

12 Months Ended

May 28, 2023

Property, Plant and Equipment [Abstract]

Property and equipment consists of the following (in thousands):


	Years of Useful Life			Year Ended
				May 28, 2023		May 29, 2022
						As Restated
Land				$	3,739	$	3,710
Buildings	15	-	40	60,688		58,359
Leasehold improvements	3	-	15	4,019		4,019
Computers, capitalized software, machinery, equipment and autos	3	-	25	75,181		70,462
Furniture and fixtures	3	-	7	2,182		2,091
Construction in process				45,587		26,892
Gross property and equipment				191,396		165,533
Less accumulated depreciation and amortization				(57,006)		(46,863)
Property and equipment, net				$	134,390	$	118,670

Depreciation and amortization expense for property and equipment for the fiscal years ended May 28, 2023, May 29, 2022 and May 30, 2021 was $10.3 million, $7.1 million and $5.3 million, respectively. Amortization related to finance leases,

which is included in depreciation expense, was $0.1 million for the fiscal years ended May 28, 2023, May 29, 2022, and May 30, 2021.

During fiscal years 2023, 2022 and 2021, the Company capitalized $0.4 million, $0.3 million, and $0.4 million in software development costs, respectively. Amortization related to capitalized software was $0.5 million, $0.4 million, and $0.4 million for fiscal years ended May 28, 2023, May 29, 2022 and May 30, 2021, respectively. The unamortized computer software costs as of May 28, 2023 and May 29, 2022 were $1.8 million and $1.8 million, respectively. Capitalized interest on construction projects was $3.6 million, $2.1 million, and $1.8 million for fiscal years ended May 28, 2023, May 29, 2022 and May 30, 2021, respectively.

The Company recorded an impairment of property and equipment related to the Curation Foods Santa Maria Office leasehold improvements of $3.7 million and an impairment of property and equipment related to Yucatan of $11.9 million for the year ended May 29, 2022, which are recorded in Loss on discontinued operations on the Consolidated Statements of Operations. There were no impairments to Property & Equipment for the year ended May 28, 2023.

Assets Held for Sale

In May 2022 the Board of Directors approved a plan to sell the assets of Curation Foods’ BreatheWay packaging technology business. The $1.0 million carrying value of these assets ($0.9 million of inventory and $0.1 million net book value of property and equipment) are included in Prepaid expenses and other current assets on the Consolidated Balance Sheets as of May 29, 2022, and were classified as assets held for sale. There was no impairment recorded in fiscal year 2022. These assets were sold in fiscal year 2023 for gross proceeds of $3.1 million and for a gain of $2.1 million.