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Document And Entity Information - USD ($) $ in Thousands	12 Months Ended
Document And Entity Information - USD ($) $ in Thousands	May 27, 2018	Jul. 27, 2018	Nov. 26, 2017
Document Information [Line Items]
Entity Registrant Name	LANDEC CORP \CA\
Entity Central Index Key	0001005286
Trading Symbol	lndc
Current Fiscal Year End Date	--05-27
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		27,735,798
Entity Public Float			$ 294,832
Document Type	10-K
Document Period End Date	May 27, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Amendment Flag	false

Consolidated Balance Sheets - USD ($)
$ in Thousands

May 27, 2018

May 28, 2017

Current Assets:

Cash and cash equivalents

$ 2,899

$ 5,998

Accounts receivable, less allowance for doubtful accounts

53,877

45,899

Inventories

31,819

23,620

Prepaid expenses and other current assets

7,958

3,498

Other current assets, discontinued operations

510

2,265

Total Current Assets

97,063

81,280

Investment in non-public company, fair value

66,500

63,600

Property and equipment, net

159,624

133,220

Goodwill

54,510

Trademarks/trade names, net

16,028

Customer relationships, net

5,814

6,783

Other assets

5,164

2,918

Other assets, discontinued operations

269

Total Assets

^[1]

404,703

358,608

Current Liabilities:

Accounts payable

34,668

24,527

Accrued compensation

9,978

7,506

Other accrued liabilities

8,706

9,045

Deferred revenue

2,625

310

Line of credit

27,000

3,000

Current portion of long-term debt, net

4,940

Other current liabilities, discontinued operations

458

2,126

Total Current Liabilities

88,375

51,454

Long-term debt, net

37,360

42,299

Capital lease obligation, less current portion

3,641

3,731

Deferred taxes, net

17,485

24,581

Other non-current liabilities

5,280

8,391

Total Liabilities

152,141

130,456

Stockholders’ Equity:

Common stock, $0.001 par value; 50,000,000 shares authorized; 27,702 and 27,499 shares issued and outstanding at May 27, 2018 and May 28, 2017, respectively

Additional paid-in capital

142,087

141,680

Retained earnings

109,299

84,470

Accumulated other comprehensive income

1,148

432

Total Stockholders’ Equity

252,562

226,609

Non-controlling interest

1,543

Total Equity

252,562

228,152

Total Liabilities and Stockholders’ Equity

$ 404,703

$ 358,608

[1]	Assets of discontinued operations are included in Other for the years ended May 27, 2018, May 28, 2017, and May 29, 2016.

Consolidated Balance Sheets (Parentheticals) - $ / shares shares in Thousands	May 27, 2018	May 28, 2017
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	27,702	27,499
Common stock, shares outstanding (in shares)	27,702	27,499

Consolidated Statements of Income (Loss) - USD ($) shares in Thousands	12 Months Ended
	May 27, 2018	May 28, 2017	May 29, 2016
Product sales	$ 524,227,000	$ 469,776,000	$ 476,918,000
Cost of product sales	445,889,000	390,564,000	410,137,000
Gross profit	78,338,000	79,212,000	66,781,000
Operating costs and expenses:
Research and development	12,800,000	9,473,000	7,228,000
Selling, general and administrative	51,951,000	52,491,000	46,181,000
Legal settlement charge		2,580,000
Impairment of GreenLine trade name	0	0	34,000,000
Total operating costs and expenses	64,751,000	64,544,000	87,409,000
Operating income (loss)	13,587,000	14,668,000	(20,628,000)
Dividend income	1,650,000	1,650,000	1,650,000
Interest income	211,000	16,000	71,000
Interest expense, net	(1,950,000)	(1,826,000)	(1,987,000)
Loss on debt refinancing		(1,233,000)
Other income	2,900,000	900,000	1,200,000
Net income (loss) from continuing operations before taxes	16,398,000	14,175,000	(19,694,000)
Income tax benefit (expense)	9,363,000	(4,040,000)	7,704,000
Net income (loss) from continuing operations	25,761,000	10,135,000	(11,990,000)
(Loss) income from discontinued operations	(1,188,000)	837,000	842,000
Income tax benefit (expense)	350,000	(295,000)	(300,000)
(Loss) income from discontinued operations, net of tax	(838,000)	542,000	542,000
Consolidated net income (loss)	24,923,000	10,677,000	(11,448,000)
Non-controlling interest expense	(94,000)	(87,000)	(193,000)
Net income (loss) applicable to common stockholders	$ 24,829,000	$ 10,590,000	$ (11,641,000)
Basic net income (loss) per share:
Net income per basic share from continuing operations (in dollars per share)	$ 0.93	$ 0.37	$ (0.45)
(Loss) income from discontinued operations (in dollars per share)	(0.03)	0.02	0.02
Total basic net income (loss) per share (in dollars per share)	0.90	0.39	(0.43)
Net income per diluted share from continuing operations (in dollars per share)	0.92	0.36	(0.45)
(Loss) income from discontinued operations (in dollars per share)	(0.03)	0.02	0.02
Total diluted net income (loss) per share (in dollars per share)	$ 0.89	$ 0.38	$ (0.43)
Basic (in shares)	27,535	27,276	27,044
Diluted (in shares)	27,915	27,652	27,044

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	May 27, 2018	May 28, 2017	May 29, 2016
Net income (loss) applicable to common stockholders	$ 24,829	$ 10,590	$ (11,641)
Other comprehensive income, net of tax:
Change in net unrealized gains on interest rate swap (net of tax effect of $123, $254, and $0)	716	432
Other comprehensive income, net	716	432
Total comprehensive income (loss)	$ 25,545	$ 11,022	$ (11,641)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Consolidated Statements of Comprehensive Income (Loss) (Parentheticals) - USD ($) $ in Thousands	12 Months Ended
	May 27, 2018	May 28, 2017	May 29, 2016
Change in net unrealized gains on interest rate swap, tax	$ 123	$ 254	$ 0

Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Parent [Member]	Noncontrolling Interest [Member]	Total
Balance (in shares) at May. 31, 2015	26,990
Balance at May. 31, 2015	$ 27	$ 133,307	$ 85,098		$ 218,432	$ 1,677
Issuance of common stock by Landec on behalf of employees (in shares)	125
Issuance of common stock by Landec on behalf of employees		322			322
Issuance of common stock for vested restricted stock units ("RSUs") (in shares)	33
Issuance of common stock for vested restricted stock units ("RSUs")
Stock-based compensation		3,465			3,465
Tax benefit from stock-based compensation expense		150			150
Payments to non-controlling interest (“NCI”)						(248)
Net and comprehensive loss			(11,641)		(11,641)	193	$ (11,641)
Issuance of common stock by Landec on behalf of employees (in shares)	125
Issuance of common stock by Landec on behalf of employees		322			322
Issuance of common stock for vested RSUs (in shares)	33
Issuance of common stock for vested RSUs
Stock-based compensation		3,465			3,465
Payments to NCI						(248)
Net income							(11,448)
Other comprehensive income, net of tax
Balance (in shares) at May. 29, 2016	27,148
Balance at May. 29, 2016	$ 27	137,244	73,457		210,728	1,622
Cumulative-effect adjustment - ASU 2016-09 adoption		200	423		623
Issuance of common stock by Landec on behalf of employees (in shares)	244
Issuance of common stock by Landec on behalf of employees		706			706
Issuance of common stock for vested restricted stock units ("RSUs") (in shares)	107
Issuance of common stock for vested restricted stock units ("RSUs")
Stock-based compensation		3,964			3,964
Payments to non-controlling interest (“NCI”)						(166)
Net and comprehensive loss							11,022
Issuance of common stock by Landec on behalf of employees (in shares)	244
Issuance of common stock by Landec on behalf of employees		706			706
Issuance of common stock for vested RSUs (in shares)	107
Issuance of common stock for vested RSUs
Taxes paid by Company for stock swaps and RSUs		(434)			(434)
Stock-based compensation		3,964			3,964
Payments to NCI						(166)
Net income			10,590		10,590	87	10,677
Other comprehensive income, net of tax				432	432		432
Balance (in shares) at May. 28, 2017	27,499
Balance at May. 28, 2017	$ 27	141,680	84,470	432	226,609	1,543	228,152
Issuance of common stock by Landec on behalf of employees (in shares)	17
Issuance of common stock by Landec on behalf of employees	$ 1	55			56
Issuance of common stock for vested restricted stock units ("RSUs") (in shares)	186
Issuance of common stock for vested restricted stock units ("RSUs")
Stock-based compensation		4,403			4,403
Payments to non-controlling interest (“NCI”)						(115)
Net and comprehensive loss							25,545
Issuance of common stock by Landec on behalf of employees (in shares)	17
Issuance of common stock by Landec on behalf of employees	$ 1	55			56
Issuance of common stock for vested RSUs (in shares)	186
Issuance of common stock for vested RSUs
Taxes paid by Company for stock swaps and RSUs		(1,478)			(1,478)
Stock-based compensation		4,403			4,403
Payments to NCI						(115)
Net income			24,829		24,829	94	24,923
Other comprehensive income, net of tax				716	716		716
Purchase of NCI		(2,573)			(2,573)	(1,522)
Balance (in shares) at May. 27, 2018	27,702
Balance at May. 27, 2018	$ 28	$ 142,087	$ 109,299	$ 1,148	$ 252,562		$ 252,562

Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - $ / shares	May 27, 2018	May 28, 2017	May 29, 2016
Common Stock [Member] \| Minimum [Member]
Issuance of common stock, per share (in dollars per share)	$ 5.77	$ 5.63	$ 5.63
Issuance of common stock, per share (in dollars per share)	5.77	5.63	5.63
Common Stock [Member] \| Maximum [Member]
Issuance of common stock, per share (in dollars per share)	11.36	11.36	9.01
Issuance of common stock, per share (in dollars per share)	11.36	$ 11.36	$ 9.01
Issuance of common stock, per share (in dollars per share)	14.05
Issuance of common stock, per share (in dollars per share)	$ 14.05

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	May 27, 2018	May 28, 2017	May 29, 2016
Cash flows from operating activities:
Consolidated net income (loss)	$ 24,923,000	$ 10,677,000	$ (11,448,000)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	12,412,000	10,677,000	9,395,000
Stock-based compensation expense	4,403,000	3,964,000	3,465,000
Loss on early debt extinguishment		1,233,000
Deferred taxes	(7,221,000)	2,506,000	(9,787,000)
Change in investment in non-public company, fair value	(2,900,000)	(900,000)	(1,200,000)
Net loss on disposal of property and equipment	157,000	586,000	46,000
Impairment of GreenLine trade name	0	0	34,000,000
Change in contingent consideration liability	(1,900,000)
Changes in assets and liabilities:
Accounts receivable, net	(7,312,000)	(336,000)	73,000
Inventories	(6,529,000)	855,000	(508,000)
Prepaid expenses and other current assets	(3,987,000)	1,039,000	965,000
Accounts payable	4,965,000	(4,778,000)	(5,277,000)
Accrued compensation	1,981,000	2,751,000	(1,282,000)
Other accrued liabilities	(1,383,000)	2,086,000	2,556,000
Restricted cash collateral		(100,000)	(225,000)
Deferred revenue	2,170,000	(522,000)	(11,000)
Net cash provided by operating activities	19,779,000	29,738,000	20,762,000
Cash flows from investing activities:
Purchases of property and equipment	(33,590,000)	(23,003,000)	(39,695,000)
Acquisition of O (Note 2)		(2,500,000)
Deposit on capital lease			(850,000)
Proceeds from sales of fixed assets	100,000	81,000	127,000
Issuance of pacific harvest note receivable	(2,099,000)
Net cash used in investing activities	(35,589,000)	(25,422,000)	(40,418,000)
Cash flows from financing activities:
Proceeds from sale of common stock	56,000	706,000	322,000
Taxes paid by Company for stock swaps and RSUs	(1,478,000)	(434,000)	0
Net change in other assets/liabilities		(41,000)	(247,000)
Proceeds from long term debt		50,000,000	26,748,000
Payments on long term debt	(5,076,000)	(57,236,000)	(14,652,000)
Proceeds from lines of credit	33,000,000	4,500,000	26,100,000
Payments on lines of credit	(9,000,000)	(5,000,000)	(22,600,000)
Payments for debt issuance costs		(897,000)
Payments for early debt extinguishment penalties		(233,000)
Purchase of non-controlling interests	(4,095,000)
Payments to non-controlling interest	(115,000)	(166,000)	(248,000)
Net cash provided by (used in) financing activities	13,292,000	(8,801,000)	15,423,000
Net decrease in cash and cash equivalents	(2,518,000)	(4,485,000)	(4,233,000)
Cash and cash equivalents at beginning of year	5,409,000	9,894,000	14,127,000
Cash and cash equivalents at end of year	2,891,000	5,409,000	9,894,000
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	2,292,000	2,332,000	2,017,000
Cash paid during the period for income taxes, net of refunds received	283,000	2,792,000	2,625,000
Supplemental disclosure of non-cash investing and financing activities:
Facility and equipment acquired under a capital lease			3,908,000
Purchases of property and equipment on trade vendor credit	$ 8,445	$ 4,380	$ 4,791

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies

12 Months Ended

May 27, 2018

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]

Organization, Basis of Presentation, and Summary of Significant Accounting Policies

Organization

Landec Corporation and its subsidiaries (“Landec” or the “Company”) design, develop, manufacture, and sell differentiated health and wellness products for food and biomaterials markets, and license technology applications to partners. The Company has

two

proprietary polymer technology platforms:

) Intelimer® polymers, and

) hyaluronan (“HA”) biopolymers. The Company sells specialty packaged branded Eat Smart® and GreenLine® and private label fresh-cut vegetables and whole produce to retailers, club stores, and foodservice operators, primarily in the United States, Canada, and Asia through its Apio, Inc. (“Apio”) subsidiary, and sells HA-based and non-HA biomaterials through its Lifecore Biomedical, Inc. (“Lifecore”) subsidiary. The Company’s HA biopolymers and non-HA materials are proprietary in that they are specially formulated for specific customers to meet strict regulatory requirements. The Company also sells specialty olive oils and wine vinegars in the natural food, conventional grocery and mass retail stores primarily in the United States and Canada through its O Olive and Vinegar® brand. The Company’s technologies, along with its customer relationships and trade names, are the foundation, and a key differentiating advantage upon which Landec has built its business.

Basis of Presentation

and Consolidation

The consolidated financial statements are presented on the accrual basis of accounting in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) and include the accounts of Landec Corporation and its subsidiaries, Apio and Lifecore. All material inter-company transactions and balances have been eliminated.

May 2018,

the Company discontinued the Food Export business segment. As a result, the Food Export business segment was reclassified as a discontinued operation under the provisions of Accounting Standards Codification ("ASC")

205

20,

Presentation of Financial Statements - Discontinued Operations

("ASC

205

20"

) and ASC

360,

Property, Plant and Equipment

("ASC

360”

). See – Note

13,

Discontinued Operations, for further information.

During the fiscal

fourth

quarter of

2018,

the Company purchased the remaining

40%

non-controlling interest of its subsidiary, Apio Cooling, LP (“Apio Cooling”) and dissolved Apio Cooling. The increase in the Company’s ownership interest in Apio Cooling was accounted for as an equity transaction in accordance with ASC Topic

810

23.

Arrangements that are

not

controlled through voting or similar rights are reviewed under the guidance for variable interest entities (“VIEs”). A company is required to consolidate the assets, liabilities and operations of a VIE if it is determined to be the primary beneficiary of the VIE.

An entity is a VIE and subject to consolidation, if by design: a) the total equity investment at risk is

not

sufficient to permit the entity to finance its activities without additional subordinated financial support provided by any parties, including equity holders or b) as a group the holders of the equity investment at risk lack any

one

of the following

three

characteristics: (i) the power, through voting rights or similar rights to direct the activities of an entity that most significantly impact the entity’s economic performance, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity. The Company reviewed the consolidation guidance and concluded that the partnership interest and equity investment in the non-public company by the Company are

not

VIEs.

Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make certain estimates and judgments that affect the amounts reported in the financial statements and accompanying notes. The accounting estimates that require management’s most significant and subjective judgments include revenue recognition; loss contingencies; sales returns and allowances; self-insurance liabilities; recognition and measurement of current and deferred income tax assets and liabilities; the assessment of recoverability of long-lived assets including intangible assets and inventory; the valuation of investments; and the valuation and recognition of stock-based compensation.

These estimates involve the consideration of complex factors and require management to make judgments. The analysis of historical and future trends can require extended periods of time to resolve and are subject to change from period to period. The actual results

may

differ from management’s estimates.

Concentrations of Risk

Cash and cash equivalents, marketable securities, trade accounts receivable, grower advances and notes receivable are financial instruments that potentially subject the Company to concentrations of credit risk. Our Company policy limits, among other things, the amount of credit exposure to any

one

issuer and to any

one

type of investment, other than securities issued or guaranteed by the U.S. government. The Company routinely assesses the financial strength of customers and growers and, as a consequence, believes that trade receivables, grower advances and notes receivable credit risk exposure is limited. Credit losses for bad debt are provided for in the consolidated financial statements through a charge to operations. A valuation allowance is provided for known and anticipated credit losses. The recorded amounts for these financial instruments approximate their fair value.

Several of the raw materials the Company uses to manufacture its products are currently purchased from a single source, including some monomers used to synthesize Intelimer polymers, substrate materials for its breathable membrane products and raw materials for its HA products.

The operations of Windset Holdings

2010

Ltd. (“Windset”), in which the Company holds a

26.9%

minority investment, are predominantly located in British Columbia, Canada and Santa Maria, California. Routinely, the Company evaluates the financial strength and ability for Windset to continue as a going concern.

During the fiscal year ended

May 27, 2018,

sales to the Company’s top

five

customers accounted for approximately

49%

of total revenue with the top

two

customers from the Packaged Fresh Vegetables segment, Costco Corporation (“Costco”) and Wal-mart, Inc. (“Wal-mart”) accounting for approximately

19%

and

18%,

respectively, of total revenues. In addition, approximately

20%

of the Company’s total revenues were derived from product sales to international customers,

none

of which individually accounted for more than

of total revenues. As of

May 27, 2018,

the top

two

customers, Costco and Wal-mart represented approximately

13%

and

18%,

respectively, of total accounts receivable.

During the fiscal year ended

May 28, 2017,

sales to the Company’s top

five

customers accounted for approximately

48%

of total revenue with the top

two

customers from the Packaged Fresh Vegetables segment, Costco Corporation (“Costco”) and Wal-mart, Inc. (“Wal-mart”) accounting for approximately

20%

and

16%,

respectively, of total revenues. In addition, approximately

21%

of the Company’s total revenues were derived from product sales to international customers,

none

of which individually accounted for more than

of total revenues. As of

May 28, 2017,

the top

two

customers, Costco and Wal-mart represented approximately

13%

and

18%,

respectively, of total accounts receivable.

Impairment of Long-Lived Assets

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amounts

may

not

be recoverable. Recoverability of assets is measured by comparison of the carrying amount of the asset to the net undiscounted future cash flow expected to be generated from the asset. If the future undiscounted cash flows are

not

sufficient to recover the carrying value of the assets, the assets’ carrying value is adjusted to fair value. The Company regularly evaluates its long-lived assets for indicators of possible impairment.

Financial Instruments

The Company’s financial instruments are primarily composed of commercial-term trade payables, grower advances, notes receivable, debt instruments and derivative instruments. For short-term instruments, the historical carrying amount approximates the fair value of the instrument. The fair value of long-term debt and lines of credit approximates their carrying value.

Cash Flow Hedges

The Company entered into an interest rate swap agreement to manage interest rate risk. This derivative instrument

may

offset a portion of the changes in interest expense. The Company designates this derivative instrument as a cash flow hedge. The Company accounts for its derivative instrument as either an asset or a liability and carries it at fair value in Other assets or Other non-current liabilities. The accounting for changes in the fair value of the derivative instrument depends on the intended use of the derivative instrument and the resulting designation.

For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of Accumulated Other Comprehensive Income (“AOCI”) in Stockholders’ Equity and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The ineffective portion of the gain or loss on the derivative instrument, if any, is recognized in earnings in the current period. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions.

Comprehensive income consists of

two

components, net income and Other Comprehensive Income (“OCI”). OCI refers to revenue, expenses, and gains and losses that under GAAP are recorded as a component of stockholders’ equity but are excluded from net income. The Company’s OCI consists of net deferred gains and losses on its interest rate swap derivative instrument accounted for as a cash flow hedge. The components of AOCI, net of tax, are as follows (in thousands):

	Unrealized Gains on Cash Flow Hedge
Balance as of May 28, 2017	$	432
Other comprehensive income before reclassifications, net of tax effect		716
Amounts reclassified from OCI		—
Other comprehensive income, net		716
Balance as of May 27, 2018	$	1,148

The Company does

not

expect any transactions or other events to occur that would result in the reclassification of any significant gains into earnings in the next

months.

Based on these assumptions, management believes the fair market values of the Company’s financial instruments are

not

significantly different from their recorded amounts as of

May 27, 2018

and

May 28, 2017.

Accounts Receivable and Sales Returns and Allowance for Doubtful Accounts

The Company carries its accounts receivable at their face amounts less an allowance for estimated sales returns and doubtful accounts. Sales return allowances are estimated based on historical sales return amounts. Further, on a periodic basis, the Company evaluates its accounts receivable and establishes an allowance for doubtful accounts and estimated losses resulting from the inability of its customers to make required payments. The allowance for doubtful accounts is determined based on review of the overall condition of accounts receivable balances and review of significant past due accounts. The allowance for doubtful accounts is based on specific identification of past due amounts and for accounts over

-days past due. The changes in the Company’s allowance for sales returns and doubtful accounts are summarized in the following table (in thousands):

	Balance at beginning of period		Adjustments charged to revenue and expenses		Write offs, net of recoveries			Balance at end of period
Year Ended May 29, 2016	$	343	$	63	$	(110	)	$	296
Year Ended May 28, 2017	$	296	$	519	$	(454	)	$	361
Year Ended May 27, 2018	$	361	$	46	$	(105	)	$	302

Revenue Recognition

Revenue from product sales is recognized when there is persuasive evidence that an arrangement exists, title has transferred, the price is fixed and determinable, and collectability is reasonably assured. Allowances are established for estimated uncollectible amounts, product returns, and discounts based on specific identification and historical losses.

Apio’s Packaged Fresh Vegetables revenues generally consist of revenues generated from the sale of specialty packaged fresh-cut and whole value-added vegetable products that are generally washed and packaged in Apio’s proprietary packaging and sold under Apio’s Eat Smart and GreenLine brands and various private labels. Revenue is generally recognized upon shipment of these products to customers. The Company takes title to all produce it trades and/or packages, and therefore, records revenues and cost of sales at gross amounts in the Consolidated Statements of Income (Loss).

Packaged Fresh Vegetables revenues also include the revenues generated from Apio Cooling, LP, a vegetable cooling operation in which Apio was the general partner with a

60%

ownership position. On

April 26, 2018,

the Company purchased the

40%

non-controlling interest of the limited partners, thus dissolving Apio Cooling, LP. See the non-controlling interest discussion further in this note for more details. Additionally, Packaged Fresh Vegetables revenues consist of revenues from the sale of BreatheWay® packaging to license partners. Revenue is recognized on the vegetable cooling operations as cooling and storage services are provided to Apio’s customers. Sales of BreatheWay packaging are recognized when shipped to Apio’s customers.

Apio’s Food Export revenues consist of revenues generated from the purchase and sale of primarily whole commodity fruit and vegetable products to Asia through its subsidiary, Cal-Ex Trading Company (“Cal-Ex”). As most Cal-Ex customers are in countries outside of the U.S., title transfers and revenue is generally recognized upon arrival of the shipment in the foreign port. Apio records revenue equal to the sale price to

third

parties because it takes title to the product while in transit. The Company discontinued its Food Export business segment. As a result, the Company met the requirements of ASC

205

and ASC

360

to report the results of the Food Export business segment as discontinued operations. The operating results for the Food Export business segment, in all periods presented, have been reclassified to discontinued operations and are

longer reported as a separate segment.

