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Document And Entity Information - USD ($)	12 Months Ended
Document And Entity Information - USD ($)	May 26, 2019	Jul. 26, 2019	Nov. 23, 2018
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	May 26, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Registrant Name	LANDEC CORP \CA\
Entity Central Index Key	0001005286
Current Fiscal Year End Date	--05-26
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		29,146,293
Entity Public Float			$ 351,940,000

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	May 26, 2019	May 27, 2018
Current Assets:
Cash and cash equivalents	$ 1,080	$ 2,899
Accounts receivable, less allowance for doubtful accounts	69,565	53,877
Inventories	54,132	31,819
Prepaid expenses and other current assets	8,264	7,958
Other current assets, discontinued operations	0	510
Total Current Assets	133,041	97,063
Investment in non-public company, fair value	61,100	66,500
Property and equipment, net	200,027	159,624
Goodwill	76,742	54,510
Trademarks/tradenames, net	29,928	16,028
Customer relationships, net	15,319	5,814
Other assets	2,934	5,164
Total Assets	519,091	404,703
Current Liabilities:
Accounts payable	53,973	34,668
Accrued compensation	10,687	9,978
Other accrued liabilities	10,076	8,706
Deferred revenue	499	2,625
Line of credit	52,000	27,000
Current portion of long-term debt, net	9,791	4,940
Other current liabilities, discontinued operations	65	458
Total Current Liabilities	137,091	88,375
Long-term debt, net	87,193	37,360
Capital lease obligation, less current portion	3,532	3,641
Deferred taxes, net	19,393	17,485
Other non-current liabilities	1,738	5,280
Total Liabilities	248,947	152,141
Stockholders’ Equity:
Common stock, $0.001 par value; 50,000 shares authorized; 29,103 and 27,702 shares issued and outstanding at May 26, 2019 and May 27, 2018, respectively	29	28
Additional paid-in capital	160,341	142,087
Retained earnings	109,710	109,299
Accumulated other comprehensive income	64	1,148
Total Stockholders’ Equity	270,144	252,562
Total Liabilities and Stockholders’ Equity	$ 519,091	$ 404,703

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	May 26, 2019	May 27, 2018
Statement of Financial Position [Abstract]
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)	29,103,000	27,702,000
Common stock, shares outstanding (in shares)	29,103,000	27,702,000

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	May 26, 2019	May 27, 2018	May 28, 2017
Income Statement [Abstract]
Product sales	$ 557,559	$ 524,227	$ 469,776
Cost of product sales	476,556	445,889	390,564
Gross profit	81,003	78,338	79,212
Operating costs and expenses:
Research and development	11,466	12,800	9,473
Selling, general and administrative	64,062	51,951	52,491
Legal settlement charge	0	0	2,580
Total operating costs and expenses	75,528	64,751	64,544
Operating income	5,475	13,587	14,668
Dividend income	1,650	1,650	1,650
Interest income	145	211	16
Interest expense, net	(5,230)	(1,950)	(1,826)
Loss on debt refinancing	0	0	(1,233)
Other income	1,600	2,900	900
Net income from continuing operations before taxes	3,640	16,398	14,175
Income tax (expense) benefit	(1,518)	9,363	(4,040)
Net income from continuing operations	2,122	25,761	10,135
Discontinued operations:
(Loss) income from discontinued operations	(2,238)	(1,188)	837
Income tax benefit (expense)	527	350	(295)
(Loss) income from discontinued operations, net of tax	(1,711)	(838)	542
Consolidated net income	411	24,923	10,677
Non-controlling interest expense	0	(94)	(87)
Net income applicable to common stockholders	$ 411	$ 24,829	$ 10,590
Basic net income per share:
Income from continuing operations (in dollars per share)	$ 0.07	$ 0.93	$ 0.37
(Loss) income from discontinued operations (in dollars per share)	(0.06)	(0.03)	0.02
Total basic net income per share (in dollars per share)	0.01	0.90	0.39
Diluted net income per share:
Income from continuing operations (in dollars per share)	0.07	0.92	0.36
(Loss) income from discontinued operations (in dollars per share)	(0.06)	(0.03)	0.02
Total diluted net income per share (in dollars per share)	$ 0.01	$ 0.89	$ 0.38
Shares used in per share computation:
Basic (in shares)	28,359	27,535	27,276
Diluted (in shares)	28,607	27,915	27,652

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	12 Months Ended
	May 26, 2019	May 27, 2018	May 28, 2017
Statement of Comprehensive Income [Abstract]
Net income applicable to common stockholders	$ 411	$ 24,829	$ 10,590
Other comprehensive (loss) income, net of tax:
Change in net unrealized (losses) gains on interest rate swap (net of tax effect of $282, $(123), and $(254))	(1,084)	716	432
Other comprehensive (loss) income, net of tax	(1,084)	716	432
Total comprehensive (loss) income	$ (673)	$ 25,545	$ 11,022

- 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 (LOSS) INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	May 26, 2019	May 27, 2018	May 28, 2017
Statement of Comprehensive Income [Abstract]
Changes in net unrealized gains on interest rate swap, tax	$ 282	$ (123)	$ (254,000)

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income	Total Stockholders’ Equity	Non- controlling Interest
Beginning balance (in shares) at May. 29, 2016		27,148
Beginning balance at May. 29, 2016		$ 27	$ 137,244	$ 73,457	$ 0	$ 210,728	$ 1,622
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock under stock plans (in shares)		351
Issuance of stock under stock plans			706			706
Taxes paid by Company for employee stock plans			(434)			(434)
Stock-based compensation			3,964			3,964
Payments to NCI						0	(166)
Net income	$ 10,677			10,590		10,590	87
Other comprehensive income (loss), net of tax	432				432	432
Ending balance (in shares) at May. 28, 2017		27,499
Ending balance at May. 28, 2017		$ 27	141,680	84,470	432	226,609	1,543
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock under stock plans (in shares)		203
Issuance of stock under stock plans		$ 1	55			56
Taxes paid by Company for employee stock plans			(1,478)			(1,478)
Stock-based compensation			4,403			4,403
Payments to NCI						0	(115)
Net income	24,923			24,829		24,829	94
Purchase of NCI			(2,573)			(2,573)	(1,522)
Other comprehensive income (loss), net of tax	716				716	716
Ending balance (in shares) at May. 27, 2018		27,702
Ending balance at May. 27, 2018		$ 28	142,087	109,299	1,148	252,562	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock under stock plans (in shares)		197
Issuance of stock under stock plans			327			327
Issuance of common stock in connection with Yucatan acquisition (in shares)		1,203
Issuance of common stock in connection with Yucatan Foods acquisition		$ 1	15,067			15,068
Taxes paid by Company for employee stock plans			(700)			(700)
Stock-based compensation			3,560			3,560
Net income	411			411		411
Other comprehensive income (loss), net of tax	$ (1,084)				(1,084)	(1,084)
Ending balance (in shares) at May. 26, 2019		29,102
Ending balance at May. 26, 2019		$ 29	$ 160,341	$ 109,710	$ 64	$ 270,144	$ 0

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands

12 Months Ended

May 26, 2019

May 27, 2018

May 28, 2017

Cash flows from operating activities:

Consolidated net income

$ 411

$ 24,923

$ 10,677

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

15,230

12,412

10,677

Stock-based compensation expense

3,560

4,403

3,964

Loss on early debt extinguishment

1,233

Deferred taxes

910

(7,221)

2,506

Change in investment in non-public company, fair value

(1,600)

(2,900)

(900)

Net loss on disposal of property and equipment

188

157

586

Change in contingent consideration liability

(3,500)

(1,900)

Impairment of GreenLine tradename

2,000

Changes in current assets and current liabilities:

Accounts receivable, net

(8,860)

(7,312)

(336)

Inventories

(10,929)

(6,529)

855

Prepaid expenses and other current assets

1,601

(3,987)

1,039

Accounts payable

19,116

4,965

(4,778)

Accrued compensation

249

1,981

2,751

Other accrued liabilities

(1,383)

2,086

Deferred revenue

(2,377)

2,170

(522)

Net cash provided by operating activities

16,020

19,779

29,838

Cash flows from investing activities:

Purchases of property and equipment

(44,734)

(33,590)

(23,003)

Acquisitions (Note 2), net of cash acquired

(59,872)

(2,500)

Issuance of note receivable

(2,099)

Proceeds from collections of notes receivable

545

Proceeds from sale of investment in non-public company

7,000

Proceeds from sales of fixed assets

264

100

Net cash used in investing activities

(96,797)

(35,589)

(25,422)

Cash flows from financing activities:

Proceeds from sale of common stock

327

706

Taxes paid by Company for employee stock plans

(700)

(1,478)

(434)

Net change in other assets/liabilities

(41)

Proceeds from long term debt

60,000

50,000

Payments on long-term debt

(5,092)

(5,076)

(57,236)

Proceeds from lines of credit

59,000

33,000

4,500

Payments on lines of credit

(34,000)

(9,000)

(5,000)

Payments for debt issuance costs

(509)

(897)

Payments for early debt extinguishment penalties

(233)

Purchase of non-controlling interest

(4,095)

Payments to non-controlling interest

(115)

(166)

Net cash provided by financing activities

79,026

13,292

(8,801)

Net decrease in cash, cash equivalents and restricted cash

^[1]

(1,751)

(2,518)

(4,385)

Cash, cash equivalents and restricted cash, beginning of period

^[1]

3,216

5,734

10,119

Cash, cash equivalents and restricted cash, end of period

^[1]

1,465

3,216

5,734

Supplemental disclosure of cash flow information:

Cash paid during the period for interest

5,614

2,292

2,332

Cash paid during the period for income taxes, net of refunds received

(1,963)

283

2,792

Supplemental disclosure of non-cash investing and financing activities:

Purchases of property and equipment on trade vendor credit

$ 3,948

$ 8,445

$ 4,380

[1]	As a result of adopting ASU 2016-18, cash and cash equivalents at the beginning-of-period and end-of-period total amounts have been adjusted.

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

12 Months Ended

May 26, 2019

Accounting Policies [Abstract]

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 products for food and biomaterials markets, and license technology applications to partners.

The Company sells specialty packaged branded Eat Smart® and private label fresh-cut vegetables and whole produce to retailers, club stores, and food service operators, primarily in the United States and Canada. The Company also sells premier California specialty olive oils and wine vinegars under its O Olive Oil & Vinegar® (“O”) brand to natural food, conventional grocery and mass retail stores primarily in the United States and Canada. The majority of Yucatan® and Cabo Fresh® branded guacamole and avocado products are sold in the U.S. grocery channel, but they are also sold in U.S. mass retail, Canadian grocery retail and foodservice channels.

On January 11, 2019, Landec's food company marked the completion of its transition from a packaged fresh vegetables company to a branded, natural foods company by changing the name of its food business from Apio, Inc. (“Apio”) to Curation Foods, Inc. (“Curation Foods”). Curation Foods will serve as the corporate umbrella for a portfolio of four natural food brands, including the Company’s flagship brand Eat Smart as well as three emerging natural food brands, consisting of O olive oil and vinegar products, and its two new brands Yucatan and Cabo Fresh authentic guacamole and avocado products, acquired by the Company through the acquisition of Yucatan Foods on December 1, 2018. O, Yucatan and Cabo Fresh are referred to collectively as “Emerging Brands”. See Note 2 - Acquisitions for more details.

The Company has two proprietary polymer technology platforms: 1) Intelimer® polymers, and 2) hyaluronan (“HA”) biopolymers. The Company 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’s technologies, along with its customer relationships and tradenames, are the foundation and key differentiating advantages 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, Curation Foods and Lifecore. All material inter-company transactions and balances have been eliminated.

The Company’s fiscal year is the 52- or 53-week period that ends on the last Sunday of May with quarters within each year ending on the last Sunday of August, November, and February; however, in instances where the last Sunday would result in a quarter being 12-weeks in length, the Company’s policy is to extend that quarter to the following Sunday. A 14th week is included in the fiscal year every five or six years to realign the Company’s fiscal quarters with calendar quarters.

In May 2019, the Company discontinued the Now Planting business, and in May 2018, the Company discontinued the Food Export business segment. As a result, the Now Planting business, which was launched during the second quarter of fiscal year 2019, and Food Export business were 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”) for all periods presented. During fiscal year 2019, the Company re-packaged its GreenLine branded food service products to the Eat Smart brand, and wrote-off the remaining $2.0 million tradename intangible assets.

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.

Reclassifications

Certain reclassifications have been made to prior year financial statements to conform to the current year presentation.

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 26, 2019, sales to the Company’s top five customers accounted for approximately 43% of total revenue with the top two customers from the Curation Foods segment, Costco Corporation (“Costco”) and Wal-mart, Inc. (“Wal-mart”) accounting for approximately 14% and 16%, respectively, of total revenues. Lifecore did not have any individual customers that exceeded 5% of total revenues. As of May 26, 2019, the top two customers, Costco and Wal-mart represented approximately 8% and 13%, respectively, of total accounts receivable. Lifecore's top three customers represented 13%, 8%, and 6%, respectively, of total accounts receivable.

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 Curation Foods segment, Costco Corporation (“Costco”) and Wal-mart, Inc. (“Wal-mart”) accounting for approximately 19% and 18%, respectively, of total revenues. Lifecore did not have any individual customers that exceeded 5% 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. Lifecore had one customer that represented 10% of total accounts receivable at the end of fiscal year 2018.

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 27, 2018	$	1,148
Other comprehensive loss before reclassifications, net of tax effect	(1,084		)
Amounts reclassified from OCI	—
Other comprehensive income, net	(1,084		)
Balance as of May 26, 2019	$	64

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 12 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 26, 2019 and May 27, 2018.

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 90-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 resulting from acquisitions		Adjustments charged to revenue and expenses		Write offs, net of recoveries			Balance at end of period
Year Ended May 28, 2017	$	296	$	—	$	519	$	(454	)	$	361
Year Ended May 27, 2018	$	361	$	—	$	46	$	(105	)	$	302
Year Ended May 26, 2019	$	302	$	881	$	421	$	(588	)	$	1,016

Contract Assets and Liabilities

Contract assets primarily relate to the Company’s conditional right to consideration for work completed but not billed at the reporting date. The Company’s contract assets as of May 26, 2019, and May 27, 2018, were $5.6 million and $4.2 million, respectively.

Contract liabilities primarily relate to payments received from customers in advance of performance under the contract. The Company’s contract liabilities as of May 26, 2019, and May 27, 2018, were $0.2 million and $2.6 million, respectively. Revenue recognized during fiscal year 2019 that was included in the contract liability balance at the beginning of the fiscal 2019 period was $2.4 million.

Revenue Recognition

The Company follows the five step, principles-based model to recognize revenue upon the transfer of promised goods or services to customers and in an amount that reflects the consideration for which the Company expects to be entitled in exchange for those goods or services. Revenue, net of estimated allowances and returns, is recognized when the Company has completed its performance obligations under a contract and control of the product is transferred to the customer. Substantially all revenue is recognized at the time shipment is made or upon delivery as control of the product is transferred to the customer. Revenue for development service contracts are generally recognized based upon the labor hours expended relative to the total expected hours as a measure of progress to depict transfer of control of the service over time. The services are not distinct and are accounted for as a single performance obligation for each customer.

The Company’s standard terms of sale are included in its contracts, purchase orders, and invoices. As such, all revenue is considered revenue recognized from contracts with customers. Shipping and other transportation costs charged to customers are recorded in both revenue and cost of goods sold. The Company has elected to account for shipping and handling as fulfillment activities, and not a separate performance obligation. The Company’s standard payment terms with its customers range from 30 days to 90 days. Certain customers may receive cash-based incentives (including: volume rebates, discounts, and slotting fees), which are accounted for as variable consideration to the Company’s performance obligations. The Company estimates these sales incentives based on the expected amount to be provided to its customers and reduces revenues recognized towards its performance obligations. The Company does not anticipate significant changes in its estimates for variable consideration.

Occasionally, the Company enters into bill-and-hold arrangements, where it invoices the customer for products even though it retains possession of the products until a point-in-time in the future when the products will be shipped to the customer. In these contracts, the primary performance obligation is satisfied, and revenue is generally recognized, at a point-in-time when the product is segregated from the Company’s general inventory, it's ready for shipment to the customer, and the Company does not have the ability to use the product or re-deploy it to another customer.

The Company disaggregates its revenue by segment product lines based on how it markets its products and reviews results of operations. The following tables disaggregate segment revenue by major product lines (in thousands):



	Year Ended
Curation Foods:	May 26, 2019		May 27, 2018		May 28, 2017
Salads	$	190,239	$	188,104	$	152,467
Core vegetables	258,812		266,850		255,554
Emerging brands	32,635		3,846		2,363
Total	$	481,686	$	458,800	$	410,384



	Year Ended
Lifecore:	May 26, 2019		May 27, 2018		May 28, 2017
Aseptic	$	34,384	$	30,021	$	24,090
Fermentation	21,434		21,068		24,187
Development services	20,055		14,338		11,115
Total	$	75,873	$	65,427	$	59,392

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.

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.

