Lifecore Biomedical (LFCR) 10-Q 5 Jan 17 2017 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Nov. 27, 2016	Dec. 22, 2016
Document Information [Line Items]
Entity Registrant Name	LANDEC CORP \CA\
Entity Central Index Key	1,005,286
Trading Symbol	lndc
Current Fiscal Year End Date	--05-28
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		27,270,832
Document Type	10-Q
Document Period End Date	Nov. 27, 2016
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Nov. 27, 2016	May 29, 2016	[1]
Current Assets:
Cash and cash equivalents	$ 2,566	$ 9,894
Accounts receivable, less allowance for doubtful accounts	50,009	46,406
Inventories	27,970	25,535
Prepaid expenses and other current assets	3,930	4,468
Total Current Assets	84,475	86,303
Investment in non-public company, fair value	62,700	62,700
Property and equipment, net	120,972	120,880
Goodwill, net	49,620	49,620
Trademarks/tradenames, net	14,428	14,428
Customer relationships, net	6,525	6,968
Other assets	2,621	1,754
Total Assets	341,341	342,653
Current Liabilities:
Accounts payable	25,914	30,904
Accrued compensation	5,696	5,460
Other accrued liabilities	8,424	7,772
Deferred revenue	474	832
Lines of credit	1,500	3,500
Current portion of long-term debt, net	4,940	7,873
Total Current Liabilities	46,948	56,341
Long-term debt, net	44,771	45,972
Capital lease obligation, less current portion	3,770	3,804
Deferred taxes, net	24,328	22,442
Other non-current liabilities	1,977	1,744
Total Liabilities	121,794	130,303
Stockholders’ Equity:
Common stock, $0.001 par value; 50,000 shares authorized; 27,258 and 27,148 shares issued and outstanding at November 27, 2016 and May 29, 2016, respectively	27	27
Additional paid-in capital	139,138	137,244
Retained earnings	78,518	73,457
Accumulated other comprehensive income	327
Total Stockholders’ Equity	218,010	210,728
Non-controlling interest	1,537	1,622
Total Equity	219,547	212,350
Total Liabilities and Stockholders’ Equity	$ 341,341	$ 342,653
[1]	Derived from audited financial statements. See Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies for discussion of accounting guidance adopted during the period.

Consolidated Balance Sheets (C3

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares shares in Thousands	Nov. 27, 2016	May 29, 2016	[1]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	50,000	50,000
Common stock, shares issued (in shares)	27,258	27,148
Common stock, shares outstanding (in shares)	27,258	27,148
[1]	Derived from audited financial statements. See Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies for discussion of accounting guidance adopted during the period.

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Nov. 27, 2016	Nov. 29, 2015	Nov. 27, 2016	Nov. 29, 2015
Product sales	$ 135,865,000	$ 140,441,000	$ 268,259,000	$ 275,796,000
Cost of product sales	116,912,000	123,176,000	228,162,000	240,554,000
Gross profit	18,953,000	17,265,000	40,097,000	35,242,000
Operating expenses:
Research and development	1,965,000	1,643,000	3,903,000	3,518,000
Selling, general and administrative	13,724,000	12,815,000	27,460,000	24,979,000
Total operating costs and expenses	15,689,000	14,458,000	31,363,000	28,497,000
Operating income	3,264,000	2,807,000	8,734,000	6,745,000
Dividend income	413,000	413,000	825,000	825,000
Interest income	3,000	16,000	7,000	47,000
Interest expense	(380,000)	(439,000)	(1,032,000)	(941,000)
Loss on debt refinancing	(1,233,000)		(1,233,000)		[1]
Other income		200,000		1,000,000
Net income before taxes	2,067,000	2,997,000	7,301,000	7,676,000
Income tax expense	(693,000)	(1,069,000)	(2,582,000)	(2,760,000)
Consolidated net income	1,374,000	1,928,000	4,719,000	4,916,000	[1]
Non-controlling interest expense	(48,000)	(60,000)	(81,000)	(96,000)
Net income and comprehensive income applicable to common stockholders	$ 1,326,000	$ 1,868,000	$ 4,638,000	$ 4,820,000
Basic net income per share (in dollars per share)	$ 0.05	$ 0.07	$ 0.17	$ 0.18
Diluted net income per share (in dollars per share)	$ 0.05	$ 0.07	$ 0.17	$ 0.18
Shares used in per share computation
Basic (in shares)	27,249	27,021	27,234	27,013
Diluted (in shares)	27,618	27,420	27,572	27,417
Other comprehensive income, net of tax:
Change in net unrealized gains on interest rate swap (net of tax effect of $192, $0, $192, and $0)	$ 327,000		$ 327,000
Other comprehensive income, net of tax	327,000		327,000
Total comprehensive income	$ 1,653,000	$ 1,868,000	$ 4,965,000	$ 4,820,000
[1]	See Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies for a discussion of accounting principles adopted during the period.