Lifecore’s Biomaterials business principally generates revenue through the sale of products containing HA. Lifecore primarily sells products to customers in

three

medical areas: (

) Ophthalmic, which represented approximately

60%

of Lifecore’s revenues in fiscal year

2018,

(

) Orthopedic, which represented approximately

10%

of Lifecore’s revenues in fiscal year

2018,

and (

) Other/Non-HA products, which represented approximately

30%

of Lifecore’s revenues in fiscal year

2018.

The vast majority of Lifecore’s revenues are recognized upon shipment.

Lifecore’s business development revenues, a portion of which are included in all

three

medical areas, are related to contract research and development (“R&D”) services and multiple element arrangement services with customers where the Company provides products and/or services in a bundled arrangement.

Contract R&D revenue is recorded as earned, based on the performance requirements of the contract. Non-refundable contract fees for which

further performance obligations exist, and there is

continuing involvement by the Company, are recognized on the earlier of when the payment is received or collection is assured.

For sales arrangements that contain multiple elements, the Company splits the arrangement into separate units of accounting if the individually delivered elements have value to the customer on a standalone basis. The Company also evaluates whether multiple transactions with the same customer or related party should be considered part of a multiple element arrangement, whereby the Company assesses, among other factors, whether the contracts or agreements are negotiated or executed within a short time frame of each other or if there are indicators that the contracts are negotiated in contemplation of each other. The Company then allocates revenue to each element based on a selling price hierarchy. The relative selling price for a deliverable is based on its vendor-specific objective evidence (“VSOE”), if available,

third

-party evidence (“TPE”), if VSOE is

not

available, or estimated selling price, if neither VSOE nor TPE is available. The Company then recognizes revenue on each deliverable in accordance with its policies for product and service revenue recognition. The Company is

not

typically able to determine VSOE or TPE, and therefore, uses the estimated selling price to allocate revenue between the elements of an arrangement.

The Company limits the amount of revenue recognition for delivered elements to the amount that is

not

contingent on the future delivery of products or services or future performance obligations or subject to customer-specific cancellation rights. The Company evaluates each deliverable in an arrangement to determine whether it represents a separate unit of accounting. A deliverable constitutes a separate unit of accounting when it has stand-alone value, and for an arrangement that includes a general right of return relative to the delivered products or services, delivery or performance of the undelivered product or service is considered probable and is substantially controlled by the Company. The Company considers a deliverable to have stand-alone value if the product or service is sold separately by the Company or another vendor or could be resold by the customer. Further, the revenue arrangements generally do

not

include a general right of return relative to delivered products. Where the aforementioned criteria for a separate unit of accounting are

not

met, the deliverable is combined with the undelivered element(s) and treated as a single unit of accounting for the purposes of allocation of the arrangement consideration and revenue recognition. The Company allocates the total arrangement consideration to each separable element of an arrangement based upon the relative selling price of each element. Allocation of the consideration is determined at arrangement inception on the basis of each unit’s relative selling price. In instances where the Company has

not

established fair value for any undelivered element, revenue for all elements is deferred until delivery of the final element is completed and all recognition criteria are met.

For licensing revenue, the initial license fees are deferred and amortized to revenue over the period of the agreement when a contract exists, the fee is fixed and determinable, and collectability is reasonably assured. Noncancellable, nonrefundable license fees are recognized over the period of the agreement, including those governing research and development activities and any related supply agreement entered into concurrently with the license when the risk associated with commercialization of a product is non-substantive at the outset of the arrangement.

From time to time, the Company offers customers sales incentives, which include volume rebates and discounts. These amounts are estimated on a quarterly basis and recorded as a reduction of revenue.

A summary of revenues by type of arrangement as described above is as follows (in thousands):

	Year Ended
	May 27, 2018		May 28, 2017		May 29, 2016
Recorded upon delivery	$	509,096	$	456,512	$	458,985
Revenue from multiple element arrangements		12,531		8,431		13,400
Revenue from license fees, R&D contracts and royalties/profit sharing		2,600		4,833		4,533
Total	$	524,227	$	469,776	$	476,918

Shipping and Handling Costs

Amounts billed to

third

-party customers for shipping and handling are included as a component of revenues. Shipping and handling costs incurred are included as a component of cost of products sold and represent costs incurred to ship product from the processing facility or distribution center to the end consumer markets.

Other Accounting Policies and Disclosures

Cash and Cash Equivalents

The Company records all highly liquid securities with

three

months or less from date of purchase to maturity as cash equivalents. Cash equivalents consist mainly of money market funds. The market value of cash equivalents approximates their historical cost given their short-term nature.

Reconciliation of Cash and Cash Equivalents and Cash as presented on the Statements of Cash Flows

The following table provides a reconciliation of cash, cash equivalents, and cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows (in thousands):

	May 27, 2018			May 28, 2017			May 29, 2016
Cash and cash equivalents	$	2,899		$	5,998		$	9,968
Cash, discontinued operations		(8	)		(589	)		(74	)
Cash and cash equivalents presented on Statements of Cash Flows	$	2,891		$	5,409		$	9,894

Inventories

Inventories are stated at the lower of cost (using the

first

-in,

first

-out method) or net realizable value. As of

May 27, 2018

and

May 28, 2017

inventories consisted of (in thousands):

	Year Ended
	May 27, 2018		May 28, 2017
Finished goods	$	12,861	$	10,015
Raw materials		15,286		10,158
Work in progress		3,672		3,447
Total inventories	$	31,819	$	23,620

If the cost of the inventories exceeds their net realizable value, provisions are recorded currently to reduce them to net realizable value. The Company also records a provision for slow moving and obsolete inventories based on the estimate of demand for its products.

Advertising Expense

Advertising expenditures for the Company are expensed as incurred and included in SG&A in the accompanying Consolidated Statements of Income (Loss). Advertising expense for the Company for fiscal years

2018,

2017,

and

2016

was

$1.4

million,

$1.9

million and

$2.1

million, respectively.

Notes and Advances Receivable

Apio issues notes and makes advances to produce growers for their crop and harvesting costs primarily for the purpose of sourcing crops for Apio's business. Notes and advances receivable are generally recovered during the growing season (less than

one

year) using proceeds from the crops sold to Apio. Notes are interest bearing obligations, evidenced by contracts and notes receivable. These notes and advances receivable are secured by perfected liens on crops, have terms that range from

three

nine

months, and are reviewed at least quarterly for collectability. A reserve is established for any note or advance deemed to

not

be fully collectible based upon an estimate of the crop value or the fair value of the security for the note or advance. Notes or advances outstanding at

May 27, 2018

and

May 28, 2017

were

$2.7

million and

$1.0

million, respectively and are recorded in prepaid expenses and other current assets in the accompanying Consolidated Balance Sheets.

Related Party Transactions

The Company sold products to and earned license fees from Windset during the last

three

fiscal years. During fiscal years

2018,

2017,

and

2016,

the Company recognized revenues of

$556,000,

$514,000,

and

$666,000,

respectively. These amounts have been included in product sales in the accompanying Consolidated Statements of Income (Loss), from the sale of products to and license fees from Windset. The related receivable balances of

$334,000

and

$388,000

from Windset are included in accounts receivable in the accompanying Consolidated Balance Sheets as of

May 27, 2018

and

May 28, 2017,

respectively.

Additionally, unrelated to the revenue transactions above, the Company purchases produce from Windset for sale to

third

parties. During fiscal years

2018,

2017,

and

2016,

the Company recognized cost of product sales of

$0,

$22,000,

and

$32,000,

respectively, in the accompanying Consolidated Statements of Income (Loss), from the sale of products purchased from Windset. The related accounts payable of

and

$22,000

to Windset are included in accounts payable in the accompanying Consolidated Balance Sheets as of

May 27, 2018

and

May 28, 2017,

respectively.

All related party transactions are monitored quarterly by the Company and approved by the Audit Committee of the Board of Directors.

Property and Equipment

Property and equipment are stated at cost. Expenditures for major improvements are capitalized while repairs and maintenance are charged to expense. Depreciation is expensed on a straight-line basis over the estimated useful lives of the respective assets, generally

three

forty

years for buildings and leasehold improvements and

three

twenty

years for furniture and fixtures, computers, capitalized software, capitalized leases, machinery, equipment and vehicles. Leasehold improvements are amortized on a straight-line basis over the lesser of the economic life of the improvement or the life of the lease.

The Company capitalizes software development costs for internal use. Capitalization of software development costs begins in the application development stage and ends when the asset is placed into service. The Company amortizes such costs on a straight-line basis over estimated useful lives of

three

seven

years. During fiscal years

2018,

2017,

and

2016,

the Company capitalized

$918,000,

$2.2

million, and

$174,000

in software development costs, respectively.

Long-Lived Assets

The Company’s Long-Lived Assets consist of property, plant and equipment, and intangible assets. Intangible assets are comprised of customer relationships with an estimated useful life of

eleven

thirteen

years (the “finite-lived intangible assets”) and trademarks/trade names and goodwill with indefinite lives (collectively, “the indefinite-lived intangible assets”), which the Company recognized (i) upon the acquisition of

March 2017, (

ii) upon the acquisition of GreenLine Holding Company (“GreenLine”) by Apio in

April 2012, (

iii) upon the acquisition of Lifecore in

April 2010

and (iv) upon the acquisition of Apio in

December 1999.

Accounting guidance defines goodwill as “the excess of the cost of an acquired entity over the net of the estimated fair values of the assets acquired and the liabilities assumed at date of acquisition.” All intangible assets, including goodwill, associated with the acquisition of

was allocated to the Other reporting unit, the acquisition of Lifecore was allocated to the Biomaterials reporting unit, and the acquisitions of Apio and GreenLine were allocated to the Packaged Fresh Vegetables reporting unit based

upon the allocation of assets and liabilities acquired and consideration paid for each reporting unit. As of

May 27, 2018,

the Other reporting unit had

$5.2

million of goodwill, the Biomaterials reporting unit had

$13.9

million of goodwill, and the Packaged Fresh Vegetables reporting unit had

$35.4

million of goodwill.

Property, plant and equipment and finite-lived intangible assets are reviewed for possible impairment whenever events or changes in circumstances occur that indicate that the carrying amount of an asset (or asset group)

may

not

be recoverable. The Company’s impairment review requires significant management judgment including estimating the future success of product lines, future sales volumes, revenue and expense growth rates, alternative uses for the assets and estimated proceeds from the disposal of the assets. The Company conducts quarterly reviews of idle and underutilized equipment, and reviews business plans for possible impairment indicators. Impairment is indicated when the carrying amount of the asset (or asset group) exceeds its estimated future undiscounted cash flows and the impairment is viewed as other than temporary. When impairment is indicated, an impairment charge is recorded for the difference between the asset’s book value and its estimated fair value. Depending on the asset, estimated fair value

may

be determined either by use of a discounted cash flow model or by reference to estimated selling values of assets in similar condition. The use of different assumptions would increase or decrease the estimated fair value of assets and would increase or decrease any impairment measurement.

The Company tests its indefinite-lived intangible assets for impairment at least annually, in accordance with accounting guidance. For all indefinite-lived assets, including goodwill, the Company performs a qualitative analysis in accordance with ASC

350

35.

Application of the impairment tests for indefinite-lived intangible assets requires significant judgment by management, including identification of reporting units, assignment of assets and liabilities to reporting units, assignment of intangible assets to reporting units, which judgments are inherently uncertain.

During fiscal years

2018

and

2017,

there were

impairments of intangible assets.

On a quarterly basis, the Company considers the need to update its most recent annual tests for possible impairment of its indefinite-lived intangible assets, based on management’s assessment of changes in its business and other economic factors since the most recent annual evaluation. Such changes, if significant or material, could indicate a need to update the most recent annual tests for impairment of the indefinite-lived intangible assets during the current period. The results of these tests could lead to write-downs of the carrying values of these assets in the current period.

In the annual impairment test, the Company assesses qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. In assessing the qualitative factors, management considers the impact of these key factors: macro-economic conditions, industry and market environment, cost factors, overall financial performance of the Company, cash flow from operating activities, market capitalization, litigation, and stock price. If management determines as a result of the qualitative assessment that it is more likely than

not

(that is, a likelihood of more than

percent) that the fair value of a reporting unit is less than its carrying amount, then the quantitative test is required. Otherwise,

further testing is required.

If a quantitative test is required, the Company would compare the carrying amount of a reporting unit that includes goodwill to its fair value. The Company determines the fair value using both an income approach and a market approach. Under the income approach, fair value is determined based on estimated future cash flows, discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of the Company and the rate of return an outside investor would expect to earn. Under the market-based approach, information regarding the Company is utilized as well as publicly available industry information to determine earnings multiples that are used to value the Company. A goodwill impairment loss is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit.

As of

February 26, 2018,

the Company tested its goodwill for impairment and determined that

indication of impairment existed as of that date. As a result, it was

not

necessary to perform the quantitative goodwill impairment test at that time. Subsequent to the

2018

annual impairment test, there have been

significant events or circumstances affecting the valuation of goodwill that indicate a need for goodwill to be further tested for impairment. Other than the goodwill attributable to the Food Export business segment, which was written off pursuant to the Company discontinuing its operations during fiscal

2018,

there were

impairment losses for goodwill during fiscal years

2018,

2017,

and

2016.

Investment in Non-Public Company

February 15, 2011,

the Company made an investment in Windset which is reported as an investment in non-public company, fair value, in the accompanying Consolidated Balance Sheets as of

May 27, 2018

and

May 28, 2017.

The Company has elected to account for its investment in Windset under the fair value option. See Note

– Investment in Non-public Company for further information.

Partial Self-Insurance on Employee Health and Workers Compensation Plans

The Company provides health insurance benefits to eligible employees under self-insured plans whereby the Company pays actual medical claims subject to certain stop loss limits and self-insures its workers compensation claims. The Company records self-insurance liabilities based on actual claims filed and an estimate of those claims incurred but

not

reported. Any projection of losses concerning the Company's liability is subject to a high degree of variability. Among the causes of this variability are unpredictable external factors such as inflation rates, changes in severity, benefit level changes, medical costs, and claims settlement patterns. This self-insurance liability is included in accrued liabilities in the accompanying Consolidated Balance Sheets and represents management's best estimate of the amounts that have

not

been paid as of

May 27, 2018.

It is reasonably possible that the expense the Company ultimately incurs could differ and adjustments to future reserves

may

be necessary.

Deferred Revenue

Cash received in advance of services performed are recorded as deferred revenue.

Non-Controlling Interest

The Company reports all non-controlling interests as a separate component of stockholders’ equity. The non-controlling interest’s share of the income or loss of the consolidated subsidiary is reported as a separate line item in our Consolidated Statements of Income (Loss), following the consolidated net income (loss) caption.

During the fiscal

fourth

quarter of

2018,

the Company purchased the remaining

40%

non-controlling interest of its subsidiary, Apio Cooling, LP (“Apio Cooling”), for approximately

$4.7

million in cash. The increase in the Company’s ownership interest in Apio Cooling was accounted for as an equity transaction in accordance with ASC Topic

810

23.

The Company recorded a decrease in additional paid-in capital of approximately

$2.6

million, which represents the difference between the cash paid and the book value of the Apio Cooling non-controlling interest account, which was approximately

$1.5

million, immediately preceding the purchase.

Income Taxes

The Company accounts for income taxes in accordance with accounting guidance which requires that deferred tax assets and liabilities be recognized using enacted tax rates for the effect of temporary differences between the book and tax basis of recorded assets and liabilities. The Company maintains valuation allowances when it is likely that all or a portion of a deferred tax asset will

not

be realized. Changes in valuation allowances from period to period are included in the Company’s income tax provision in the period of change. In determining whether a valuation allowance is warranted, the Company takes into account such factors as prior earnings history, expected future earnings, unsettled circumstances that, if unfavorably resolved, would adversely affect utilization of a deferred tax asset, carryback and carryforward periods, and tax strategies that could potentially enhance the likelihood of realization of a deferred tax asset. At

May 27, 2018,

the Company had a

$1.3

million valuation allowance against its deferred tax assets.

In addition to valuation allowances, the Company establishes accruals for uncertain tax positions. The tax-contingency accruals are adjusted in light of changing facts and circumstances, such as the progress of tax audits, case law and emerging legislation. The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. The Company’s effective tax rate includes the impact of tax-contingency accruals as considered appropriate by management.

A number of years

may

elapse before a particular matter, for which the Company has accrued, is audited and finally resolved. The number of years with open tax audits varies by jurisdiction. While it is often difficult to predict the final outcome or the timing of resolution of any particular tax matter, the Company believes its tax-contingency accruals are adequate to address known tax contingencies. Favorable resolution of such matters could be recognized as a reduction to the Company’s effective tax rate in the year of resolution. Unfavorable settlement of any particular issue could increase the effective tax rate. Any resolution of a tax issue

may

require the use of cash in the year of resolution. The Company’s tax-contingency accruals are recorded in other accrued liabilities in the accompanying Consolidated Balance Sheets.

Per Share Information

Accounting guidance requires the presentation of basic and diluted earnings per share. Basic earnings per share excludes any dilutive effects of options, warrants and convertible securities and is computed using the weighted average number of common shares outstanding. Diluted earnings per share reflect the potential dilution as if securities or other contracts to issue common stock were exercised or converted into common stock. Diluted common equivalent shares consist of stock options and restricted stock units, calculated using the treasury stock method.

The following table sets forth the computation of diluted net income (loss) per share (in thousands, except per share amounts):

	Year Ended
	May 27, 2018		May 28, 2017		May 29, 2016
Numerator:
Net income (loss) applicable to Common Stockholders	$	24,829	$	10,590	$	(11,641	)

Denominator:
Weighted average shares for basic net income (loss) per share		27,535		27,276		27,044
Effect of dilutive securities:
Stock options and restricted stock units		380		376		—
Weighted average shares for diluted net income (loss) per share		27,915		27,652		27,044

Diluted net income (loss) per share	$	0.89	$	0.38	$	(0.43	)

Options to purchase

1,495,380

and

1,428,272

shares of Common Stock at a weighted average exercise price of

$13.80

and

$13.58

per share were outstanding during fiscal years ended

May 27, 2018

and

May 28, 2017,

respectively, but were

not

included in the computation of diluted net income per share because the options’ exercise price were greater than the average market price of the Common Stock and, therefore, their inclusion would be antidilutive.

Due to the Company’s net loss for fiscal year

2016,

the net loss per share includes only weighted average shares outstanding and thus excludes

1.6

million of outstanding options and RSUs as such impacts would be antidilutive for fiscal year

2016.

Cost of Sales

The Company includes in cost of sales all the costs related to the sale of products. These costs include the following: raw materials (including produce, packaging, syringes and fermentation and purification supplies), direct labor, overhead (including indirect labor, depreciation, and facility related costs) and shipping and shipping related costs.

Research and Development Expenses

Costs related to both research and development contracts and Company-funded research is included in research and development expenses. Research and development costs are primarily comprised of salaries and related benefits, supplies, travel expenses, consulting expenses and corporate allocations.

Accounting for Stock-Based Compensation

The Company’s stock-based awards include stock option grants and restricted stock unit awards (“RSUs”). The Company records compensation expense for stock-based awards issued to employees and directors in exchange for services provided based on the estimated fair value of the awards on their grant dates and is recognized over the required service periods generally the vesting period.

The following table summarizes the stock-based compensation for options and RSUs (in thousands):

	Year Ended
	May 27, 2018		May 28, 2017		May 29, 2016
Options	$	1,488	$	1,230	$	1,352
RSUs		2,915		2,734		2,113
Total stock-based compensation	$	4,403	$	3,964	$	3,465

The following table summarizes the stock-based compensation by income statement line item (in thousands):

	Year Ended
	May 27, 2018		May 28, 2017		May 29, 2016
Cost of sales	$	535	$	485	$	405
Research and development		131		83		90
Selling, general and administrative		3,737		3,396		2,970
Total stock-based compensation	$	4,403	$	3,964	$	3,465

The estimated fair value for stock options, which determines the Company’s calculation of stock-based compensation expense, is based on the Black-Scholes option pricing model. RSUs are valued at the closing market price of the Company’s common stock on the date of grant. The Company uses the straight-line single option method to calculate and recognize the fair value of stock-based compensation arrangements.

The Black-Scholes option pricing model requires the input of highly subjective assumptions, including the expected stock price volatility and expected life of option awards, which have a significant impact on the fair value estimates. As of

May 27, 2018,

May 28, 2017

and

May 29, 2016,

the fair value of stock option grants was estimated using the following weighted average assumptions:

	Year Ended
	May 27, 2018			May 28, 2017			May 29, 2016
Expected life (in years)		3.50			3.50			3.38
Risk-free interest rate		1.73	%		1.08	%		1.09	%
Volatility		27	%		26	%		31	%
Dividend yield		0	%		0	%		0	%

The weighted average estimated fair value of Landec employee stock options granted at grant date market prices during the fiscal years ended

May 27, 2018,

May 28, 2017

and

May 29, 2016

was

$2.90,

$2.37

and

$2.85

per share, respectively.

stock options were granted above or below grant date market prices during the fiscal years ended

May 27, 2018,

May 28, 2017

and

May 29, 2016.

Fair Value Measurements

The Company uses fair value measurement accounting for financial assets and liabilities and for financial instruments and certain other items measured at fair value. The Company has elected the fair value option for its investment in a non-public company. See Note

– Investment in Non-public Company for further information. The Company has

not

elected the fair value option for any of its other eligible financial assets or liabilities.

The accounting guidance established a

three

-tier hierarchy for fair value measurements, which prioritizes the inputs used in measuring fair value as follows:

Level

–

observable inputs such as quoted prices for identical instruments in active markets.

Level

–

inputs other than quoted prices in active markets that are observable either directly or indirectly through corroboration with observable market data.

Level

–

unobservable inputs in which there is little or

market data, which would require the Company to develop its own assumptions.

As of

May 27, 2018,

the Company held certain assets and liabilities that were required to be measured at fair value on a recurring basis, including its interest rate swap, its minority interest investment in Windset, and its contingent consideration liability from the purchase of

The fair value of the Company’s interest rate swap is determined based on model inputs that can be observed in a liquid market, including yield curves, and is categorized as a Level

fair value measurement and is included in other assets in the accompanying Consolidated Balance Sheets.

The Company has elected the fair value option of accounting for its investment in Windset. The calculation of fair value utilizes significant unobservable inputs, including projected cash flows, growth rates, and discount rates. As a result, the Company’s investment in Windset is considered to be a Level

fair value measurement. The change in the fair value of the Company’s investment in Windset for the

twelve

months ended

May 27, 2018

was due to the Company’s

26.9%

minority interest in the change in the fair market value of Windset during the period. In determining the fair value of the investment in Windset, the Company utilizes the following significant unobservable inputs in the discounted cash flow models:

	At May 27, 2018			At May 28, 2017
Revenue growth rates		6	%		4	%
Expense growth rates		6	%		4	%
Income tax rates		15	%		15	%
Discount rates		12	%		12	%

The revenue growth, expense growth, and income tax rate assumptions are considered the Company's best estimate of the trends in those items over the discount period. The discount rate assumption takes into account the risk-free rate of return, the market equity risk premium, and the company’s specific risk premium and then applies an additional discount for lack of liquidity of the underlying securities. The discounted cash flow valuation model used by the Company has the following sensitivity to changes in inputs and assumptions (in thousands):

	Impact on value of Windset investment as of May 27, 2018
10% increase in revenue growth rates	$	9,700
10% increase in expense growth rates	$	(9,100	)
10% increase in income tax rates	$	(500	)
10% increase in discount rates	$	(4,300	)

Imprecision in estimating unobservable market inputs can affect the amount of gain or loss recorded for a particular position. The use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

The fair value of the Company’s contingent consideration liability from its purchase of

(see Note

– Acquisition of

for further information) is determined by utilizing significant unobservable inputs including projected earnings before interest, taxes, depreciation and amortization (“EBITDA”), growth rates and discount rates. As a result, the Company’s contingent consideration liability is categorized as a Level

fair value measurement. In determining the fair value of the contingent consideration liability, the Company assumed EBITDA for

would be approximately

$6.4

million over the

-year earn-out period and applying a discount rate of

22.4%.