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 26, 2019		May 27, 2018			May 28, 2017
Cash and cash equivalents	$	1,080	$	2,899		$	5,998
Restricted cash	385		325			325
Cash, discontinued operations	—		(8		)	(589		)
Cash and cash equivalents presented on Statements of Cash Flows	$	1,465	$	3,216		$	5,734

Restricted Cash

The Company was required to maintain $0.4 million as of May 26, 2019 and $0.3 million of restricted cash as of both May 27, 2018, and May 28, 2017 related to certain collateral requirements for obligations under its workers’ compensation programs. The restricted cash is included in Other assets in the Company’s accompanying Consolidated Balance Sheets.

Inventories

Inventories are stated at the lower of cost (using the first-in, first-out method) or net realizable value. As of May 26, 2019 and May 27, 2018 inventories consisted of (in thousands):



	Year Ended
	May 26, 2019		May 27, 2018
Finished goods	$	26,748	$	12,861
Raw materials	23,195		15,286
Work in progress	4,189		3,672
Total inventories	$	54,132	$	31,819

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. Advertising expense for the Company for fiscal years 2019, 2018, and 2017 was $1.3 million, $1.4 million and $1.9 million, respectively.

Notes and Advances Receivable

Curation Foods issues notes and makes advances to produce growers for their crop and harvesting costs primarily for the purpose of sourcing crops for Curation Foods' business. Notes and advances receivable are generally recovered during the growing season (less than one year) using proceeds from the crops sold to Curation Foods. 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 to 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 26, 2019 and May 27, 2018 were $2.0 million and $2.7 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 2019, 2018, and 2017, the Company recognized revenues of $0.6 million, $0.6 million, and $0.5 million, respectively. These amounts have been included in product sales in the accompanying Consolidated Statements of Income, from the sale of products to and license fees from Windset. The related receivable balances of $0.5 million and $0.3 million from Windset are included in accounts receivable in the accompanying Consolidated Balance Sheets as of May 26, 2019 and May 27, 2018, 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 to forty years for buildings and leasehold improvements and three to 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 to seven years.

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 to thirteen years and trademarks/trade names and goodwill with indefinite lives. 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.”

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 350-30-35. 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 year 2019, the Company re-packaged its GreenLine branded food service products to the Eat Smart brand, and wrote-off the remaining $2.0 million tradename intangible assets. During fiscal year 2018, there were no 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 50 percent) that the fair value of a reporting unit is less than its carrying amount, then the quantitative test is required. Otherwise, no 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 24, 2019, the Company tested its goodwill for impairment and determined that no indication of impairment existed as of that date. A quantitative goodwill impairment test was performed on the basis that periodically the reporting units should be valued in order to support qualitative assessments in subsequent years.

Subsequent to the 2019 annual impairment test, there have been no 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 no impairment losses for goodwill during fiscal years 2019, 2018, and 2017.

Investment in Non-Public Company

On 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 26, 2019 and May 27, 2018. The Company has elected to account for its investment in Windset under the fair value option. See Note 3 – 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 26, 2019 and 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, following the consolidated net income 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 810-10-45-23. 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.

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 per share:



	Year Ended
(in thousands, except per share amounts)	May 26, 2019		May 27, 2018		May 28, 2017
Numerator:
Net income applicable to Common Stockholders	$	411	$	24,829	$	10,590

Denominator:
Weighted average shares for basic net income per share	28,359		27,535		27,276
Effect of dilutive securities:
Stock options and restricted stock units	248		380		376
Weighted average shares for diluted net income per share	28,607		27,915		27,652

Diluted net income per share	$	0.01	$	0.89	$	0.38

Options to purchase 1,576,919, 1,495,380, and 1,428,272 shares of Common Stock at a weighted average exercise price of $13.74, $13.80, and $13.58 per share were outstanding during fiscal years ended May 26, 2019, 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 was greater than the average market price of the Common Stock and, therefore, their inclusion would be antidilutive.

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 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. The use of Black-Scholes requires the Company to make estimates and assumptions, such as expected volatility, expected term, and risk-free interest rate. 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.

Employee Savings and Investment Plans

The Company sponsors a 401(k) plan which is available to all full-time Landec employees (“Landec Plan”) and 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 2019, 2018 and 2017, the Company contributed $1.8 million, $1.8 million and $1.5 million, respectively, to the Landec Plan.

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


Level 2 –	inputs other than quoted prices in active markets that are observable either directly or indirectly through corroboration with observable market data.


Level 3 –	unobservable inputs in which there is little or no market data, which would require the Company to develop its own assumptions.

As of May 26, 2019, 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 acquisition of O.

The fair value of the Company’s interest rate swap contracts is determined based on model inputs that can be observed in a liquid market, including yield curves, and is categorized as a Level 2 fair value measurement and is included in Other assets or Other non-current liabilities in the accompanying Consolidated Balance Sheets.

The fair value of the Company’s contingent consideration liability from the acquisition of O utilizes significant unobservable inputs, including projected earnings before interest, taxes, depreciation and amortization (“EBITDA”), and discount rates. As a result, the Company’s contingent consideration liability associated with the O acquisition is considered a Level 3 measurement liability and is included in Other non-current liabilities in the accompanying Consolidated Balance Sheets.

In determining the fair value of the Company's contingent consideration liability, the Company utilizes the following significant unobservable inputs in the discounted cash flow models:



	May 26, 2019	May 27, 2018
Cost of debt	5.1% to 5.5%	4.7% to 5.2%
Market price of risk adjustment	14%	20%
EBITDA volatility	28%	25%

The fair value of our contingent consideration liability is sensitive to change in forecasts. 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 Contingent consideration liability as of May 26, 2019
10% increase in EBITDA forecast	$	100

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 3 measurement investment. The change in the fair value of the Company’s investment in Windset for the twelve months ended May 26, 2019 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:



	May 26, 2019		May 27, 2018
Revenue growth rates	6	%	6	%
Expense growth rates	6	%	6	%
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 26, 2019
10% increase in revenue growth rates	$	10,600
10% increase in expense growth rates	$	(9,900	)
10% increase in income tax rates	$	(400	)
10% increase in discount rates	$	(3,500	)

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 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 26, 2019						Fair Value at May 27, 2018
Assets:	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Interest rate swap contracts	$	—	$	644	$	—	$	—	$	1,529	$	—
Investment in non-public company	—		—		61,100		—		—		66,500
Total assets	$	—	$	644	$	61,100	$	—	$	1,529	$	66,500
Liabilities:
Interest rate swap contracts	$	—	$	482	$	—	$	—	$	—	$	—
Contingent consideration liability	—		—		500		—		—		4,000
Total liabilities	$	—	$	482	$	500	$	—	$	—	$	4,000

The following table reflects the fair value roll forward reconciliation of Level 3 assets and liabilities measured at fair value for the twelve months ended May 26, 2019 (in thousands):



	Windset Investment			Contingent Consideration Liability
Balance as of May 27, 2018	$	66,500		$	4,000
Fair value change	1,600			(3,500		)
Exercise of Senior B put feature (1)	(7,000		)	—
Balance as of May 26, 2019	$	61,100		$	500

(1) Refer to Note 3 - Investment in Non-public Company for further details.

Recent Accounting Pronouncements

Income Taxes

In February 2018, the FASB issued ASU 2018-2, 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 adopted ASU 2018-2 on August 27, 2018. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements and related disclosures.

Stock Compensation

In May 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-9, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, which provides guidance about which changes to the terms or conditions of a stock-based payment award require an entity to apply modification accounting in Topic 718. This pronouncement is effective for annual reporting periods beginning after December 15, 2017. The Company adopted ASU 2017-9 on May 28, 2018. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements and related disclosures.

Restricted Cash

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). ASU 2016-18 requires that entities include restricted cash and restricted cash equivalents with cash and cash equivalents in the beginning-of-period and end-of-period total amounts shown on the Statement of Cash Flows. The amendments in ASU 2016-18 are effective for fiscal years beginning after December 15, 2017, including interim reporting periods within those fiscal years. The Company adopted ASU 2016-18 on May 28, 2018. As a result of this retrospective adoption, the beginning-of-period and end-of-period total cash and cash equivalents in the Statement of Cash Flows have been adjusted to include restricted cash for all periods presented.

Intra-Entity Transfers

In November 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory. ASU 2016-16 requires companies to account for the income tax effects of intercompany transfers of assets other than inventory (e.g., intangible assets) when the transfer occurs. This pronouncement is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Effective May 28, 2018, the Company adopted the ASU, without any impact to the presentation of its financial statements and disclosures.

Statement of Cash Flows

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). ASU 2016-15 clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows to reduce diversity in practice. Among other things, debt prepayment or debt extinguishment costs will be presented as cash outflows for financing activities on the statement of cash flow. Effective May 28, 2018, the Company adopted the ASU, without any impact to the presentation of its financial statements and disclosures.

Revenue Recognition

In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-9, which creates FASB ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”) and supersedes ASC Topic 605, Revenue Recognition. 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.

The Company adopted Topic 606 on May 28, 2018 using the modified retrospective method. The adoption of this Topic 606 did not have a material impact upon the timing and measurement of revenue recognition. Additionally, the Company concluded that its historical methodology for estimation and recognition of variable consideration, i.e., rebates and other cash-based customer incentives remains consistent with the requirements of Topic 606. Revenues from the Company’s Curation Foods segment are mostly generated from the sales of finished goods. Revenues from the Company’s Biomaterials segment are mostly generated from its supply and contract manufacturing arrangements. Such sales predominantly contain a single performance obligation and revenue is recognized at a point-in-time, when control of the product transfers from the Company to the customer.

In the notes to the consolidated financial statements, the Company has expanded its revenue recognition disclosures. Additionally, it has implemented changes to accounting policies and procedures, business processes, and controls in order to comply with the revenue recognition and disclosure requirements of Topic 606.

Disclosure simplification

In August 2018, the U.S. Securities and Exchange Commission (“SEC”) adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements relating to the analysis of stockholders’ equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of income is required to be filed. This final rule is effective on November 5, 2018. Effective November 26, 2018, the Company adopted SEC Release No. 33-10532. In accordance with the new guidance, the Company has revised in its Form 10-Q the changes required in the Consolidated Statement of Changes in Stockholders' Equity.

Recently Issued Pronouncements to be Adopted

Leases

In 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 2016-02 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 2016-02 beginning in the first quarter of fiscal year 2020 on a modified retrospective basis.

Upon adoption of ASU 2016-02, the Company will record a transitional adjustment of approximately $0.3 million to opening retained earnings to write off the difference in deferred rent balances from prior periods for two operating leases with non-level rent. The difference arises from recalculation of deferred rent after applying updated lease terms as a result of applying hindsight.

Upon adoption of the ASU, there will be a significant impact in our consolidated balance sheet as we expect to recognize a right-of-use asset of approximately $30.0 million and lease liability of approximately $31.1 million related to our operating lease arrangements. The Company’s current operating lease portfolio is primarily comprised of real estate, equipment, and vehicles.

The pattern of recognition for operating leases within the consolidated statements of comprehensive income is not anticipated to significantly change. This change will have no impact on the Company’s ability to meet its loan covenants as the impact from the adoption of ASU 2016-02 was taken into consideration when determining its loan covenants.

Cloud Computing Arrangements

In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract ("ASU 2018-15"), which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Accounting Standards Codification 350-40 to determine which implementation costs to defer and recognize as an asset. The Accounting Standards Update generally aligns the guidance on recognizing implementation costs incurred in a cloud computing arrangement that is a service contract with that for implementation costs incurred to develop or obtain internal-use software, including hosting arrangements that include an internal-use software license. ASU 2018-15 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application is permitted. The Company is currently assessing the future impact of this update on its consolidated financial statements and related disclosures.

Fair Value Measurement

In August 2018, the FASB issued ASU 2018-13, Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"). The guidance eliminates, adds and modifies certain disclosure requirements for fair value measurements. Entities will no longer have to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company is currently assessing the future impact of this update on its consolidated financial statements and related disclosures.

Share-Based Compensation

In June 2018, the FASB issued ASU 2018-7, Improvements to Nonemployee Share-Based Payment Accounting ("ASU 2018-7"), which simplifies the accounting for share-based payments granted to nonemployees for goods and services. The guidance aligns the accounting for non-employee equity based awards with the accounting for employee equity-based awards, and requires equity-classified share-based payment awards issued to non-employees to be measured based on the grant date price, rather than remeasure the awards through the performance completion date. ASU 2018-7 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The adoption of ASU 2018-7 is not expected to have a material impact on the consolidated financial statements and related disclosures.

Hedging

In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12), 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 2017-12 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

In June 2016, the FASB issued ASU 2016-13, Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13), 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 2016-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The adoption of ASU 2016-13 is not expected to have a material impact on the consolidated financial statements and related disclosures.

Acquisitions

12 Months Ended

May 26, 2019

Business Combinations [Abstract]

Acquisitions

Yucatan Foods Acquisition

On December 1, 2018 (the "Acquisition Date"), the Company acquired all of the voting interests and substantially all of the assets of Yucatan Foods, a manufacturer and seller of avocado-based food products. The total consideration paid to acquire Yucatan Foods was $75.0 million, consisting of $59.9 million in cash and 1,203,360 shares of common stock (“Stock Consideration”) with a fair value of $15.1 million. The fair value of the Stock Consideration is based on a per-share value of the Company’s common stock on the Acquisition Date. Given that the holders are restricted from selling the Landec common stock, a discount for lack of marketability was applied to the Stock Consideration. The discount for lack of marketability was based on restricted stock studies, pre-IPO studies, and utilizing the Black-Scholes option pricing model to estimate a discount of 17.5% and 20.0% for the 3-year and 4-year lockup period, respectively.

Pursuant to the terms of the purchase agreement, all 1,203,360 shares issued as Stock Consideration will be held in an escrow account to secure the indemnification rights of Landec with respect to certain matters, including breaches of representations, warranties and covenants such as environmental and tax representations. The Stock Consideration is comprised of two tranches, with 3-year and 4-year lock-up provisions, respectively, such that 50% of the Stock Consideration will be released from lock-up on November 30, 2021, the 3-year anniversary of the Acquisition Date, and 50% of the Stock Consideration is released on November 30, 2022, the 4-year anniversary of the Acquisition Date.

Yucatan Foods, founded in 1991, with its headquarters in Los Angeles, CA, produces and sells guacamole and other avocado products under its Yucatan and Cabo Fresh brands primarily in the U.S. and Canada. Yucatan Foods' production facility is located in Guanajuato, Mexico, very near where avocados are grown. Landec acquired Yucatan Foods to grow, strengthen, and stabilize its position in the natural foods market and to improve Curation Foods' margins over time.

Upon acquisition, Yucatan Foods became a wholly-owned subsidiary of Curation Foods. The Acquisition Date fair value of the consideration paid consisted of the following (in thousands):




Cash consideration	$	59,898
Stock consideration	15,068
	$	74,966

The excess of the purchase price over the aggregate fair value of identifiable net assets acquired was recorded as goodwill. These preliminary fair values of the assets acquired and the liabilities assumed were determined through established and generally accepted valuation techniques and are subject to change during the measurement period as valuations are finalized. The primary areas of the purchase price that are not yet finalized are related to income taxes and consideration of indemnification provisions for environmental related items. The fair value of assets acquired and liabilities assumed in accounting for the Acquisition is set forth in the table below (in thousands):




Cash and cash equivalents	$	26
Accounts receivable	6,310
Inventories	11,384
Prepaid expenses and other current assets	1,589
Other assets	102
Property and equipment	14,083
Trademarks/tradenames	15,900
Customer relationships	11,000
Accounts payable	(4,507		)
Other accrued liabilities	(1,873		)
Deferred tax liabilities	(1,280		)
Net identifiable assets acquired	52,734
Goodwill	22,232
Total fair value purchase consideration	$	74,966

During the fourth quarter of fiscal 2019, the Company recorded measurement period adjustments to deferred income taxes of $1.7 million and indemnification provisions for environmental related items of $0.7 million, resulting in an increase to goodwill of $1.0 million.

Intangible Assets

The Company identified two intangible assets in connection with the Yucatan Foods acquisition: trademark/tradenames valued at $15.9 million and customer relationships valued at $11.0 million, which are included within Trademarks/tradenames and Customer relationships in the accompanying Consolidated Balance Sheets, respectively. Tradenames are considered to be an indefinite lived asset and therefore, will not be amortized. Customer relationships have an estimated useful life of 12 years and will be amortized to operating expenses on an accelerated basis that reflects the pattern in which the economic benefits are consumed. The tradenames are valued using the relief from royalty valuation method and the customer relationships are valued using the excess earnings method.

Goodwill

As a result of the Yucatan Foods acquisition, the goodwill balance as of May 26, 2019, increased by $22.2 million over the $54.5 million as of May 27, 2018. The goodwill recognized from the Yucatan Foods acquisition is primarily attributable to Yucatan Foods' long history and expected synergies from future growth and expansion of our Curation Foods business segment. Approximately 80% of the goodwill is expected to be deductible for income tax purposes. The Company will test goodwill for impairment on an annual basis or sooner, if indicators of impairment are present.

Acquisition Related Transaction Costs

As of May 26, 2019, the Company recognized $3.3 million of acquisition-related costs that were expensed as incurred and included in the Selling, general and administrative line item in the Consolidated Statements of Income. These expenses included investment banking fees, legal, accounting and tax service fees and appraisals fees.

O Acquisition

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. All accounting for this acquisition is final.