Consolidated Statements of Com5

Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 27, 2016	Nov. 29, 2015	Nov. 27, 2016	Nov. 29, 2015
Change in net unrealized gains on interest rate swap, tax	$ 192	$ 0	$ 192	$ 0

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - 6 months ended Nov. 27, 2016 - USD ($) shares in Thousands, $ in Thousands		Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Noncontrolling Interest [Member]	Total
Balance (in shares) at May. 29, 2016		27,148
Balance at May. 29, 2016		$ 27	$ 137,244	$ 73,457		$ 1,622	$ 210,728	[1]
Issuance of common stock at $5.63 to $6.66 per share, net of taxes paid by Landec on behalf of employees (in shares)		40
Issuance of common stock at $5.63 to $6.66 per share, net of taxes paid by Landec on behalf of employees			193				193
Issuance of common stock for vested restricted stock units (“RSUs”) (in shares)		70
Taxes paid by Company for stock swaps and RSUs			(272)				(272)
Stock-based compensation			1,773				1,773
Payments to non-controlling interest						(166)
Net income				4,638		81	4,638
Other comprehensive income, net of tax					327		327
Balance (in shares) at Nov. 27, 2016		27,258
Balance at Nov. 27, 2016		$ 27	139,138	78,518	327	1,537	218,010
Cumulative Effect of New Accounting Principle in Period of Adoption	[2]		$ 200	$ 423			$ 623
[1]	Derived from audited financial statements. See Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies for discussion of accounting guidance adopted during the period.
[2]	See Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies for a discussion of accounting guidance adopted during the period.

Consolidated Statements of Cha7

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parentheticals) - Additional Paid-in Capital [Member]	Nov. 27, 2016$ / shares
Minimum [Member]
Issuance of common stock, per share (in dollars per share)	$ 5.63
Maximum [Member]
Issuance of common stock, per share (in dollars per share)	$ 6.66

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Nov. 27, 2016		Nov. 29, 2015	[1]
Cash flows from operating activities:
Consolidated net income	$ 4,719,000		$ 4,916,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,110,000		4,339,000
Stock-based compensation expense	1,773,000		1,697,000
Deferred taxes	2,317,000		1,167,000
Loss on early debt extinguishment	1,233,000
Change in investment in non-public company, fair value			(1,000,000)
Net loss on disposal of property and equipment	57,000
Changes in current assets and current liabilities:
Accounts receivable, net	(3,603,000)		(3,804,000)
Inventories, net	(2,435,000)		(3,832,000)
Prepaid expenses and other current assets	666,000		(2,464,000)
Accounts payable	(4,990,000)		1,912,000
Accrued compensation	236,000		(1,359,000)
Other accrued liabilities	802,000		1,172,000
Deferred revenue, net	(358,000)		(462,000)
Net cash provided by operating activities	5,527,000		2,282,000
Cash flows from investing activities:
Purchases of property and equipment	(4,738,000)		(15,203,000)
Deposit on capital lease			(850,000)
Proceeds from sales of fixed assets	14,000		91,000
Net cash used in investing activities	(4,724,000)		(15,962,000)
Cash flows from financing activities:
Proceeds from sale of common stock	193,000		108,000
Taxes paid by Company for stock swaps and RSUs	(272,000)
Proceeds from long-term debt	50,000,000		9,972,000
Payments on long-term debt	(54,697,000)		(4,278,000)
Proceeds from lines of credit	1,500,000		10,500,000
Payments on line of credit	(3,500,000)		(10,500,000)
Payments for debt issuance costs	(897,000)
Payments for early debt extinguishment penalties	(233,000)
Change in other assets	(59,000)		(26,000)
Payments to non-controlling interest	(166,000)		(248,000)
Net cash provided by (used in) financing activities	(8,131,000)		5,528,000
Net decrease in cash and cash equivalents	(7,328,000)		(8,152,000)
Cash and cash equivalents at beginning of period	9,894,000	[2]	14,127,000
Cash and cash equivalents at end of period	$ 2,566,000		$ 5,975,000
[1]	See Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies for a discussion of accounting principles adopted during the period.
[2]	Derived from audited financial statements. See Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies for discussion of accounting guidance adopted during the period.