The following table summarizes the fair value of the Company’s assets and liabilities that are measured at fair value on a recurring basis (in thousands):

	Fair Value at May 27, 2018							Fair Value at May 28, 2017
Assets (liabilities):	Level 1		Level 2		Level 3			Level 1		Level 2		Level 3
Interest rate swap (1)	$	—	$	1,529	$	—		$	—	$	688	$	—
Investment in non-public company		—		—		66,500			—		—		63,600
Contingent consideration liability (2)		—		—		(4,000	)		—		—		(5,900	)
Total	$	—	$	1,529	$	62,500		$	—	$	688	$	57,700

(

)

Included in Other assets in the accompanying Consolidated Balance Sheets.

(

)

Included in Other non-current liabilities in the accompanying Consolidated Balance Sheets.

Recent Accounting Pronouncements

Recently Adopted Pronouncements

December 22, 2017,

Staff Accounting Bulletin

No.

118

(“SAB

118”

) was issued to address the application of GAAP in situations when a registrant does

not

have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for certain income tax effects of the TCJA. Pursuant to SAB

118,

as of

May 27, 2018,

the Company had

not

yet completed its accounting for the tax effects of the enactment of the TCJA. The Company’s provision for income taxes for the year ended

May 27, 2018

is based in part on its best estimate of the effects of the transition tax and existing deferred tax balances with its understanding of the TCJA and guidance available as of the date of this filing. The Company is still analyzing certain aspects of the TCJA and refining the estimate of the expected reversal of our deferred tax balance. This can potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. The Company adopted the provisions of SAB

118

in the

third

quarter of

2018.

Recently Issued Pronouncements to be Adopted

Revenue Recognition

May

2014,

the Financial Accounting Standards Board (“FASB”) issued ASU

2014

09,

which creates FASB ASC Topic

606

, Revenue from Contracts with Customers

and supersedes ASC Topic

605,

Revenue Recognition

(“ASU

2014

09”

). The guidance replaces industry-specific guidance and establishes a single

five

-step model to identify and recognize revenue. The core principle of the guidance is that an entity should recognize revenue upon transfer of control of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires the entity to disclose further quantitative and qualitative information regarding the nature and amount of revenues arising from contracts with customers, as well as other information about the significant judgments and estimates used in recognizing revenues from contracts with customers. Since its original issuance, the FASB has issued several additional related ASUs to address implementation concerns and to further clarify certain guidance within ASU

2014

09.

The Company will adopt these updates beginning with the

first

quarter of fiscal year

2019

and anticipates doing so using the modified retrospective method, which would require a cumulative effect adjustment of initially applying ASU

2014

recognized at the date or initial application.

The Company recently completed its evaluation of the impact of the adoption of ASU

2014

09.

As a result, the Company has identified the following core revenue streams from its contracts with customers:

●

Finished goods product sales (Packaged Fresh Vegetables);

●

Shipping and handling (Packaged Fresh Vegetables);

●

Product development and contract manufacturing arrangements (Biomaterials).

The Company’s assessment efforts have included reviewing current accounting policies, processes, and systems requirements, as well assigning internal resources and

third

-party consultants to assist in the process. Based upon the Company’s assessment, certain contract manufacturing arrangements within its Biomaterials segment contain termination provisions that, upon final assessment and adoption,

may

impact the timing of revenue recognition. Additionally, the Company has reviewed historical contracts and other arrangements to identify potential differences that could arise from the adoption of ASU

2014

09.

Beyond its core revenue streams, and the items listed above, the Company has also evaluated the impact of ASU

2014

on certain ancillary transactions and other arrangements.

As a result of its assessment efforts, the Company does

not

currently anticipate any material changes to its processes, financial condition, or results of operations upon adoption of ASU

2014

09.

The Company continues to assess the impact of ASU

2014

09,

along with industry trends and additional interpretive guidance, on its core revenue streams, and as a result of the continued assessment, the Company

may

modify its plan to adoption accordingly.

Leases

February 2016,

the FASB issued ASU

2016

02,

Leases (Topic

842

)

(“ASU

2016

02”

), which requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use-assets. ASU

2016

also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. The Company will adopt ASU

2016

beginning in the

first

quarter of fiscal year

2020

on a modified retrospective basis.

The Company is currently in the process of evaluating the impact that ASU

2016

will have upon its consolidated financial statements and related disclosures. The Company’s assessment efforts to date have included:

●

Reviewing the provisions of ASU

2016

02;

●

Gathering information to evaluate its lease population and portfolio;

●

Evaluating the nature of its real and personal property and other arrangements that

may

meet the definition of a lease; and

●

Systems’ readiness evaluations.

As a result of these efforts, the Company currently anticipates that the adoption of ASU

2016

will have a significant impact on its long-term assets and liabilities, as, at a minimum, virtually all of its leases designated as operating leases in Note

– Commitments and Contingencies, are expected to be reported on the consolidated balance sheets. The pattern of recognition for operating leases within the consolidated statements of comprehensive income is

not

anticipated to significantly change. This change will have

impact on the Company’s ability to meet its loan covenants as the impact from the adoption of ASU

2016

was taken into consideration when determining its loan covenants.

Income Taxes

February 2018,

the FASB issued ASU

2018

02,

Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

that permits a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act enacted in

December 2017.

The standard is effective for fiscal years beginning after

December 15, 2018.

Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements.

Hedging

August 2017,

the FASB issued ASU

2017

12,

Targeted Improvements to Accounting for Hedging Activities

(ASU

2017

), which amends the presentation and disclosure requirements and changes how companies assess effectiveness. The amendments are intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. ASU

2017

is effective for annual periods beginning after

December 15, 2018,

including interim periods within those periods. Early application is permitted. The Company is currently assessing the future impact of this update on its consolidated financial statements and related disclosures.

Financial Instruments – Credit Losses

June 2016,

the FASB issued ASU

2016

13,

Financial Instruments —Credit Losses (Topic

326

): Measurement of Credit Losses on Financial Instruments

(ASU

2016

), which requires the measurement of all expected credit losses for financial assets including trade receivables held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU

2016

is effective for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2019.

The adoption of ASU

2016

not

expected to have a material impact on its consolidated financial statements and related disclosures.

Immaterial Error Correction

As discussed in Note

– Quarterly Consolidated Financial Information (unaudited)

during the

fourth

quarter of fiscal year

2018,

the Company determined that it had incorrectly included certain accrued capital expenditures as cash flows used in investing activities, and therefore, has restated related quarterly information. The Company determined that the error did

not

have a material impact on the financial statements for fiscal years

2017

and

2016,

but has elected to correct the

2017

and

2016

statements of cash flows in the accompanying consolidated financial statements to reflect the immaterial error correction.

The corrections resulted in an increase (decrease) in cash provided by operating activities and cash used in investing activities within the

2017

and

2016

consolidated statements of cash flows of

$411,000,

411,000

), $(

1.2

) million, and

$1.2

million, respectively.

Certain amounts disclosed in the accompanying notes to the financial statements have been revised to reflect the corrections.

Note 2 - Acquisition of O	12 Months Ended
Note 2 - Acquisition of O	May 27, 2018
Notes to Financial Statements
Business Combination Disclosure [Text Block]	2. Acquisition of O On March 1, 2017, the Company purchased substantially all of the assets of O for $2.5 million in cash plus contingent consideration of up to $7.5 million over the next three years based upon O achieving certain EBITDA targets. O , founded in 1995, is based in Petaluma, California, and produces specialty olive oils and wine vinegars. Its products are sold in natural food, conventional grocery and mass retail stores, primarily in the United States and Canada. The potential earn out payment up to $7.5 million is based on O ’s cumulative EBITDA over the Company’s fiscal years 2018 through 2020. At the end of each fiscal year, beginning in fiscal year 2018, the former owners of O will earn the equivalent of the EBITDA achieved by O for that fiscal year up to $4.6 million over the three year period. The former owners can then earn an additional $2.9 million on a dollar for dollar basis for exceeding $6.0 million of cumulative EBITDA over the three year period. During the fourth quarter of fiscal year 2017, the Company performed, with the assistance of a third party appraiser, an analysis of O ’s projected EBITDA over the next three years. Based on this analysis the Company recorded a $5.9 million liability as of May 28, 2017, representing the present value of the expected earn out payments. During the fourth quarter of fiscal year 2018, the Company performed, with the assistance of a third party appraiser, an analysis of O ’s projected EBITDA over the next three years. Based on this analysis, and primarily due to O ’s financial results in fiscal year 2018, which were well below the prior year projections for fiscal year 2018 due primarily to significant delays in completing the construction of O ’s new vinegar production facility, the Company recorded to SG&A a $1.9 million reduction into the contingent consideration liability, resulting in a liability of $4.0 million at May 27, 2018. The operating results of O are included in the Company’s financial statements beginning March 1, 2017, in the Other segment. Included in the Company’s results for O for the fiscal year 2018 was $3.8 million of revenues and a loss of $960,000. Intangible Assets The Company identified two intangible assets in connection with the O acquisition: trade names and trademarks valued at $1.6 million, which are considered to be indefinite life assets and therefore, will not be amortized; and customer base valued at $700,000 with an eleven year useful life. The trade name/trademark intangible asset was valued using the relief from royalty valuation method and the customer relationship intangible asset was valued using the excess earnings method. Goodwill The excess of the consideration transferred over the fair values assigned to the assets acquired and liabilities assumed was $5.2 million on the closing date, which represents the goodwill amount resulting from the acquisition which can be attributable to O ’s long history, future prospects and the expected operating synergies with Apio’s salad business and distribution and logistics capabilities. The Company will test goodwill for impairment on an annual basis or sooner, if indicators of impairment exist. Acquisition-Related Transaction Costs The Company recognized $159,000 of acquisition-related expenses that were expensed in the year ended May 28, 2017 and are included in selling, general and administrative expenses in the Consolidated Statements of Income (Loss) for the year ended May 28, 2017. These expenses included legal, accounting and tax service fees and appraisals fees.

Note 3 - Investment in Non-public Company	12 Months Ended
Note 3 - Investment in Non-public Company	May 27, 2018
Notes to Financial Statements
Investment Holdings [Text Block]	3. Investment in Non-public C ompan y Windset On February 15, 2011, Apio entered into a share purchase agreement (the “Windset Purchase Agreement”) with Windset. Pursuant to the Windset Purchase Agreement, Apio purchased from Windset 150,000 Senior A preferred shares for $15 million and 201 common shares for $201. On July 15, 2014, Apio increased its investment in Windset by purchasing from the Newell Capital Corporation an additional 68 common shares and 51,211 junior preferred shares of Windset for $11 million. After this purchase, the Company’s common shares represent a 26.9% ownership interest in Windset. The Senior A preferred shares yield a cash dividend of 7.5% annually. The dividend is payable within 90 days of each anniversary of the execution of the Windset Purchase Agreement. The non-voting junior preferred stock does not yield a dividend unless declared by the Board of Directors of Windset and no such dividend has been declared. Under the terms of the arrangement with Windset, the Company is entitled to designate one of five members on the Board of Directors of Windset. On October 29, 2014, Apio further increased its investment in Windset by purchasing 70,000 shares of Senior B preferred shares for $7 million. The Senior B preferred shares pay an annual dividend of 7.5% on the amount outstanding at each anniversary date of the Windset Purchase Agreement. The Senior B preferred shares purchased by Apio have a put feature whereby Apio can sell back to Windset $1.5 million of shares on the first anniversary, an additional $2.75 million of shares on the second anniversary, and the remaining $2.75 million on the third anniversary. After the third anniversary, Apio may at any time put any or all of the shares not previously sold back to Windset. The original Shareholders’ Agreement between Apio and Windset included a put and call option (the “Put and Call Option”), which could be exercised on or after February 15, 2017 whereby Apio could have exercised the put to sell its common, Senior A preferred shares, and junior preferred shares to Windset, or Windset could have exercised the call to purchase those shares from Apio, in either case, at a price equal to 26.9% of the fair market value of Windset’s common shares, plus the liquidation value of the preferred shares of $20.1 million ( $15 million for the Senior A preferred shares and $5.1 million for the junior preferred shares). On March 15, 2017, the Company and Windset amended the Shareholders’ Agreement by extending the terms of the original Put and Call Option to March 31, 2022. The investment in Windset does not qualify for equity method accounting as the investment does not meet the criteria of in-substance common stock due to returns through the annual dividend on the non-voting senior preferred shares that are not available to the common stock holders. As the Put and Call option requires all of the various shares to be put or called in equal proportions, the Company has deemed that the investment, in substance, should be treated as a single security for purposes of accounting. The fair value of the Company’s investment in Windset was determined utilizing the Windset Purchase Agreement’s Put and Call Option calculation for value and a discounted cash flow model based on projections developed by Windset, and considers the put and call conversion options. These features impact the duration of the cash flows utilized to derive the estimated fair values of the investment. These two discounted cash flow models are then weighted. Assumptions included in these discounted cash flow models will be evaluated quarterly based on Windset’s actual and projected operating results to determine the change in fair value. The Company recorded $1.7 million, $1.7 million and $1.7 million in dividend income for the fiscal years ended May 27, 2018, May 28, 2017 and May 29, 2016, respectively. The increase in the fair market value of the Company’s investment in Windset for the fiscal years ended May 27, 2018, May 28, 2017 and May 29, 2016 was $2.9 million, $900,000 and $1.2 million, respectively, and is included in other income in the accompanying Consolidated Statements of Income (Loss). The Company also entered into an exclusive license agreement with Windset, which was executed in June 2010, prior to contemplation of Apio’s investment in Windset.

Note 4 - Property and Equipment

12 Months Ended

May 27, 2018

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

Property and Equipment

Property and equipment consists of the following (in thousands):

	Years of			Year Ended
	Useful Life			May 27, 2018		May 28, 2017
Land and buildings	15	-	40	$	90,712	$	86,983
Leasehold improvements	3	-	20		2,607		1,190
Computers, capitalized software, machinery, equipment and autos	3	-	20		120,418		97,375
Furniture and fixtures	3	-	7		1,673		1,272
Construction in process					13,100		6,811
Gross property and equipment					228,510		193,631
Less accumulated depreciation and amortization					(68,886)		(60,411	)
Net property and equipment				$	159,624	$	133,220

Depreciation and amortization expense for property and equipment for the fiscal years ended

May 27, 2018,

May 28, 2017

and

May 29, 2016

was

$11.0

million,

$9.6

million and

$8.2

million, respectively. Amortization related to capitalized leases, which is included in depreciation expense, was

$135,000,

and

$49,000

for fiscal years ended

May 27, 2018,

May 28, 2017

and

May 29, 2016,

respectively. Amortization related to capitalized software was

$632,000,

$414,000,

and

$269,000

for fiscal years ended

May 27, 2018,

May 28, 2017

and

May 29, 2016,

respectively. The unamortized computer software costs as of

May 27, 2018

and

May 28, 2017

was

$2.5

million and

$2.2

million, respectively. Capitalized interest was

$563,000,

$514,000,

and

$487,000

for fiscal years ended

May 27, 2018,

May 28, 2017

and

May 29, 2016,

respectively.

Note 5 - Intangible Assets

12 Months Ended

May 27, 2018

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Intangible Assets

The carrying amount of goodwill as of

May 27, 2018,

May 28, 2017

and

May 29, 2016

was

$35.4

million for the Packaged Fresh Vegetables segment,

$13.9

million for the Biomaterials segment, and

$5.2

million for the Other segment.

Other intangible assets consisted of the following (in thousands):

	Trademarks and Trade names			Customer Relationships			Total
Balance as of May 31, 2015		48,428			7,835			56,263
Impairment during the period		(34,000	)		—			(34,000	)
Amortization expense		—			(867	)		(867	)
Balance as of May 29, 2016		14,428			6,968			21,396
Additions during the period		1,600			700			2,300
Amortization expense		—			(885	)		(885	)
Balance as of May 28, 2017		16,028			6,783			22,811
Amortization expense		—			(969	)		(969	)
Balance as of May 27, 2018	$	16,028		$	5,814		$	21,842

Accumulated amortization of Trademarks and Trade names was

$872,000

as of

May 27, 2018

and

May 28, 2017.

Accumulated amortization of Customer Relationships as of

May 27, 2018

and

May 28, 2017

was

$6.1

million and

$5.1

million, respectively. Lifecore’s Customer Relationships amount of

$3.7

million is being amortized over

years, Apio’s Customer Relationships amount of

$7.5

million is being amortized over

years, and

’s Customer Relationships amount of

$700,000

is being amortized over

years. The amortization expense for the next

five

fiscal years is estimated to be

$949,000

per year.

Note 6 - Stockholders' Equity

12 Months Ended

May 27, 2018

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

Stockholders’ Equity

Holders of Common Stock are entitled to

one

vote per share.

Convertible Preferred Stock

The Company has authorized

two million

shares of preferred stock, and as of

May 27, 2018

has

outstanding preferred stock.

Common Stock and Stock Option Plans

May 27, 2018,

the Company had

2.9

million common shares reserved for future issuance under Landec equity incentive plans.

October 10, 2013,

following stockholder approval at the Annual Meeting of Stockholders of the Company, the

2013

Stock Incentive Plan (the “Plan”) became effective and replaced the Company’s

2009

Stock Incentive Plan. Employees (including officers), consultants and directors of the Company and its subsidiaries and affiliates are eligible to participate in the Plan.

October 19, 2017,

1.0

million shares were added to the Plan following stockholder approval at the

2017

Annual Meeting of Stockholders.

The Plan provides for the grant of stock options (both nonstatutory and incentive stock options), stock grants, stock units and stock appreciation rights. Awards under the Plan will be evidenced by an agreement with the Plan

participants and

2.0

million shares of the Company’s Common Stock (“Shares”) were initially available for award under the Plan. Under the Plan,

recipient

may

receive awards during any fiscal year that exceeds the following amounts: (i) stock options covering in excess of

500,000

Shares; (ii) stock grants and stock units covering in excess of

250,000

Shares in the aggregate; or (iii) stock appreciation rights covering more than

500,000

Shares. In addition, awards to non-employee directors are discretionary. However, a non-employee director

may

not

be granted awards in excess of

30,000

Shares in the aggregate during any fiscal year. The exercise price of the options is the fair market value of the Company’s Common Stock on the date the options are granted. As of

May 27, 2018,

2,070,705

options to purchase shares and restricted stock units (“RSUs”) were outstanding.

October 15, 2009,

following stockholder approval at the Annual Meeting of Stockholders of the Company, the

2009

Stock Incentive Plan (the

“2009

Plan”) became effective and replaced the Company’s

2005

Stock Incentive Plan. Employees (including officers), consultants and directors of the Company and its subsidiaries and affiliates were eligible to participate in the

2009

Plan. The

2009

Plan provided for the grant of stock options (both nonstatutory and incentive stock options), stock grants, stock units and stock appreciation rights. Under the

2009

Plan,

1.9

million shares were initially available for awards and as of

May 27, 2018,

292,667

options to purchase shares and RSUs were outstanding.

Stock-Based Compensation Activity

Activity under all Landec equity incentive plans is as follows:

				Restricted Stock Outstanding					Stock Options Outstanding
	RSUs and Options Available for Grant			Number of Restricted Shares			Weighted Average Grant Date Fair Value		Number of Stock Options			Weighted Average Exercise Price
Balance at May 31, 2015		881,143			392,771		$	14.15		1,736,718		$	11.19
Granted		(443,175	)		177,675		$	12.10		265,500		$	12.04
Awarded/Exercised		—			(32,439	)	$	13.28		(220,717	)	$	6.44
Forfeited		28,000			(11,166	)	$	14.36		(24,473	)	$	14.38
Plan shares expired		—			—			—		(25,554	)	$	9.86
Balance at May 29, 2016		465,968			526,841		$	13.51		1,731,474		$	11.90
Granted		(370,522	)		130,522		$	13.37		240,000		$	11.58
Awarded/Exercised		—			(130,508	)	$	13.42		(357,639	)	$	5.93
Forfeited		59,793			(17,500	)	$	12.46		(42,293	)	$	12.16
Plan shares expired		—			—			—		—		$	—
Balance at May 28, 2017		155,239			509,355		$	13.53		1,571,542		$	13.20
Additional shares reserved		1,000,000			—			—		—			—
Granted		(698,288	)		200,288		$	13.12		498,000		$	12.93
Awarded/Exercised		—			(270,656	)	$	14.06		(29,333	)	$	7.36
Forfeited		85,324			(30,950	)	$	11.75		(23,334	)	$	12.55
Plan shares expired		—			—					(61,540	)	$	14.23
Balance at May 27, 2018		542,275			408,037		$	12.99		1,955,335		$	13.20

Upon vesting of certain RSUs and the exercise of certain options during fiscal years

2018,

2017

and

2016,

certain RSUs and exercised options were net share-settled to cover the required exercise price and withholding tax and the remaining amounts were converted into an equivalent number of shares of Common Stock. The Company withheld shares with value equivalent to the exercise price for options and the employees' minimum statutory obligation for the applicable income and other employment taxes, and remitted the cash to the appropriate taxing authorities. The total shares withheld for fiscal years

2018,

2017

and

2016

were

121,652,

137,089

and

95,550

RSUs and options, respectively, which was based on the value of the option and/or RSUs on their exercise or vesting date as determined by the Company's closing stock price.

Total payments for employees' tax obligations to the taxing authorities during fiscal years

2018,

2017

and

2016

were approximately

$1.5

million,

$434,000

and

zero

, respectively. These net-share settlements had the effect of share repurchases by the Company as they reduced and retired the number of shares that would have otherwise have been issued as a result of the vesting and did

not

represent an expense to the Company.

The following table summarizes information concerning stock options outstanding and exercisable at

May 27, 2018:

					Options Outstanding								Options Exercisable
Range of Exercise Prices					Number of Shares Outstanding		Weighted Average Remaining Contractual Life (in years)		Weighted Average Exercise Price		Aggregate Intrinsic Value		Number of Shares Exercisable		Weighted Average Exercise Price		Aggregate Intrinsic Value
$	6.66	-	$	14.39		1,955,335		4.33	$	13.20	$	1,937,832		1,383,732	$	13.43	$	1,122,822

May 27, 2018

and

May 28, 2017

options to purchase

1,383,732

and

1,021,097

shares of Landec’s Common Stock were vested, respectively, and

571,603

and

550,445

were unvested, respectively.

options have been exercised prior to being vested. The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on the Company’s closing stock price of

$14.05

May 27, 2018,

which would have been received by holders of stock options had all holders of stock options exercised their stock options that were in-the-money as of that date. The total number of in-the-money stock options exercisable as of

May 27, 2018,

was

548,692

shares. The aggregate intrinsic value of stock options exercised during the fiscal year

2018

was

$178,000.

Option Awards

	Outstanding Options		Weighted Average Exercise Price		Weighted Average Remaining Contract Term (in years)		Aggregate Intrinsic Value
Vested		1,383,732	$	13.43		3.65	$	1,122,822
Expected to vest		571,603	$	12.63		5.96		815,010
Total		1,955,335	$	13.20		4.33	$	1,937,832

As of

May 27, 2018,

there was

$3.8

million of total unrecognized compensation expense related to unvested equity compensation awards granted under the Landec incentive stock plans. Total expense is expected to be recognized over the weighted-average period of

2.0

years for stock options and

1.9

years for restricted stock unit awards.

Stock Repurchase Plan

July 14, 2010,

the Board of Directors of the Company approved the establishment of a stock repurchase plan which allows for the repurchase of up to

$10.0

million of the Company’s Common Stock. The Company

may

repurchase its Common Stock from time to time in open market purchases or in privately negotiated transactions. The timing and actual number of shares repurchased is at the discretion of management of the Company and will depend on a variety of factors, including stock price, corporate and regulatory requirements, market conditions, the relative attractiveness of other capital deployment opportunities and other corporate priorities. The stock repurchase program does

not

obligate Landec to acquire any amount of its Common Stock and the program

may

be modified, suspended or terminated at any time at the Company's discretion without prior notice. During fiscal years

2018,

2017

and

2016,

the Company did

not

purchase any shares on the open market.

