Note 9 - Commitments and Contingencies

12 Months Ended

May. 31, 2015

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

9.     

Commitments and Contingencies

Operating Leases

Landec leases facilities and equipment under operating lease agreements with various terms and conditions, which expire at various dates through fiscal year 2023. Certain of these leases have renewal options.

The approximate future minimum lease payments under these operating leases, excluding land leases, at May 31, 2015 are as follows (in thousands):

	Amount
FY 2016	$	3,136
FY 2017		2,631
FY 2018		1,768
FY 2019		1,003
FY 2020		257
Thereafter		624
Total	$	9,419

Rent expense for operating leases, including month to month arrangements was $5.0 million, $4.4 million and $4.8 million for the fiscal years 2015, 2014 and 2013, respectively.

Capital Leases

There was no equipment under capital lease agreements at May 31, 2015.

Employment Agreements

Landec has entered into employment agreements with certain key employees. These agreements provide for these employees to receive incentive bonuses based on the financial performance of certain divisions in addition to their

annual base salaries. The accrued incentive bonuses amounted to $1.0 million at May 31, 2015 and $656,000 at May 25, 2014.

Purchase Commitments

At May 31, 2015, the Company was committed to purchase $15.1 million of produce during fiscal year 2016 in accordance with contractual terms at market rates. Payments of $16.8 million were made in fiscal year 2015 under similar arrangements.

Loss Contingencies

As of May 31, 2015, the Company is not a party to any legal proceedings.