The potential earn out payment of 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. Each quarter the Company performs, with the assistance of a third party appraiser, an analysis of O’s projected EBITDA over the earnout period. Based on this analysis, the Company records a contingent consideration liability, included in Other non-current liabilities.

As of May 26, 2019, May 27, 2018, and May 28, 2017, the contingent consideration liability was $0.5 million, $4.0 million, and $5.9 million, respectively, representing the present value of the expected earn out payments. The reduction in the contingent consideration liability was $3.5 million and $1.9 million for fiscal years 2019 and 2018, respectively, and is recorded as a reduction to SG&A in the accompanying Consolidated Statements of Income. The $3.5 million reduction during fiscal year 2019 was due to a very poor olive harvest in California during 2018 resulting in substantially lower volumes of olive oil available for sale over the next twelve months. This coupled with a slower than anticipated start up of apple cider vinegar sales has reduced the current projected EBITDA through fiscal year 2020.

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 $0.7 million 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 Curation Foods’ 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 $0.2 million 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 for the year ended May 28, 2017. These expenses included legal, accounting and tax service fees and appraisals fees.

Investment in Non-public Company	12 Months Ended
Investment in Non-public Company	May 26, 2019
Schedule of Investments [Abstract]
Investment in Non-public Company	Investment in Non-public Company Windset On February 15, 2011, Curation Foods entered into a share purchase agreement (the “Windset Purchase Agreement”) with Windset. Pursuant to the Windset Purchase Agreement, Curation Foods purchased from Windset 150,000 Senior A preferred shares for $15.0 million and 201 common shares for $201. On July 15, 2014, Curation Foods 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 $11.0 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. The Shareholders’ Agreement between Curation Foods and Windset, as amended on March 15, 2017, includes a put and call option (the “Put and Call Option”), which can be exercised on or after March 31, 2022, whereby Curation Foods can exercise the put to sell its common, Senior A preferred shares, and junior preferred shares to Windset, or Windset can exercise the call to purchase those shares from Curation Foods, 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 ($15.0 million for the Senior A preferred shares and $5.1 million for the junior preferred shares). 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, Curation Foods further increased its investment in Windset by purchasing 70,000 shares of Senior B preferred shares for $7.0 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 Curation Foods have a put feature whereby Curation Foods can sell back to Windset the Senior B preferred shares for $7.0 million at any time after October 29, 2017. During the fourth quarter of fiscal year 2019, the Company exercised its put feature and sold the 70,000 shares of Senior B preferred shares back to Windset for $7.0 million. 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 options require 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/call 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' estimate for fair value 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 in dividend income for each of the fiscal years ended May 26, 2019, May 27, 2018 and May 28, 2017, respectively. The decrease in the fair market value of the Company’s investment in Windset for the fiscal year ended May 26, 2019 was $5.4 million, which included a decrease of $7.0 million related to the Company's selling back to Windset its Senior B preferred shares which is included as cash flow from investing activities in the accompanying Consolidated Statements of Cash Flows, and an increase in fair market value of $1.6 million which is included in other income in the accompanying Consolidated Statements of Income. The increase in the fair market value of the Company’s investment in Windset for the fiscal years ended May 27, 2018 and May 28, 2017 was $2.9 million and $0.9 million, respectively, and is included in other income in the accompanying Consolidated Statements of Income.

Property and Equipment

12 Months Ended

May 26, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment

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



	Years of Useful Life			Year Ended
	Years of Useful Life			May 26, 2019			May 27, 2018
Land and buildings	15	-	40	$	108,428		$	90,712
Leasehold improvements	3	-	20	6,974			2,607
Computers, capitalized software, machinery, equipment and autos	3	-	20	127,370			120,418
Furniture and fixtures	3	-	7	2,828			1,673
Construction in process				34,206			13,100
Gross property and equipment				279,806			228,510
Less accumulated depreciation and amortization				(79,779		)	(68,886		)
Net property and equipment				$	200,027		$	159,624

Depreciation and amortization expense for property and equipment for the fiscal years ended May 26, 2019, May 27, 2018 and May 28, 2017 was $13.1 million, $11.0 million and $9.6 million, respectively. Amortization related to capitalized leases, which is included in depreciation expense, was $0.1 million for each of the fiscal years ended May 26, 2019, May 27, 2018 and May 28, 2017, respectively.

During fiscal years 2019, 2018, and 2017, the Company capitalized $1.0 million, $0.9 million, and $2.2 million in software development costs, respectively. Amortization related to capitalized software was $0.9 million, $0.6 million, and $0.4 million for fiscal years ended May 26, 2019, May 27, 2018 and May 28, 2017, respectively. The unamortized computer software costs as of May 26, 2019 and May 27, 2018 was $2.8 million and $2.5 million, respectively. Capitalized interest was $0.7 million, $0.6 million, and $0.5 million for fiscal years ended May 26, 2019, May 27, 2018 and May 28, 2017, respectively.

Assets Held for Sale after the Balance Sheet Date

In June 2019, the Company designated the Santa Maria office as the Curation Foods headquarters, and decided to close and put up for sale the Curation Foods office in San Rafael, CA. The San Rafael property, included in land and buildings, has been designated as held for use within the Consolidated Balance Sheets as of May 26, 2019, as no finalized plan for disposition existed at fiscal year end. The disposal is expected to occur by the end of the calendar year, and is not expected to have a material impact to the Company's financial statements.

Goodwill and Intangible Assets

12 Months Ended

May 26, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill

The following table presents the changes in goodwill during fiscal 2019 and fiscal 2018 (in thousands):



	2019		2018
Balance at beginning of year	$	54,510	$	54,510
Acquisition of Yucatan (Note 2)	22,232		—
Balance at end of year	$	76,742	$	54,510

As of May 26, 2019, the Curation Foods reporting unit had $62.8 million of goodwill and the Lifecore reporting unit had $13.9 million of goodwill.

Intangible Assets

As of May 26, 2019 and May 27, 2018, the Company's intangible assets consisted of the following (in thousands):



		May 26, 2019				May 27, 2018
	Amortization Period (years)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Customer relationships
Eat Smart (Curation Foods)	13	$	7,500	$	4,087	$	7,500	$	3,510
O (Curation Foods)	11	700		143		700		83
Yucatan Foods (Curation Foods)	12	11,000		550		—		—
Lifecore	12	3,700		2,801		3,700		2,493
Total customer relationships		$	22,900	$	7,581	$	11,900	$	6,086

Trademarks and tradenames
Eat Smart (Curation Foods)		$	9,100	$	872	$	11,100	$	872
O (Curation Foods)		1,600		—		1,600		—
Yucatan Foods (Curation Foods)		15,900		—		—		—
Lifecore		4,200		—		4,200		—
Total trademarks and tradenames		$	30,800	$	872	$	16,900	$	872

Total intangible assets		$	53,700	8,453		$	28,800	$	6,958

Amortization expense related to finite-lived intangible assets was $1.5 million, $1.0 million, and $0.9 million in fiscal 2019, 2018, and 2017, respectively. The amortization expense for the next five fiscal years is estimated to be $1.9 million per year.

Stock-based Compensation and Stockholders’ Equity

12 Months Ended

May 26, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-based Compensation and Stockholders’ Equity

Common Stock and Stock Option Plans

On 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.

On 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, no 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 26, 2019, 2,256,689 options to purchase shares and restricted stock units (“RSUs”) were outstanding.

On 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 26, 2019, 171,833 options to purchase shares and RSUs were outstanding.

At May 26, 2019, the Company had 2.5 million common shares reserved for future issuance under Landec stock incentive plans.

Convertible Preferred Stock

The Company has authorized 2.0 million shares of preferred stock, and as of May 26, 2019 has no outstanding preferred stock.

Grant Date Fair Value

The Company uses the Black-Scholes option pricing model to calculate the grant date fair value of stock option awards. The use of an option pricing model requires the Company to make estimates and assumptions, including the expected stock price volatility, expected life of option awards, risk-free interest rate, and expected dividend yield which have a significant impact on the fair value estimates. As of May 26, 2019, May 27, 2018 and May 28, 2017, the fair value of stock option grants was estimated using the following weighted average assumptions:



	Year Ended
	May 26, 2019		May 27, 2018		May 28, 2017
Options granted	368,264		498,000		240,000
Weighted-average exercise price	$11.85		$12.93		$11.58
Weighted-average grant date fair value	$2.80		$2.90		$2.37
Assumptions:
Expected life (in years)	3.50		3.50		3.50
Risk-free interest rate	2.47	%	1.73	%	1.08	%
Volatility	27	%	27	%	26	%
Dividend yield	—	%	—	%	—	%

Stock-Based Compensation Activity

A summary of the activity under the Company's stock option plans as of May 26, 2019 and changes during the fiscal year then ended is presented below:



	Options Outstanding		Weighted-Average Exercise Price Per Share		Total Intrinsic Value of Options Exercised		Weighted-Average Remaining Contractual Term in Years	Aggregate Intrinsic Value
Options outstanding at May 29, 2016	1,731,474		$	11.90
Options granted	240,000		$	11.58
Options exercised	(357,639	)	$	5.93	$	2,780,597
Options forfeited	(42,293	)	$	12.16
Options expired	—		$	—
Options outstanding at May 28, 2017	1,571,542		$	13.20
Options granted	498,000		$	12.93
Options exercised	(29,333	)	$	7.36	$	177,921
Options forfeited	(23,334	)	$	12.55
Options expired	(61,540	)	$	14.23
Options outstanding at May 27, 2018	1,955,335		$	13.20
Options granted	368,264		$	11.85
Options exercised	(116,834	)	$	11.82	$	265,911
Options forfeited	(71,669	)	$	13.75
Options expired	(135,000	)	$	14.18
Options outstanding at May 26, 2019	2,000,096		$	12.94			3.29	$	16,807
Options exercisable at May 26, 2019	1,524,473		$	13.30			2.41	$	5,467

A summary of the Company's restricted stock unit award activity as of May 26, 2019 and changes during the fiscal year then ended is presented below:



	Restricted Stock Units Outstanding		Weighted-Average Grant Date Fair Value Per Share
Restricted stock units outstanding at May 29, 2016	526,841		$	13.51
Granted	130,522		$	13.37
Vested	(130,508	)	$	13.42
Forfeited	(17,500	)	$	12.46
Restricted stock units outstanding at May 28, 2017	509,355		$	13.53
Granted	200,288		$	13.12
Vested	(270,656	)	$	14.06
Forfeited	(30,950	)	$	11.75
Restricted stock units outstanding at May 27, 2018	408,037		$	12.99
Granted	333,486		$	13.15
Vested	(237,946	)	$	13.27
Forfeited	(75,150	)	$	13.92
Restricted stock units outstanding at May 26, 2019	428,427		$	12.80

Stock-Based Compensation Expense

The following table summarizes the stock-based compensation by income statement line item:



	Year Ended
(in thousands)	May 26, 2019		May 27, 2018		May 28, 2017
Cost of sales	$	449	$	535	$	485
Research and development	114		131		83
Selling, general and administrative	2,997		3,737		3,396
Total stock-based compensation	$	3,560	$	4,403	$	3,964

As of May 26, 2019, there was $4.4 million of total unrecognized compensation expense related to unvested equity compensation awards granted under the Landec stock incentive plans. Total expense is expected to be recognized over the weighted-average period of 1.94 years for stock options and 2.09 years for restricted stock unit awards.

Stock Repurchase Plan

On 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 2019, 2018 and 2017, the Company did not purchase any shares on the open market.

Debt

12 Months Ended

May 26, 2019

Debt Disclosure [Abstract]

Debt

On 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 $100.0 million revolving line of credit (the “Revolver”) and a $50.0 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.

On November 30, 2018, the Company entered into the Fourth Amendment to the Credit Agreement (the "Amendment"), which increased the Term Loan to $100.0 million and the Revolver to $105.0 million. Both the Revolver and the Term Loan continue to mature on September 23, 2021, with the Term Loan requiring quarterly principal payments to increase to $2.5 million beginning March 1, 2019, with the remainder continuing to be due at maturity.

The primarily purpose of the Amendment was to fund the Company's acquisition of Yucatan Foods and its related entities on December 1, 2018, to pay certain fees and expenses incurred in connection with the consummation of the Amendment, and for other general corporate purposes. See Note 2 - Acquisitions for more details on Yucatan Foods acquisition.

Interest on both the Revolver and the Term Loan continues to be based upon the Company’s leverage ratio (generally defined as the ratio of the Company’s total indebtedness on such date to the Company’s consolidated EBITDA for the period of four consecutive fiscal quarters ended on or most recently prior to such date), at a per annum rate of either (i) the prime rate plus a spread of between 0.25% and 2.25% or (ii) the Eurodollar rate plus a spread of between 1.25% and 3.25%. The Amendment increased the leverage ratio covenant to 4.50 to 1.00 from 3.50 to 1.00 through August 25, 2019, which decreases to 4.00 to 1.00 effective November 24, 2019.

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 $10.0 million.

The Credit Agreement continues to contain 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 26, 2019.

As of May 26, 2019, $52.0 million was outstanding on the Revolver, at an interest rate of 5.24% under the Eurodollar option.

Long-term debt consists of the following as of May 26, 2019 and May 27, 2018 (in thousands):



	May 26, 2019			May 27, 2018
Term loan	$	97,500		$	42,500
Total principal amount of long-term debt	97,500			42,500
Less: unamortized debt issuance costs	(516		)	(200		)
Total long-term debt, net of unamortized debt issuance costs	96,984			42,300
Less: current portion of long-term debt, net	(9,791		)	(4,940		)
Long-term debt, net	$	87,193		$	37,360

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



	Term Loan
Fiscal year 2020	$	10,000
Fiscal year 2021	10,000
Fiscal year 2022	77,500
Fiscal year 2023 and thereafter	—
Total	$	97,500

Derivative Instruments

On November 1, 2016, the Company entered into an interest rate swap contract (the “2016 Swap”) with BMO at a notional amount of $50.0 million. The 2016 Swap has the effect of changing the Company’s Term Loan obligation from a variable interest rate to a fixed 30-day LIBOR rate of 1.22%.

On June 25, 2018, the Company entered into an interest rate swap contract (the “2018 Swap”) with BMO at a notional amount of $30.0 million. The 2018 Swap has the effect of converting the first $30.0 million of the total outstanding amount of the Company’s 30-day LIBOR borrowings from a variable interest rate to a fixed 30-day LIBOR rate of 2.47%.

Income Taxes

12 Months Ended

May 26, 2019

Income Tax Disclosure [Abstract]

Income Taxes

U.S Tax Reform Impact

On 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”). 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 29.4% for the fiscal year ended May 27, 2018, and then 21% for the year ended May 26, 2019 and 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 and the base erosion anti-abuse tax, 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 benefited, has been eliminated.

On December 22, 2017, the Securities and Exchange Commission issued guidance under Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118) directing taxpayers to consider the impact of the Tax Legislation as “provisional” when it does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the change in tax law. Also, in March 2018, FASB issued Accounting Standards Update No. 2018-5, Income Taxes Topic (740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, ("ASU 2018-5") to address the application of GAAP in situations when a registrant does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The Company's accounting for the Tax Act was incomplete as of May 27, 2018. As of May 26, 2019, the Company’s analysis for the Transition Tax and the re-measurement of deferred taxes due to the Tax Rate Reduction was considered to be complete and the Company does not expect the analysis to change materially. Ongoing guidance and accounting interpretation for the Tax Act are expected over the coming months and years, the Company will consider any changes in the accounting of the Tax Act in the period of such additional guidance is issued.

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



(in thousands)	Year Ended
	May 26, 2019			May 27, 2018			May 28, 2017
Current:
Federal	$	(67	)	$	(2,854	)	$	1,388
State	63			60			39
Foreign	83			83			82
Total	79			(2,711		)	1,509

Deferred:
Federal	1,581			(7,122		)	2,270
State	(142		)	470			261
Total	1,439			(6,652		)	2,531
Income tax (benefit) expense	$	1,518		$	(9,363	)	$	4,040

The effective tax rate for fiscal year 2019 changed from a benefit of 64% to expense of 71% in comparison to fiscal year 2018. The increase in the income tax expense for fiscal year 2019 was primarily due to the Company's acquisition of Yucatan and the change in valuation allowance related to the foreign deferred balances, the change in ending state deferred blended rate, the limitation of deductibility of executive compensation, and partially offset by the benefit of the foreign rate differential and the federal and state research and development credits, all primarily as a result of the TCJA.

The effective tax rate for fiscal year 2018 changed from an expense of 29% to a benefit of 64% in comparison to fiscal year 2017. 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.

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 26, 2019			May 27, 2018			May 28, 2017
Tax at U.S. statutory rate (1)	$	764		$	4,784		$	4,922
State income taxes, net of federal benefit	46			439			307
Tax reform	—			(14,350		)	—
Change in valuation allowance	929			(176		)	85
Tax credit carryforwards	(771		)	(777		)	(834		)
Other compensation-related activity	618			566			(365		)
Domestic manufacturing deduction	—			—			(243		)
Other	(68		)	151			168
Income tax expense (benefit)	$	1,518		$	(9,363	)	$	4,040

(1) Statutory rate was 21.0% for fiscal year 2019, 29.4% for fiscal year 2018, and 35.0% for fiscal year 2017.