Note 7 - Debt

12 Months Ended

May 27, 2018

Notes to Financial Statements

Debt Disclosure [Text Block]

Debt

Long-term debt consists of the following (in thousands):

	May 27, 2018			May 28, 2017
Term loan with JPMorgan Chase Bank (“JPMorgan”), BMO Harris Bank N,A. (“BMO”), and City National Bank (“CNB”); due in quarterly principal and interest payments of $1,250 beginning December 1, 2016 through September 23, 2021 with the remainder due on maturity, with interest based on the Company’s leverage ratio at a per annum rate of the Eurodollar rate plus a spread of between 1.25% and 2.25%	$	42,500		$	47,500
Total principal amount of long-term debt		42,500			47,500
Less: unamortized debt issuance costs		(200	)		(261	)
Total long-term debt, net of unamortized debt issuance costs		42,300			47,239
Less: current portion of long-term debt, net		(4,940	)		(4,940	)
Long-term debt, net	$	37,360		$	42,299

The future minimum principal payments of the Company’s debt for each year presented are as follows (in thousands):

	Term Loan
Fiscal year 2019	$	5,000
Fiscal year 2020		5,000
Fiscal year 2021		5,000
Fiscal year 2022		27,500
Fiscal year 2023		—
Thereafter		—
Total	$	42,500

September 23, 2016,

the Company entered into a Credit Agreement with JPMorgan, BMO, and City National Bank, as lenders (collectively, the “Lenders”), and JPMorgan as administrative agent, pursuant to which the Lenders provided the Company with a

$100

million revolving line of credit (the “Revolver”) and a

$50

million term loan facility (the “Term Loan”), guaranteed by each of the Company’s direct and indirect subsidiaries and secured by substantially all of the Company’s assets, with the exception of the Company’s investment in Windset.

Both the Revolver and the Term Loan mature in

five

years (on

September 23, 2021),

with the Term Loan providing for quarterly principal payments of

$1.25

million commencing

December 1, 2016,

with the remainder due at maturity.

Interest on both the Revolver and the Term Loan is based on either the prime rate or Eurodollar rate, at the Company’s discretion, plus a spread based on the Company’s leverage ratio (generally defined as the ratio of the Company’s total indebtedness on such date to the Company’s consolidated earnings before interest, taxes, depreciation, and amortization (“EBITDA”) for the period of

four

consecutive fiscal quarters ended on or most recently prior to such date). The spread is at a per annum rate of (i) between

0.25%

and

1.25%

if the prime rate is elected or (ii) between

1.25%

and

2.25%

if the Eurodollar rate is elected.

The Credit Agreement provides the Company the right to increase the Revolver commitments and/or the Term Loan commitments by obtaining additional commitments either from

one

or more of the Lenders or another lending institution at an amount of up to

$75

million.

The Credit Agreement contains customary financial covenants and events of default under which the obligation could be accelerated and/or the interest rate increased. The Company was in compliance with all financial covenants as of

May 27, 2018.

November 1, 2016,

the Company entered into an interest rate swap agreement (“Swap”) with BMO at a notional amount of

$50

million. The Swap has the effect of changing the Company’s Term Loan obligation from a variable interest rate to a fixed

-day LIBOR rate of

1.22%.

As of

May 27, 2018,

the interest rate on the Term Loan was

3.22%.

For further discussion regarding the Company’s use of derivative instruments, see the Financial Instruments section of Note

– Organization, Basis of Presentation, and Summary of Significant Accounting Policies.

In connection with the Credit Agreement, the Company incurred in fiscal year

2017

lender and

third

-party debt issuance costs of

$897,000,

of which

$598,000

and

$299,000

was allocated to the Revolver and Term Loan, respectively. Amortization of loan origination fees for fiscal years

2018,

2017

and

2016

were

$181,000,

$142,000

and

$293,000,

respectively.

Concurrent with the close of the Credit Agreement, all of the proceeds of the Term Loan, and

$1.5

million of the Revolver, was used by the Company to repay all then existing debt. Accordingly, the Company recognized a loss on debt refinancing of

$1.2

million, which included

$233,000

of payments for early debt extinguishment penalties and

$1.0

million from the write-off of unamortized debt issuance costs on the Company’s then existing debt as of

September 23, 2016.

As of

May 27, 2018,

$27.0

million was outstanding on the Revolver. As of

May 27, 2018,

the interest rate on the Revolver was

3.91%

for the

$23.0

million under the Libor option, and

5.75%

for the

$4.0

million under the Alternative Base Rate (Prime) option.

Note 8 - Income Taxes

12 Months Ended

May 27, 2018

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Income Taxes

U.S Tax Reform Impact

December 22, 2017,

the U.S. Government enacted the reconciled tax reform bill, commonly known as the Tax Cuts and Jobs Act of

2017

(the “TCJA”), which became effective on

January 1, 2018.

The TCJA makes broad changes to the U.S. tax code including, but

not

limited to, reducing the Company’s federal statutory tax rate from

35%,

to an average rate of

29.35%

for the fiscal year ended

May 27, 2018,

and then

21%

for fiscal years thereafter; requiring companies to pay a

one

-time transition tax on certain unrepatriated earnings of foreign subsidiaries; generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; requiring a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations' creating a global intangibles low-taxed income inclusion (GILTI) and the base erosion anti-abuse tax (BEAT), a new minimum tax. The TCJA also enhances and extends through

2026

the option to claim accelerated depreciation deductions on qualified property; however, the domestic manufacturing deduction, from which the Company has historically benefitted, has been eliminated.

December 22, 2017,

SAB

118

was issued to address the application of GAAP in situations when a registrant does

not

have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for certain income tax effects of the TCJA. Pursuant to SAB

118,

as of

May 27, 2018,

the Company had

not

yet completed its accounting for the tax effects of the enactment of the TCJA. The Company’s provision for income taxes for the year ended

May 27, 2018

$16.2

million of certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future. The provisional amount related to the

one

-time transition tax on the mandatory deemed repatriation of foreign earnings was an expense of

$1.8

million. We are still analyzing certain aspects of the TCJA and refining the estimate of the expected reversal of our deferred tax balance. This can potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts.

The (benefit) provision for income taxes from continuing operations consisted of the following (in thousands):

	Year Ended
	May 27, 2018			May 28, 2017		May 29, 2016
Current:
Federal	$	(2,854	)	$	1,388	$	2,085
State		60			39		(96	)
Foreign		83			82		83
Total		(2,711	)		1,509		2,072

Deferred:
Federal		(7,122	)		2,270		(9,165	)
State		470			261		(611	)
Total		(6,652	)		2,531		(9,776	)
Income tax (benefit) expense	$	(9,363	)	$	4,040	$	(7,704	)

The actual provision for income taxes from continuing operations differs from the statutory U.S. federal income tax rate as follows (in thousands):

	Year Ended
	May 27, 2018			May 28, 2017			May 29, 2016
Tax at U.S. statutory rate (1)	$	4,784		$	4,922		$	(6,963	)
State income taxes, net of federal benefit		439			307			(518	)
Tax reform		(14,350	)		—			—
Change in valuation allowance		(176	)		85			6
Tax credit carryforwards		(777	)		(834	)		(156	)
Other compensation-related activity		566			(365	)		173
Domestic manufacturing deduction		—			(243	)		(307	)
Other		151			168			61
Income tax (benefit) expense	$	(9,363	)	$	4,040		$	(7,704	)

(

) Statutory rate was

29.35%

for fiscal year

2018

and

35%

for fiscal years

2017

and

2016.

The decrease in the income tax expense for fiscal year

2018

was primarily due to the TCJA such as the statutory rate change for federal and state, and

one

-time transition tax on the repatriation of foreign earnings. Additionally, the effective tax rate for fiscal year

2018

decreased from expense of

29%

to a benefit of

64%

in comparison to fiscal year

2017.

Significant components of deferred tax assets and liabilities reported in the accompanying consolidated balance sheets consisted of the following (in thousands):

	Year Ended
	May 27, 2018			May 28, 2017
Deferred tax assets:
Accruals and reserves	$	1,421		$	3,242
Net operating loss carryforwards		1,955			2,766
Stock-based compensation		1,247			2,032
Research and AMT credit carryforwards		2,032			1,050
Other		427			661
Gross deferred tax assets		7,082			9,751
Valuation allowance		(1,337	)		(1,325	)
Net deferred tax assets		5,745			8,426

Deferred tax liabilities:
Basis difference in investment in non-public company		(3,722	)		(11,495	)
Goodwill and other indefinite life intangibles		(8,201	)		(11,119	)
Depreciation and amortization		(11,307	)		(10,393	)
Deferred tax liabilities		(23,230	)		(33,007	)

Net deferred tax liabilities	$	(17,485	)	$	(24,581	)

The effective tax rates for fiscal year

2018

differ from the blended statutory federal income tax rate of

29.35%

as a result of several factors, including change in ending federal and state deferred blended rate,

one

-time transition tax due to the repatriation of foreign earnings, the change in valuation allowance, limitation of deductibility of executive compensation, and the benefit of federal and state research and development credits. The effective tax rates for fiscal year

2017

differ from the statutory federal income tax rate of

35%

as a result of several factors, including non-deductible stock-based compensation expense, disqualified dispositions of incentive stock options, excess equity compensation benefits from the adoption of ASU

2016

09,

domestic manufacturing deduction, the benefit of federal and state research and development credits, the change in valuation allowance, all of which is partially offset by state taxes. The effective tax rates for fiscal year

2016

differ from the statutory federal income tax rate of

35%

as a result of several factors, including state taxes, non-deductible stock-based compensation expense, disqualified dispositions of incentive stock options, domestic manufacturing deduction,

162m

limitation, the benefit of federal and state research and development credits and the change in valuation allowance.

During the fiscal year ended

May 27,

2018,

excess tax deficits related to stock-based compensation of

$38,000

were reflected in the consolidated statements of income (loss) as a component of income tax expense as a result of the adoption of ASU

2016

09,

specifically related to the prospective application of excess tax deficits and tax deficiencies related to stock-based compensation.

The Company elected to early adopt the new guidance of ASU

2016

09,

Compensation – Stock Compensation (Topic

718

)

Improvements to Employee Share-Based Payments Accounting

, in the quarter beginning

May 30, 2016.

Accordingly the primary effects of the adoption are as follows: (

) using a modified retrospective application, the Company recorded unrecognized excess tax benefits of

$549,000

as a cumulative-effect adjustment, which increased retained earnings, and reduced deferred taxes by the same, (

) using a modified retrospective application, the Company has elected to recognize forfeitures as they occur and recorded a

$200,000

increase to additional paid in capital, a

$126,000

reduction to retained earnings, and a

$74,000

reduction to deferred taxes to reflect the incremental stock-based compensation expense, net of the related tax impacts, that would have been recognized in prior years under the modified guidance, and (

)

$150,000

and

$463,000

in excess tax benefits from stock-based compensation was reclassified from cash flows from financing activities to cash flows from operating activities for the fiscal years ended

May 29, 2016

and

May 31, 2015,

respectively, in the Consolidated Statements of Cash Flows.

As of

May 27, 2018,

the Company had federal, Indiana, and other state net operating loss carryforwards of approximately

$7.1

million,

$5.6

million, and

$3.1

million, respectively. These losses expire in different periods through

2032,

not

utilized. The Company acquired additional net operating losses through the acquisition of GreenLine. Utilization of these acquired net operating losses in a specific year is limited due to the “change in ownership” provision of the Internal Revenue Code of

1986

and similar state provisions. The net operating losses presented above for federal and state purposes are net of any such limitation.

The Company has federal, California, and Minnesota research and development tax credit carryforwards of approximately

$0.4

million,

$1.5

million, and

$0.7

million, respectively. The research and development tax credit carryforwards have an unlimited carryforward period for state purposes and a

-year carryforward for federal purposes.

Valuation allowances are reviewed each period on a tax jurisdiction by jurisdiction basis to analyze whether there is sufficient positive or negative evidence to support a change in judgment about the realizability of the related deferred tax assets. Based on this analysis and considering all positive and negative evidence, the Company determined that a valuation allowance of

$1.3

million should be recorded as a result of uncertainty around the utilization of certain state net operating losses and a book impairment loss on the Company's investment in Aesthetic Sciences as it is more likely than

not

that a portion of the deferred tax asset will

not

be realized in the foreseeable future. The valuation allowance increased by an immaterial amount from the prior year primarily due to uncertainty around the utilization of certain state net operating losses and credits.

The accounting for uncertainty in income taxes recognized in an enterprise’s financial statements prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, and the derecognition of tax benefits, classification on the balance sheet, interest and penalties, accounting in interim periods, disclosure, and transition.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	As of
	May 27, 2018			May 28, 2017			May 29, 2016
Unrecognized tax benefits – beginning of the period	$	537		$	842		$	987
Gross increases – tax positions in prior period		21			11			1
Gross decreases – tax positions in prior period		—			(90	)		(223	)
Gross increases – current-period tax positions		116			93			77
Settlements		(95	)		—			—
Lapse of statute of limitations		(100	)		(319	)		—
Unrecognized tax benefits – end of the period	$	479		$	537		$	842

As of

May 27, 2018,

the total amount of net unrecognized tax benefits is

$479,000,

of which,

$372,000,

if recognized, would change the effective tax rate. The Company accrues interest and penalties related to unrecognized tax benefits in its provision for income taxes. The total amount of penalties and interest is

not

material as of

May 27, 2018.

Additionally, the Company expects its unrecognized tax benefits to decrease by approximately

$25,000

within the next

months.

Due to tax attribute carryforwards, the Company is subject to examination for tax years

2015

forward for U.S. tax purposes. The Company was also subject to examination in various state jurisdictions for tax years

2012

forward,

none

of which were individually material.

Note 9 - Commitments and Contingencies

12 Months Ended

May 27, 2018

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

Commitments and Contingencies

Operating Leases

Landec leases land, facilities, and equipment under operating lease agreements with various terms and conditions, which expire at various dates through fiscal year

2030.

Certain of these leases have renewal options.

The approximate future minimum lease payments under these operating leases at

May 27, 2018

are as follows (in thousands):

	Amount
Fiscal year 2019	$	3,737
Fiscal year 2020		2,894
Fiscal year 2021		2,258
Fiscal year 2022		1,839
Fiscal year 2023		1,719
Thereafter		8,589
Total	$	21,036

Rent expense for operating leases, including month to month arrangements was

$6.1

million,

$5.6

million and

$4.5

million for the fiscal years

2018,

2017

and

2016,

respectively.

Capital Leases

September 3, 2015,

Lifecore leased a

65,000

square foot building in Chaska, MN,

two

miles from its current facility. The initial term of the lease is

seven

years with

two five

-year renewal options. The lease contains a buyout option at any time after year

seven

with the purchase price equal to the mortgage balance on the lessor’s loan secured by the building. Included in property, plant and equipment as of

May 27, 2018

$3.6

million associated with this capital lease. The monthly lease payment was initially

$34,000

and increases by

2.4%

per year. Lifecore and the lessor made capital improvements prior to occupancy and thus the lease did

not

become effective until

January 1, 2016.

Lifecore is currently using the building for warehousing and final packaging. Apio has a capital lease for office equipment for which the value of

$79,000

is included in property, plant and equipment as of

May 27, 2018.

Future minimum lease payments under capital leases for each year presented as are follows (in thousands):

	Amount
Fiscal year 2019	$	473
Fiscal year 2020		484
Fiscal year 2021		487
Fiscal year 2022		460
Fiscal year 2023		3,490
Thereafter		—
Total minimum lease payment		5,394
Less: amounts representing interest and taxes		(1,668	)
Total		3,726
Less: current portion included in other accrued liabilities		(85	)
Long-term capital lease obligation	$	3,641

Purchase Commitments

May 27, 2018,

the Company was committed to purchase

$24.4

million of produce and other materials during fiscal year

2019

in accordance with contractual terms at market rates. Payments of

$35.8

million,

$32.2

million and

$30.5

million were made in fiscal years

2018,

2017

and

2016,

respectively, under similar arrangements.

Legal Contingencies

In the ordinary course of business, the Company is involved in various legal proceedings and claims.

The Company makes a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least each fiscal quarter and adjusted to reflect the impacts of negotiations, estimate settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. Legal fees are expensed in the period in which they are incurred.

Apio has been the target of a union organizing campaign which has included

two

unsuccessful attempts to unionize Apio's Guadalupe, California processing plant. The campaign has involved a union and over

100

former and current employees of Pacific Harvest, Inc. and Rancho Harvest, Inc. (collectively "Pacific Harvest"), Apio's labor contractors at its Guadalupe, California processing facility, bringing legal actions before various state and federal agencies, the California Superior Court, and initiating over

100

individual arbitrations against Apio and Pacific Harvest.

The legal actions consist of

three

main types of claims: (

) Unfair Labor Practice claims ("ULPs") before the National Labor Relations Board (“NLRB”), (

) discrimination/wrongful termination claims before state and federal agencies and in individual arbitrations, and (

) wage and hour claims as part of

two

Private Attorney General Act (“PAGA”) cases in state court and in over

100

individual arbitrations.

A settlement of the ULPs among the union, Apio, and Pacific Harvest that were pending before the NLRB was approved on

December 27, 2016

for

$310,000.

Apio was responsible for half of this settlement, or

$155,000.

May 5, 2017,

the parties to the remaining actions executed a Settlement Agreement concerning the discrimination/wrongful termination claims and the wage and hour claims which covers all non-exempt employees of Pacific Harvest working at Apio's Guadalupe, California processing facility from

September 2011

through the settlement date. Under the settlement agreement, the plaintiffs are to be paid

$6.0

million in

three

installments,

$2.4

million of which was paid on

July 3, 2017,

$1.8

million which was paid on

November 22, 2017

and

$1.8

million which was paid in

July 2018.

The Company and Pacific Harvest have each agreed to pay

one

half of the settlement payments. The Company paid the entire

first

two

installments of

$4.2

million and will be reimbursed by Pacific Harvest for its

$2.1

million portion, of which

$600,000

and

$1.5

million is included in Prepaid and other current assets and Other assets, respectively, in the accompanying Consolidated Balance Sheets. This receivable will be repaid through monthly payments until fully paid, which the Company expects to occur by

December 2020.

The Company and Pacific Harvest each paid their portion of the

third

installment in

July 2018.

The Company’s recourse against non-payment by Pacific Harvest is its security interest in assets owned by Pacific Harvest.

For fiscal years

2018,

2017

and

2016,

the Company incurred legal expenses of

$639,000,

$2.1

million and

$542,000,

respectively, related to these actions. During the

twelve

months ended

May 28, 2017,

the Company recorded a legal settlement charge of

$2.6

million related to these actions. As of

May 27, 2018,

the Company had accrued

$1.0

million related to these actions, which is included in Other accrued liabilities in the accompanying Consolidated Balance Sheets.

Note 10 - Employee Savings and Investment Plans	12 Months Ended
Note 10 - Employee Savings and Investment Plans	May 27, 2018
Notes to Financial Statements
Pension and Other Postretirement Benefits Disclosure [Text Block]	10. Employee Savings and Investment Plans The Company sponsors a 401 (k) plan which is available to all full-time Landec employees (“Landec Plan”), allows participants to contribute from 1% to 50% of their salaries, up to the Internal Revenue Service limitation into designated investment funds. The Company matches 100% on the first 3% and 50% on the next 2% contributed by an employee. Employee and Company contributions are fully vested at the time of the contributions. The Company retains the right, by action of the Board of Directors, to amend, modify, or terminate the plan. For fiscal years 2018, 2017 and 2016, the Company contributed $1.8 million, $1.5 million and $1.3 million , respectively, to the Landec Plan.

Note 11 - Business Segment Reporting

12 Months Ended

May 27, 2018

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

11.

Business Segment Reporting

Prior to

May 2018,

the Company managed 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: Packaged Fresh Vegetables, Food Export and Biomaterials. However, in

May 2018,

the Company discontinued its Food Export business segment. As a result, the Company met the requirements of ASC

205

and ASC

360

longer reported as a separate segment.

The Packaged Fresh Vegetables 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 Packaged Fresh Vegetables segment sells BreatheWay packaging to partners for fruit and vegetable products. The 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, and non-HA products for medical use primarily in the Ophthalmic, Orthopedic and other markets. Other includes licensing and R&D activities from Landec’s Intelimer polymers for agricultural products, personal care products and other industrial products and from the operations of the

business from its acquisition date of

March 1, 2017

through

May 27, 2018.

The Other segment also includes corporate general and administrative expenses, non-Packaged Fresh Vegetables and non-Biomaterials interest income and income tax expenses. 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):

	Year Ended
	May 27, 2018		May 28, 2017		May 29, 2016
Canada	$	78.0	$	69.3	$	80.6
Belgium	$	17.2	$	21.0	$	13.4
Ireland	$	4.1	$	4.0	$	3.2
United Kingdom	$	0.8	$	0.4	$	0.6
Switzerland	$	0.8	$	0.3	$	0.4
Mexico	$	0.6	$	0.5	$	0.8
All Other Countries	$	1.4	$	3.4	$	4.2

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

Year Ended May 27, 2018	Packaged Fresh Vegetables			Biomaterials		Other (1)			Total
Net sales	$	454,953		$	65,427	$	3,847		$	524,227
International sales	$	78,217		$	24,468	$	167		$	102,852
Gross profit	$	49,130		$	28,568	$	640		$	78,338
Net income (loss) from continuing operations	$	17,970		$	11,631	$	(3,840	)	$	25,761
Identifiable assets (2)	$	251,500		$	129,342	$	23,861		$	404,703
Depreciation and amortization	$	8,056		$	3,679	$	677		$	12,412
Capital expenditures	$	11,171		$	16,454	$	5,965		$	33,590
Dividend income	$	1,650		$	—	$	—		$	1,650
Interest income	$	93		$	—	$	118		$	211
Interest expense, net	$	1,554		$	—	$	396		$	1,950
Income tax (benefit) expense	$	(9,537	)	$	2,638	$	(2,464	)	$	(9,363	)

Year Ended May 28, 2017
Net sales	$	408,021		$	59,392	$	2,363		$	469,776
International sales	$	69,802		$	29,053	$	—		$	98,855
Gross profit	$	51,148		$	26,755	$	1,309		$	79,212
Net income (loss) from continuing operations	$	2,641		$	10,228	$	(2,734	)	$	10,135
Identifiable assets (2)	$	211,381		$	104,492	$	42,735		$	358,608
Depreciation and amortization	$	7,312		$	3,054	$	311		$	10,677
Capital expenditures	$	11,294		$	11,169	$	540		$	23,003
Dividend income	$	1,650		$	—	$	—		$	1,650
Interest income	$	16		$	—	$	—		$	16
Interest expense, net	$	674		$	13	$	1,139		$	1,826
Income tax expense	$	823		$	2,938	$	279		$	4,040

Year Ended May 29, 2016
Net sales	$	423,859		$	50,470	$	2,589		$	476,918
International sales	$	81,242		$	21,993	$	—		$	103,235
Gross profit	$	40,479		$	24,081	$	2,221		$	66,781
Net (loss) income from continuing operations	$	(32,168	)	$	9,499	$	10,679		$	(11,990	)
Identifiable assets (2)	$	212,524		$	98,986	$	31,143		$	342,653
Depreciation and amortization	$	6,648		$	2,606	$	141		$	9,395
Capital expenditures	$	27,533		$	12,162	$	—		$	39,695
Dividend income	$	1,650		$	—	$	—		$	1,650
Interest income	$	46		$	25	$	—		$	71
Interest expense, net	$	1,721		$	266	$	—		$	1,987
Income tax expense (benefit)	$	415		$	1,946	$	(10,065	)	$	(7,704	)

(

) The Other segment operating results for the year ended

May 27, 2018,

May 28, 2017

and

May 29, 2016

have been restated to reflect the reclassification of the Food Export segment to discontinued operations.

(

) Assets of discontinued operations are included in Other for the years ended

May 27, 2018,

May 28, 2017,

and

May 29, 2016.

Note 12 - Quarterly Consolidated Financial Information (Unaudited)

12 Months Ended

May 27, 2018

Notes to Financial Statements

Quarterly Financial Information [Text Block]

12.