Note 1 - Organization, Basis of

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies	6 Months Ended
	Nov. 27, 2016
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]	1. 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 has two 1) 2) ’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 a key differentiating advantage upon which Landec has built its business. Basis of Presentation The accompanying unaudited consolidated financial statements of Landec have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and with the instructions for Form 10 10 November 27, 2016 10 May 29, 2016. The results of operations for the six November 27, 2016 may ’s food business, particularly, Apio’s export business, and the order patterns of Lifecore’s customers which may Basis of Consolidation The consolidated financial statements are presented on the accrual basis of accounting in accordance with GAAP and include the accounts of Landec Corporation and its subsidiaries, Apio and Lifecore. All intercompany transactions and balances have been eliminated. 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 party, including equity holders, or b) as a group the holders of the equity investment at risk lack any one three 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 its partnership interest in Apio Cooling, LP (see below) and its equity investment in the non - public company (see Note 2) 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; the valuation of 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 ’s estimates. Cash and Cash Equivalents The Company records all highly liquid securities with three Debt Issuance Costs The Company records its line of credit debt issuance costs as an asset, and as such, $120,000 $459,000 November 27, 2016. $60,000 $229,000 November 27, 2016 7). Financial Instruments The Company ’s financial instruments are primarily composed of commercial - term trade payables, grower advances, notes receivable, and debt instruments. For short - term instruments, the historical carrying amount approximates the fair value of the instrument. The fair value of long - term debt approximates its carrying value. Cash Flow Hedges The Company entered into an interest rate swap agreement to manage interest rate risk. This derivative instrument may 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 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. For additional information refer to Note 10 – Comprehensive Income. Investment in Non - Public Company On February 15, 2011, 150,000 $15 201 $201 2010 (“Windset”). On July 15, 2014, 68 51,211 $11 October 29, 2014, 70,000 $7 November 27, 2016 May 29, 2016. 2). Intangible Assets The Company ’s intangible assets are comprised of customer relationships with a finite estimated useful life of twelve thirteen 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 350 30 35. 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 and represents management's best estimate of the amounts that have been incurred but not yet been paid as of November 27, 2016 May 29, 2016. may Fair Value Measurements The Company uses fair value measurement accounting for financial assets and liabilities and for financial instruments and certain other items measured at fair value. The Company has elected the fair value option for its investment in a non - public company (see Note 2). The accounting guidance established a three 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 November 27, 2016 May 29, 2016, The fair value of the Company ’s interest rate swap is determined based on model inputs that can be observed in a liquid market, including yield curves, and is categorized as a Level 2 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 six November 27, 2016. November 27, 2016 May 29, 2016 Revenue growth rates 4% 4% Expense growth rates 4% 4% Income tax rates 15% 15% Discount rates 12% 12.5% 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 investment in Windset as of November 27, 2016 10% increase in revenue growth rates $ 400 10% increase in expense growth rates $ (400 ) 10% increase in income tax rates $ — 10% increase in discount rates $ (200 ) 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 November 27, 2016 Fair Value at May 29, 2016 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Interest rate swap (1) $ — $ 519 $ — $ — $ — $ — Investment in non-public company — — 62,700 — — 62,700 Total $ — $ 519 $ 62,700 $ — $ — $ 62,700 (1) Recorded in Other assets. Revenue Recognition See Note 11 – Business Segment Reporting, for a discussion about the Company’s four Revenue from product sales is recognized when there is persuasive evidence that an arrangement exists, title has transferred, the price is fixed and determinable, and collectability is reasonably assured. Allowances are established for estimated uncollectible amounts, product returns, and discounts based on specific identification and historical losses. Apio ’s Packaged Fresh Vegetables revenues generally consist of revenues generated from the sale of specialty packaged fresh - cut and whole value - added vegetable products that are generally washed and packaged in Apio’s proprietary packaging and sold under Apio’s Eat Smart and GreenLine brands and various private labels. Revenue is generally recognized upon shipment of these products to customers. The Company takes title to all produce it trades and/or packages, and therefore, records revenues and cost of sales at gross amounts in the Consolidated Statements of Comprehensive Income. In addition, Packaged Fresh Vegetables revenues include the revenues generated from Apio Cooling, LP, a vegetable cooling operation in which Apio is the general partner with a 60% ’s customers. Sales of BreatheWay packaging are recognized when shipped to Apio’s customers. Apio ’s Food Export revenues consist of revenues generated from the purchase and sale of primarily whole