Note 14 - Business Segment Reporting

3 Months Ended

Aug. 25, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

14. Business Segment Reporting

The Company manages its business operations through three 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 and the Hyaluronan-based Biomaterials segment.

The Food Products Technology segment markets and packs specialty packaged whole and fresh-cut fruit and vegetables, the majority of which 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. Corporate 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. The Corporate segment also includes general and administrative expenses, non-Food Products Technology and non HA-based Biomaterials interest income and income tax expenses. Beginning in fiscal year 2013, the Food Products Technology, the Food Export and the Hyaluronan-based Biomaterials segments include charges for corporate services and tax sharing allocated from the Corporate segment. 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):

	Three Months Ended
	August 25, 2013		August 26, 2012
Taiwan	$	12.0	$	12.9
Canada	$	9.4	$	6.2
Japan	$	3.2	$	3.1
Indonesia	$	2.5	$	6.1
Belgium	$	1.2	$	3.0
All Other Countries	$	6.9	$	5.0

Operations and identifiable assets by business segment consisted of the following (in thousands):

Three Months Ended August 25, 2013	Food Products Technology		Food Export		HA-based Biomaterials			Corporate			TOTAL
Net sales	$	79,436	$	21,398	$	8,587		$	58		$	109,479
International sales	$	9,478	$	21,389	$	4,377		$	—		$	35,244
Gross profit	$	8,881	$	1,205	$	2,388		$	58		$	12,532
Net income (loss)	$	7,266	$	276	$	(376	)	$	(2,414	)	$	4,752
Depreciation and amortization	$	1,222	$	1	$	584		$	35		$	1,842
Dividend Income	$	281	$	—	$	—		$	—		$	281
Interest income	$	4	$	—	$	56		$	—		$	60
Interest expense	$	376	$	—	$	55		$	—		$	431
Income tax expense	$	505	$	78	$	(106	)	$	1,998		$	2,475
Three Months Ended August 26, 2012
Net sales	$	68,631	$	25,358	$	7,973		$	112		$	102,074
International sales	$	6,223	$	25,311	$	4,802		$	—		$	36,336
Gross profit	$	9,942	$	1,343	$	2,366		$	112		$	13,763
Net income (loss)	$	5,916	$	309	$	(312	)	$	(1,547	)	$	4,366
Depreciation and amortization	$	1,236	$	1	$	583		$	36		$	1,856
Dividend Income	$	281	$	—	$	—		$	—		$	281
Interest income	$	1	$	—	$	25		$	—		$	26
Interest expense	$	455	$	—	$	86		$	—		$	541
Income tax expense	$	1,972	$	103	$	(104	)	$	594		$	2,565

During the three months ended August 25, 2013 and August 26, 2012, sales to the Company’s top five customers accounted for 44% and 36%, respectively, of revenues with the Company’s top two customers from the Food Products Technology segment accounting for 20% and 12% for the three months ended August 25, 2013 and 12% and 12% for the three months ended August 26, 2012, respectively. The Company expects that, for the foreseeable future, a limited number of customers may continue to account for a significant portion of its net revenues.