Quarterly Consolidated Financial Information (unaudited)

The following is a summary of the unaudited quarterly results of operations for fiscal years

2018

and

2017

(in thousands, except for per share amounts):

Fiscal Year 2018	1st Quarter		2nd Quarter		3rd Quarter		4th Quarter		Annual
Revenues	$	115,781	$	122,461	$	144,909	$	141,076	$	524,227
Gross profit	$	18,802	$	14,921	$	19,806	$	24,809	$	78,338
Net income from continuing operations	$	2,355	$	414	$	16,281	$	6,711	$	25,761
Net income applicable to common stockholders	$	2,146	$	487	$	16,088	$	6,108	$	24,829
Net income per basic share from continuing operations	$	0.08	$	0.02	$	0.59	$	0.24	$	0.93
Net income per diluted share from continuing operations	$	0.08	$	0.02	$	0.58	$	0.24	$	0.92

Fiscal Year 2017	1st Quarter		2nd Quarter		3rd Quarter		4th Quarter		Annual
Revenues	$	109,055	$	110,164	$	129,292	$	121,265	$	469,776
Gross profit	$	20,116	$	17,103	$	22,873	$	19,120	$	79,212
Net income from continuing operations	$	3,183	$	765	$	3,591	$	2,596	$	10,135
Net income applicable to common stockholders	$	3,312	$	1,326	$	3,500	$	2,452	$	10,590
Net income per basic share from continuing operations	$	0.12	$	0.03	$	0.13	$	0.09	$	0.37
Net income per diluted share from continuing operations	$	0.11	$	0.03	$	0.13	$	0.09	$	0.36

During the

fourth

quarter of fiscal year

2018,

the Company determined that it had improperly included accrued capital expenditures in cash used in investing activities from the purchase of property and equipment in its statements of cash flows for the previous annual financial statements and the quarterly financial statements for fiscal years

2018

and

2017.

While the Company concluded that the impact of these errors was

not

material to prior annual periods, the Company concluded that the errors were material to its

2018

and

2017

quarterly statements of cash flows. As a result, the Company has restated all quarterly periods in fiscal years

2018

and

2017

to reflect the correction of these errors (the Restatement). The following tables summarize the impact of the Restatement on the Company’s previously reported consolidated statements of cash flows included in the Quarterly Reports on Forms

-Q for each respective period.

Fiscal Year 2018	1st Quarter			2nd Quarter			3rd Quarter
Cash provided by (used in) operating activities:
As Reported	$	(131	)	$	4,330		$	18,098
Adjustment		3,581			2,006			2,202
Restated	$	3,450		$	6,336		$	20,300
Cash used in investing activities:
As Reported	$	(3,288	)	$	(9,457	)	$	(20,544	)
Adjustment		(3,581	)		(2,006	)		(2,202	)
Restated	$	(6,869	)	$	(11,463	)	$	(22,746	)

Fiscal Year 2017	1st Quarter			2nd Quarter			3rd Quarter
Cash provided by operating activities:
As Reported	$	6,467		$	5,527		$	23,181
Adjustment		3,502			4,185			3,445
Restated	$	9,969		$	9,712		$	26,626
Cash used in investing activities:
As Reported	$	(2,122	)	$	(4,724	)	$	(9,414	)
Adjustment		(3,502	)		(4,185	)		(3,445	)
Restated	$	(5,624	)	$	(8,909	)	$	(12,859	)

Note 13 - Discontinued Operations

12 Months Ended

May 27, 2018

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

13.

Discontinued Operations

During the

fourth

quarter of fiscal year

2018,

the Company discontinued its Food Export business. As a result, the Company met the requirements of ASC

205

20¸

to report the results of the Food Export segment as a discontinued operation and to classify the Food Export Segment as a group of assets and liabilities held for abandonment. The operating results for the Food Export business have therefore been reclassified as a discontinued operation.

The carrying amounts of the major classes of assets and liabilities of the Food Export business segment included in assets and liabilities of discontinued operations are as follows (in thousands):

	Year Ended
	May 27, 2018			May 28, 2017
Current and other assets, discontinued operations:
Cash and cash equivalents	$	(8	)	$	(589	)
Accounts receivable		518			1,184
Inventory		—			1,670
Other assets		—			269
Total assets, discontinued operations	$	510		$	2,534

Other current liabilities, discontinued operations:
Accounts payable	$	230		$	1,341
Accrued expenses and other current liabilities		228			785
Total other current liabilities, discontinued operations	$	458		$	2,126

Once the Food Export business was discontinued, the operations associated with this business qualified for reporting as discontinued operations. Accordingly, the operating results, net of tax, from discontinued operations are presented separately in the Company’s consolidated statements of income (loss) and the notes to the consolidated financial statements have been adjusted to exclude the Food Export business segment. Components of amounts reflected in (loss) income from discontinued operations, net of tax are as follows (in thousands):

	Year Ended
	May 27, 2018			May 28, 2017			May 29, 2016
Revenues	$	29,222		$	62,481		$	64,181
Cost of sales		(27,619	)		(58,507	)		(60,005	)
Selling, general and administrative		(2,522	)		(3,137	)		(3,334	)
Other		(269	)		—			—
(Loss) income from discontinued operations before taxes		(1,188	)		837			842
Income tax benefit (expense)		350			(295	)		(300	)
(Loss) income from discontinued operations, net of tax	$	(838	)	$	542		$	542

Cash provided by (used in) operating activities by the Food Export business totaled

$580,000,

515,000

), and

$11,000

for the fiscal years ended

May 27, 2018,

May 28, 2017,

and

May 29, 2016,

respectively.

Note 14 - Subsequent Events	12 Months Ended
Note 14 - Subsequent Events	May 27, 2018
Notes to Financial Statements
Subsequent Events [Text Block]	14. Subsequent Events Interest rate swap contract On June 25, 2018, the Company entered into an interest rate swap contract (the “Swap”) with JPMorgan at a notional amount of $30.0 million. The Swap has the effect of converting the Company’s Revolver obligation from a variable interest rate to a fixed 30 -day LIBOR rate of 2.74%.

Significant Accounting Policies (Policies)

12 Months Ended

May 27, 2018

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Basis of Presentation

and Consolidation

May 2018,

205

20,

Presentation of Financial Statements - Discontinued Operations

("ASC

205

20"

) and ASC

360,

Property, Plant and Equipment

("ASC

360”

). See – Note

13,

Discontinued Operations, for further information.

During the fiscal

fourth

quarter of

2018,

the Company purchased the remaining

40%

810

23.

Arrangements that are

not

An entity is a VIE and subject to consolidation, if by design: a) the total equity investment at risk is

not

one

of the following

three

not

VIEs.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

may

differ from management’s estimates.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentrations of Risk

one

issuer and to any

one

The operations of Windset Holdings

2010

Ltd. (“Windset”), in which the Company holds a

26.9%

During the fiscal year ended

May 27, 2018,

sales to the Company’s top

five

customers accounted for approximately

49%

of total revenue with the top

two

customers from the Packaged Fresh Vegetables segment, Costco Corporation (“Costco”) and Wal-mart, Inc. (“Wal-mart”) accounting for approximately

19%

and

18%,

respectively, of total revenues. In addition, approximately

20%

of the Company’s total revenues were derived from product sales to international customers,

none

of which individually accounted for more than

of total revenues. As of

May 27, 2018,

the top

two

customers, Costco and Wal-mart represented approximately

13%

and

18%,

respectively, of total accounts receivable.

During the fiscal year ended

May 28, 2017,

sales to the Company’s top

five

customers accounted for approximately

48%

of total revenue with the top

two

customers from the Packaged Fresh Vegetables segment, Costco Corporation (“Costco”) and Wal-mart, Inc. (“Wal-mart”) accounting for approximately

20%

and

16%,

respectively, of total revenues. In addition, approximately

21%

of the Company’s total revenues were derived from product sales to international customers,

none

of which individually accounted for more than

of total revenues. As of

May 28, 2017,

the top

two

customers, Costco and Wal-mart represented approximately

13%

and

18%,

respectively, of total accounts receivable.

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Impairment of Long-Lived Assets

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amounts

may

not

Fair Value of Financial Instruments, Policy [Policy Text Block]

Financial Instruments

Cash Flow Hedges

The Company entered into an interest rate swap agreement to manage interest rate risk. This derivative instrument

may

Comprehensive income consists of

two

	Unrealized Gains on Cash Flow Hedge
Balance as of May 28, 2017	$	432
Other comprehensive income before reclassifications, net of tax effect		716
Amounts reclassified from OCI		—
Other comprehensive income, net		716
Balance as of May 27, 2018	$	1,148

The Company does

not

expect any transactions or other events to occur that would result in the reclassification of any significant gains into earnings in the next

months.

Based on these assumptions, management believes the fair market values of the Company’s financial instruments are

not

significantly different from their recorded amounts as of

May 27, 2018

and

May 28, 2017.

Trade and Other Accounts Receivable, Policy [Policy Text Block]

Accounts Receivable and Sales Returns and Allowance for Doubtful Accounts

-days past due. The changes in the Company’s allowance for sales returns and doubtful accounts are summarized in the following table (in thousands):

	Balance at beginning of period		Adjustments charged to revenue and expenses		Write offs, net of recoveries			Balance at end of period
Year Ended May 29, 2016	$	343	$	63	$	(110	)	$	296
Year Ended May 28, 2017	$	296	$	519	$	(454	)	$	361
Year Ended May 27, 2018	$	361	$	46	$	(105	)	$	302

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

Packaged Fresh Vegetables revenues also include the revenues generated from Apio Cooling, LP, a vegetable cooling operation in which Apio was the general partner with a

60%

ownership position. On

April 26, 2018,

the Company purchased the

40%

third

parties because it takes title to the product while in transit. The Company discontinued its Food Export business segment. As a result, the Company met the requirements of ASC

205

and ASC

360

longer reported as a separate segment.

Lifecore’s Biomaterials business principally generates revenue through the sale of products containing HA. Lifecore primarily sells products to customers in

three

medical areas: (

) Ophthalmic, which represented approximately

60%

of Lifecore’s revenues in fiscal year

2018,

(

) Orthopedic, which represented approximately

10%

of Lifecore’s revenues in fiscal year

2018,

and (

) Other/Non-HA products, which represented approximately

30%

of Lifecore’s revenues in fiscal year

2018.

The vast majority of Lifecore’s revenues are recognized upon shipment.

Lifecore’s business development revenues, a portion of which are included in all

three

Contract R&D revenue is recorded as earned, based on the performance requirements of the contract. Non-refundable contract fees for which

further performance obligations exist, and there is

continuing involvement by the Company, are recognized on the earlier of when the payment is received or collection is assured.

third

-party evidence (“TPE”), if VSOE is

not

typically able to determine VSOE or TPE, and therefore, uses the estimated selling price to allocate revenue between the elements of an arrangement.

The Company limits the amount of revenue recognition for delivered elements to the amount that is

not

include a general right of return relative to delivered products. Where the aforementioned criteria for a separate unit of accounting are

not

established fair value for any undelivered element, revenue for all elements is deferred until delivery of the final element is completed and all recognition criteria are met.

From time to time, the Company offers customers sales incentives, which include volume rebates and discounts. These amounts are estimated on a quarterly basis and recorded as a reduction of revenue.

A summary of revenues by type of arrangement as described above is as follows (in thousands):

	Year Ended
	May 27, 2018		May 28, 2017		May 29, 2016
Recorded upon delivery	$	509,096	$	456,512	$	458,985
Revenue from multiple element arrangements		12,531		8,431		13,400
Revenue from license fees, R&D contracts and royalties/profit sharing		2,600		4,833		4,533
Total	$	524,227	$	469,776	$	476,918

Shipping and Handling Cost, Policy [Policy Text Block]

Shipping and Handling Costs

Amounts billed to

third

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

The Company records all highly liquid securities with

three

Reconciliation of Cash and Cash Equivalents and Cash as presented on the Statements of Cash Flows

	May 27, 2018			May 28, 2017			May 29, 2016
Cash and cash equivalents	$	2,899		$	5,998		$	9,968
Cash, discontinued operations		(8	)		(589	)		(74	)
Cash and cash equivalents presented on Statements of Cash Flows	$	2,891		$	5,409		$	9,894

Inventory, Policy [Policy Text Block]

Inventories

Inventories are stated at the lower of cost (using the

first

-in,

first

-out method) or net realizable value. As of

May 27, 2018

and

May 28, 2017

inventories consisted of (in thousands):

	Year Ended
	May 27, 2018		May 28, 2017
Finished goods	$	12,861	$	10,015
Raw materials		15,286		10,158
Work in progress		3,672		3,447
Total inventories	$	31,819	$	23,620

Advertising Costs, Policy [Policy Text Block]

Advertising Expense

2018,

2017,

and

2016

was

$1.4

million,

$1.9

million and

$2.1

million, respectively.

Receivables, Policy [Policy Text Block]

Notes and Advances Receivable

one

three

nine

months, and are reviewed at least quarterly for collectability. A reserve is established for any note or advance deemed to

not

be fully collectible based upon an estimate of the crop value or the fair value of the security for the note or advance. Notes or advances outstanding at

May 27, 2018

and

May 28, 2017

were

$2.7

million and

$1.0

million, respectively and are recorded in prepaid expenses and other current assets in the accompanying Consolidated Balance Sheets.

Related Party Transactions

The Company sold products to and earned license fees from Windset during the last

three

fiscal years. During fiscal years

2018,

2017,

and

2016,

the Company recognized revenues of

$556,000,

$514,000,

and

$666,000,

$334,000

and

$388,000

from Windset are included in accounts receivable in the accompanying Consolidated Balance Sheets as of

May 27, 2018

and

May 28, 2017,

respectively.

Additionally, unrelated to the revenue transactions above, the Company purchases produce from Windset for sale to

third

parties. During fiscal years

2018,

2017,

and

2016,

the Company recognized cost of product sales of

$0,

$22,000,

and

$32,000,

respectively, in the accompanying Consolidated Statements of Income (Loss), from the sale of products purchased from Windset. The related accounts payable of

and

$22,000

to Windset are included in accounts payable in the accompanying Consolidated Balance Sheets as of

May 27, 2018

and

May 28, 2017,

respectively.

All related party transactions are monitored quarterly by the Company and approved by the Audit Committee of the Board of Directors.

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment

three

forty

years for buildings and leasehold improvements and

three

twenty

three

seven

years. During fiscal years

2018,

2017,

and

2016,

the Company capitalized

$918,000,

$2.2

million, and

$174,000

in software development costs, respectively.

Goodwill and Intangible Assets, Policy [Policy Text Block]

Long-Lived Assets

The Company’s Long-Lived Assets consist of property, plant and equipment, and intangible assets. Intangible assets are comprised of customer relationships with an estimated useful life of

eleven

thirteen

March 2017, (

ii) upon the acquisition of GreenLine Holding Company (“GreenLine”) by Apio in

April 2012, (

iii) upon the acquisition of Lifecore in

April 2010

and (iv) upon the acquisition of Apio in

December 1999.

upon the allocation of assets and liabilities acquired and consideration paid for each reporting unit. As of

May 27, 2018,

the Other reporting unit had

$5.2

million of goodwill, the Biomaterials reporting unit had

$13.9

million of goodwill, and the Packaged Fresh Vegetables reporting unit had

$35.4

million of goodwill.

may

not

may

350

35.

During fiscal years

2018

and

2017,

there were

impairments of intangible assets.

not

(that is, a likelihood of more than

percent) that the fair value of a reporting unit is less than its carrying amount, then the quantitative test is required. Otherwise,

further testing is required.

As of

February 26, 2018,

the Company tested its goodwill for impairment and determined that

indication of impairment existed as of that date. As a result, it was

not

necessary to perform the quantitative goodwill impairment test at that time. Subsequent to the

2018

annual impairment test, there have been

2018,

there were

impairment losses for goodwill during fiscal years

2018,

2017,

and

2016.

Investment In Non Public Companies [Policy Text Block]

Investment in Non-Public Company

February 15, 2011,

the Company made an investment in Windset which is reported as an investment in non-public company, fair value, in the accompanying Consolidated Balance Sheets as of

May 27, 2018

and

May 28, 2017.

The Company has elected to account for its investment in Windset under the fair value option. See Note

– Investment in Non-public Company for further information.

Self Insurance Reserve [Policy Text Block]

Partial Self-Insurance on Employee Health and Workers Compensation Plans

not

been paid as of

May 27, 2018.

It is reasonably possible that the expense the Company ultimately incurs could differ and adjustments to future reserves

may

be necessary.

Revenue Recognition, Deferred Revenue [Policy Text Block]

Deferred Revenue

Cash received in advance of services performed are recorded as deferred revenue.

Non-controlling Interest [Policy Text Block]

Non-Controlling Interest

During the fiscal

fourth

quarter of

2018,

the Company purchased the remaining

40%

non-controlling interest of its subsidiary, Apio Cooling, LP (“Apio Cooling”), for approximately

$4.7

million in cash. The increase in the Company’s ownership interest in Apio Cooling was accounted for as an equity transaction in accordance with ASC Topic

810

23.

The Company recorded a decrease in additional paid-in capital of approximately

$2.6

million, which represents the difference between the cash paid and the book value of the Apio Cooling non-controlling interest account, which was approximately

$1.5

million, immediately preceding the purchase.

Income Tax, Policy [Policy Text Block]

Income Taxes

not

May 27, 2018,

the Company had a

$1.3

million valuation allowance against its deferred tax assets.

A number of years

may

require the use of cash in the year of resolution. The Company’s tax-contingency accruals are recorded in other accrued liabilities in the accompanying Consolidated Balance Sheets.

Earnings Per Share, Policy [Policy Text Block]

Per Share Information

The following table sets forth the computation of diluted net income (loss) per share (in thousands, except per share amounts):

	Year Ended
	May 27, 2018		May 28, 2017		May 29, 2016
Numerator:
Net income (loss) applicable to Common Stockholders	$	24,829	$	10,590	$	(11,641	)

Denominator:
Weighted average shares for basic net income (loss) per share		27,535		27,276		27,044
Effect of dilutive securities:
Stock options and restricted stock units		380		376		—
Weighted average shares for diluted net income (loss) per share		27,915		27,652		27,044

Diluted net income (loss) per share	$	0.89	$	0.38	$	(0.43	)

Options to purchase

1,495,380

and

1,428,272

shares of Common Stock at a weighted average exercise price of

$13.80

and

$13.58

per share were outstanding during fiscal years ended

May 27, 2018

and

May 28, 2017,

respectively, but were

not

Due to the Company’s net loss for fiscal year

2016,

the net loss per share includes only weighted average shares outstanding and thus excludes

1.6

million of outstanding options and RSUs as such impacts would be antidilutive for fiscal year

2016.

Cost of Sales, Policy [Policy Text Block]

Cost of Sales

Research and Development Expense, Policy [Policy Text Block]

Research and Development Expenses

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Accounting for Stock-Based Compensation

The following table summarizes the stock-based compensation for options and RSUs (in thousands):

	Year Ended
	May 27, 2018		May 28, 2017		May 29, 2016
Options	$	1,488	$	1,230	$	1,352
RSUs		2,915		2,734		2,113
Total stock-based compensation	$	4,403	$	3,964	$	3,465

The following table summarizes the stock-based compensation by income statement line item (in thousands):

	Year Ended
	May 27, 2018		May 28, 2017		May 29, 2016
Cost of sales	$	535	$	485	$	405
Research and development		131		83		90
Selling, general and administrative		3,737		3,396		2,970
Total stock-based compensation	$	4,403	$	3,964	$	3,465

May 27, 2018,

May 28, 2017

and

May 29, 2016,

the fair value of stock option grants was estimated using the following weighted average assumptions:

	Year Ended
	May 27, 2018			May 28, 2017			May 29, 2016
Expected life (in years)		3.50			3.50			3.38
Risk-free interest rate		1.73	%		1.08	%		1.09	%
Volatility		27	%		26	%		31	%
Dividend yield		0	%		0	%		0	%

The weighted average estimated fair value of Landec employee stock options granted at grant date market prices during the fiscal years ended

May 27, 2018,

May 28, 2017

and

May 29, 2016

was

$2.90,

$2.37

and

$2.85

per share, respectively.

stock options were granted above or below grant date market prices during the fiscal years ended

May 27, 2018,

May 28, 2017

and

May 29, 2016.

Fair Value Measurement, Policy [Policy Text Block]

Fair Value Measurements

– Investment in Non-public Company for further information. The Company has

not

elected the fair value option for any of its other eligible financial assets or liabilities.

The accounting guidance established a

three

-tier hierarchy for fair value measurements, which prioritizes the inputs used in measuring fair value as follows:

Level

–

observable inputs such as quoted prices for identical instruments in active markets.

Level

–

inputs other than quoted prices in active markets that are observable either directly or indirectly through corroboration with observable market data.

Level

–

unobservable inputs in which there is little or

market data, which would require the Company to develop its own assumptions.

As of

May 27, 2018,

The fair value of the Company’s interest rate swap is determined based on model inputs that can be observed in a liquid market, including yield curves, and is categorized as a Level

fair value measurement and is included in other assets in the accompanying Consolidated Balance Sheets.

fair value measurement. The change in the fair value of the Company’s investment in Windset for the

twelve

months ended

May 27, 2018

was due to the Company’s

26.9%

	At May 27, 2018			At May 28, 2017
Revenue growth rates		6	%		4	%
Expense growth rates		6	%		4	%
Income tax rates		15	%		15	%
Discount rates		12	%		12	%

	Impact on value of Windset investment as of May 27, 2018
10% increase in revenue growth rates	$	9,700
10% increase in expense growth rates	$	(9,100	)
10% increase in income tax rates	$	(500	)
10% increase in discount rates	$	(4,300	)

The fair value of the Company’s contingent consideration liability from its purchase of

(see Note

– Acquisition of

fair value measurement. In determining the fair value of the contingent consideration liability, the Company assumed EBITDA for

would be approximately

$6.4

million over the

-year earn-out period and applying a discount rate of

22.4%.

The following table summarizes the fair value of the Company’s assets and liabilities that are measured at fair value on a recurring basis (in thousands):

	Fair Value at May 27, 2018							Fair Value at May 28, 2017
Assets (liabilities):	Level 1		Level 2		Level 3			Level 1		Level 2		Level 3
Interest rate swap (1)	$	—	$	1,529	$	—		$	—	$	688	$	—
Investment in non-public company		—		—		66,500			—		—		63,600
Contingent consideration liability (2)		—		—		(4,000	)		—		—		(5,900	)
Total	$	—	$	1,529	$	62,500		$	—	$	688	$	57,700

(

)

Included in Other assets in the accompanying Consolidated Balance Sheets.

(

)

Included in Other non-current liabilities in the accompanying Consolidated Balance Sheets.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

Recently Adopted Pronouncements

December 22, 2017,

Staff Accounting Bulletin

No.

118

(“SAB

118”

) was issued to address the application of GAAP in situations when a registrant does

not

have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for certain income tax effects of the TCJA. Pursuant to SAB

118,

as of

May 27, 2018,

the Company had

not

yet completed its accounting for the tax effects of the enactment of the TCJA. The Company’s provision for income taxes for the year ended

May 27, 2018

118

in the

third

quarter of

2018.

Recently Issued Pronouncements to be Adopted

Revenue Recognition

May

2014,

the Financial Accounting Standards Board (“FASB”) issued ASU

2014

09,

which creates FASB ASC Topic

606

, Revenue from Contracts with Customers

and supersedes ASC Topic

605,

Revenue Recognition

(“ASU

2014

09”

). The guidance replaces industry-specific guidance and establishes a single

five

2014

09.

The Company will adopt these updates beginning with the

first

quarter of fiscal year

2019

and anticipates doing so using the modified retrospective method, which would require a cumulative effect adjustment of initially applying ASU

2014

recognized at the date or initial application.

The Company recently completed its evaluation of the impact of the adoption of ASU

2014

09.

As a result, the Company has identified the following core revenue streams from its contracts with customers:

●

Finished goods product sales (Packaged Fresh Vegetables);

●

Shipping and handling (Packaged Fresh Vegetables);

●

Product development and contract manufacturing arrangements (Biomaterials).

The Company’s assessment efforts have included reviewing current accounting policies, processes, and systems requirements, as well assigning internal resources and

third

may

2014

09.

Beyond its core revenue streams, and the items listed above, the Company has also evaluated the impact of ASU

2014

on certain ancillary transactions and other arrangements.

As a result of its assessment efforts, the Company does

not

currently anticipate any material changes to its processes, financial condition, or results of operations upon adoption of ASU

2014

09.

The Company continues to assess the impact of ASU

2014

09,

along with industry trends and additional interpretive guidance, on its core revenue streams, and as a result of the continued assessment, the Company

may

modify its plan to adoption accordingly.

Leases

February 2016,

the FASB issued ASU

2016

02,

Leases (Topic

842

)

(“ASU

2016

02”

), which requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use-assets. ASU

2016

also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. The Company will adopt ASU

2016

beginning in the

first

quarter of fiscal year

2020

on a modified retrospective basis.