The effective tax rates for fiscal year 2019 differ from the blended statutory federal income tax rate of 21% as a result of several factors, including the Yucatan acquisition, the change in valuation allowance related to the foreign deferred balances, the foreign rate differential, the change in ending state deferred blended rate, the limitation of deductibility of executive compensation, and the benefit of federal and state research and development credits. The effective tax rates for fiscal year 2018 differ from the statutory federal blended income tax rate of 29.4% 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.

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



(in thousands)	Year Ended
	May 26, 2019			May 27, 2018
Deferred tax assets:
Accruals and reserves	$	3,130		$	1,421
Net operating loss carryforwards	9,385			1,955
Stock-based compensation	979			1,247
Research and AMT credit carryforwards	2,839			2,032
Other	461			427
Gross deferred tax assets	16,794			7,082
Valuation allowance	(4,116		)	(1,337		)
Net deferred tax assets	12,678			5,745

Deferred tax liabilities:
Depreciation and amortization	(14,324		)	(11,307		)
Goodwill and other indefinite life intangibles	(13,351		)	(8,201		)
Basis difference in investment in non-public company	(4,396		)	(3,722		)
Deferred tax liabilities	(32,071		)	(23,230		)

Net deferred tax liabilities	$	(19,393	)	$	(17,485	)

During the fiscal year ended May 26, 2019, and May 27, 2018, excess tax deficits related to stock-based compensation of $153,000 and $38,000, respectively, were reflected in the consolidated statements of income 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.

As of May 26, 2019, the Company had federal, foreign, California, Indiana, and other state net operating loss carryforwards of approximately $26.5 million, $9.9 million, $3.4 million, $5.8 million, and $6.3 million respectively. These losses expire in different periods through 2032, if not utilized. The Company acquired additional net operating losses through the acquisition of Yucatan Foods and GreenLine Holding Company. 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 is net of any such limitation.

The Company has federal, California, and Minnesota research and development tax credit carryforwards of approximately $0.9 million, $1.8 million, and $1.0 million, respectively. The research and development tax credit carryforwards have an unlimited carryforward period for California purposes, 20 year carryforward for federal purposes, and 15 year carryforward for Minnesota 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 $4.1 million should be recorded as a result of uncertainty around the utilization of certain state and foreign net operating losses, and federal capital loss carryforward.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



(in thousands)	Year Ended
	May 26, 2019			May 27, 2018			May 28, 2017
Unrecognized tax benefits – beginning of the period	$	479		$	537		$	842
Gross increases – tax positions in prior period	29			21			11
Gross decreases – tax positions in prior period	—			—			(90		)
Gross increases – current-period tax positions	133			116			93
Settlements	—			(95		)	—
Lapse of statute of limitations	(25		)	(100		)	(319		)
Unrecognized tax benefits – end of the period	$	616		$	479		$	537

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.

As of May 26, 2019, the total amount of net unrecognized tax benefits is $0.6 million, of which, $0.5, 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 26, 2019. Additionally, the Company expects its unrecognized tax benefits to decrease by approximately $32,000 within the next 12 months.

Due to tax attribute carryforwards, the Company is subject to examination for tax years 2016 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.

Commitments and Contingencies

12 Months Ended

May 26, 2019

Commitments and Contingencies Disclosure [Abstract]

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 26, 2019 are as follows (in thousands):



	Amount
Fiscal year 2020	$	5,056
Fiscal year 2021	4,044
Fiscal year 2022	3,589
Fiscal year 2023	3,350
Fiscal year 2024	3,047
Thereafter	9,335
Total	$	28,421

Rent expense for operating leases, including month to month arrangements was $7.3 million, $6.1 million and $5.6 million for the fiscal years 2019, 2018 and 2017, respectively.

Capital Leases

On 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 26, 2019 is $3.4 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.

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



	Amount
Fiscal year 2020	$	486
Fiscal year 2021	489
Fiscal year 2022	460
Fiscal year 2023	3,490
Fiscal year 2024	—
Thereafter	—
Total minimum lease payment	4,925
Less: amounts representing interest and taxes	(1,291		)
Total	3,634
Less: current portion included in other accrued liabilities	(102		)
Long-term capital lease obligation	$	3,532

Purchase Commitments

At May 26, 2019, the Company was committed to purchase $30.6 million of produce and other materials.

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.

Curation Foods has been the target of a union organizing campaign which has included two unsuccessful attempts to unionize Curation Foods' 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"), Curation Foods' 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 Curation Foods and Pacific Harvest.

The legal actions consisted of three main types of claims: (1) Unfair Labor Practice claims ("ULPs") before the National Labor Relations Board (“NLRB”), (2) discrimination/wrongful termination claims before state and federal agencies and in individual arbitrations, and (3) 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, Curation Foods, and Pacific Harvest that were pending before the NLRB was approved on December 27, 2016 for $0.3 million. Curation Foods was responsible for half of this settlement, or $0.2 million. On 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 Curation Foods' 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 of which was paid on November 22, 2017 and $1.8 million of 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 $1.0 million and $0.6 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. The receivable is reviewed quarterly for collectability. At May 26, 2019, the Company has concluded that the receivable is collectible.

For fiscal years 2019, 2018 and 2017, the Company incurred legal expenses of $0, $0.6 million and $2.1 million, 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 26, 2019 and May 27, 2018, the Company had accrued $0 and $1.0 million related to these actions, which is included in Other accrued liabilities in the accompanying Consolidated Balance Sheets.

Business Segment Reporting

12 Months Ended

May 26, 2019

Segment Reporting [Abstract]

Business Segment Reporting

Prior to May 2018, the Company managed its business operations through three strategic reportable business segments: Packaged Fresh Vegetables, Food Export, and Biomaterials. These segments were based upon the information reported to the Chief Executive Officer, who is the chief operating decision maker (“CODM”). However, in May 2018, the Company discontinued its Food Export business segment. As a result, the Company met the requirements of ASC 205-20 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, for the twelve months ended May 27, 2018 and May 28, 2017, have been reclassified to discontinued operations and are no longer reported as a separate segment.

Beginning in fiscal year 2019, the Company realigned the management of its business and started using three strategic reportable business segments: the Curation Foods segment, the Lifecore segment, and the Other segment (previously known as Natural Foods, Biomaterials, and Other segments until the third quarter of fiscal 2019 when the Company completed the rebranding of its natural food business by announcing the new name Curation Foods. See Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies for more information).

The Company decided to discontinue its Now Planting business during the fourth quarter of fiscal year 2019. As a result, the operating results for the Now Planting business are presented as a discontinued operations in the Company's accompanying Consolidated Financial Statements and the financial results for fiscal years 2019 have been reclassified to present the Now Planting business as a discontinued operation.

Curation Foods business includes (i) four natural food brands, including the Company’s two existing brands, Eat Smart and O Olive Oil & Vinegar, as well as two new brands, Yucatan and Cabo Fresh acquired by the Company through the acquisition of Yucatan Foods during the third quarter of fiscal 2019 (see the Note 2 - Acquisitions for more details on this transaction), and (ii) BreatheWay® activities. The Curation Foods segment includes activities to market and pack 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 and are sold primarily under the Eat Smart brand and various private labels. The Curation Foods segment also includes sales of BreatheWay packaging to partners for fruit and vegetable products, sales of olive oils and wine vinegars under the O brand, and sales of avocado products under the recently acquired brands Yucatan and Cabo Fresh.

The Lifecore 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.

The Other segment includes corporate general and administrative expenses, non-Curation Foods and non-Lifecore interest income and income tax expenses.

All of the Company's assets are located within the United States of America except for the production facility in Mexico, which was acquired by the Company as a result of the Yucatan Foods acquisition. The following table presents our property and equipment, net by geographic region (in millions):



	Year Ended
Property and equipment, net	May 26, 2019		May 27, 2018
United States	$	186.3	$	159.6
Mexico	13.7		—
Total property and equipment, net	$	200.0	$	159.6

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 26, 2019		May 27, 2018		May 28, 2017
Canada	$	83.6	$	78.0	$	69.3
Belgium	$	15.1	$	17.2	$	21.0
Ireland	$	5.0	$	4.1	$	4.0
All Other Countries	$	5.1	$	3.6	$	4.6

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



Year Ended May 26, 2019	Curation Foods (1)			Lifecore		Other (2)			Total
Net sales	$	481,686		$	75,873	$	—		$	557,559
Gross profit	49,305			31,698		—			81,003
Net income (loss) from continuing operations	(6,229		)	12,070		(3,719		)	2,122
Identifiable assets	367,352			145,558		6,181			519,091
Depreciation and amortization	10,360			4,140		730			15,230
Capital expenditures	30,583			12,965		1,186			44,734
Dividend income	1,650			—		—			1,650
Interest income	112			—		33			145
Interest expense, net	3,278			—		1,952			5,230
Income tax (benefit) expense	(1,373		)	4,024		(1,133		)	1,518

Year Ended May 27, 2018
Net sales	$	458,800		$	65,427	$	—		$	524,227
Gross profit	49,770			28,568		—			78,338
Net income (loss) from continuing operations	17,010			11,631		(2,880		)	25,761
Identifiable assets (3)	264,067			129,342		11,294			404,703
Depreciation and amortization	8,196			3,679		537			12,412
Capital expenditures	13,052			16,454		4,084			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	(9,748		)	2,638		(2,253		)	(9,363		)

Year Ended May 28, 2017
Net sales	$	410,384		$	59,392	$	—		$	469,776
Gross profit	52,457			26,755		—			79,212
Net income (loss) from continuing operations	2,410			10,228		(2,503		)	10,135
Identifiable assets (3)	219,739			104,492		34,377			358,608
Depreciation and amortization	7,312			3,054		311			10,677
Capital expenditures	11,476			11,169		358			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

(1) The Curation segment operating results for the year ended May 26, 2019 reflect the reclassification of the Now Planting brand to discontinued operations.

(2) The Other segment operating results for the year ended May 26, 2019, May 27, 2018, and May 28, 2017 have been restated to reflect the reclassification of the Now Planting brand and the Food Export segment to discontinued operations, and the reclassification of O operating results from the Other segment to the Curation Foods segment.

(3) Assets of discontinued operations are included in Other for the years ended May 27, 2018 and May 28, 2017.

Quarterly Consolidated Financial Information (unaudited)

12 Months Ended

May 26, 2019

Condensed Financial Information Disclosure [Abstract]

Quarterly Consolidated Financial Information (unaudited)

The following is a summary of the unaudited quarterly results of operations for fiscal years 2019 and 2018 (in thousands, except for per share amounts):



Fiscal Year 2019	1st Quarter		2nd Quarter			3rd Quarter		4th Quarter			Annual
Revenues	$	124,668	$	124,557		$	155,554	$	152,780		$	557,559
Gross profit	16,337		16,885			21,569		26,212			81,003
Net income (loss) from continuing operations	335		(113		)	1,533		367			2,122
Net income (loss) applicable to common stockholders	190		(584		)	1,067		(262		)	411
Net income per basic share from continuing operations	$	0.01	$	—		$	0.05	$	0.01		$	0.07
Net income per diluted share from continuing operations	$	0.01	$	—		$	0.05	$	0.01		$	0.07



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

Discontinued Operations

12 Months Ended

May 26, 2019

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Now Planting and Food Export

During the fourth quarter of fiscal year 2019, the Company discontinued its Now Planting business. 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 Now Planting and Food Export as discontinued operations and to classify any assets and liabilities as held for abandonment. The operating results for the Now Planting soup business and Food Export business have therefore been reclassified as a discontinued operation.

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



	Year Ended
	May 26, 2019		May 27, 2018
Current and other assets, discontinued operations:
Cash and cash equivalents	$	—	$	(8	)
Accounts receivable	—		518
Inventory	—		—
Other assets	—		—
Total assets, discontinued operations	$	—	$	510
Other current liabilities, discontinued operations:
Accounts payable	$	51	$	230
Accrued expenses and other current liabilities	14		228
Total other current liabilities, discontinued operations	$	65	$	458

Once Now Planting and Food Export businesses were discontinued, the operations associated with these businesses 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 and the notes to the consolidated financial statements have been adjusted to exclude Now Planting in fiscal year 2019 and Food Export in fiscal years 2018 and 2017. Components of amounts reflected in (loss) income from discontinued operations, net of tax are as follows (in thousands):



	Year Ended
	May 26, 2019			May 27, 2018			May 28, 2017
Revenues	$	548		$	29,222		$	62,481
Cost of sales	(1,649		)	(27,619		)	(58,507		)
Research and development	(102		)	—			—
Selling, general and administrative	(1,035		)	(2,522		)	(3,137		)
Other	—			(269		)	—
(Loss) income from discontinued operations before taxes	(2,238		)	(1,188		)	837
Income tax benefit (expense)	527			350			(295		)
(Loss) income from discontinued operations, net of tax	$	(1,711	)	$	(838	)	$	542

Cash provided by (used in) operating activities by the Now Planting business totaled $(1.3) million, $0, and $0 for the fiscal years ended May 26, 2019, May 27, 2018, and May 28, 2017, respectively. Cash provided by (used in) operating activities by the Food Export business totaled $0, $0.6 million, and $(0.5) million for the fiscal years ended May 26, 2019, May 27, 2018, and May 28, 2017, respectively.

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

12 Months Ended

May 26, 2019

Accounting Policies [Abstract]

Basis of Presentation and Consolidation

Reclassifications

Certain reclassifications have been made to prior year financial statements to conform to the current year presentation.

Use of Estimates

Concentrations of Risk

Impairment of Long-Lived Assets

Financial Instruments

Cash Flow Hedges



	Unrealized Gains on Cash Flow Hedge
Balance as of May 27, 2018	$	1,148
Other comprehensive loss before reclassifications, net of tax effect	(1,084		)
Amounts reclassified from OCI	—
Other comprehensive income, net	(1,084		)
Balance as of May 26, 2019	$	64

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 12 months.

Accounts Receivable and Sales Returns and Allowance for Doubtful Accounts

Revenue Recognition



	Year Ended
Curation Foods:	May 26, 2019		May 27, 2018		May 28, 2017
Salads	$	190,239	$	188,104	$	152,467
Core vegetables	258,812		266,850		255,554
Emerging brands	32,635		3,846		2,363
Total	$	481,686	$	458,800	$	410,384



	Year Ended
Lifecore:	May 26, 2019		May 27, 2018		May 28, 2017
Aseptic	$	34,384	$	30,021	$	24,090
Fermentation	21,434		21,068		24,187
Development services	20,055		14,338		11,115
Total	$	75,873	$	65,427	$	59,392

Shipping and Handling Costs

Cash and Cash Equivalents

Restricted Cash

Inventories

Inventories are stated at the lower of cost (using the first-in, first-out method) or net realizable value. As of May 26, 2019 and May 27, 2018 inventories consisted of (in thousands):



	Year Ended
	May 26, 2019		May 27, 2018
Finished goods	$	26,748	$	12,861
Raw materials	23,195		15,286
Work in progress	4,189		3,672
Total inventories	$	54,132	$	31,819

Advertising Expense

Advertising expenditures for the Company are expensed as incurred and included in SG&A in the accompanying Consolidated Statements of Income.

Notes and Advances Receivable

Related Party Transactions

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

Property and Equipment

Long-Lived Assets

Investments in Non-Public Company

Investment in Non-Public Company

Partial Self-Insurance on Employee Health and Workers Compensation Plans

Deferred Revenue

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

Non-Controlling Interest

Income Taxes

Per Share Information

Research and Development Expenses

Accounting for Stock-Based Compensation

Fair Value Measurements

The accounting guidance established a three-tier hierarchy for fair value measurements, which prioritizes the inputs used in measuring fair value as follows:


Level 1 –	observable inputs such as quoted prices for identical instruments in active markets.


Level 2 –	inputs other than quoted prices in active markets that are observable either directly or indirectly through corroboration with observable market data.


Level 3 –	unobservable inputs in which there is little or no market data, which would require the Company to develop its own assumptions.

