Revenue Recognition

6 Months Ended

Nov. 27, 2021

Revenue Recognition [Abstract]

Revenue Recognition

Note 10 - Revenue Recognition

Satisfaction of Performance Obligation

Most of the Company’s revenue is derived from contracts with customers based on the customer placing an order for products.

Pricing for the most part is determined when the Company and the customer agree upon the specific order, which establishes

the contract for that order.

Revenues are recognized in an amount that reflects the net consideration we expect to receive in exchange for the goods. Our

shell eggs are sold at prices related to independently quoted wholesale market prices, negotiated prices or formulas related to

our costs of production. The Company’s sales predominantly contain a single performance obligation. We recognize revenue

upon satisfaction of the performance obligation with the customer, which typically occurs within days of the Company and the

customer agreeing upon the order.

Returns and Refunds

Some of our contracts include a guaranteed sale clause, pursuant to which we credit the customer’s account for product that the

customer is unable to sell before expiration. The Company records an estimate of returns and refunds by using historical return

data and comparing to current period sales and accounts receivable. The allowance is recorded as a reduction in sales with a

corresponding reduction in trade accounts receivable.

Sales Incentives Provided to Customers

The Company periodically provides incentive offers to its customers to encourage purchases. Such offers include current

discount offers (e.g., percentage discounts off current purchases), inducement offers (e.g., offers for future discounts subject to

a minimum current purchase), and other similar offers. Current discount offers, when accepted by customers, are treated as a

reduction to the sales price of the related transaction, while inducement offers, when accepted by customers, are treated as a

reduction to sales price based on estimated future redemption rates. Redemption rates are estimated using the Company’s

historical experience for similar inducement offers. Current discount and inducement offers are presented as a net amount in

‘‘Net sales.’’

Disaggregation of Revenue

The following table provides revenue disaggregated by product category (in thousands):

Thirteen Weeks Ended

Twenty-six Weeks Ended

November 27, 2021

November 28, 2020

November 27, 2021

November 28, 2020

Conventional shell egg sales

$

223,258

$

201,725

$

405,807

$

357,109

Specialty shell egg sales

155,853

134,082

294,510

263,327

Egg products

11,401

9,932

20,767

16,637

Other

391

1,589

1,523

3,037

$

390,903

$

347,328

$

722,607

$

640,110

Contract Costs

The Company can incur costs to obtain or fulfill a contract with a customer. If the amortization period of these costs is less than

one year, they are expensed as incurred. When the amortization period is greater than one year, a contract asset is recognized

and is amortized over the contract life as a reduction in net sales. As of November 27, 2021, the balance for contract assets is

immaterial.

Contract Balances

The Company receives payment from customers based on specified terms that are generally less than 30 days from delivery.

There are rarely contract assets or liabilities related to performance under the contract.