Note 13 - Business Segment Reporting

12 Months Ended

May 27, 2012

Segment Reporting Disclosure [Text Block]

13.          Business Segment Reporting

The Company manages its business operations through four strategic business units. Based upon the information reported to the chief operating decision maker, who is the Chief Executive Officer, the Company has the following reportable segments: the Food Products Technology segment, the Food Export segment, the Hyaluronan-based Biomaterials segment and the Technology Licensing segment.

The Food Products Technology segment markets and packs specialty packaged whole and fresh-cut vegetables that incorporate the BreatheWay specialty packaging for the retail grocery, club store and food services industry.  In addition, the Food Products Technology segment sells BreatheWay packaging to partners for non-vegetable products.  The Food Export segment consists of revenues generated from the purchase and sale of primarily whole commodity fruit and vegetable products to Asia and domestically.  The HA-based Biomaterials 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 for medical use primarily in the Ophthalmic, Orthopedic and Veterinary markets.  The Technology Licensing segment licenses Landec’s patented Intellicoat seed coatings to the farming industry and licenses the Company’s Intelimer polymers for personal care products and other industrial products.  Corporate includes corporate general and administrative expenses, non Food Products Technology and non HA-based Biomaterials interest income and Company-wide income tax expenses.

All of the assets of the Company are located within the United States of America.  The Company’s international sales were as follows (in millions):

	May 27, 2012		May 29, 2011		May 30, 2010
Taiwan	$	22.7	$	21.3	$	20.3
Indonesia	$	23.0	$	20.2	$	13.7
Canada	$	20.8	$	18.4	$	15.5
Belgium	$	15.6	$	16.7	$	0.3
Japan	$	11.1	$	8.4	$	8.8
All Other Countries	$	21.3	$	18.8	$	10.0

Operations by segment consisted of the following (in thousands):

Fiscal Year Ended May 27, 2012	Food Products Technology		Food Export		Hyaluronan-based Biomaterials		Technology Licensing			Corporate			TOTAL
Net sales	$	207,582	$	71,485	$	34,283	$	4,202		$	—		$	317,552
International sales	$	20,528	$	71,054	$	22,904	$	—		$	—		$	114,486
Gross profit	$	25,237	$	4,900	$	17,994	$	4,007		$	—		$	52,138
Net income (loss)	$	17,527	$	2,269	$	7,672	$	(269	)	$	(14,503	)	$	12,696
Identifiable assets	$	169,541	$	18,425	$	81,927	$	7,713		$	86		$	277,692
Depreciation and amortization	$	3,191	$	7	$	2,242	$	181		$	—		$	5,621
Capital expenditures	$	2,498	$	—	$	2,798	$	75		$	—		$	5,371
Dividend income	$	1,125	$	—	$	—	$	—		$	—		$	1,125
Interest income	$	30	$	—	$	129	$	—		$	21		$	180
Interest expense	$	178	$	—	$	751	$	—		$	—		$	929
Income tax expense	$	—	$	—	$	—	$	—		$	7,185		$	7,185

Fiscal Year Ended May 29, 2011
Net sales	$	175,664	$	61,663	$	32,505	$	6,897		$	—		$	276,729
International sales	$	18,580	$	61,214	$	24,024	$	—		$	—		$	103,818
Gross profit	$	18,888	$	3,901	$	17,231	$	6,675		$	—		$	46,695
Net income (loss)	$	8,200	$	1,617	$	7,278	$	(2,504	)	$	(10,671	)	$	3,920
Identifiable assets	$	88,241	$	16,320	$	83,954	$	7,527		$	10,270		$	206,312
Depreciation and amortization	$	3,174	$	8	$	1,972	$	159		$	—		$	5,313
Capital expenditures	$	3,620	$	—	$	2,817	$	247		$	—		$	6,684
Dividend income	$	328	$	—	$	—	$	—		$	—		$	328
Interest income	$	129	$	—	$	164	$	—		$	137		$	430
Interest expense	$	2	$	—	$	818	$	—		$	—		$	820
Income tax expense	$	—	$	—	$	—	$	—		$	4,181		$	4,181
Impairment charges	$	—	$	—	$	—	$	4,780		$	—		$	4,780

Fiscal Year Ended May 30, 2010
Net sales	$	175,046	$	54,926	$	1,457	$	6,795	$	—		$	238,224
International sales	$	15,714	$	52,319	$	603	$	—	$	—		$	68,636
Gross profit	$	22,514	$	3,906	$	815	$	6,531	$	—		$	33,766
Net income (loss)	$	11,051	$	1,789	$	13	$	2,647	$	(11,516	)	$	3,984
Identifiable assets	$	75,280	$	13,979	$	79,604	$	11,848	$	19,486		$	200,197
Depreciation and amortization	$	3,055	$	8	$	141	$	160	$	—		$	3,364
Capital expenditures	$	4,212	$	—	$	739	$	241	$	—		$	5,192
Interest income	$	223	$	—	$	8	$	—	$	603		$	834
Interest expense	$	12	$	—	$	76	$	—	$	—		$	88
Income tax expense	$	—	$	—	$	—	$	—	$	4,262		$	4,262
Impairment charges	$	—	$	—	$	—	$	1,000	$	—		$	1,000