Recent Accounting Pronouncements

Income Taxes

Stock Compensation

Restricted Cash

Intra-Entity Transfers

Statement of Cash Flows

Revenue Recognition

Disclosure simplification

Recently Issued Pronouncements to be Adopted

Leases

Cloud Computing Arrangements

Fair Value Measurement

Share-Based Compensation

Hedging

Financial Instruments – Credit Losses

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

12 Months Ended

May 26, 2019

Accounting Policies [Abstract]

Comprehensive Income (Loss)

The components of AOCI, net of tax, are as follows (in thousands):



	Unrealized Gains on Cash Flow Hedge
Balance as of May 27, 2018	$	1,148
Other comprehensive loss before reclassifications, net of tax effect	(1,084		)
Amounts reclassified from OCI	—
Other comprehensive income, net	(1,084		)
Balance as of May 26, 2019	$	64

Summary of Allowance for Sales Returns and Doubtful Accounts

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 resulting from acquisitions		Adjustments charged to revenue and expenses		Write offs, net of recoveries			Balance at end of period
Year Ended May 28, 2017	$	296	$	—	$	519	$	(454	)	$	361
Year Ended May 27, 2018	$	361	$	—	$	46	$	(105	)	$	302
Year Ended May 26, 2019	$	302	$	881	$	421	$	(588	)	$	1,016

Disaggregation of Revenue

The following tables disaggregate segment revenue by major product lines (in thousands):



	Year Ended
Curation Foods:	May 26, 2019		May 27, 2018		May 28, 2017
Salads	$	190,239	$	188,104	$	152,467
Core vegetables	258,812		266,850		255,554
Emerging brands	32,635		3,846		2,363
Total	$	481,686	$	458,800	$	410,384



	Year Ended
Lifecore:	May 26, 2019		May 27, 2018		May 28, 2017
Aseptic	$	34,384	$	30,021	$	24,090
Fermentation	21,434		21,068		24,187
Development services	20,055		14,338		11,115
Total	$	75,873	$	65,427	$	59,392

Schedule of Cash and Cash Equivalents



	May 26, 2019		May 27, 2018			May 28, 2017
Cash and cash equivalents	$	1,080	$	2,899		$	5,998
Restricted cash	385		325			325
Cash, discontinued operations	—		(8		)	(589		)
Cash and cash equivalents presented on Statements of Cash Flows	$	1,465	$	3,216		$	5,734

Schedule of Restricted Cash



	May 26, 2019		May 27, 2018			May 28, 2017
Cash and cash equivalents	$	1,080	$	2,899		$	5,998
Restricted cash	385		325			325
Cash, discontinued operations	—		(8		)	(589		)
Cash and cash equivalents presented on Statements of Cash Flows	$	1,465	$	3,216		$	5,734

Schedule of Inventory, Current

As of May 26, 2019 and May 27, 2018 inventories consisted of (in thousands):



	Year Ended
	May 26, 2019		May 27, 2018
Finished goods	$	26,748	$	12,861
Raw materials	23,195		15,286
Work in progress	4,189		3,672
Total inventories	$	54,132	$	31,819

Schedule of Diluted Net Income per Share

The following table sets forth the computation of diluted net income per share:



	Year Ended
(in thousands, except per share amounts)	May 26, 2019		May 27, 2018		May 28, 2017
Numerator:
Net income applicable to Common Stockholders	$	411	$	24,829	$	10,590

Denominator:
Weighted average shares for basic net income per share	28,359		27,535		27,276
Effect of dilutive securities:
Stock options and restricted stock units	248		380		376
Weighted average shares for diluted net income per share	28,607		27,915		27,652

Diluted net income per share	$	0.01	$	0.89	$	0.38

Schedule of Effect of Significant Unobservable Inputs for Contingent Liability

In determining the fair value of the Company's contingent consideration liability, the Company utilizes the following significant unobservable inputs in the discounted cash flow models:



	May 26, 2019	May 27, 2018
Cost of debt	5.1% to 5.5%	4.7% to 5.2%
Market price of risk adjustment	14%	20%
EBITDA volatility	28%	25%

Sensitivity Analysis

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 Contingent consideration liability as of May 26, 2019
10% increase in EBITDA forecast	$	100

Schedule of Effect of Significant Unobservable Inputs for Investment

In determining the fair value of the investment in Windset, the Company utilizes the following significant unobservable inputs in the discounted cash flow models:



	May 26, 2019		May 27, 2018
Revenue growth rates	6	%	6	%
Expense growth rates	6	%	6	%
Income tax rates	15	%	15	%
Discount rates	12	%	12	%

Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets

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 26, 2019
10% increase in revenue growth rates	$	10,600
10% increase in expense growth rates	$	(9,900	)
10% increase in income tax rates	$	(400	)
10% increase in discount rates	$	(3,500	)

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

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 26, 2019						Fair Value at May 27, 2018
Assets:	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Interest rate swap contracts	$	—	$	644	$	—	$	—	$	1,529	$	—
Investment in non-public company	—		—		61,100		—		—		66,500
Total assets	$	—	$	644	$	61,100	$	—	$	1,529	$	66,500
Liabilities:
Interest rate swap contracts	$	—	$	482	$	—	$	—	$	—	$	—
Contingent consideration liability	—		—		500		—		—		4,000
Total liabilities	$	—	$	482	$	500	$	—	$	—	$	4,000

Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table reflects the fair value roll forward reconciliation of Level 3 assets and liabilities measured at fair value for the twelve months ended May 26, 2019 (in thousands):



	Windset Investment			Contingent Consideration Liability
Balance as of May 27, 2018	$	66,500		$	4,000
Fair value change	1,600			(3,500		)
Exercise of Senior B put feature (1)	(7,000		)	—
Balance as of May 26, 2019	$	61,100		$	500

(1) Refer to Note 3 - Investment in Non-public Company for further details.

Acquisitions (Tables)

12 Months Ended

May 26, 2019

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition

The Acquisition Date fair value of the consideration paid consisted of the following (in thousands):




Cash consideration	$	59,898
Stock consideration	15,068
	$	74,966

Schedule of Purchase Price Allocation

The fair value of assets acquired and liabilities assumed in accounting for the Acquisition is set forth in the table below (in thousands):




Cash and cash equivalents	$	26
Accounts receivable	6,310
Inventories	11,384
Prepaid expenses and other current assets	1,589
Other assets	102
Property and equipment	14,083
Trademarks/tradenames	15,900
Customer relationships	11,000
Accounts payable	(4,507		)
Other accrued liabilities	(1,873		)
Deferred tax liabilities	(1,280		)
Net identifiable assets acquired	52,734
Goodwill	22,232
Total fair value purchase consideration	$	74,966

Property and Equipment (Tables)

12 Months Ended

May 26, 2019

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

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



	Years of Useful Life			Year Ended
	Years of Useful Life			May 26, 2019			May 27, 2018
Land and buildings	15	-	40	$	108,428		$	90,712
Leasehold improvements	3	-	20	6,974			2,607
Computers, capitalized software, machinery, equipment and autos	3	-	20	127,370			120,418
Furniture and fixtures	3	-	7	2,828			1,673
Construction in process				34,206			13,100
Gross property and equipment				279,806			228,510
Less accumulated depreciation and amortization				(79,779		)	(68,886		)
Net property and equipment				$	200,027		$	159,624

Goodwill and Intangible Assets (Tables)

12 Months Ended

May 26, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Changes of Goodwill

The following table presents the changes in goodwill during fiscal 2019 and fiscal 2018 (in thousands):



	2019		2018
Balance at beginning of year	$	54,510	$	54,510
Acquisition of Yucatan (Note 2)	22,232		—
Balance at end of year	$	76,742	$	54,510

Schedule of Indefinite-Lived Intangible Assets

As of May 26, 2019 and May 27, 2018, the Company's intangible assets consisted of the following (in thousands):



		May 26, 2019				May 27, 2018
	Amortization Period (years)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Customer relationships
Eat Smart (Curation Foods)	13	$	7,500	$	4,087	$	7,500	$	3,510
O (Curation Foods)	11	700		143		700		83
Yucatan Foods (Curation Foods)	12	11,000		550		—		—
Lifecore	12	3,700		2,801		3,700		2,493
Total customer relationships		$	22,900	$	7,581	$	11,900	$	6,086

Trademarks and tradenames
Eat Smart (Curation Foods)		$	9,100	$	872	$	11,100	$	872
O (Curation Foods)		1,600		—		1,600		—
Yucatan Foods (Curation Foods)		15,900		—		—		—
Lifecore		4,200		—		4,200		—
Total trademarks and tradenames		$	30,800	$	872	$	16,900	$	872

Total intangible assets		$	53,700	8,453		$	28,800	$	6,958

Schedule of Finite-Lived Intangible Assets

As of May 26, 2019 and May 27, 2018, the Company's intangible assets consisted of the following (in thousands):



		May 26, 2019				May 27, 2018
	Amortization Period (years)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Customer relationships
Eat Smart (Curation Foods)	13	$	7,500	$	4,087	$	7,500	$	3,510
O (Curation Foods)	11	700		143		700		83
Yucatan Foods (Curation Foods)	12	11,000		550		—		—
Lifecore	12	3,700		2,801		3,700		2,493
Total customer relationships		$	22,900	$	7,581	$	11,900	$	6,086

Trademarks and tradenames
Eat Smart (Curation Foods)		$	9,100	$	872	$	11,100	$	872
O (Curation Foods)		1,600		—		1,600		—
Yucatan Foods (Curation Foods)		15,900		—		—		—
Lifecore		4,200		—		4,200		—
Total trademarks and tradenames		$	30,800	$	872	$	16,900	$	872

Total intangible assets		$	53,700	8,453		$	28,800	$	6,958

Stock-based Compensation and Stockholders’ Equity (Tables)

12 Months Ended

May 26, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Option Weighted Average Assumptions

As of May 26, 2019, May 27, 2018 and May 28, 2017, the fair value of stock option grants was estimated using the following weighted average assumptions:



	Year Ended
	May 26, 2019		May 27, 2018		May 28, 2017
Options granted	368,264		498,000		240,000
Weighted-average exercise price	$11.85		$12.93		$11.58
Weighted-average grant date fair value	$2.80		$2.90		$2.37
Assumptions:
Expected life (in years)	3.50		3.50		3.50
Risk-free interest rate	2.47	%	1.73	%	1.08	%
Volatility	27	%	27	%	26	%
Dividend yield	—	%	—	%	—	%

Schedule of Share-based Compensation Activity

A summary of the activity under the Company's stock option plans as of May 26, 2019 and changes during the fiscal year then ended is presented below:



	Options Outstanding		Weighted-Average Exercise Price Per Share		Total Intrinsic Value of Options Exercised		Weighted-Average Remaining Contractual Term in Years	Aggregate Intrinsic Value
Options outstanding at May 29, 2016	1,731,474		$	11.90
Options granted	240,000		$	11.58
Options exercised	(357,639	)	$	5.93	$	2,780,597
Options forfeited	(42,293	)	$	12.16
Options expired	—		$	—
Options outstanding at May 28, 2017	1,571,542		$	13.20
Options granted	498,000		$	12.93
Options exercised	(29,333	)	$	7.36	$	177,921
Options forfeited	(23,334	)	$	12.55
Options expired	(61,540	)	$	14.23
Options outstanding at May 27, 2018	1,955,335		$	13.20
Options granted	368,264		$	11.85
Options exercised	(116,834	)	$	11.82	$	265,911
Options forfeited	(71,669	)	$	13.75
Options expired	(135,000	)	$	14.18
Options outstanding at May 26, 2019	2,000,096		$	12.94			3.29	$	16,807
Options exercisable at May 26, 2019	1,524,473		$	13.30			2.41	$	5,467

A summary of the Company's restricted stock unit award activity as of May 26, 2019 and changes during the fiscal year then ended is presented below:



	Restricted Stock Units Outstanding		Weighted-Average Grant Date Fair Value Per Share
Restricted stock units outstanding at May 29, 2016	526,841		$	13.51
Granted	130,522		$	13.37
Vested	(130,508	)	$	13.42
Forfeited	(17,500	)	$	12.46
Restricted stock units outstanding at May 28, 2017	509,355		$	13.53
Granted	200,288		$	13.12
Vested	(270,656	)	$	14.06
Forfeited	(30,950	)	$	11.75
Restricted stock units outstanding at May 27, 2018	408,037		$	12.99
Granted	333,486		$	13.15
Vested	(237,946	)	$	13.27
Forfeited	(75,150	)	$	13.92
Restricted stock units outstanding at May 26, 2019	428,427		$	12.80

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

The following table summarizes the stock-based compensation by income statement line item:



	Year Ended
(in thousands)	May 26, 2019		May 27, 2018		May 28, 2017
Cost of sales	$	449	$	535	$	485
Research and development	114		131		83
Selling, general and administrative	2,997		3,737		3,396
Total stock-based compensation	$	3,560	$	4,403	$	3,964

Debt (Tables)

12 Months Ended

May 26, 2019

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

Long-term debt consists of the following as of May 26, 2019 and May 27, 2018 (in thousands):



	May 26, 2019			May 27, 2018
Term loan	$	97,500		$	42,500
Total principal amount of long-term debt	97,500			42,500
Less: unamortized debt issuance costs	(516		)	(200		)
Total long-term debt, net of unamortized debt issuance costs	96,984			42,300
Less: current portion of long-term debt, net	(9,791		)	(4,940		)
Long-term debt, net	$	87,193		$	37,360

Schedule of Maturities of Long-term Debt

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



	Term Loan
Fiscal year 2020	$	10,000
Fiscal year 2021	10,000
Fiscal year 2022	77,500
Fiscal year 2023 and thereafter	—
Total	$	97,500

- 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

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-Name Accounting Standards Codification
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+ Details

Income Taxes (Tables)

12 Months Ended

May 26, 2019

Income Tax Disclosure [Abstract]

Schedule of Benefits and Provisions for Income Taxes

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



(in thousands)	Year Ended
	May 26, 2019			May 27, 2018			May 28, 2017
Current:
Federal	$	(67	)	$	(2,854	)	$	1,388
State	63			60			39
Foreign	83			83			82
Total	79			(2,711		)	1,509

Deferred:
Federal	1,581			(7,122		)	2,270
State	(142		)	470			261
Total	1,439			(6,652		)	2,531
Income tax (benefit) expense	$	1,518		$	(9,363	)	$	4,040

Schedule of Actual Provisions for Income Taxes

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 26, 2019			May 27, 2018			May 28, 2017
Tax at U.S. statutory rate (1)	$	764		$	4,784		$	4,922
State income taxes, net of federal benefit	46			439			307
Tax reform	—			(14,350		)	—
Change in valuation allowance	929			(176		)	85
Tax credit carryforwards	(771		)	(777		)	(834		)
Other compensation-related activity	618			566			(365		)
Domestic manufacturing deduction	—			—			(243		)
Other	(68		)	151			168
Income tax expense (benefit)	$	1,518		$	(9,363	)	$	4,040

(1) Statutory rate was 21.0% for fiscal year 2019, 29.4% for fiscal year 2018, and 35.0% for fiscal year 2017.

Schedule of Deferred Tax Assets and Liabilities

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



(in thousands)	Year Ended
	May 26, 2019			May 27, 2018
Deferred tax assets:
Accruals and reserves	$	3,130		$	1,421
Net operating loss carryforwards	9,385			1,955
Stock-based compensation	979			1,247
Research and AMT credit carryforwards	2,839			2,032
Other	461			427
Gross deferred tax assets	16,794			7,082
Valuation allowance	(4,116		)	(1,337		)
Net deferred tax assets	12,678			5,745

Deferred tax liabilities:
Depreciation and amortization	(14,324		)	(11,307		)
Goodwill and other indefinite life intangibles	(13,351		)	(8,201		)
Basis difference in investment in non-public company	(4,396		)	(3,722		)
Deferred tax liabilities	(32,071		)	(23,230		)

Net deferred tax liabilities	$	(19,393	)	$	(17,485	)

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



(in thousands)	Year Ended
	May 26, 2019			May 27, 2018			May 28, 2017
Unrecognized tax benefits – beginning of the period	$	479		$	537		$	842
Gross increases – tax positions in prior period	29			21			11
Gross decreases – tax positions in prior period	—			—			(90		)
Gross increases – current-period tax positions	133			116			93
Settlements	—			(95		)	—
Lapse of statute of limitations	(25		)	(100		)	(319		)
Unrecognized tax benefits – end of the period	$	616		$	479		$	537

Commitments and Contingencies (Tables)

12 Months Ended

May 26, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases

The approximate future minimum lease payments under these operating leases at May 26, 2019 are as follows (in thousands):



	Amount
Fiscal year 2020	$	5,056
Fiscal year 2021	4,044
Fiscal year 2022	3,589
Fiscal year 2023	3,350
Fiscal year 2024	3,047
Thereafter	9,335
Total	$	28,421

Schedule of Future Minimum Lease Payments for Capital Leases

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



	Amount
Fiscal year 2020	$	486
Fiscal year 2021	489
Fiscal year 2022	460
Fiscal year 2023	3,490
Fiscal year 2024	—
Thereafter	—
Total minimum lease payment	4,925
Less: amounts representing interest and taxes	(1,291		)
Total	3,634
Less: current portion included in other accrued liabilities	(102		)
Long-term capital lease obligation	$	3,532

Business Segment Reporting (Tables)

12 Months Ended

May 26, 2019

Segment Reporting [Abstract]

Schedule of Property and Equipment, Net by Geographic Region

The following table presents our property and equipment, net by geographic region (in millions):



	Year Ended
Property and equipment, net	May 26, 2019		May 27, 2018
United States	$	186.3	$	159.6
Mexico	13.7		—
Total property and equipment, net	$	200.0	$	159.6

Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area

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 26, 2019		May 27, 2018		May 28, 2017
Canada	$	83.6	$	78.0	$	69.3
Belgium	$	15.1	$	17.2	$	21.0
Ireland	$	5.0	$	4.1	$	4.0
All Other Countries	$	5.1	$	3.6	$	4.6

Schedule of Segment Reporting Information, by Segment

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



Year Ended May 26, 2019	Curation Foods (1)			Lifecore		Other (2)			Total
Net sales	$	481,686		$	75,873	$	—		$	557,559
Gross profit	49,305			31,698		—			81,003
Net income (loss) from continuing operations	(6,229		)	12,070		(3,719		)	2,122
Identifiable assets	367,352			145,558		6,181			519,091
Depreciation and amortization	10,360			4,140		730			15,230
Capital expenditures	30,583			12,965		1,186			44,734
Dividend income	1,650			—		—			1,650
Interest income	112			—		33			145
Interest expense, net	3,278			—		1,952			5,230
Income tax (benefit) expense	(1,373		)	4,024		(1,133		)	1,518

Year Ended May 27, 2018
Net sales	$	458,800		$	65,427	$	—		$	524,227
Gross profit	49,770			28,568		—			78,338
Net income (loss) from continuing operations	17,010			11,631		(2,880		)	25,761
Identifiable assets (3)	264,067			129,342		11,294			404,703
Depreciation and amortization	8,196			3,679		537			12,412
Capital expenditures	13,052			16,454		4,084			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	(9,748		)	2,638		(2,253		)	(9,363		)

Year Ended May 28, 2017
Net sales	$	410,384		$	59,392	$	—		$	469,776
Gross profit	52,457			26,755		—			79,212
Net income (loss) from continuing operations	2,410			10,228		(2,503		)	10,135
Identifiable assets (3)	219,739			104,492		34,377			358,608
Depreciation and amortization	7,312			3,054		311			10,677
Capital expenditures	11,476			11,169		358			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

(1) The Curation segment operating results for the year ended May 26, 2019 reflect the reclassification of the Now Planting brand to discontinued operations.

