Note 14 - Business Segment Reporting

12 Months Ended

May 25, 2014

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 by geography are based on the billing address of the customer and were as follows (in millions):

	May 25, 2014		May 26, 2013		May 27, 2012
Canada	$	46.6	$	27.8	$	20.8
Taiwan	$	30.7	$	31.0	$	22.7
Belgium	$	13.1	$	16.6	$	15.6
Japan	$	9.9	$	10.6	$	11.1
Indonesia	$	9.6	$	21.0	$	23.0
China	$	8.2	$	5.0	$	4.3
All Other Countries	$	19.1	$	20.8	$	17.0

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

	Food Products				Hyaluronan- based
Fiscal Year Ended May 25, 2014	Technology		Food Export		Biomaterials		Corporate			TOTAL
Net sales	$	360,728	$	69,827	$	45,704	$	554		$	476,813
International sales	$	47,224	$	69,710	$	20,312	$	—		$	137,246
Gross profit	$	36,318	$	5,340	$	20,456	$	450		$	62,564
Net income (loss)	$	19,041	$	1,973	$	9,695	$	(11,564	)	$	19,145
Identifiable assets	$	196,257	$	25,391	$	85,858	$	6,117		$	313,623
Depreciation and amortization	$	4,751	$	6	$	2,221	$	136		$	7,114
Capital expenditures	$	10,950	$	—	$	3,877	$	59		$	14,886
Dividend income	$	1,125	$	—	$	—	$	—		$	1,125
Interest income	$	12	$	—	$	242	$	6		$	260
Interest expense	$	1,402	$	—	$	248	$	—		$	1,650
Income tax expense	$	33	$	3	$	17	$	10,530		$	10,583

Fiscal Year Ended May 26, 2013
Net sales	$	320,447	$	78,568	$	41,281	$	1,412		$	441,708
International sales	$	27,532	$	78,442	$	26,792	$	—		$	132,766
Gross profit	$	37,077	$	5,274	$	19,102	$	1,307		$	62,760
Net income (loss)	$	20,526	$	1,660	$	6,835	$	(6,434	)	$	22,587
Identifiable assets	$	180,104	$	21,737	$	80,940	$	8,161		$	290,942
Depreciation and amortization	$	4,761	$	4	$	2,379	$	151		$	7,295
Capital expenditures	$	5,598	$	—	$	3,190	$	89		$	8,877
Dividend income	$	1,125	$	—	$	—	$	—		$	1,125
Interest income	$	42	$	—	$	137	$	—		$	179
Interest expense	$	1,707	$	—	$	301	$	—		$	2,008
Income tax expense	$	3,399	$	339	$	1,400	$	4,314		$	9,452

Fiscal Year Ended May 27, 2012
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	$	(14,772	)	$	12,696
Identifiable assets	$	169,541	$	18,425	$	81,927	$	7,799		$	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