The Company is currently in the process of evaluating the impact that ASU

2016

will have upon its consolidated financial statements and related disclosures. The Company’s assessment efforts to date have included:

●

Reviewing the provisions of ASU

2016

02;

●

Gathering information to evaluate its lease population and portfolio;

●

Evaluating the nature of its real and personal property and other arrangements that

may

meet the definition of a lease; and

●

Systems’ readiness evaluations.

As a result of these efforts, the Company currently anticipates that the adoption of ASU

2016

will have a significant impact on its long-term assets and liabilities, as, at a minimum, virtually all of its leases designated as operating leases in Note

not

anticipated to significantly change. This change will have

impact on the Company’s ability to meet its loan covenants as the impact from the adoption of ASU

2016

was taken into consideration when determining its loan covenants.

Income Taxes

February 2018,

the FASB issued ASU

2018

02,

Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

that permits a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act enacted in

December 2017.

The standard is effective for fiscal years beginning after

December 15, 2018.

Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements.

Hedging

August 2017,

the FASB issued ASU

2017

12,

Targeted Improvements to Accounting for Hedging Activities

(ASU

2017

is effective for annual periods beginning after

December 15, 2018,

Financial Instruments – Credit Losses

June 2016,

the FASB issued ASU

2016

13,

Financial Instruments —Credit Losses (Topic

326

): Measurement of Credit Losses on Financial Instruments

(ASU

2016

is effective for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2019.

The adoption of ASU

2016

not

expected to have a material impact on its consolidated financial statements and related disclosures.

Immaterial Error Correction, Policy [Policy Text Block]

Immaterial Error Correction

As discussed in Note

– Quarterly Consolidated Financial Information (unaudited)

during the

fourth

quarter of fiscal year

2018,

not

have a material impact on the financial statements for fiscal years

2017

and

2016,

but has elected to correct the

2017

and

2016

statements of cash flows in the accompanying consolidated financial statements to reflect the immaterial error correction.

The corrections resulted in an increase (decrease) in cash provided by operating activities and cash used in investing activities within the

2017

and

2016

consolidated statements of cash flows of

$411,000,

411,000

), $(

1.2

) million, and

$1.2

million, respectively.

Certain amounts disclosed in the accompanying notes to the financial statements have been revised to reflect the corrections.

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies (Tables)

12 Months Ended

May 27, 2018

Notes Tables

Comprehensive Income (Loss) [Table Text Block]

	Unrealized Gains on Cash Flow Hedge
Balance as of May 28, 2017	$	432
Other comprehensive income before reclassifications, net of tax effect		716
Amounts reclassified from OCI		—
Other comprehensive income, net		716
Balance as of May 27, 2018	$	1,148

Allowance for Credit Losses on Financing Receivables [Table Text Block]

	Balance at beginning of period		Adjustments charged to revenue and expenses		Write offs, net of recoveries			Balance at end of period
Year Ended May 29, 2016	$	343	$	63	$	(110	)	$	296
Year Ended May 28, 2017	$	296	$	519	$	(454	)	$	361
Year Ended May 27, 2018	$	361	$	46	$	(105	)	$	302

Revenue Recognition, Multiple-deliverable Arrangements [Table Text Block]

	Year Ended
	May 27, 2018		May 28, 2017		May 29, 2016
Recorded upon delivery	$	509,096	$	456,512	$	458,985
Revenue from multiple element arrangements		12,531		8,431		13,400
Revenue from license fees, R&D contracts and royalties/profit sharing		2,600		4,833		4,533
Total	$	524,227	$	469,776	$	476,918

Schedule of Cash and Cash Equivalents [Table Text Block]

	May 27, 2018			May 28, 2017			May 29, 2016
Cash and cash equivalents	$	2,899		$	5,998		$	9,968
Cash, discontinued operations		(8	)		(589	)		(74	)
Cash and cash equivalents presented on Statements of Cash Flows	$	2,891		$	5,409		$	9,894

Schedule of Inventory, Current [Table Text Block]

	Year Ended
	May 27, 2018		May 28, 2017
Finished goods	$	12,861	$	10,015
Raw materials		15,286		10,158
Work in progress		3,672		3,447
Total inventories	$	31,819	$	23,620

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Year Ended
	May 27, 2018		May 28, 2017		May 29, 2016
Numerator:
Net income (loss) applicable to Common Stockholders	$	24,829	$	10,590	$	(11,641	)

Denominator:
Weighted average shares for basic net income (loss) per share		27,535		27,276		27,044
Effect of dilutive securities:
Stock options and restricted stock units		380		376		—
Weighted average shares for diluted net income (loss) per share		27,915		27,652		27,044

Diluted net income (loss) per share	$	0.89	$	0.38	$	(0.43	)

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

	Year Ended
	May 27, 2018		May 28, 2017		May 29, 2016
Options	$	1,488	$	1,230	$	1,352
RSUs		2,915		2,734		2,113
Total stock-based compensation	$	4,403	$	3,964	$	3,465

	Year Ended
	May 27, 2018		May 28, 2017		May 29, 2016
Cost of sales	$	535	$	485	$	405
Research and development		131		83		90
Selling, general and administrative		3,737		3,396		2,970
Total stock-based compensation	$	4,403	$	3,964	$	3,465

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	Year Ended
	May 27, 2018			May 28, 2017			May 29, 2016
Expected life (in years)		3.50			3.50			3.38
Risk-free interest rate		1.73	%		1.08	%		1.09	%
Volatility		27	%		26	%		31	%
Dividend yield		0	%		0	%		0	%

Schedule of Effect of Significant Unobservable Inputs for Investment [Table Text Block]

	At May 27, 2018			At May 28, 2017
Revenue growth rates		6	%		4	%
Expense growth rates		6	%		4	%
Income tax rates		15	%		15	%
Discount rates		12	%		12	%

Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets [Table Text Block]

	Impact on value of Windset investment as of May 27, 2018
10% increase in revenue growth rates	$	9,700
10% increase in expense growth rates	$	(9,100	)
10% increase in income tax rates	$	(500	)
10% increase in discount rates	$	(4,300	)

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

	Fair Value at May 27, 2018							Fair Value at May 28, 2017
Assets (liabilities):	Level 1		Level 2		Level 3			Level 1		Level 2		Level 3
Interest rate swap (1)	$	—	$	1,529	$	—		$	—	$	688	$	—
Investment in non-public company		—		—		66,500			—		—		63,600
Contingent consideration liability (2)		—		—		(4,000	)		—		—		(5,900	)
Total	$	—	$	1,529	$	62,500		$	—	$	688	$	57,700

Note 4 - Property and Equipment (Tables)

12 Months Ended

May 27, 2018

Notes Tables

Property, Plant and Equipment [Table Text Block]

	Years of			Year Ended
	Useful Life			May 27, 2018		May 28, 2017
Land and buildings	15	-	40	$	90,712	$	86,983
Leasehold improvements	3	-	20		2,607		1,190
Computers, capitalized software, machinery, equipment and autos	3	-	20		120,418		97,375
Furniture and fixtures	3	-	7		1,673		1,272
Construction in process					13,100		6,811
Gross property and equipment					228,510		193,631
Less accumulated depreciation and amortization					(68,886)		(60,411	)
Net property and equipment				$	159,624	$	133,220

Note 5 - Intangible Assets (Tables)

12 Months Ended

May 27, 2018

Notes Tables

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	Trademarks and Trade names			Customer Relationships			Total
Balance as of May 31, 2015		48,428			7,835			56,263
Impairment during the period		(34,000	)		—			(34,000	)
Amortization expense		—			(867	)		(867	)
Balance as of May 29, 2016		14,428			6,968			21,396
Additions during the period		1,600			700			2,300
Amortization expense		—			(885	)		(885	)
Balance as of May 28, 2017		16,028			6,783			22,811
Amortization expense		—			(969	)		(969	)
Balance as of May 27, 2018	$	16,028		$	5,814		$	21,842

Note 6 - Stockholders' Equity (Tables)

12 Months Ended

May 27, 2018

Notes Tables

Share-based Compensation, Activity [Table Text Block]

				Restricted Stock Outstanding					Stock Options Outstanding
	RSUs and Options Available for Grant			Number of Restricted Shares			Weighted Average Grant Date Fair Value		Number of Stock Options			Weighted Average Exercise Price
Balance at May 31, 2015		881,143			392,771		$	14.15		1,736,718		$	11.19
Granted		(443,175	)		177,675		$	12.10		265,500		$	12.04
Awarded/Exercised		—			(32,439	)	$	13.28		(220,717	)	$	6.44
Forfeited		28,000			(11,166	)	$	14.36		(24,473	)	$	14.38
Plan shares expired		—			—			—		(25,554	)	$	9.86
Balance at May 29, 2016		465,968			526,841		$	13.51		1,731,474		$	11.90
Granted		(370,522	)		130,522		$	13.37		240,000		$	11.58
Awarded/Exercised		—			(130,508	)	$	13.42		(357,639	)	$	5.93
Forfeited		59,793			(17,500	)	$	12.46		(42,293	)	$	12.16
Plan shares expired		—			—			—		—		$	—
Balance at May 28, 2017		155,239			509,355		$	13.53		1,571,542		$	13.20
Additional shares reserved		1,000,000			—			—		—			—
Granted		(698,288	)		200,288		$	13.12		498,000		$	12.93
Awarded/Exercised		—			(270,656	)	$	14.06		(29,333	)	$	7.36
Forfeited		85,324			(30,950	)	$	11.75		(23,334	)	$	12.55
Plan shares expired		—			—					(61,540	)	$	14.23
Balance at May 27, 2018		542,275			408,037		$	12.99		1,955,335		$	13.20

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]

					Options Outstanding								Options Exercisable
Range of Exercise Prices					Number of Shares Outstanding		Weighted Average Remaining Contractual Life (in years)		Weighted Average Exercise Price		Aggregate Intrinsic Value		Number of Shares Exercisable		Weighted Average Exercise Price		Aggregate Intrinsic Value
$	6.66	-	$	14.39		1,955,335		4.33	$	13.20	$	1,937,832		1,383,732	$	13.43	$	1,122,822

Share-based Compensation Arrangements by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding [Table Text Block]

	Outstanding Options		Weighted Average Exercise Price		Weighted Average Remaining Contract Term (in years)		Aggregate Intrinsic Value
Vested		1,383,732	$	13.43		3.65	$	1,122,822
Expected to vest		571,603	$	12.63		5.96		815,010
Total		1,955,335	$	13.20		4.33	$	1,937,832

Note 7 - Debt (Tables)

12 Months Ended

May 27, 2018

Notes Tables

Schedule of Long-term Debt Instruments [Table Text Block]

	May 27, 2018			May 28, 2017
Term loan with JPMorgan Chase Bank (“JPMorgan”), BMO Harris Bank N,A. (“BMO”), and City National Bank (“CNB”); due in quarterly principal and interest payments of $1,250 beginning December 1, 2016 through September 23, 2021 with the remainder due on maturity, with interest based on the Company’s leverage ratio at a per annum rate of the Eurodollar rate plus a spread of between 1.25% and 2.25%	$	42,500		$	47,500
Total principal amount of long-term debt		42,500			47,500
Less: unamortized debt issuance costs		(200	)		(261	)
Total long-term debt, net of unamortized debt issuance costs		42,300			47,239
Less: current portion of long-term debt, net		(4,940	)		(4,940	)
Long-term debt, net	$	37,360		$	42,299

Schedule of Maturities of Long-term Debt [Table Text Block]

	Term Loan
Fiscal year 2019	$	5,000
Fiscal year 2020		5,000
Fiscal year 2021		5,000
Fiscal year 2022		27,500
Fiscal year 2023		—
Thereafter		—
Total	$	42,500

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
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-Paragraph 1
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-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 835
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-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
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-Name Accounting Standards Codification
-Topic 835
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
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-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-Topic 505
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+ Details

Note 8 - Income Taxes (Tables)

12 Months Ended

May 27, 2018

Notes Tables

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Year Ended
	May 27, 2018			May 28, 2017		May 29, 2016
Current:
Federal	$	(2,854	)	$	1,388	$	2,085
State		60			39		(96	)
Foreign		83			82		83
Total		(2,711	)		1,509		2,072

Deferred:
Federal		(7,122	)		2,270		(9,165	)
State		470			261		(611	)
Total		(6,652	)		2,531		(9,776	)
Income tax (benefit) expense	$	(9,363	)	$	4,040	$	(7,704	)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Year Ended
	May 27, 2018			May 28, 2017			May 29, 2016
Tax at U.S. statutory rate (1)	$	4,784		$	4,922		$	(6,963	)
State income taxes, net of federal benefit		439			307			(518	)
Tax reform		(14,350	)		—			—
Change in valuation allowance		(176	)		85			6
Tax credit carryforwards		(777	)		(834	)		(156	)
Other compensation-related activity		566			(365	)		173
Domestic manufacturing deduction		—			(243	)		(307	)
Other		151			168			61
Income tax (benefit) expense	$	(9,363	)	$	4,040		$	(7,704	)

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	Year Ended
	May 27, 2018			May 28, 2017
Deferred tax assets:
Accruals and reserves	$	1,421		$	3,242
Net operating loss carryforwards		1,955			2,766
Stock-based compensation		1,247			2,032
Research and AMT credit carryforwards		2,032			1,050
Other		427			661
Gross deferred tax assets		7,082			9,751
Valuation allowance		(1,337	)		(1,325	)
Net deferred tax assets		5,745			8,426

Deferred tax liabilities:
Basis difference in investment in non-public company		(3,722	)		(11,495	)
Goodwill and other indefinite life intangibles		(8,201	)		(11,119	)
Depreciation and amortization		(11,307	)		(10,393	)
Deferred tax liabilities		(23,230	)		(33,007	)

Net deferred tax liabilities	$	(17,485	)	$	(24,581	)

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

	As of
	May 27, 2018			May 28, 2017			May 29, 2016
Unrecognized tax benefits – beginning of the period	$	537		$	842		$	987
Gross increases – tax positions in prior period		21			11			1
Gross decreases – tax positions in prior period		—			(90	)		(223	)
Gross increases – current-period tax positions		116			93			77
Settlements		(95	)		—			—
Lapse of statute of limitations		(100	)		(319	)		—
Unrecognized tax benefits – end of the period	$	479		$	537		$	842

Note 9 - Commitments and Contingencies (Tables)

12 Months Ended

May 27, 2018

Notes Tables

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

	Amount
Fiscal year 2019	$	3,737
Fiscal year 2020		2,894
Fiscal year 2021		2,258
Fiscal year 2022		1,839
Fiscal year 2023		1,719
Thereafter		8,589
Total	$	21,036

Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block]

	Amount
Fiscal year 2019	$	473
Fiscal year 2020		484
Fiscal year 2021		487
Fiscal year 2022		460
Fiscal year 2023		3,490
Thereafter		—
Total minimum lease payment		5,394
Less: amounts representing interest and taxes		(1,668	)
Total		3,726
Less: current portion included in other accrued liabilities		(85	)
Long-term capital lease obligation	$	3,641

Note 11 - Business Segment Reporting (Tables)

12 Months Ended

May 27, 2018

Notes Tables

Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]

	Year Ended
	May 27, 2018		May 28, 2017		May 29, 2016
Canada	$	78.0	$	69.3	$	80.6
Belgium	$	17.2	$	21.0	$	13.4
Ireland	$	4.1	$	4.0	$	3.2
United Kingdom	$	0.8	$	0.4	$	0.6
Switzerland	$	0.8	$	0.3	$	0.4
Mexico	$	0.6	$	0.5	$	0.8
All Other Countries	$	1.4	$	3.4	$	4.2

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Year Ended May 27, 2018	Packaged Fresh Vegetables			Biomaterials		Other (1)			Total
Net sales	$	454,953		$	65,427	$	3,847		$	524,227
International sales	$	78,217		$	24,468	$	167		$	102,852
Gross profit	$	49,130		$	28,568	$	640		$	78,338
Net income (loss) from continuing operations	$	17,970		$	11,631	$	(3,840	)	$	25,761
Identifiable assets (2)	$	251,500		$	129,342	$	23,861		$	404,703
Depreciation and amortization	$	8,056		$	3,679	$	677		$	12,412
Capital expenditures	$	11,171		$	16,454	$	5,965		$	33,590
Dividend income	$	1,650		$	—	$	—		$	1,650
Interest income	$	93		$	—	$	118		$	211
Interest expense, net	$	1,554		$	—	$	396		$	1,950
Income tax (benefit) expense	$	(9,537	)	$	2,638	$	(2,464	)	$	(9,363	)

Year Ended May 28, 2017
Net sales	$	408,021		$	59,392	$	2,363		$	469,776
International sales	$	69,802		$	29,053	$	—		$	98,855
Gross profit	$	51,148		$	26,755	$	1,309		$	79,212
Net income (loss) from continuing operations	$	2,641		$	10,228	$	(2,734	)	$	10,135
Identifiable assets (2)	$	211,381		$	104,492	$	42,735		$	358,608
Depreciation and amortization	$	7,312		$	3,054	$	311		$	10,677
Capital expenditures	$	11,294		$	11,169	$	540		$	23,003
Dividend income	$	1,650		$	—	$	—		$	1,650
Interest income	$	16		$	—	$	—		$	16
Interest expense, net	$	674		$	13	$	1,139		$	1,826
Income tax expense	$	823		$	2,938	$	279		$	4,040

Year Ended May 29, 2016
Net sales	$	423,859		$	50,470	$	2,589		$	476,918
International sales	$	81,242		$	21,993	$	—		$	103,235
Gross profit	$	40,479		$	24,081	$	2,221		$	66,781
Net (loss) income from continuing operations	$	(32,168	)	$	9,499	$	10,679		$	(11,990	)
Identifiable assets (2)	$	212,524		$	98,986	$	31,143		$	342,653
Depreciation and amortization	$	6,648		$	2,606	$	141		$	9,395
Capital expenditures	$	27,533		$	12,162	$	—		$	39,695
Dividend income	$	1,650		$	—	$	—		$	1,650
Interest income	$	46		$	25	$	—		$	71
Interest expense, net	$	1,721		$	266	$	—		$	1,987
Income tax expense (benefit)	$	415		$	1,946	$	(10,065	)	$	(7,704	)

Note 12 - Quarterly Consolidated Financial Information (Unaudited) (Tables)

12 Months Ended

May 27, 2018

Notes Tables

Quarterly Financial Information [Table Text Block]

Fiscal Year 2018	1st Quarter		2nd Quarter		3rd Quarter		4th Quarter		Annual
Revenues	$	115,781	$	122,461	$	144,909	$	141,076	$	524,227
Gross profit	$	18,802	$	14,921	$	19,806	$	24,809	$	78,338
Net income from continuing operations	$	2,355	$	414	$	16,281	$	6,711	$	25,761
Net income applicable to common stockholders	$	2,146	$	487	$	16,088	$	6,108	$	24,829
Net income per basic share from continuing operations	$	0.08	$	0.02	$	0.59	$	0.24	$	0.93
Net income per diluted share from continuing operations	$	0.08	$	0.02	$	0.58	$	0.24	$	0.92

Fiscal Year 2017	1st Quarter		2nd Quarter		3rd Quarter		4th Quarter		Annual
Revenues	$	109,055	$	110,164	$	129,292	$	121,265	$	469,776
Gross profit	$	20,116	$	17,103	$	22,873	$	19,120	$	79,212
Net income from continuing operations	$	3,183	$	765	$	3,591	$	2,596	$	10,135
Net income applicable to common stockholders	$	3,312	$	1,326	$	3,500	$	2,452	$	10,590
Net income per basic share from continuing operations	$	0.12	$	0.03	$	0.13	$	0.09	$	0.37
Net income per diluted share from continuing operations	$	0.11	$	0.03	$	0.13	$	0.09	$	0.36

Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]

Fiscal Year 2018	1st Quarter			2nd Quarter			3rd Quarter
Cash provided by (used in) operating activities:
As Reported	$	(131	)	$	4,330		$	18,098
Adjustment		3,581			2,006			2,202
Restated	$	3,450		$	6,336		$	20,300
Cash used in investing activities:
As Reported	$	(3,288	)	$	(9,457	)	$	(20,544	)
Adjustment		(3,581	)		(2,006	)		(2,202	)
Restated	$	(6,869	)	$	(11,463	)	$	(22,746	)

Fiscal Year 2017	1st Quarter			2nd Quarter			3rd Quarter
Cash provided by operating activities:
As Reported	$	6,467		$	5,527		$	23,181
Adjustment		3,502			4,185			3,445
Restated	$	9,969		$	9,712		$	26,626
Cash used in investing activities:
As Reported	$	(2,122	)	$	(4,724	)	$	(9,414	)
Adjustment		(3,502	)		(4,185	)		(3,445	)
Restated	$	(5,624	)	$	(8,909	)	$	(12,859	)

Note 13 - Discontinued Operations (Tables)

12 Months Ended

May 27, 2018

Notes Tables

Disposal Groups, Including Discontinued Operations [Table Text Block]

	Year Ended
	May 27, 2018			May 28, 2017
Current and other assets, discontinued operations:
Cash and cash equivalents	$	(8	)	$	(589	)
Accounts receivable		518			1,184
Inventory		—			1,670
Other assets		—			269
Total assets, discontinued operations	$	510		$	2,534

Other current liabilities, discontinued operations:
Accounts payable	$	230		$	1,341
Accrued expenses and other current liabilities		228			785
Total other current liabilities, discontinued operations	$	458		$	2,126

	Year Ended
	May 27, 2018			May 28, 2017			May 29, 2016
Revenues	$	29,222		$	62,481		$	64,181
Cost of sales		(27,619	)		(58,507	)		(60,005	)
Selling, general and administrative		(2,522	)		(3,137	)		(3,334	)
Other		(269	)		—			—
(Loss) income from discontinued operations before taxes		(1,188	)		837			842
Income tax benefit (expense)		350			(295	)		(300	)
(Loss) income from discontinued operations, net of tax	$	(838	)	$	542		$	542

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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+ Details