(3) Assets of discontinued operations are included in Other for the years ended May 27, 2018 and May 28, 2017.

Quarterly Consolidated Financial Information (unaudited) (Tables)

12 Months Ended

May 26, 2019

Condensed Financial Information Disclosure [Abstract]

Quarterly Financial Information

The following is a summary of the unaudited quarterly results of operations for fiscal years 2019 and 2018 (in thousands, except for per share amounts):



Fiscal Year 2019	1st Quarter		2nd Quarter			3rd Quarter		4th Quarter			Annual
Revenues	$	124,668	$	124,557		$	155,554	$	152,780		$	557,559
Gross profit	16,337		16,885			21,569		26,212			81,003
Net income (loss) from continuing operations	335		(113		)	1,533		367			2,122
Net income (loss) applicable to common stockholders	190		(584		)	1,067		(262		)	411
Net income per basic share from continuing operations	$	0.01	$	—		$	0.05	$	0.01		$	0.07
Net income per diluted share from continuing operations	$	0.01	$	—		$	0.05	$	0.01		$	0.07



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

Discontinued Operations (Tables)

12 Months Ended

May 26, 2019

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations

Components of amounts reflected in (loss) income from discontinued operations, net of tax are as follows (in thousands):



	Year Ended
	May 26, 2019			May 27, 2018			May 28, 2017
Revenues	$	548		$	29,222		$	62,481
Cost of sales	(1,649		)	(27,619		)	(58,507		)
Research and development	(102		)	—			—
Selling, general and administrative	(1,035		)	(2,522		)	(3,137		)
Other	—			(269		)	—
(Loss) income from discontinued operations before taxes	(2,238		)	(1,188		)	837
Income tax benefit (expense)	527			350			(295		)
(Loss) income from discontinued operations, net of tax	$	(1,711	)	$	(838	)	$	542



	Year Ended
	May 26, 2019		May 27, 2018
Current and other assets, discontinued operations:
Cash and cash equivalents	$	—	$	(8	)
Accounts receivable	—		518
Inventory	—		—
Other assets	—		—
Total assets, discontinued operations	$	—	$	510
Other current liabilities, discontinued operations:
Accounts payable	$	51	$	230
Accrued expenses and other current liabilities	14		228
Total other current liabilities, discontinued operations	$	65	$	458

- 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.

+ References

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+ Details

Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Narrative (Details)	3 Months Ended	12 Months Ended
	May 27, 2018 USD ($) $ / shares	May 26, 2019 USD ($) brand technology_platform $ / shares customer shares	May 27, 2018 USD ($) $ / shares customer shares	May 28, 2017 USD ($) $ / shares shares	Aug. 25, 2019 USD ($)	Jan. 11, 2019 brand	Jul. 15, 2014
Related Party Transaction [Line Items]
Number of natural food brands \| brand		4				4
Number of emerging natural food brands \| brand						3
Number of new natural food brands \| brand		2				2
Number of proprietary platforms \| technology_platform		2
Restricted cash	$ 325,000	$ 385,000	$ 325,000	$ 325,000
Advertising expense		1,300,000	1,400,000	1,900,000
Notes or advances outstanding	$ 2,700,000	2,000,000	2,700,000
Goodwill impairment loss		$ 0	$ 0	$ 0
Amount of common stock available for purchase (in shares) \| shares		1,576,919	1,495,380	1,428,272
Weighted average exercise price of common stock (in dollars per share) \| $ / shares	$ 13.80	$ 13.74	$ 13.80	$ 13.58
Company contribution to employee contribution plan		$ 1,800,000	$ 1,800,000	$ 1,500,000
Subsequent Event \| Scenario, Forecast \| ASU 2016-02
Related Party Transaction [Line Items]
Transitional adjustment for accounting standards update					$ 300,000
Right-of-use asset, operating lease					30,000,000
Lease liability, operating					$ 31,100,000
Apio Cooling, LP
Related Party Transaction [Line Items]
Payments to acquire additional interest in subsidiaries	$ 4,700,000
Decrease in additional paid-in-capital	2,600,000
Amount in Apio Cooling's non-controlling interest account	1,500,000		1,500,000
Maximum
Related Party Transaction [Line Items]
Amount participants are allowed to contribute of their salaries		50.00%
Maximum \| Customer relationships
Related Party Transaction [Line Items]
Useful life of finite-lived intangible assets		13 years
Minimum
Related Party Transaction [Line Items]
Amount participants are allowed to contribute of their salaries		1.00%
Minimum \| Customer relationships
Related Party Transaction [Line Items]
Useful life of finite-lived intangible assets		11 years
Buildings and Leasehold Improvements \| Maximum
Related Party Transaction [Line Items]
Useful life of property and equipment		40 years
Buildings and Leasehold Improvements \| Minimum
Related Party Transaction [Line Items]
Useful life of property and equipment		3 years
Furniture and Fixtures, Computers, Capitalized Software, Capitalized Leases, Machinery, Equipment and Autos \| Maximum
Related Party Transaction [Line Items]
Useful life of property and equipment		20 years
Furniture and Fixtures, Computers, Capitalized Software, Capitalized Leases, Machinery, Equipment and Autos \| Minimum
Related Party Transaction [Line Items]
Useful life of property and equipment		3 years
Software Development \| Maximum
Related Party Transaction [Line Items]
Useful life of property and equipment		7 years
Software Development \| Minimum
Related Party Transaction [Line Items]
Useful life of property and equipment		3 years
First Three Percent Match
Related Party Transaction [Line Items]
Company match of contribution plan, percent		100.00%
Percent of employees' gross pay		3.00%
Next Two Percent Match
Related Party Transaction [Line Items]
Company match of contribution plan, percent		50.00%
Percent of employees' gross pay		2.00%
Windset
Related Party Transaction [Line Items]
Accounts receivable balance from related parties	$ 300,000	$ 500,000	300,000
Windset \| Cost of sales
Related Party Transaction [Line Items]
Revenue from related parties		$ 600,000	$ 600,000	$ 500,000
Sales Revenue, Goods, Net \| Customer Concentration Risk
Related Party Transaction [Line Items]
Number of major customers \| customer		5	5
Concentration risk		43.00%	49.00%
Sales Revenue, Goods, Net \| Customer Concentration Risk \| Costco and Wal-mart
Related Party Transaction [Line Items]
Number of major customers \| customer		2	2
Sales Revenue, Goods, Net \| Customer Concentration Risk \| Costco
Related Party Transaction [Line Items]
Concentration risk		14.00%	19.00%
Sales Revenue, Goods, Net \| Customer Concentration Risk \| Wal-mart
Related Party Transaction [Line Items]
Concentration risk		16.00%	18.00%
Accounts Receivable \| Customer Concentration Risk \| Costco and Wal-mart
Related Party Transaction [Line Items]
Number of major customers \| customer		2	2
Accounts Receivable \| Customer Concentration Risk \| Costco
Related Party Transaction [Line Items]
Concentration risk		8.00%	13.00%
Accounts Receivable \| Customer Concentration Risk \| Wal-mart
Related Party Transaction [Line Items]
Concentration risk		13.00%	18.00%
Accounts Receivable \| Customer Concentration Risk \| Customer One
Related Party Transaction [Line Items]
Concentration risk		13.00%
Accounts Receivable \| Customer Concentration Risk \| Customer Two
Related Party Transaction [Line Items]
Concentration risk		8.00%
Accounts Receivable \| Customer Concentration Risk \| Customer Three
Related Party Transaction [Line Items]
Concentration risk		6.00%
Apio Cooling, LP
Related Party Transaction [Line Items]
Non-controlling voting interest acquired	40.00%		40.00%
Windset
Related Party Transaction [Line Items]
Investment ownership percentage		26.90%					26.90%
Trade Names
Related Party Transaction [Line Items]
Intangible assets		$ 2,000,000	$ 0

Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Components of Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	May 26, 2019	May 27, 2018	May 28, 2017
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Other comprehensive (loss) income, net of tax	$ (1,084)	$ 716	$ 432
Unrealized Gains on Cash Flow Hedge
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	1,148
Other comprehensive loss before reclassifications, net of tax effect	(1,084)
Amounts reclassified from OCI	0
Other comprehensive (loss) income, net of tax	(1,084)
Ending balance	$ 64	$ 1,148

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 26, 2019	May 27, 2018	May 28, 2017
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance at beginning of period	$ 302	$ 361	$ 296
Adjustments resulting from acquisitions	881	0	0
Adjustments charged to revenue and expenses	421	46	519
Write offs, net of recoveries	(588)	(105)	(454)
Balance at end of period	$ 1,016	$ 302	$ 361

Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Contract Assets and Liabilities Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	May 26, 2019	May 27, 2018
Accounting Policies [Abstract]
Contract assets	$ 5.6	$ 4.2
Contract liabilities	0.2	$ 2.6
Revenue recognized included in contract liability	$ 2.4

Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	May 26, 2019	May 27, 2018	May 28, 2017
Segment Reporting Information [Line Items]
Product sales	$ 557,559	$ 524,227	$ 469,776
Curation Foods
Segment Reporting Information [Line Items]
Product sales	481,686	458,800	410,384
Lifecore
Segment Reporting Information [Line Items]
Product sales	75,873	65,427	59,392
Salads \| Curation Foods
Segment Reporting Information [Line Items]
Product sales	190,239	188,104	152,467
Core vegetables \| Curation Foods
Segment Reporting Information [Line Items]
Product sales	258,812	266,850	255,554
Emerging brands \| Curation Foods
Segment Reporting Information [Line Items]
Product sales	32,635	3,846	2,363
Aseptic \| Lifecore
Segment Reporting Information [Line Items]
Product sales	34,384	30,021	24,090
Fermentation \| Lifecore
Segment Reporting Information [Line Items]
Product sales	21,434	21,068	24,187
Development services \| Lifecore
Segment Reporting Information [Line Items]
Product sales	$ 20,055	$ 14,338	$ 11,115

Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents (Details) - USD ($) $ in Thousands	May 26, 2019	May 27, 2018	May 28, 2017
Accounting Policies [Abstract]
Cash and cash equivalents	$ 1,080	$ 2,899	$ 5,998
Restricted cash	385	325	325
Cash, discontinued operations	0	(8)	(589)
Cash and cash equivalents presented on Statements of Cash Flows	$ 1,465	$ 3,216	$ 5,734

Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Components of Inventories (Details) - USD ($) $ in Thousands	May 26, 2019	May 27, 2018
Accounting Policies [Abstract]
Finished goods	$ 26,748	$ 12,861
Raw materials	23,195	15,286
Work in progress	4,189	3,672
Total inventories	$ 54,132	$ 31,819

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 26, 2019	Feb. 24, 2019	Nov. 25, 2018	Aug. 26, 2018	May 27, 2018	Feb. 25, 2018	Nov. 26, 2017	Aug. 27, 2017	May 26, 2019	May 27, 2018	May 28, 2017
Numerator:
Net income applicable to common stockholders	$ (262)	$ 1,067	$ (584)	$ 190	$ 6,108	$ 16,088	$ 487	$ 2,146	$ 411	$ 24,829	$ 10,590
Denominator:
Weighted average shares for basic net income per share (in shares)									28,359	27,535	27,276
Effect of dilutive securities:
Stock options and restricted stock units (in shares)									248	380	376
Weighted average shares for diluted net income (loss) per share (in shares)									28,607	27,915	27,652
Diluted net income per share (in dollars per share)									$ 0.01	$ 0.89	$ 0.38

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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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

Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Fair Value of Contingent Consideration Liability (Details) - Rate	May 26, 2019	May 27, 2018
Market price of risk adjustment
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Measurement Input	0.14	0.20
EBITDA volatility
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Measurement Input	0.28	0.25
Minimum \| Cost of debt
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Measurement Input	0.051	0.047
Maximum \| Cost of debt
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Measurement Input	0.055	0.052

Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Sensitivity Analysis (Details) $ in Thousands	May 26, 2019 USD ($)
Accounting Policies [Abstract]
10% increase in EBITDA forecast	$ 100

Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Significant Unobservable Inputs Used in Discounted Cash Flow Models (Details) - Windset	12 Months Ended
	May 26, 2019	May 27, 2018
Revenue growth rates
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Measurement input	0.06	0.06
Expense growth rates
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Measurement input	0.06	0.06
Income tax rates
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Measurement input	0.15	0.15
Discount rates
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Measurement input	0.12	0.12

Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Assumptions Used in Discounted Cash Flow Models (Details) $ in Thousands	May 26, 2019 USD ($)
Accounting Policies [Abstract]
10% increase in revenue growth rates	$ 10,600
10% increase in expense growth rates	(9,900)
10% increase in income tax rates	(400)
10% increase in discount rates	$ (3,500)

Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands	May 26, 2019	May 27, 2018
Assets:
Investment in non-public company	$ 61,100	$ 66,500
Level 1 \| Fair Value, Measurements, Recurring
Assets:
Interest rate swap contracts	0	0
Investment in non-public company	0	0
Total assets	0	0
Liabilities:
Interest rate swap contracts	0	0
Contingent consideration liability	0	0
Total liabilities	0	0
Level 2 \| Fair Value, Measurements, Recurring
Assets:
Interest rate swap contracts	644	1,529
Investment in non-public company	0	0
Total assets	644	1,529
Liabilities:
Interest rate swap contracts	482	0
Contingent consideration liability	0	0
Total liabilities	482	0
Level 3 \| Fair Value, Measurements, Recurring
Assets:
Interest rate swap contracts	0	0
Investment in non-public company	61,100	66,500
Total assets	61,100	66,500
Liabilities:
Interest rate swap contracts	0	0
Contingent consideration liability	500	4,000
Total liabilities	$ 500	$ 4,000

Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Fair Value Reconciliation of Level 3 (Details) $ in Thousands	12 Months Ended
	May 26, 2019 USD ($)
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward]
Beginning Balance	$ 66,500
Ending Balance	61,100
Windset Investment
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward]
Beginning Balance	66,500
Fair value change	1,600
Exercise of Senior B put feature	(7,000)
Ending Balance	61,100
Contingent Consideration Liability
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward]
Beginning Balance	4,000
Fair value change	(3,500)
Exercise of Senior B put feature	0
Ending Balance	$ 500

Acquisitions - Narrative (Details) $ in Thousands			3 Months Ended	12 Months Ended
Acquisitions - Narrative (Details) $ in Thousands	Dec. 01, 2018 USD ($) tranche intangible_asset shares	Mar. 01, 2017 USD ($)	May 26, 2019 USD ($)	May 26, 2019 USD ($)	May 27, 2018 USD ($)	May 28, 2017 USD ($)
Business Acquisition [Line Items]
Acquisition of Yucatan (Note 2)				$ 22,232	$ 0
Goodwill			$ 76,742	76,742	54,510	$ 54,510
Change in contingent consideration liability				(3,500)	(1,900)	0
Yucatan Foods, LP
Business Acquisition [Line Items]
Consideration paid	$ 74,966
Cash consideration	$ 59,898
Shares issued for acquisition (in shares) \| shares	1,203,360
Stock consideration	$ 15,068
Number of tranches \| tranche	2
Deferred income tax adjustment			1,700
Indemnification provisions for environmental related items			700
Increase to goodwill			1,000
Number of intangible assets in connection with Yucatan acquisition \| intangible_asset	2
Acquisition of Yucatan (Note 2)				22,200
Goodwill	$ 22,232
Percentage of goodwill expected to be deductible for income tax purposes	80.00%
Yucatan Foods, LP \| Customer relationships
Business Acquisition [Line Items]
Customer relationships	$ 11,000
Amortization Period (years)	12 years
Yucatan Foods, LP \| Trade Names
Business Acquisition [Line Items]
Trademarks/tradenames	$ 15,900
Yucatan Foods, LP \| Selling, general and administrative
Business Acquisition [Line Items]
Business Combination, Acquisition Related Costs				3,300
Yucatan Foods, LP \| Share-based Compensation Award, Tranche One
Business Acquisition [Line Items]
Discount percentage	17.50%
Lock-up period	3 years
Percentage of stock consideration released from lock-up	50.00%
Yucatan Foods, LP \| Share-based Compensation Award, Tranche Two
Business Acquisition [Line Items]
Discount percentage	20.00%
Lock-up period	4 years
Percentage of stock consideration released from lock-up	50.00%
Yucatan Foods, LP \| Common Stock
Business Acquisition [Line Items]
Stock consideration	$ 15,100
O Olive & Vinegar
Business Acquisition [Line Items]
Cash consideration		$ 2,500
Goodwill		5,200
Potential earn out payment		$ 7,500
Contingent consideration period		3 years
Cumulative EBITDA amount					6,000
Acquisition related expenses recognized						200
O Olive & Vinegar \| Customer Lists
Business Acquisition [Line Items]
Value of customer base		$ 700
O Olive & Vinegar \| Trademarks and tradenames
Business Acquisition [Line Items]
Value of trade names and trademarks		$ 1,600
Useful life of finite-lived intangible assets		11 years
O Olive & Vinegar \| Selling, general and administrative
Business Acquisition [Line Items]
Contingent consideration liability			$ 500	500	4,000	$ 5,900
Change in contingent consideration liability				$ 3,500	1,900
O Olive & Vinegar \| Initial Potential Payment Limit
Business Acquisition [Line Items]
Potential earn out payment					4,600
O Olive & Vinegar \| Additional Potential Payment Limit
Business Acquisition [Line Items]
Potential earn out payment					$ 2,900

Acquisitions - Schedule of Business Acquisitions (Details) - Yucatan Foods, LP $ in Thousands	Dec. 01, 2018 USD ($)
Business Acquisition [Line Items]
Cash consideration	$ 59,898
Stock consideration	15,068
Total consideration	$ 74,966

Acquisitions - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Thousands	May 26, 2019	Dec. 01, 2018	May 27, 2018	May 28, 2017
Business Acquisition [Line Items]
Goodwill	$ 76,742		$ 54,510	$ 54,510
Yucatan Foods, LP
Business Acquisition [Line Items]
Cash and cash equivalents		$ 26
Accounts receivable		6,310
Inventories		11,384
Prepaid expenses and other current assets		1,589
Other assets		102
Property and equipment		14,083
Accounts payable		4,507
Other accrued liabilities		1,873
Deferred tax liabilities		(1,280)
Net identifiable assets acquired		52,734
Goodwill		22,232
Total fair value purchase consideration		74,966
Yucatan Foods, LP \| Trade Names
Business Acquisition [Line Items]
Trademarks/tradenames		15,900
Yucatan Foods, LP \| Customer relationships
Business Acquisition [Line Items]
Customer relationships		$ 11,000

Investment in Non-public Company - Narrative (Details) - USD ($)					1 Months Ended	12 Months Ended
	Oct. 29, 2014	Jul. 15, 2014	Jul. 15, 2014	Feb. 15, 2011	Oct. 29, 2014	May 26, 2019	May 27, 2018	May 28, 2017	Feb. 25, 2018
Investment Holdings [Line Items]
Dividend income						$ 1,650,000	$ 1,650,000	$ 1,650,000
Windset
Investment Holdings [Line Items]
Investment ownership percentage		26.90%	26.90%			26.90%
Dividend income						$ 1,700,000
Change in market value of company's investment						(5,400,000)
Windset \| Curation Foods
Investment Holdings [Line Items]
Payments to acquire investments		$ 11,000,000
Liquidation value						20,100,000
Time frame to be paid after anniversary			90 days
Windset \| Curation Foods \| Senior A Preferred Stock
Investment Holdings [Line Items]
Liquidation value						15,000,000
Windset \| Curation Foods \| Junior Preferred Shares
Investment Holdings [Line Items]
Liquidation value						$ 5,100,000
Preferred stock investment, dividends declared									$ 0
Windset \| Curation Foods \| Senior B Preferred Stock
Investment Holdings [Line Items]
Investment in non-public company shares (in shares)	70,000				70,000	70,000
Payments to acquire investments	$ 7,000,000				$ 7,000,000
Dividend percentage rate					7.50%
Put option for preferred shares						$ 7,000,000
Change in market value of company's investment						(7,000,000)
Windset \| Curation Foods \| Senior A Preferred Stock
Investment Holdings [Line Items]
Investment in non-public company shares (in shares)				150,000
Payments to acquire investments				$ 15,000,000
Windset \| Curation Foods \| Common Stock
Investment Holdings [Line Items]
Investment in non-public company shares (in shares)		68	68	201
Payments to acquire investments				$ 201
Windset \| Curation Foods \| Junior Preferred Shares
Investment Holdings [Line Items]
Investment in non-public company shares (in shares)		51,211	51,211
Senior A Preferred Stock
Investment Holdings [Line Items]
Dividend percentage rate			7.50%
Other Income \| Windset
Investment Holdings [Line Items]
Change in market value of company's investment						$ 1,600,000	$ 2,900,000	$ 900,000

Property and Equipment - Components of Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	May 26, 2019	May 27, 2018
Property, Plant and Equipment [Line Items]
Gross property and equipment	$ 279,806	$ 228,510
Less accumulated depreciation and amortization	(79,779)	(68,886)
Net property and equipment	200,027	159,624
Land and buildings
Property, Plant and Equipment [Line Items]
Gross property and equipment	$ 108,428	90,712
Land and buildings \| Minimum
Property, Plant and Equipment [Line Items]
Years of Useful Life	15 years
Land and buildings \| Maximum
Property, Plant and Equipment [Line Items]
Years of Useful Life	40 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Gross property and equipment	$ 6,974	2,607
Leasehold improvements \| Minimum
Property, Plant and Equipment [Line Items]
Years of Useful Life	3 years
Leasehold improvements \| Maximum
Property, Plant and Equipment [Line Items]
Years of Useful Life	20 years
Computers, capitalized software, machinery, equipment and autos
Property, Plant and Equipment [Line Items]
Gross property and equipment	$ 127,370	120,418
Computers, capitalized software, machinery, equipment and autos \| Minimum
Property, Plant and Equipment [Line Items]
Years of Useful Life	3 years
Computers, capitalized software, machinery, equipment and autos \| Maximum
Property, Plant and Equipment [Line Items]
Years of Useful Life	20 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Gross property and equipment	$ 2,828	1,673
Furniture and fixtures \| Minimum
Property, Plant and Equipment [Line Items]
Years of Useful Life	3 years
Furniture and fixtures \| Maximum
Property, Plant and Equipment [Line Items]
Years of Useful Life	7 years
Construction in process
Property, Plant and Equipment [Line Items]
Gross property and equipment	$ 34,206	$ 13,100

Property and Equipment - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	May 26, 2019	May 27, 2018	May 28, 2017
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 13.1	$ 11.0	$ 9.6
Amortization related to capitalized leases	0.1	0.1	0.1
Capitalized software development costs	1.0	0.9	2.2
Amortization related to computer software	0.9	0.6	0.4
Unamortized computer software cost	2.8	2.5
Capitalized interest	$ 0.7	$ 0.6	$ 0.5

Goodwill and Intangible Assets - Changes in Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	May 26, 2019	May 27, 2018
Goodwill [Roll Forward]
Balance at beginning of year	$ 54,510	$ 54,510
Acquisition of Yucatan (Note 2)	22,232	0
Balance at end of year	$ 76,742	$ 54,510

Goodwill and Intangible Assets - Narrative (Details) - USD ($)	12 Months Ended
	May 26, 2019	May 27, 2018	May 28, 2017
Indefinite-lived Intangible Assets [Line Items]
Goodwill	$ 76,742,000	$ 54,510,000	$ 54,510,000
Amortization expense related to finite-lived intangible assets	1,500,000	$ 1,000,000	$ 900,000
Amortization expense, next year	1,900,000
Amortization expense, year two	1,900,000.0
Amortization expense, year three	1,900,000.0
Amortization expense, year four	1,900,000.0
Amortization expense, year five	1,900,000.0
Curation Foods
Indefinite-lived Intangible Assets [Line Items]
Goodwill	62,800,000
Lifecore
Indefinite-lived Intangible Assets [Line Items]
Goodwill	$ 13,900,000

Goodwill and Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	May 26, 2019	May 27, 2018
Indefinite-lived Intangible Assets [Line Items]
Accumulated Amortization	$ 8,453	$ 6,958
Gross Carrying Amount	53,700	28,800
Trademarks and tradenames
Indefinite-lived Intangible Assets [Line Items]
Accumulated Amortization	872	872
Gross Carrying Amount, trademarks and tradenames	30,800	16,900
Customer relationships
Indefinite-lived Intangible Assets [Line Items]
Gross Carrying Amount, Customer relationships	22,900	11,900
Accumulated Amortization	7,581	6,086
Eat Smart \| Trademarks and tradenames
Indefinite-lived Intangible Assets [Line Items]
Accumulated Amortization	872	872
Gross Carrying Amount, trademarks and tradenames	$ 9,100	11,100
Eat Smart \| Customer relationships
Indefinite-lived Intangible Assets [Line Items]
Amortization Period (years)	13 years
Gross Carrying Amount, Customer relationships	$ 7,500	7,500
Accumulated Amortization	4,087	3,510
O Olive & Vinegar \| Trademarks and tradenames
Indefinite-lived Intangible Assets [Line Items]
Gross Carrying Amount, trademarks and tradenames	$ 1,600	1,600
O Olive & Vinegar \| Customer relationships
Indefinite-lived Intangible Assets [Line Items]
Amortization Period (years)	11 years
Gross Carrying Amount, Customer relationships	$ 700	700
Accumulated Amortization	143	83
Yucatan Foods, LP \| Trademarks and tradenames
Indefinite-lived Intangible Assets [Line Items]
Gross Carrying Amount, trademarks and tradenames	$ 15,900	0
Yucatan Foods, LP \| Customer relationships
Indefinite-lived Intangible Assets [Line Items]
Amortization Period (years)	12 years
Gross Carrying Amount, Customer relationships	$ 11,000	0
Accumulated Amortization	550	0
Lifecore \| Trademarks and tradenames
Indefinite-lived Intangible Assets [Line Items]
Gross Carrying Amount, trademarks and tradenames	$ 4,200	4,200
Lifecore \| Customer relationships
Indefinite-lived Intangible Assets [Line Items]
Amortization Period (years)	12 years
Gross Carrying Amount, Customer relationships	$ 3,700	3,700
Accumulated Amortization	$ 2,801	$ 2,493

Stock-based Compensation and Stockholders’ Equity - Narrative (Details) - USD ($)		12 Months Ended
	Oct. 19, 2017	May 26, 2019	Oct. 10, 2013	Jul. 14, 2010	Oct. 15, 2009
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred stock authorized (in shares)		2,000,000.0
Preferred stock outstanding (in shares)		0
Maximum repurchase amount of common stock				$ 10,000,000.0
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Amount of unrecognized compensation expense related to unvested equity compensation		$ 4,400,000
Total expense expected to be recognized over the weighted-average period		1 year 11 months 10 days
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total expense expected to be recognized over the weighted-average period		2 years 1 month 4 days
Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum award for a non-employee direct within a fiscal year (in shares)		30,000
Stock Incentive Plan 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares added to stock option plan (in shares)	1,000,000.0
Common stock initially available under stock option plan (in shares)			2,000,000.0
Amount of shares and RSUs outstanding to be purchased (in shares)		2,256,689
Number of shares available for award under stock incentive plan (in shares)		2,505,866
Stock Incentive Plan 2013 \| Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum amount of award within a fiscal year (in shares)		500,000
Stock Incentive Plan 2013 \| Stock Grants and Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum amount of award within a fiscal year (in shares)		250,000
Stock Incentive Plan 2013 \| Stock Appreciation Rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum amount of award within a fiscal year (in shares)		500,000
Stock Incentive Plan 2009
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Amount of shares and RSUs outstanding to be purchased (in shares)		171,833
Number of shares available for award under stock incentive plan (in shares)					1,900,000.0

Stock-based Compensation and Stockholders’ Equity - Weighted Average Assumptions (Details) - $ / shares	12 Months Ended
	May 26, 2019	May 27, 2018	May 28, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Options granted (in shares)	368,264	498,000	240,000
Weighted-average exercise price (in dollars per share)	$ 11.85	$ 12.93	$ 11.58
Weighted-average grant date fair value (in dollars per share)	$ 2.80	$ 2.90	$ 2.37
Expected life (in years)	3 years 6 months	3 years 6 months	3 years 6 months
Risk-free interest rate	2.47%	1.73%	1.08%
Volatility	27.00%	27.00%	26.00%
Dividend yield	0.00%	0.00%	0.00%

Stock-based Compensation and Stockholders’ Equity - Stock Options Outstanding and Exercisable (Details) - USD ($)	12 Months Ended
	May 26, 2019	May 27, 2018	May 28, 2017
Options Outstanding
Options granted (in shares)	368,264	498,000	240,000
Weighted-Average Exercise Price Per Share
Options outstanding, beginning balance (in dollars per share)	$ 13.80	$ 13.58
Options outstanding, ending balance (in dollars per share)	13.74	13.80	$ 13.58
Options exercisable (in dollars per share)	$ 11.85	$ 12.93	$ 11.58
Employee Stock Option
Options Outstanding
Options outstanding, beginning balance (in shares)	1,955,335	1,571,542	1,731,474
Options granted (in shares)	368,264	498,000	240,000
Options exercised (in shares)	(116,834)	(29,333)	(357,639)
Options forfeited (in shares)	(71,669)	(23,334)	(42,293)
Options expired (in shares)	(135,000)	(61,540)	0
Options outstanding, ending balance (in shares)	2,000,096	1,955,335	1,571,542
Options exercisable (in shares)	1,524,473
Weighted-Average Exercise Price Per Share
Options outstanding, beginning balance (in dollars per share)	$ 13.20	$ 13.20	$ 11.90
Options granted (in dollars per share)	11.85	12.93	11.58
Options exercised (in dollars per share)	11.82	7.36	5.93
Options forfeited (in dollars per share)	13.75	12.55	12.16
Options expires (in dollars per share)	14.18	14.23	0.00
Options outstanding, ending balance (in dollars per share)	12.94	$ 13.20	$ 13.20
Options exercisable (in dollars per share)	$ 13.30
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Total Intrinsic Value of Options Exercised	$ 265,911	$ 177,921	$ 2,780,597
Weighted average remaining contractual term, options outstanding	3 years 3 months 15 days
Weighted average remaining contractual term, options exercisable	2 years 4 months 28 days
Aggregate intrinsic value, options outstanding	$ 16,807
Aggregate intrinsic value, options exercisable	$ 5,467

Stock-based Compensation and Stockholders’ Equity - Stock-based Compensation Activity (Details) - Restricted Stock - $ / shares	12 Months Ended
	May 26, 2019	May 27, 2018	May 28, 2017
Restricted Stock Units Outstanding
Beginning balance (in shares)	408,037	509,355	526,841
Granted (in shares)	333,486	200,288	130,522
Vested (in shares)	(237,946)	(270,656)	(130,508)
Forfeited (in shares)	(75,150)	(30,950)	(17,500)
Ending balance (in shares)	428,427	408,037	509,355
Weighted-Average Grant Date Fair Value Per Share
Beginning balance (in dollars per share)	$ 12.99	$ 13.53	$ 13.51
Granted (in dollars per share)	13.15	13.12	13.37
Exercised (in dollars per share)	13.27	14.06	13.42
Forfeited (in dollars per share)	13.92	11.75	12.46
Ending balance (in dollars per share)	$ 12.80	$ 12.99	$ 13.53

Stock-based Compensation and Stockholders’ Equity - Summary of Stock-based Compensation by Income Statement Line Item (Details) - USD ($) $ in Thousands	12 Months Ended
	May 26, 2019	May 27, 2018	May 28, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 3,560	$ 4,403	$ 3,964
Cost of sales
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	449	535	485
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	114	131	83
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 2,997	$ 3,737	$ 3,396

Debt - Narrative (Details)	Nov. 30, 2018 USD ($)	Sep. 23, 2016 USD ($)	Nov. 24, 2019	Aug. 25, 2019	May 26, 2019 USD ($)	Jun. 25, 2018 USD ($)	May 27, 2018 USD ($)	Nov. 01, 2016 USD ($)
Debt Instrument [Line Items]
Term loan facility					$ 96,984,000		$ 42,300,000
Line of credit					52,000,000		$ 27,000,000
Interest Rate Swap \| BMO
Debt Instrument [Line Items]
Interest rate swap contract notional amount						$ 30,000,000		$ 50,000,000
London Interbank Offered Rate (LIBOR) \| Interest Rate Swap \| BMO
Debt Instrument [Line Items]
Interest rate						2.47%		1.22%
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank
Debt Instrument [Line Items]
Covenant, leverage ratio	3.5
Additional commitment amount		$ 10,000,000
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank \| Scenario, Forecast
Debt Instrument [Line Items]
Covenant, leverage ratio			4.00
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank \| Minimum \| Prime Rate
Debt Instrument [Line Items]
Base spread on variable rate		0.25%
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank \| Minimum \| Eurodollar
Debt Instrument [Line Items]
Base spread on variable rate		1.25%
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank \| Maximum \| Prime Rate
Debt Instrument [Line Items]
Base spread on variable rate		2.25%
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank \| Maximum \| Eurodollar
Debt Instrument [Line Items]
Base spread on variable rate		3.25%
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank \| Term loan
Debt Instrument [Line Items]
Term loan facility		$ 50,000,000
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank \| Revolving Credit Facility
Debt Instrument [Line Items]
Revolving line of credit		$ 100,000,000
Line of credit					$ 52,000,000
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank \| Revolving Credit Facility \| Eurodollar
Debt Instrument [Line Items]
Revolver interest rate					5.24%
Forth Amendment Credit Agreement With JP Morgan Chase BMO Harris Bank And City National Bank \| Scenario, Forecast
Debt Instrument [Line Items]
Covenant, leverage ratio				4.5
Forth Amendment Credit Agreement With JP Morgan Chase BMO Harris Bank And City National Bank \| Term loan
Debt Instrument [Line Items]
Term loan facility	$ 100,000,000
Periodic payment	2,500,000
Forth Amendment Credit Agreement With JP Morgan Chase BMO Harris Bank And City National Bank \| Revolving Credit Facility
Debt Instrument [Line Items]
Revolving line of credit	$ 105,000,000