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies (Details Textual)		3 Months Ended						12 Months Ended
	Apr. 26, 2018 USD ($)	Feb. 25, 2018 USD ($)	Nov. 26, 2017 USD ($)	Aug. 27, 2017 USD ($)	Feb. 26, 2017 USD ($)	Nov. 27, 2016 USD ($)	Aug. 28, 2016 USD ($)	May 31, 2020 USD ($)	May 27, 2018 USD ($) $ / shares shares	May 28, 2017 USD ($) $ / shares shares	May 29, 2016 USD ($) $ / shares shares	Apr. 25, 2018	Jul. 15, 2014
Number of Proprietary Platforms									2
Advertising Expense									$ 1,400,000	$ 1,900,000	$ 2,100,000
Financing Receivable, Net, Total									2,700,000	1,000,000
Capitalized Computer Software, Additions									918,000	2,200,000	174,000
Goodwill, Ending Balance									54,510,000	54,510,000
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)									0	0	34,000,000
Goodwill, Impairment Loss									0	0	$ 0
Stockholders' Equity Attributable to Noncontrolling Interest, Ending Balance										1,543,000
Deferred Tax Assets, Valuation Allowance, Total									$ 1,337,000	$ 1,325,000
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount \| shares									1,495,380	1,428,272
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance \| $ / shares									$ 13.80	$ 13.58
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value \| $ / shares									$ 2.90	$ 2.37	$ 2.85
Net Cash Provided by (Used in) Operating Activities, Total		$ 20,300,000	$ 6,336,000	$ 3,450,000	$ 26,626,000	$ 9,712,000	$ 9,969,000		$ 19,779,000	$ 29,738,000	$ 20,762,000
Net Cash Provided by (Used in) Investing Activities, Total		(22,746,000)	(11,463,000)	(6,869,000)	(12,859,000)	(8,909,000)	(5,624,000)		$ (35,589,000)	(25,422,000)	(40,418,000)
Restatement Adjustment [Member]
Net Cash Provided by (Used in) Operating Activities, Total		2,202,000	2,006,000	3,581,000	3,445,000	4,185,000	3,502,000			411,000	(1,200,000)
Net Cash Provided by (Used in) Investing Activities, Total		(2,202,000)	$ (2,006,000)	$ (3,581,000)	$ (3,445,000)	$ (4,185,000)	$ (3,502,000)			(411,000)	$ 1,200,000
Outstanding Options and RSUs [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount \| shares											1,600,000
Apio Cooling, LP [Member]
Payments to Acquire Additional Interest in Subsidiaries	$ 4,700,000
Adjustments to Additional Paid in Capital, Noncontrolling Interest	$ 2,600,000
Stockholders' Equity Attributable to Noncontrolling Interest, Ending Balance		$ 1,500,000
Customer Relationships [Member]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)
Minimum [Member] \| Customer Relationships [Member]
Finite-Lived Intangible Asset, Useful Life									11 years
Maximum [Member] \| Customer Relationships [Member]
Finite-Lived Intangible Asset, Useful Life									13 years
Buildings and Leasehold Improvements [Member] \| Minimum [Member]
Property, Plant and Equipment, Useful Life									3 years
Buildings and Leasehold Improvements [Member] \| Maximum [Member]
Property, Plant and Equipment, Useful Life									40 years
Furniture and Fixtures, Computers, Capitalized Software, Capitalized Leases, Machinery, Equipment and Autos [Member] \| Minimum [Member]
Property, Plant and Equipment, Useful Life									3 years
Furniture and Fixtures, Computers, Capitalized Software, Capitalized Leases, Machinery, Equipment and Autos [Member] \| Maximum [Member]
Property, Plant and Equipment, Useful Life									20 years
Software Development [Member] \| Minimum [Member]
Property, Plant and Equipment, Useful Life									3 years
Software Development [Member] \| Maximum [Member]
Property, Plant and Equipment, Useful Life									7 years
Windset [Member]
Accounts Receivable, Related Parties, Current									$ 334,000	388,000
Windset [Member] \| Accounts Payable, Related Parties [Member]
Accounts Payable, Related Parties									0	22,000
Windset [Member] \| Cost of Sales [Member]
Revenue from Related Parties									556,000	514,000	666,000
Related Party Costs									0	22,000	32,000
Other Segments [Member]
Goodwill, Ending Balance									5,200,000	5,200,000	5,200,000
Biomaterials [Member]
Goodwill, Ending Balance									13,900,000	13,900,000	13,900,000
Food Export [Member]
Goodwill, Ending Balance									$ 35,400,000	$ 35,400,000	$ 35,400,000
O Olive & Vinegar [Member] \| Scenario, Forecast [Member]
Business Combination, Anticipated Future Earnings (Loss) After Acquisition								$ 3,000,000
Customer Concentration Risk [Member] \| Sales Revenue, Goods, Net [Member]
Number of Major Customers									5	5
Concentration Risk, Percentage									49.00%	48.00%
Customer Concentration Risk [Member] \| Sales Revenue, Goods, Net [Member] \| HA Based Biomaterials [Member] \| Ophthalmic [Member]
Concentration Risk, Percentage									60.00%
Customer Concentration Risk [Member] \| Sales Revenue, Goods, Net [Member] \| HA Based Biomaterials [Member] \| Orthopedic [Member]
Concentration Risk, Percentage									10.00%
Customer Concentration Risk [Member] \| Sales Revenue, Goods, Net [Member] \| HA Based Biomaterials [Member] \| Other/Non-HA [Member]
Concentration Risk, Percentage									30.00%
Customer Concentration Risk [Member] \| Sales Revenue, Goods, Net [Member] \| Costco and Wal-mart [Member]
Number of Major Customers									2	2
Customer Concentration Risk [Member] \| Sales Revenue, Goods, Net [Member] \| Costco [Member]
Concentration Risk, Percentage									19.00%	20.00%
Customer Concentration Risk [Member] \| Sales Revenue, Goods, Net [Member] \| Wal-mart [Member]
Concentration Risk, Percentage									18.00%	16.00%
Customer Concentration Risk [Member] \| Sales Revenue, Goods, Net [Member] \| International Customers [Member]
Concentration Risk, Percentage									20.00%	21.00%
Customer Concentration Risk [Member] \| Accounts Receivable [Member] \| Costco and Wal-mart [Member]
Number of Major Customers									2	2
Customer Concentration Risk [Member] \| Accounts Receivable [Member] \| Costco [Member]
Concentration Risk, Percentage									13.00%	13.00%
Customer Concentration Risk [Member] \| Accounts Receivable [Member] \| Wal-mart [Member]
Concentration Risk, Percentage									18.00%	18.00%
Windset [Member]
Investment Ownership Percentage									26.90%				26.90%
Apio Cooling, LP [Member]
Business Acquisition, Percentage of Voting Interests Acquired	40.00%
Apio Cooling, LP [Member] \| Apio [Member]
Investment Ownership Percentage												60.00%

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Components of Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	May 27, 2018	May 28, 2017	May 29, 2016
Balance	$ 228,152
Other comprehensive income, net	716	$ 432
Balance	252,562	228,152
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]
Balance	432
Other comprehensive income before reclassifications, net of tax effect	716
Amounts reclassified from OCI
Other comprehensive income, net	716
Balance	$ 1,148	$ 432

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Allowance for Sales Returns and Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	May 27, 2018	May 28, 2017	May 29, 2016
Balance at beginning of period	$ 361	$ 296	$ 343
Additions from acquisitions and adjustments charged to revenue and expenses	46	519	63
Write offs, net of recoveries	(105)	(454)	(110)
Balance at end of period	$ 302	$ 361	$ 296

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Revenue Arrangements (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	May 27, 2018	Feb. 25, 2018	Nov. 26, 2017	Aug. 27, 2017	May 28, 2017	Feb. 26, 2017	Nov. 27, 2016	Aug. 28, 2016	May 27, 2018	May 28, 2017	May 29, 2016
Revenues	$ 141,076	$ 144,909	$ 122,461	$ 115,781	$ 121,265	$ 129,292	$ 110,164	$ 109,055	$ 524,227	$ 469,776	$ 476,918
Revenue Recorded Upon Delivery [Member]
Revenues									509,096	456,512	458,985
Revenue from Multiple Element Arrangements [Member]
Revenues									12,531	8,431	13,400
Revenue from License Fees, R&D Contracts and Royalties/Profit Sharing [Member]
Revenues									$ 2,600	$ 4,833	$ 4,533

Note 1 - Organization, Basis of Presentation and Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents (Details) - USD ($)	May 27, 2018	May 28, 2017	May 29, 2016	May 31, 2015
Cash and cash equivalents	$ 2,899,000	$ 5,998,000	$ 9,968,000
Cash, discontinued operations	(8,000)	(589,000)	(74,000)
Cash and cash equivalents presented on Statements of Cash Flows	$ 2,891,000	$ 5,409,000	$ 9,894,000	$ 14,127,000

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Components of Inventories (Details) - USD ($) $ in Thousands	May 27, 2018	May 28, 2017
Finished goods	$ 12,861	$ 10,015
Raw materials	15,286	10,158
Work in progress	3,672	3,447
Total inventories	$ 31,819	$ 23,620

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	May 27, 2018	Feb. 25, 2018	Nov. 26, 2017	Aug. 27, 2017	May 28, 2017	Feb. 26, 2017	Nov. 27, 2016	Aug. 28, 2016	May 27, 2018	May 28, 2017	May 29, 2016
Numerator:
Net income (loss) applicable to Common Stockholders	$ 6,108	$ 16,088	$ 487	$ 2,146	$ 2,452	$ 3,500	$ 1,326	$ 3,312	$ 24,829	$ 10,590	$ (11,641)
Denominator:
Weighted average shares for basic net income (loss) per share (in shares)									27,535	27,276	27,044
Effect of dilutive securities:
Stock options and restricted stock units (in shares)									380	376
Weighted average shares for diluted net income (loss) per share (in shares)									27,915	27,652	27,044
Diluted net income (loss) per share (in dollars per share)									$ 0.89	$ 0.38	$ (0.43)

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Stock-based Compensation (Details) - USD ($) $ in Thousands	12 Months Ended
	May 27, 2018	May 28, 2017	May 29, 2016
Stock-based compensation expense	$ 4,403	$ 3,964	$ 3,465
Cost of Sales [Member]
Stock-based compensation expense	535	485	405
Research and Development Expense [Member]
Stock-based compensation expense	131	83	90
Selling, General and Administrative Expenses [Member]
Stock-based compensation expense	3,737	3,396	2,970
Employee Stock Option [Member]
Stock-based compensation expense	1,488	1,230	1,352
Restricted Stock Units (RSUs) [Member]
Stock-based compensation expense	$ 2,915	$ 2,734	$ 2,113

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Fair Value of Stock Option, Weighted Average Assumptions (Details)	12 Months Ended
	May 27, 2018	May 28, 2017	May 29, 2016
Expected life (in years) (Year)	3 years 182 days	3 years 182 days	3 years 138 days
Risk-free interest rate	1.73%	1.08%	1.09%
Volatility	27.00%	26.00%	31.00%
Dividend yield	0.00%	0.00%	0.00%

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Significant Unobservable Inputs Used in Discounted Cash Flow Models (Details) - Windset [Member]	12 Months Ended
	May 27, 2018	May 28, 2017
Measurement Input, Long-term Revenue Growth Rate [Member]
Measurement input	0.06	0.04
Measurement Input, Long-term Expense Growth Rate [Member]
Measurement input	0.06	0.04
Measurement Input, Income Tax Rates [Member]
Measurement input	0.15	0.15
Measurement Input, Discount Rate [Member]
Measurement input	0.12	0.12

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Assumptions Used in Discounted Cash Flow Models (Details) $ in Millions	May 27, 2018 USD ($)
10% increase in revenue growth rates	$ 9.7
10% increase in expense growth rates	(9.1)
10% increase in income tax rates	(0.5)
10% increase in discount rates	$ (4.3)

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Fair Value of Assets and Liabilities (Details) - USD ($)
$ in Thousands

May 27, 2018

May 28, 2017

Investment in non-public company

$ 66,500

$ 63,600

Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]

Investment in non-public company

Contingent consideration liability (2)

^[1]

Total

Fair Value, Inputs, Level 1 [Member] | Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member]

Interest rate swap (1)

^[2]

Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]

Investment in non-public company

Contingent consideration liability (2)

^[1]

Total

1,529

688

Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member]

Interest rate swap (1)

^[2]

1,529

688

Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member]

Investment in non-public company

66,500

63,600

Contingent consideration liability (2)

^[1]

(4,000)

(5,900)

Total

62,500

57,700

Fair Value, Inputs, Level 3 [Member] | Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member]

Interest rate swap (1)

^[2]

[1]	Included in Other non-current liabilities in the accompanying consolidated balance sheets.
[2]	Included in Other assets in the accompanying consolidated balance sheets.

Note 2 - Acquisition of O (Details Textual) - USD ($)		12 Months Ended
Note 2 - Acquisition of O (Details Textual) - USD ($)	Mar. 01, 2017	May 27, 2018	May 28, 2017	May 29, 2016
Payments to Acquire Businesses, Gross			$ 2,500,000
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability		(1,900,000)
Finite-lived Intangible Assets Acquired			2,300,000
Goodwill, Ending Balance		$ 54,510,000	54,510,000
O Olive & Vinegar [Member]
Payments to Acquire Businesses, Gross	$ 2,500,000
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	$ 7,500,000
Contingent Consideration Payment Period	3 years	3 years
Cumulative EBITDA Amount		$ 6,000,000
Business Combination, Contingent Consideration, Liability, Total		4,000,000	5,900,000
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual		3,800,000
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual		(960,000)
Finite-Lived Intangible Asset, Useful Life	11 years
Goodwill, Ending Balance	$ 5,200,000
Business Acquisition, Transaction Costs			$ 159,000
O Olive & Vinegar [Member] \| Customer Lists [Member]
Finite-lived Intangible Assets Acquired	700,000
O Olive & Vinegar [Member] \| Trademarks and Trade Names [Member]
Indefinite-lived Intangible Assets Acquired	$ 1,600,000
O Olive & Vinegar [Member] \| Selling, General and Administrative Expenses [Member]
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability		1,900,000
O Olive & Vinegar [Member] \| Initial Potential Payment Limit [Member]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High		4,600,000
O Olive & Vinegar [Member] \| Additional Potential Payment Limit [Member]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High		$ 2,900,000

Note 3 - Investment in Non-public Company (Details Textual) - USD ($)				1 Months Ended	12 Months Ended
	Jul. 15, 2014	Jul. 15, 2014	Feb. 15, 2011	Oct. 29, 2014	May 27, 2018	May 28, 2017	May 29, 2016	Feb. 25, 2018
Investment Income, Dividend					$ 1,650,000	$ 1,650,000	$ 1,650,000
Senior A Preferred Stock [Member]
Preferred Stock, Dividend Rate, Percentage		7.50%
Windset [Member]
Investment Ownership Percentage	26.90%	26.90%			26.90%
Investment Income, Dividend					$ 1,700,000	1,700,000	1,700,000
Windset [Member] \| Other Income [Member]
Change In Market Value Of Investment In Company					2,900,000	$ 900,000	$ 1,200,000
Windset [Member] \| Apio [Member]
Payments to Acquire Investments, Total	$ 11,000,000
Dividends on Investment, Timeframe to Be Paid After Anniversary		90 days
Preferred Stock, Liquidation Preference, Value					20,100,000
Windset [Member] \| Apio [Member] \| Junior Preferred Shares [Member]
Investment, Preferred Stock, Dividends Declared								$ 0
Windset [Member] \| Apio [Member] \| Senior A Preferred Stock [Member]
Investment In Non Public Company Shares			150,000
Payments to Acquire Investments, Total			$ 15,000,000
Preferred Stock, Liquidation Preference, Value					15,000,000
Windset [Member] \| Apio [Member] \| Common Stock [Member]
Investment In Non Public Company Shares	68	68	201
Payments to Acquire Investments, Total			$ 201
Windset [Member] \| Apio [Member] \| Junior Preferred Shares [Member]
Investment In Non Public Company Shares	51,211	51,211
Preferred Stock, Liquidation Preference, Value					$ 5,100,000
Windset [Member] \| Apio [Member] \| Senior B Preferred Stock [Member]
Investment In Non Public Company Shares				70,000
Payments to Acquire Investments, Total				$ 7,000,000
Preferred Stock, Dividend Rate, Percentage				7.50%
Windset [Member] \| Apio [Member] \| Senior B Preferred Stock [Member] \| First Anniversary [Member]
Investments, Value of Shares with Put Option				$ 1,500,000
Windset [Member] \| Apio [Member] \| Senior B Preferred Stock [Member] \| Second Anniversary [Member]
Investments, Value of Shares with Put Option				2,750,000
Windset [Member] \| Apio [Member] \| Senior B Preferred Stock [Member] \| Third Anniversary [Member]
Investments, Value of Shares with Put Option				$ 2,750,000

Note 4 - Property and Equipment (Details Textual) - USD ($)	12 Months Ended
	May 27, 2018	May 28, 2017	May 29, 2016
Depreciation, Depletion and Amortization, Nonproduction, Total	$ 11,000,000	$ 9,600,000	$ 8,200,000
Amortization of Leased Asset	135,000	135,000	49,000
Capitalized Computer Software, Amortization	632,000	414,000	269,000
Capitalized Computer Software, Net, Ending Balance	2,500,000	2,200,000
Interest Costs Capitalized	$ 563,000	$ 514,000	$ 487,000

Note 4 - Property and Equipment - Components of Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	May 27, 2018	May 28, 2017
Property and Equipment	$ 228,510	$ 193,631
Less Accumulated Depreciation and Amortization	(68,886)	(60,411)
Net Property and Equipment	159,624	133,220
Land and Building [Member]
Property and Equipment	90,712	86,983
Leasehold Improvements [Member]
Property and Equipment	2,607	1,190
Computer Capitalized Software Machinery Equipment and Auto [Member]
Property and Equipment	120,418	97,375
Furniture and Fixtures [Member]
Property and Equipment	1,673	1,272
Construction in Progress [Member]
Property and Equipment	$ 13,100	$ 6,811
Minimum [Member] \| Land and Building [Member]
Property, Plant and Equipment, Useful Life	15 years
Minimum [Member] \| Leasehold Improvements [Member]
Property, Plant and Equipment, Useful Life	3 years
Minimum [Member] \| Computer Capitalized Software Machinery Equipment and Auto [Member]
Property, Plant and Equipment, Useful Life	3 years
Minimum [Member] \| Furniture and Fixtures [Member]
Property, Plant and Equipment, Useful Life	3 years
Maximum [Member] \| Land and Building [Member]
Property, Plant and Equipment, Useful Life	40 years
Maximum [Member] \| Leasehold Improvements [Member]
Property, Plant and Equipment, Useful Life	20 years
Maximum [Member] \| Computer Capitalized Software Machinery Equipment and Auto [Member]
Property, Plant and Equipment, Useful Life	20 years
Maximum [Member] \| Furniture and Fixtures [Member]
Property, Plant and Equipment, Useful Life	7 years

Note 5 - Intangible Assets (Details Textual) - USD ($)		12 Months Ended
Note 5 - Intangible Assets (Details Textual) - USD ($)	Mar. 01, 2017	May 27, 2018	May 28, 2017	May 29, 2016
Goodwill, Ending Balance		$ 54,510,000	$ 54,510,000
Finite-Lived Intangible Assets, Amortization Expense, Year Two		949,000
Goodwill, Impaired, Accumulated Impairment Loss		38,800,000
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months		949,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three		949,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four		949,000
Finite-Lived Intangible Assets, Amortization Expense, Year Five		949,000
Lifecore [Member]
Finite-Lived Customer Relationships, Gross		3,700,000
Apio [Member]
Finite-Lived Customer Relationships, Gross		7,500,000
O Olive & Vinegar [Member]
Goodwill, Ending Balance	$ 5,200,000
Finite-Lived Customer Relationships, Gross		700,000
Finite-Lived Intangible Asset, Useful Life	11 years
Trade Names [Member]
Finite-Lived Intangible Assets, Accumulated Amortization		872,000	872,000
Customer Relationships [Member]
Finite-Lived Intangible Assets, Accumulated Amortization		$ 6,100,000	5,100,000
Customer Relationships [Member] \| Lifecore [Member]
Finite-Lived Intangible Asset, Useful Life		12 years
Customer Relationships [Member] \| Apio [Member]
Finite-Lived Intangible Asset, Useful Life		13 years
Customer Relationships [Member] \| O Olive & Vinegar [Member]
Finite-Lived Intangible Asset, Useful Life		11 years
Food Export [Member]
Goodwill, Ending Balance		$ 35,400,000	35,400,000	$ 35,400,000
Biomaterials [Member]
Goodwill, Ending Balance		13,900,000	13,900,000	13,900,000
Other Segments [Member]
Goodwill, Ending Balance		$ 5,200,000	$ 5,200,000	$ 5,200,000

Note 5 - Intangible Assets - Other Intangible Assets (Details) - USD ($)	12 Months Ended
	May 27, 2018	May 28, 2017	May 29, 2016
Balance	$ 22,811,000	$ 21,396,000	$ 56,263,000
Impairment during the period	0	0	(34,000,000)
Amortization expense	(969,000)	(885,000)	(867,000)
Balance	21,842,000	22,811,000	21,396,000
Finite-lived Intangible Assets Acquired		2,300,000
Trademarks and Trade Names [Member]
Balance	16,028,000	14,428,000	48,428,000
Impairment during the period			(34,000,000)
Amortization expense
Balance	16,028,000	16,028,000	14,428,000
Finite-lived Intangible Assets Acquired		1,600,000
Customer Relationships [Member]
Balance	6,783,000	6,968,000	7,835,000
Impairment during the period
Amortization expense	(969,000)	(885,000)	(867,000)
Balance	$ 5,814,000	6,783,000	$ 6,968,000
Finite-lived Intangible Assets Acquired		$ 700,000

Note 6 - Stockholders' Equity (Details Textual) - USD ($)		12 Months Ended
	Oct. 19, 2017	May 27, 2018	May 28, 2017	May 29, 2016	Jul. 27, 2018	May 31, 2015	Oct. 10, 2013	Jul. 14, 2010	Oct. 15, 2009
Common Stock, Voting Rights		1
Preferred Stock, Shares Authorized		2,000,000
Preferred Stock, Shares Outstanding, Ending Balance		0
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized		1,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant		542,275	155,239	465,968		881,143
Shares Paid for Tax Withholding for Share Based Compensation		121,652	137,089	95,550
Payments Related to Tax Withholding for Share-based Compensation		$ 1,478,000	$ 434,000	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options Vested, Outstanding Number		1,383,732	1,021,097
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares, Ending Balance		571,603	550,445
Issuance of common stock, per share (in dollars per share)		$ 14.05
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options, Ending Balance		548,692
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value		$ 178,000
Stock Repurchase Program, Authorized Amount								$ 10,000,000
Treasury Stock, Shares, Acquired		0	0	0
Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		30,000
Employee Stock Option [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total		$ 3,800,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		2 years
Restricted Stock Units (RSUs) [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		1 year 328 days
Stock Incentive Plan 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized		2,900,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	1,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant							2,000,000
Share--based Compensation Arrangement by Share-based Payment Award Options and Non Option Equity Instruments Outstanding Number		2,070,705
Stock Incentive Plan 2013 [Member] \| Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee		500,000
Stock Incentive Plan 2013 [Member] \| Stock Grants and Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee		250,000
Stock Incentive Plan 2013 [Member] \| Stock Appreciation Rights (SARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee		500,000
Stock Incentive Plan 2009 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized									1,900,000
Share--based Compensation Arrangement by Share-based Payment Award Options and Non Option Equity Instruments Outstanding Number					292,667

Note 6 - Stockholders' Equity - Stock-based Compensation Activity (Details) - $ / shares	12 Months Ended
	May 27, 2018	May 28, 2017	May 29, 2016
Balance (in shares)	155,239	465,968	881,143
Balance (in dollars per share)	$ 13.58
Granted (in shares)	(698,288)	(370,522)	(443,175)
Awarded/Exercised (in shares)
Awarded/Exercised (in shares)
Forfeited (in shares)	85,324		28,000
Forfeited (in shares)		(59,793)
Plan shares expired (in shares)
Balance (in shares)	542,275	155,239	465,968
Balance (in shares)	1,955,335
Balance (in dollars per share)	$ 13.80	$ 13.58
Forfeited (in shares)		59,793
Plan shares expired (in shares)
Additional shares reserved (in shares)	1,000,000
Restricted Stock [Member]
Balance (in shares)	509,355	526,841	392,771
Balance (in dollars per share)	$ 13.53	$ 13.51	$ 14.15
Granted (in shares)	200,288	130,522	177,675
Granted (in dollars per share)	$ 13.12	$ 13.37	$ 12.10
Awarded/Exercised (in shares)	270,656	130,508	32,439
Awarded/Exercised (in shares)	(270,656)	(130,508)	(32,439)
Awarded/Exercised (in dollars per share)	$ 14.06	$ 13.42	$ 13.28
Forfeited (in shares)	(30,950)	(17,500)	(11,166)
Forfeited (in dollars per share)	$ 11.75	$ 12.46	$ 14.36
Plan shares expired (in shares)
Balance (in shares)	408,037	509,355	526,841
Balance (in dollars per share)	$ 12.99	$ 13.53	$ 13.51
Granted (in dollars per share)	$ 13.12	$ 13.37	$ 12.10
Forfeited (in shares)	30,950	17,500	11,166
Employee Stock Option [Member]
Balance (in shares)	1,571,542	1,731,474	1,736,718
Balance (in dollars per share)	$ 13.20	$ 11.90	$ 11.19
Granted (in shares)	498,000	240,000	265,500
Granted (in dollars per share)	$ 12.93	$ 11.58	$ 12.04
Awarded/Exercised (in shares)	(29,333)	(357,639)	(220,717)
Awarded/Exercised (in dollars per share)	$ 7.36	$ 5.93	$ 6.44
Forfeited (in shares)	(23,334)	(42,293)	(24,473)
Forfeited (in dollars per share)	$ 12.55	$ 12.16	$ 14.38
Plan shares expired (in shares)	(61,540)		(25,554)
Plan shares expired (in dollars per share)	$ 14.23		$ 9.86
Balance (in shares)	1,955,335	1,571,542	1,731,474
Balance (in dollars per share)	$ 13.20	$ 13.20	$ 11.90