Debt - Long-term Debt (Details) - USD ($) $ in Thousands	May 26, 2019	May 27, 2018
Debt Instrument [Line Items]
Total principal amount of long-term debt	$ 97,500	$ 42,500
Less: unamortized debt issuance costs	(516)	(200)
Total long-term debt, net of unamortized debt issuance costs	96,984	42,300
Less: current portion of long-term debt, net	(9,791)	(4,940)
Long-term debt, net	87,193	37,360
Term loan
Debt Instrument [Line Items]
Total principal amount of long-term debt	$ 97,500	$ 42,500

Debt - Future Minimum Principal Payments of Debt (Details) - USD ($) $ in Thousands	May 26, 2019	May 27, 2018
Debt Disclosure [Abstract]
Fiscal year 2020	$ 10,000
Fiscal year 2021	10,000
Fiscal year 2022	77,500
Fiscal year 2023 and thereafter	0
Total	$ 97,500	$ 42,500

Income Taxes - Narrative (Details) - USD ($) $ in Thousands		12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Dec. 22, 2017	May 26, 2019	May 27, 2018	May 28, 2017	May 29, 2016
Tax Credit Carryforward [Line Items]
Statutory rate	35.00%	21.00%	29.40%	35.00%
Effective tax rate for the fiscal year		71.00%	(64.00%)	29.00%
Excess tax deficits related to stock-based compensation		$ 153	$ 38
Unrecognized tax benefits		616	479	$ 537	$ 842
Unrecognized tax benefits that would change the effect tax rate if recognized		500
Decrease in unrecognized tax benefits		32
Deferred tax asset valuation allowance		4,116	$ 1,337
Domestic Tax Authority
Tax Credit Carryforward [Line Items]
Net operating loss carryforwards		26,500
Tax credit carryforward amount		900
Foreign Tax Authority
Tax Credit Carryforward [Line Items]
Net operating loss carryforwards		9,900
California \| State and Local Jurisdiction
Tax Credit Carryforward [Line Items]
Net operating loss carryforwards		3,400
Tax credit carryforward amount		$ 1,800
Tax credit carryforward, period		20 years
Indiana \| State and Local Jurisdiction
Tax Credit Carryforward [Line Items]
Net operating loss carryforwards		$ 5,800
Other States, Tax Board \| State and Local Jurisdiction
Tax Credit Carryforward [Line Items]
Net operating loss carryforwards		6,300
Minnesota \| State and Local Jurisdiction
Tax Credit Carryforward [Line Items]
Tax credit carryforward amount		$ 1,000
Tax credit carryforward, period		15 years

Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	May 26, 2019	May 27, 2018	May 28, 2017
Current:
Federal	$ (67)	$ (2,854)	$ 1,388
State	63	60	39
Foreign	83	83	82
Total	79	(2,711)	1,509
Deferred:
Federal	1,581	(7,122)	2,270
State	(142)	470	261
Total	1,439	(6,652)	2,531
Income tax (benefit) expense	$ 1,518	$ (9,363)	$ 4,040

Income Taxes - Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands		12 Months Ended
	Dec. 22, 2017	May 26, 2019	May 27, 2018	May 28, 2017
Income Tax Disclosure [Abstract]
Tax at U.S. statutory rate		$ 764	$ 4,784	$ 4,922
State income taxes, net of federal benefit		46	439	307
Tax reform		0	(14,350)	0
Change in valuation allowance		929	(176)	85
Tax credit carryforwards		(771)	(777)	(834)
Other compensation-related activity		618	566	(365)
Domestic manufacturing deduction		0	0	(243)
Other		(68)	151	168
Income tax (benefit) expense		$ 1,518	$ (9,363)	$ 4,040
Statutory rate	35.00%	21.00%	29.40%	35.00%

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	May 26, 2019	May 27, 2018
Deferred tax assets:
Accruals and reserves	$ 3,130	$ 1,421
Net operating loss carryforwards	9,385	1,955
Stock-based compensation	979	1,247
Research and AMT credit carryforwards	2,839	2,032
Other	461	427
Gross deferred tax assets	16,794	7,082
Valuation allowance	(4,116)	(1,337)
Net deferred tax assets	12,678	5,745
Deferred tax liabilities:
Depreciation and amortization	(14,324)	(11,307)
Goodwill and other indefinite life intangibles	(13,351)	(8,201)
Basis difference in investment in non-public company	(4,396)	(3,722)
Deferred tax liabilities	32,071	23,230
Deferred tax liabilities	$ (19,393)	$ (17,485)

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	May 26, 2019	May 27, 2018	May 28, 2017
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits – beginning of the period	$ 479	$ 537	$ 842
Gross increases – tax positions in prior period	29	21	11
Gross decreases – tax positions in prior period	0	0	(90)
Gross increases – current-period tax positions	133	116	93
Settlements	0	(95)	0
Lapse of statute of limitations	(25)	(100)	(319)
Unrecognized tax benefits – end of the period	$ 616	$ 479	$ 537

Commitments and Contingencies - Future Minimum Lease Payments Under Operating Leases, Excluding Land Leases (Details) $ in Thousands	May 26, 2019 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Fiscal year 2020	$ 5,056
Fiscal year 2021	4,044
Fiscal year 2022	3,589
Fiscal year 2023	3,350
Fiscal year 2024	3,047
Thereafter	9,335
Total	$ 28,421

Commitments and Contingencies - Narrative (Details) ft² in Thousands, $ in Thousands						1 Months Ended	5 Months Ended	12 Months Ended
	Nov. 22, 2017 USD ($)	Jul. 03, 2017 USD ($)	May 05, 2017 USD ($)	Dec. 27, 2016 USD ($)	Sep. 03, 2015 USD ($) ft² renewal_options	Jul. 31, 2018 USD ($)	Nov. 22, 2017 USD ($)	May 26, 2019 USD ($) litigation_case attempt_to_unionize plaintiff	May 27, 2018 USD ($)	May 28, 2017 USD ($)
Loss Contingencies [Line Items]
Operating leases rent expense								$ 7,300	$ 6,100	$ 5,600
Area of property \| ft²					65
Initial lease term					7 years
Number of renewal options \| renewal_options					2
Renewal term					5 years
Capital lease period after the buyout option is available					7 years
Property, plant and equipment associated with lease								3,400
Initial monthly lease payment amount					$ 34
Annual increase in monthly lease payment, percentage					2.40%
Purchase commitment								30,600
Legal expenses								0	600	2,100
Legal settlement charge										$ 2,600
Accrued expenses related to legal settlement charges								$ 0	$ 1,000
Number of litigation cases \| litigation_case								2
Unsuccessful attempts to unionize \| attempt_to_unionize								2
Legal Actions Against Curation Foods \| Curation Foods
Loss Contingencies [Line Items]
Number of individual arbitrations \| plaintiff								100
Unfair Labor Claims \| Curation Foods
Loss Contingencies [Line Items]
Litigation settlement				$ 200
Unfair Labor Claims \| Curation Foods And Pacific Harvest
Loss Contingencies [Line Items]
Litigation settlement				$ 300
Discrimination and Wrongful Termination and Wage and Hour Claims
Loss Contingencies [Line Items]
Payments for litigation settlement							$ 4,200
Discrimination and Wrongful Termination and Wage and Hour Claims \| Pacific Harvest
Loss Contingencies [Line Items]
Litigation repayment								$ 2,100
Discrimination and Wrongful Termination and Wage and Hour Claims \| Pacific Harvest \| Prepaid and Other Current Assets
Loss Contingencies [Line Items]
Litigation repayment								1,000
Discrimination and Wrongful Termination and Wage and Hour Claims \| Pacific Harvest \| Other Assets
Loss Contingencies [Line Items]
Litigation repayment								$ 600
Discrimination and Wrongful Termination and Wage and Hour Claims \| Curation Foods And Pacific Harvest
Loss Contingencies [Line Items]
Litigation settlement			$ 6,000
Payments for litigation settlement	$ 1,800	$ 2,400				$ 1,800

Commitments and Contingencies - Future Minimum Lease Payments Under Capital Lease (Details) - USD ($) $ in Thousands	May 26, 2019	May 27, 2018
Commitments and Contingencies Disclosure [Abstract]
Fiscal year 2020	$ 486
Fiscal year 2021	489
Fiscal year 2022	460
Fiscal year 2023	3,490
Fiscal year 2024	0
Thereafter	0
Total minimum lease payment	4,925
Less: amounts representing interest and taxes	(1,291)
Total	3,634
Less: current portion included in other accrued liabilities	(102)
Long-term capital lease obligation	$ 3,532	$ 3,641

Business Segment Reporting - Narrative (Details)		12 Months Ended
Business Segment Reporting - Narrative (Details)	Apr. 30, 2018 segment	May 26, 2019 brand segment	Jan. 11, 2019 brand
Segment Reporting [Abstract]
Number of operating segments \| segment	3	3
Number of natural food brands		4	4
Number of existing natural food brands		2
Number of new natural food brands		2	2

Business Segment Reporting - Property and Equipment, Net by Geographic Region (Details) - USD ($) $ in Thousands	May 26, 2019	May 27, 2018
Segment Reporting Information [Line Items]
Property and equipment, net	$ 200,027	$ 159,624
United States
Segment Reporting Information [Line Items]
Property and equipment, net	186,300	159,600
Mexico
Segment Reporting Information [Line Items]
Property and equipment, net	$ 13,700	$ 0

Business Segment Reporting - Sales by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	May 26, 2019	Feb. 24, 2019	Nov. 25, 2018	Aug. 26, 2018	May 27, 2018	Feb. 25, 2018	Nov. 26, 2017	Aug. 27, 2017	May 26, 2019	May 27, 2018	May 28, 2017
Segment Reporting Information [Line Items]
Net sales	$ 152,780	$ 155,554	$ 124,557	$ 124,668	$ 141,076	$ 144,909	$ 122,461	$ 115,781	$ 557,559	$ 524,227
Canada
Segment Reporting Information [Line Items]
Net sales									83,600	78,000	$ 69,300
Belgium
Segment Reporting Information [Line Items]
Net sales									15,100	17,200	21,000
Ireland
Segment Reporting Information [Line Items]
Net sales									5,000	4,100	4,000
All Other Countries
Segment Reporting Information [Line Items]
Net sales									$ 5,100	$ 3,600	$ 4,600

Business Segment Reporting - Operations by Business Segment (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	May 26, 2019	Feb. 24, 2019	Nov. 25, 2018	Aug. 26, 2018	May 27, 2018	Feb. 25, 2018	Nov. 26, 2017	Aug. 27, 2017	May 26, 2019	May 27, 2018	May 28, 2017
Segment Reporting Information [Line Items]
Net sales									$ 557,559	$ 524,227	$ 469,776
Gross profit	$ 26,212	$ 21,569	$ 16,885	$ 16,337	$ 24,809	$ 19,806	$ 14,921	$ 18,802	81,003	78,338	79,212
Net income (loss) from continuing operations	367	$ 1,533	$ (113)	$ 335	6,711	$ 16,281	$ 414	$ 2,355	2,122	25,761	10,135
Identifiable assets	519,091				404,703				519,091	404,703	358,608
Depreciation and amortization									15,230	12,412	10,677
Capital expenditures									44,734	33,590	23,003
Dividend income									1,650	1,650	1,650
Interest income									145	211	16
Interest expense, net									5,230	1,950	1,826
Income tax (benefit) expense									1,518	(9,363)	4,040
Curation Foods
Segment Reporting Information [Line Items]
Net sales									481,686	458,800	410,384
Gross profit									49,305	49,770	52,457
Net income (loss) from continuing operations									(6,229)	17,010	2,410
Identifiable assets	367,352				264,067				367,352	264,067	219,739
Depreciation and amortization									10,360	8,196	7,312
Capital expenditures									30,583	13,052	11,476
Dividend income									1,650	1,650	1,650
Interest income									112	93	16
Interest expense, net									3,278	1,554	674
Income tax (benefit) expense									(1,373)	(9,748)	823
Lifecore
Segment Reporting Information [Line Items]
Net sales									75,873	65,427	59,392
Gross profit									31,698	28,568	26,755
Net income (loss) from continuing operations									12,070	11,631	10,228
Identifiable assets	145,558				129,342				145,558	129,342	104,492
Depreciation and amortization									4,140	3,679	3,054
Capital expenditures									12,965	16,454	11,169
Dividend income									0	0	0
Interest income									0	0	0
Interest expense, net									0	0	13
Income tax (benefit) expense									4,024	2,638	2,938
Other
Segment Reporting Information [Line Items]
Net sales									0	0	0
Gross profit									0	0	0
Net income (loss) from continuing operations									(3,719)	(2,880)	(2,503)
Identifiable assets	$ 6,181				$ 11,294				6,181	11,294	34,377
Depreciation and amortization									730	537	311
Capital expenditures									1,186	4,084	358
Dividend income									0	0	0
Interest income									33	118	0
Interest expense, net									1,952	396	1,139
Income tax (benefit) expense									$ (1,133)	$ (2,253)	$ 279

Quarterly Consolidated Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	May 26, 2019	Feb. 24, 2019	Nov. 25, 2018	Aug. 26, 2018	May 27, 2018	Feb. 25, 2018	Nov. 26, 2017	Aug. 27, 2017	May 26, 2019	May 27, 2018	May 28, 2017
Condensed Financial Information Disclosure [Abstract]
Revenues	$ 152,780	$ 155,554	$ 124,557	$ 124,668	$ 141,076	$ 144,909	$ 122,461	$ 115,781	$ 557,559	$ 524,227
Gross profit	26,212	21,569	16,885	16,337	24,809	19,806	14,921	18,802	81,003	78,338	$ 79,212
Net income (loss) from continuing operations	367	1,533	(113)	335	6,711	16,281	414	2,355	2,122	25,761	10,135
Net income (loss) applicable to common stockholders	$ (262)	$ 1,067	$ (584)	$ 190	$ 6,108	$ 16,088	$ 487	$ 2,146	$ 411	$ 24,829	$ 10,590
Net income per basic share from continuing operations (in dollars per share)	$ 0.01	$ 0.05	$ 0.00	$ 0.01	$ 0.24	$ 0.59	$ 0.02	$ 0.08	$ 0.07	$ 0.93	$ 0.37
Net income per diluted share from continuing operations (in dollars per share)	$ 0.01	$ 0.05	$ 0.00	$ 0.01	$ 0.24	$ 0.58	$ 0.02	$ 0.08	$ 0.07	$ 0.92	$ 0.36

- Definition

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

+ References

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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

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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

Discontinued Operations - Assets and Liabilities of Discontinued Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	May 26, 2019	May 27, 2018	May 28, 2017
Current and other assets, discontinued operations:
Cash and cash equivalents	$ 0	$ 8	$ 589
Other current liabilities, discontinued operations:
(Loss) income from discontinued operations before taxes	(2,238)	(1,188)	837
Income tax benefit (expense)	527	350	(295)
(Loss) income from discontinued operations, net of tax	(1,711)	(838)	542
Now Planting And Food Export \| Discontinued Operations
Current and other assets, discontinued operations:
Cash and cash equivalents	0	(8)
Accounts receivable	0	518
Inventory	0	0
Other assets	0	0
Total assets, discontinued operations	0	510
Other current liabilities, discontinued operations:
Accounts payable	51	230
Accrued expenses and other current liabilities	14	228
Total other current liabilities, discontinued operations	65	458
Revenues	548	29,222	62,481
Cost of sales	(1,649)	(27,619)	(58,507)
Research and development	(102)	0	0
Selling, general and administrative	(1,035)	(2,522)	(3,137)
Other	0	(269)	0
(Loss) income from discontinued operations before taxes	(2,238)	(1,188)	837
Income tax benefit (expense)	527	350	(295)
(Loss) income from discontinued operations, net of tax	$ (1,711)	$ (838)	$ 542

Discontinued Operations - Narrative (Details) - Discontinued Operations - USD ($)	12 Months Ended
	May 26, 2019	May 27, 2018	May 28, 2017
Now Planting
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash provided by (used in) operating activities	$ (1,258,855.91)	$ 0	$ 0
Food Export
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash provided by (used in) operating activities	$ 0	$ 580,000	$ (515,000)

Label	Element	Value
Parent [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 623,000
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	423,000
Additional Paid-in Capital [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 200,000