Note 6 - Stockholders' Equity - Stock Options Outstanding and Exercisable (Details) - USD ($)	12 Months Ended
	May 27, 2018	May 28, 2017
Lower Range of Exercise Prices (in dollars per share)	$ 6.66
Upper Range of Exercise Prices (in dollars per share)	$ 14.39
Options Outstanding Number of Shares Outstanding (in shares)	1,955,335
Options Outstanding Weighted Average Remaining Contractual Life (Year)	4 years 120 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance	$ 13.80	$ 13.58
Options Outstanding Aggregate Intrinsic Value	$ 1,937,832
Options Exercisable Number of Shares Exercisable (in shares)	1,383,732
Options Exercisable Weighted Average Exercise Price (in dollars per share)	$ 13.43
Options Exercisable Aggregate Intrinsic Value	$ 1,122,822

Note 6 - Stockholders' Equity - Vested and Expected to Vest Option Awards (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	May 27, 2018	May 28, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options Vested, Outstanding Number	1,383,732	1,021,097
Vested (in dollars per share)	$ 13.43
Vested (Year)	3 years 237 days
Vested	$ 1,122,822
Expected to vest (in shares)	571,603
Expected to vest (in dollars per share)	$ 12.63
Expected to vest (Year)	5 years 350 days
Expected to vest	$ 815,010
Total (in shares)	1,955,335
Total (in dollars per share)	$ 13.20
Total (Year)	4 years 120 days
Total	$ 1,937,832

Note 7 - Debt (Details Textual) - USD ($)		12 Months Ended
Note 7 - Debt (Details Textual) - USD ($)	Sep. 23, 2016	May 27, 2018	May 28, 2017	May 29, 2016	Nov. 01, 2016
Long-term Debt, Total		$ 42,300,000	$ 47,239,000
Debt Issuance Costs, Net, Total		200,000	261,000
Line of Credit, Current		27,000,000	3,000,000
Gain (Loss) on Extinguishment of Debt, Total	$ (1,200,000)		(1,233,000)
Payment for Debt Extinguishment or Debt Prepayment Cost	233,000		233,000
Write off of Deferred Debt Issuance Cost	1,000,000
Apio [Member] \| Amortization of Loan Origination Fees [Member]
Interest Expense, Other		$ 181,000	142,000	$ 293,000
Interest Rate Swap [Member] \| BMO [Member]
Derivative, Notional Amount					$ 50,000,000
London Interbank Offered Rate (LIBOR) [Member] \| Interest Rate Swap [Member] \| BMO [Member]
Derivative, Fixed Interest Rate					1.22%
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank [Member]
Debt Instrument, Additional Borrowing Amount	$ 75,000,000
Debt Issuance Costs, Net, Total			897,000
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank [Member] \| Prime Rate [Member] \| Minimum [Member]
Debt Instrument, Basis Spread on Variable Rate	0.25%
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank [Member] \| Prime Rate [Member] \| Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate	1.25%
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank [Member] \| Eurodollar [Member] \| Minimum [Member]
Debt Instrument, Basis Spread on Variable Rate	1.25%
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank [Member] \| Eurodollar [Member] \| Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate	2.25%
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank [Member] \| Term Loan [Member]
Long-term Debt, Total	$ 50,000,000
Debt Instrument, Term	5 years
Debt Instrument, Periodic Payment, Total	$ 1,250,000
Debt Instrument, Interest Rate, Effective Percentage		3.22%
Debt Issuance Costs, Net, Total			299,000
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank [Member] \| Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	100,000,000
Debt Issuance Costs, Net, Total			$ 598,000
Line of Credit, Current	$ 1,500,000	$ 27,000,000
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank [Member] \| Revolving Credit Facility [Member] \| Prime Rate [Member]
Line of Credit Facility, Interest Rate at Period End		5.75%
Long-term Line of Credit, Total		$ 4,000,000
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank [Member] \| Revolving Credit Facility [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility, Interest Rate at Period End		3.91%
Long-term Line of Credit, Total		$ 23,000,000

Note 7 - Debt - Long-term Debt (Details) - USD ($) $ in Thousands	May 27, 2018	May 28, 2017
Long-term debt	$ 42,500	$ 47,500
Less: unamortized debt issuance costs	(200)	(261)
Total long-term debt, net of unamortized debt issuance costs	42,300	47,239
Less: current portion of long-term debt, net	(4,940)	(4,940)
Long-term debt, net	37,360	42,299
Term Loan [Member]
Long-term debt	$ 42,500	$ 47,500

Note 7 - Debt - Long-term Debt (Details) (Parentheticals) - Term Loan [Member] - USD ($) $ in Thousands	12 Months Ended
	May 27, 2018	May 28, 2017
Periodic payment	$ 1,250	$ 1,250
Minimum [Member]
Interest rate	1.25%	1.25%
Maximum [Member]
Interest rate	2.25%	2.25%

Note 7 - Debt - Future Minimum Principal Payments of Debt (Details) - USD ($) $ in Thousands	May 27, 2018	May 28, 2017
Fiscal year 2019	$ 5,000
Fiscal year 2020	5,000
Fiscal year 2021	5,000
Fiscal year 2022	27,500
Fiscal year 2023
Thereafter
Total	$ 42,500	$ 47,500

Note 8 - Income Taxes (Details Textual) - USD ($)	3 Months Ended	12 Months Ended
Note 8 - Income Taxes (Details Textual) - USD ($)	Aug. 26, 2016	May 26, 2019	May 27, 2018	May 28, 2017	May 29, 2016	May 30, 2016	May 31, 2015
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			29.35%	35.00%	35.00%
Effective Income Tax Rate Reconciliation, Tax Cuts and Jobs Act of 2017 Provisional Effect on Deferred Tax Assets and Liabilities, Amount			$ 16,200,000
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount			$ 1,800,000
Effective Income Tax Rate Reconciliation, Percent, Total			64.00%	29.00%
Excess Tax Deficiencies from Share-based Compensation			$ 38,000
Additional Paid in Capital, Ending Balance			142,087,000	$ 141,680,000
Retained Earnings (Accumulated Deficit), Ending Balance			109,299,000	84,470,000
Deferred Tax Liabilities, Net, Total			23,230,000	33,007,000
Deferred Tax Assets, Valuation Allowance, Total			1,337,000	1,325,000
Unrecognized Tax Benefits, Ending Balance			479,000	$ 537,000	$ 842,000		$ 987,000
Unrecognized Tax Benefits that Would Impact Effective Tax Rate			372,000
Decrease in Unrecognized Tax Benefits is Reasonably Possible			25,000
Domestic Tax Authority [Member]
Operating Loss Carryforwards, Total			7,100,000
Tax Credit Carryforward, Amount			400,000
Domestic Tax Authority [Member] \| Indiana [Member]
Operating Loss Carryforwards, Total			5,600,000
Domestic Tax Authority [Member] \| Other States, Tax Board [Member]
Operating Loss Carryforwards, Total			3,100,000
State and Local Jurisdiction [Member] \| California [Member]
Tax Credit Carryforward, Amount			1,500,000
State and Local Jurisdiction [Member] \| Minnesota [Member]
Tax Credit Carryforward, Amount			$ 700,000
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption					$ 423,000
Accounting Standards Update 2016-09 [Member]
Additional Paid in Capital, Ending Balance						$ 200,000
Retained Earnings (Accumulated Deficit), Ending Balance						(126,000)
Deferred Tax Liabilities, Net, Total						(74,000)
Accounting Standards Update 2016-09 [Member] \| Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption						$ 549,000
Excess Tax Benefits From Stock-based Compensation Reclassified From Financing Activities to Operating Activities [Member] \| Fiscal Year Ended May 29, 2016 [Member]
Prior Period Reclassification Adjustment	$ 150,000
Excess Tax Benefits From Stock-based Compensation Reclassified From Financing Activities to Operating Activities [Member] \| Fiscal Year Ended May 31, 2015 [Member]
Prior Period Reclassification Adjustment	$ 463,000
Scenario, Forecast [Member]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		21.00%

Note 8 - Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	May 27, 2018	May 28, 2017	May 29, 2016
Current:
Federal	$ (2,854)	$ 1,388	$ 2,085
State	60	39	(96)
Foreign	83	82	83
Total	(2,711)	1,509	2,072
Deferred:
Federal	(7,122)	2,270	(9,165)
State	470	261	(611)
Total	(6,652)	2,531	(9,776)
Income tax (benefit) expense	$ (9,363)	$ 4,040	$ (7,704)

Note 8 - Income Taxes - Income Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands

12 Months Ended

May 27, 2018

May 28, 2017

May 29, 2016

Tax at U.S. statutory rate (1)

^[1]

$ 4,784

$ 4,922

$ (6,963)

State income taxes, net of federal benefit

439

307

(518)

Tax reform

(14,350)

Change in valuation allowance

(176)

Tax credit carryforwards

(777)

(834)

(156)

Other compensation-related activity

566

(365)

173

Domestic manufacturing deduction

(243)

(307)

Other

151

168

Income tax (benefit) expense

$ (9,363)

$ 4,040

$ (7,704)

[1]	Statutory rate was 29.35% for fiscal year 2018 and 35% for fiscal years 2017 and 2016.

Note 8 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	May 27, 2018	May 28, 2017
Deferred tax assets:
Accruals and reserves	$ 1,421	$ 3,242
Net operating loss carryforwards	1,955	2,766
Stock-based compensation	1,247	2,032
Research and AMT credit carryforwards	2,032	1,050
Other	427	661
Gross deferred tax assets	7,082	9,751
Valuation allowance	(1,337)	(1,325)
Net deferred tax assets	5,745	8,426
Deferred tax liabilities:
Basis difference in investment in non-public company	(3,722)	(11,495)
Goodwill and other indefinite life intangibles	(8,201)	(11,119)
Depreciation and amortization	(11,307)	(10,393)
Deferred tax liabilities	(23,230)	(33,007)
Net deferred tax liabilities	$ (17,485)	$ (24,581)

Note 8 - Income Taxes - Unrecognized Tax Benefits (Details) - USD ($)	12 Months Ended
	May 27, 2018	May 28, 2017	May 29, 2016
Unrecognized tax benefits – beginning of the period	$ 537,000	$ 842,000	$ 987,000
Gross increases – tax positions in prior period	21,000	11,000	1,000
Gross decreases – tax positions in prior period		(90,000)	(223,000)
Gross increases – current-period tax positions	116,000	93,000	77,000
Settlements	(95,000)
Lapse of statute of limitations	(100,000)	(319,000)
Unrecognized tax benefits – end of the period	$ 479,000	$ 537,000	$ 842,000

Note 9 - Commitments and Contingencies (Details Textual)						1 Months Ended	5 Months Ended	9 Months Ended	12 Months Ended
	Nov. 01, 2017 USD ($)	Jul. 03, 2017 USD ($)	May 05, 2017 USD ($)	Dec. 27, 2016 USD ($)	Sep. 03, 2015 ft²	Jul. 31, 2018 USD ($)	Nov. 22, 2017 USD ($)	May 29, 2016 USD ($)	May 27, 2018 USD ($)	May 28, 2017 USD ($)	May 29, 2016 USD ($)
Operating Leases, Rent Expense, Total									$ 6,100,000	$ 5,600,000	$ 4,500,000
Area of Real Estate Property \| ft²					65,000
Capital Lease, Initial Term					7 years
Capital Lease, Renewal Term					5 years
Capital Lease, Period After Which Buyout Option is Available					7 years
Capital Leases, Balance Sheet, Assets by Major Class, Net, Total									3,600,000
Capital Lease, Monthly Lease Payment								$ 34,000
Capital Lease, Percentage Per Year By Which the Monthly Payment Increases								2.40%
Purchase Commitment, Remaining Minimum Amount Committed									24,400,000
Payment on Purchase Commitments								$ 30,500,000	35,800,000	32,200,000	30,500,000
Legal Fees									639,000	$ 2,100,000	$ 542,000
Litigation Settlement, Expense									2,600,000
Loss Contingency Accrual, Ending Balance									1,000,000
Discrimination and Wrongful Termination and Wage and Hour Claims [Member]
Payments for Legal Settlements							$ 4,200,000
Discrimination and Wrongful Termination and Wage and Hour Claims [Member] \| Pacific Harvest [Member]
Litigation Repayment, Receivable									2,100,000
Discrimination and Wrongful Termination and Wage and Hour Claims [Member] \| Pacific Harvest [Member] \| Prepaid and Other Current Assets [Member]
Litigation Repayment, Receivable									600,000
Discrimination and Wrongful Termination and Wage and Hour Claims [Member] \| Pacific Harvest [Member] \| Other Assets [Member]
Litigation Repayment, Receivable									1,500,000
Apio [Member]
Capital Leases, Balance Sheet, Assets by Major Class, Net, Total									$ 79,000
Apio [Member] \| Unfair Labor Claims [Member]
Litigation Settlement, Amount Awarded to Other Party				$ 155,000
Apio and Pacific Harvest [Member] \| Unfair Labor Claims [Member]
Litigation Settlement, Amount Awarded to Other Party				$ 310,000
Apio and Pacific Harvest [Member] \| Discrimination and Wrongful Termination and Wage and Hour Claims [Member]
Litigation Settlement, Amount Awarded to Other Party			$ 6,000,000
Payments for Legal Settlements	$ 1,800,000	$ 2,400,000
Apio and Pacific Harvest [Member] \| Discrimination and Wrongful Termination and Wage and Hour Claims [Member] \| Subsequent Event [Member]
Payments for Legal Settlements						$ 1,800,000

Note 9 - Commitments and Contingencies - Future Minimum Lease Payments Under Operating Leases, Excluding Land Leases (Details) $ in Thousands	May 27, 2018 USD ($)
Fiscal year 2019	$ 3,737
Fiscal year 2020	2,894
Fiscal year 2021	2,258
Fiscal year 2022	1,839
Fiscal year 2023	1,719
Thereafter	8,589
Total	$ 21,036

Note 9 - Commitments and Contingencies - Future Minimum Lease Payments Under Capital Lease (Details) - USD ($) $ in Thousands	May 27, 2018	May 28, 2017
Fiscal year 2019	$ 473
Fiscal year 2020	484
Fiscal year 2021	487
Fiscal year 2022	460
Fiscal year 2023	3,490
Thereafter
Total minimum lease payment	5,394
Less: amounts representing interest and taxes	(1,668)
Total	3,726
Less: current portion included in other accrued liabilities	(85)
Long-term capital lease obligation	$ 3,641	$ 3,731

Note 10 - Employee Savings and Investment Plans (Details Textual) - USD ($) $ in Millions	12 Months Ended
	May 27, 2018	May 28, 2017	May 29, 2016
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 1.8	$ 1.5	$ 1.3
First Three Percent Match [Member]
Defined Contribution Plan, Employer Matching Contribution, Percent of Match	100.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay	3.00%
Next Two Percent Match [Member]
Defined Contribution Plan, Employer Matching Contribution, Percent of Match	50.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay	2.00%
Minimum [Member]
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent	1.00%
Maximum [Member]
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent	50.00%

Note 11 - Business Segment Reporting (Details Textual)	12 Months Ended
Note 11 - Business Segment Reporting (Details Textual)	May 27, 2018
Number of Operating Segments	3

Note 11 - Business Segment Reporting - Sales by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	May 27, 2018	Feb. 25, 2018	Nov. 26, 2017	Aug. 27, 2017	May 28, 2017	Feb. 26, 2017	Nov. 27, 2016	Aug. 28, 2016	May 27, 2018	May 28, 2017	May 29, 2016
Revenues	$ 141,076	$ 144,909	$ 122,461	$ 115,781	$ 121,265	$ 129,292	$ 110,164	$ 109,055	$ 524,227	$ 469,776	$ 476,918
CANADA
Revenues									78,000	69,300	80,600
BELGIUM
Revenues									17,200	21,000	13,400
IRELAND
Revenues									4,100	4,000	3,200
UNITED KINGDOM
Revenues									800	400	600
SWITZERLAND
Revenues									800	300	400
MEXICO
Revenues									600	500	800
All Other Countries [Member]
Revenues									$ 1,400	$ 3,400	$ 4,200

Note 11 - Business Segment Reporting - Operations by Business Segment (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

May 27, 2018

Feb. 25, 2018

Nov. 26, 2017

Aug. 27, 2017

May 28, 2017

Feb. 26, 2017

Nov. 27, 2016

Aug. 28, 2016

May 27, 2018

May 28, 2017

May 29, 2016

Net sales

$ 141,076

$ 144,909

$ 122,461

$ 115,781

$ 121,265

$ 129,292

$ 110,164

$ 109,055

$ 524,227

$ 469,776

$ 476,918

Gross profit

24,809

19,806

14,921

18,802

19,120

22,873

17,103

20,116

78,338

79,212

66,781

Net income (loss) from continuing operations

6,711

$ 16,281

$ 414

$ 2,355

2,596

$ 3,591

$ 765

$ 3,183

25,761

10,135

(11,990)

Identifiable assets (2)

^[1]

404,703

358,608

404,703

358,608

342,653

Depreciation and amortization

12,412

10,677

9,395

Capital expenditures

33,590

23,003

39,695

Dividend income

1,650

Interest income

211

Interest expense, net

1,950

1,826

1,987

Income tax (benefit) expense

(9,363)

4,040

(7,704)

International [Member]

Net sales

102,852

98,855

103,235

Packaged Fresh Vegetables [Member]

Net sales

454,953

408,021

423,859

Gross profit

49,130

51,148

40,479

Net income (loss) from continuing operations

17,970

2,641

(32,168)

Identifiable assets (2)

^[1]

251,500

211,381

251,500

211,381

212,524

Depreciation and amortization

8,056

7,312

6,648

Capital expenditures

11,171

11,294

27,533

Dividend income

1,650

Interest income

Interest expense, net

1,554

674

1,721

Income tax (benefit) expense

(9,537)

823

415

Packaged Fresh Vegetables [Member] | International [Member]

Net sales

78,217

69,802

81,242

Biomaterials [Member]

Net sales

65,427

59,392

50,470

Gross profit

28,568

26,755

24,081

Net income (loss) from continuing operations

11,631

10,228

9,499

Identifiable assets (2)

^[1]

129,342

104,492

129,342

104,492

98,986

Depreciation and amortization

3,679

3,054

2,606

Capital expenditures

16,454

11,169

12,162

Dividend income

Interest income

Interest expense, net

266

Income tax (benefit) expense

2,638

2,938

1,946

Biomaterials [Member] | International [Member]

Net sales

24,468

29,053

21,993

Other Segments [Member]

Net sales

^[2]

3,847

2,363

2,589

Gross profit

^[2]

640

1,309

2,221

Net income (loss) from continuing operations

^[2]

(3,840)

(2,734)

10,679

Identifiable assets (2)

^[1]

$ 23,861

^[2]

$ 42,735

^[2]

23,861

^[2]

42,735

^[2]

31,143

Depreciation and amortization

^[2]

677

311

141

Capital expenditures

^[2]

5,965

540

Dividend income

^[2]

Interest income

^[2]

118

Interest expense, net

^[2]

396

1,139

Income tax (benefit) expense

^[2]

(2,464)

279

(10,065)

Other Segments [Member] | International [Member]

Net sales

^[2]

$ 167

[1]	Assets of discontinued operations are included in Other for the years ended May 27, 2018, May 28, 2017, and May 29, 2016.
[2]	The Other segment operating results for the year ended May 27, 2018, May 28, 2017 and May 29, 2016 have been restated to reflect the reclassification of the Food Export segment to discontinued operations.

Note 12 - Quarterly Consolidated Financial Information (Unaudited) - Summary of Unaudited Quarterly Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	May 27, 2018	Feb. 25, 2018	Nov. 26, 2017	Aug. 27, 2017	May 28, 2017	Feb. 26, 2017	Nov. 27, 2016	Aug. 28, 2016	May 27, 2018	May 28, 2017	May 29, 2016
Revenues	$ 141,076	$ 144,909	$ 122,461	$ 115,781	$ 121,265	$ 129,292	$ 110,164	$ 109,055	$ 524,227	$ 469,776	$ 476,918
Gross profit	24,809	19,806	14,921	18,802	19,120	22,873	17,103	20,116	78,338	79,212	66,781
Net income from continuing operations	6,711	16,281	414	2,355	2,596	3,591	765	3,183	25,761	10,135	(11,990)
Net income applicable to common stockholders	$ 6,108	$ 16,088	$ 487	$ 2,146	$ 2,452	$ 3,500	$ 1,326	$ 3,312	$ 24,829	$ 10,590	$ (11,641)
Net income per basic share from continuing operations (in dollars per share)	$ 0.24	$ 0.59	$ 0.02	$ 0.08	$ 0.09	$ 0.13	$ 0.03	$ 0.12	$ 0.93	$ 0.37	$ (0.45)
Net income per diluted share from continuing operations (in dollars per share)	$ 0.24	$ 0.58	$ 0.02	$ 0.08	$ 0.09	$ 0.13	$ 0.03	$ 0.11	$ 0.92	$ 0.36	$ (0.45)

- Definition

The amount of net income (loss) from continuing operations per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

- Definition

The amount of net income (loss) derived from continuing operations during the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Note 12 - Quarterly Consolidated Financial Information (Unaudited) - Restatement of Quarterly Cash Flows Disclosure (Details) - USD ($)	3 Months Ended						12 Months Ended
	Feb. 25, 2018	Nov. 26, 2017	Aug. 27, 2017	Feb. 26, 2017	Nov. 27, 2016	Aug. 28, 2016	May 27, 2018	May 28, 2017	May 29, 2016
Net Cash Provided by (Used in) Operating Activities, Total	$ 20,300,000	$ 6,336,000	$ 3,450,000	$ 26,626,000	$ 9,712,000	$ 9,969,000	$ 19,779,000	$ 29,738,000	$ 20,762,000
Net Cash Provided by (Used in) Investing Activities, Total	(22,746,000)	(11,463,000)	(6,869,000)	(12,859,000)	(8,909,000)	(5,624,000)	$ (35,589,000)	(25,422,000)	(40,418,000)
Previously Reported [Member]
Net Cash Provided by (Used in) Operating Activities, Total	18,098,000	4,330,000	(131,000)	23,181,000	5,527,000	6,467,000
Net Cash Provided by (Used in) Investing Activities, Total	(20,544,000)	(9,457,000)	(3,288,000)	(9,414,000)	(4,724,000)	(2,122,000)
Restatement Adjustment [Member]
Net Cash Provided by (Used in) Operating Activities, Total	2,202,000	2,006,000	3,581,000	3,445,000	4,185,000	3,502,000		411,000	(1,200,000)
Net Cash Provided by (Used in) Investing Activities, Total	$ (2,202,000)	$ (2,006,000)	$ (3,581,000)	$ (3,445,000)	$ (4,185,000)	$ (3,502,000)		$ (411,000)	$ 1,200,000

Note 13 - Discontinued Operations (Details Textual) - USD ($)	12 Months Ended
	May 27, 2018	May 28, 2017	May 29, 2016
Food Export [Member] \| Discontinued Operations [Member]
Cash Provided by (Used in) Operating Activities, Discontinued Operations	$ 580,000	$ (515,000)	$ 11,000

Note 13 - Discontinued Operations - Assets and Liabilities of Discontinued Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	May 27, 2018	May 28, 2017	May 29, 2016
Cash, discontinued operations	$ (8)	$ (589)	$ (74)
(Loss) income from discontinued operations before taxes	(1,188)	837	842
Income tax benefit (expense)	(350)	295	300
(Loss) income from discontinued operations, net of tax	(838)	542	542
Discontinued Operations [Member] \| Food Export [Member]
Cash, discontinued operations	(8)	(589)
Accounts receivable	518	1,184
Inventory		1,670
Other assets		269
Total assets, discontinued operations	510	2,534
Accounts payable	230	1,341
Accrued expenses and other current liabilities	228	785
Total other current liabilities, discontinued operations	458	2,126
Revenues	29,222	62,481	64,181
Cost of sales	(27,619)	(58,507)	(60,005)
Selling, general and administrative	(2,522)	(3,137)	(3,334)
Other	(269)
(Loss) income from discontinued operations before taxes	(1,188)	837	842
Income tax benefit (expense)	350	(295)	(300)
(Loss) income from discontinued operations, net of tax	$ (838)	$ 542	$ 542

Note 14 - Subsequent Events (Details Textual) - Interest Rate Swap [Member] - Subsequent Event [Member] $ in Millions	Jun. 25, 2018 USD ($)
Derivative, Notional Amount	$ 30
Derivative, Fixed Interest Rate	2.74%