commodity fruit and vegetable products to Asia through its subsidiary, Cal - Ex Trading Company (“Cal - Ex”). As most Cal - Ex customers are in countries outside of the U.S., title transfers and revenue is generally recognized upon arrival of the shipment in the foreign port. Apio records revenue equal to the sale price to third Lifecore ’s Biomaterials business principally generates revenue through the sale of products containing HA. Lifecore primarily sells products to customers in three (1) 55% 2016, (2) 20% 2016, (3) 25% 2016. Lifecore ’s business development revenues, a portion of which are included in all three Contract R&D revenue is recorded as earned, based on the performance requirements of the contract. Non - refundable contract fees for which no further performance obligations exist, and there is no continuing involvement by the Company, are recognized on the earlier of when the payment is received or collection is assured. For sales arrangements that contain multiple elements, the Company splits the arrangement into separate units of accounting if the individually delivered elements have value to the customer on a standalone basis. The Company also evaluates whether multiple transactions with the same customer or related party should be considered part of a multiple element arrangement, whereby the Company assesses, among other factors, whether the contracts or agreements are negotiated or executed within a short time frame of each other or if there are indicators that the contracts are negotiated in contemplation of each other. The Company then allocates revenue to each element based on a selling price hierarchy. The relative selling price for a deliverable is based on its vendor - specific objective evidence (“VSOE”), if available, third The Company limits the amount of revenue recognition for delivered elements to the amount that is not contingent on the future delivery of products or services or future performance obligations or subject to customer - specific cancellation rights. The Company evaluates each deliverable in an arrangement to determine whether it represents a separate unit of accounting. A deliverable constitutes a separate unit of accounting when it has stand - alone value, and for an arrangement that includes a general right of return relative to the delivered products or services, delivery or performance of the undelivered product or service is considered probable and is substantially controlled by the Company. The Company considers a deliverable to have stand - alone value if the product or service is sold separately by the Company or another vendor or could be resold by the customer. Further, the revenue arrangements generally do not include a general right of return relative to delivered products. Where the aforementioned criteria for a separate unit of accounting are not met, the deliverable is combined with the undelivered element(s) and treated as a single unit of accounting for the purposes of allocation of the arrangement consideration and revenue recognition. The Company allocates the total arrangement consideration to each separable element of an arrangement based upon the relative selling price of each element. Allocation of the consideration is determined at arrangement inception on the basis of each unit ’s relative selling price. In instances where the Company has not established fair value for any undelivered element, revenue for all elements is deferred until delivery of the final element is completed and all recognition criteria are met. For licensing revenue, the initial license fees are deferred and amortized to revenue over the period of the agreement when a contract exists, the fee is fixed and determinable, and collectability is reasonably assured. Noncancellable, nonrefundable license fees are recognized over the period of the agreement, including those governing research and development activities and any related supply agreement entered into concurrently with the license when the risk associated with commercialization of a product is non - substantive at the outset of the arrangement. From time to time, the Company offers customers sales incentives, which include volume rebates and discounts. These amounts are estimated on a quarterly basis and recorded as a reduction of revenue. A summary of revenues by type of arrangement as described above is as follows (in thousands): Three Months Ended Six Months Ended November 27, 2016 November 29, 2015 November 27, 2016 November 29, 2015 Recorded upon shipment $ 107,987 $ 112,709 $ 214,152 $ 223,125 Recorded upon acceptance in foreign port 25,701 22,140 49,040 44,484 Revenue from multiple element arrangements 1,683 4,058 3,268 5,647 Revenue from license fees, R&D contracts and royalties/profit sharing 494 1,534 1,799 2,540 Total $ 135,865 $ 140,441 $ 268,259 $ 275,796 Legal Contingencies In the ordinary course of business, the Company is involved in various legal proceedings and claims related to matters such as wage and hour 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, estimated settlements, legal rulings, advice of legal counsel, and other information and events pertaining to a particular matter. In management ’s opinion, resolution of all current matters is not expected to have a material adverse impact on the Company’s consolidated financial statements. However, depending on the nature and timing of any such dispute, an unfavorable resolution of a matter could materially affect the Company’s results of operations or cash flows, or both, in a particular quarter. During the six November 27, 2016, $500,000, $0.01 ’s best estimate of settlement charges for all legal matters currently underway. Recently Adopted Accounting Guidance Debt Extinguishment Costs In August 2016, 2016 15, Statement of Cash Flows (Topic 230) 2016 15”). 2016 15 230. 2016 15 eight one 15 December 2017, 2016 15 November 27, 2016. $233,000 November 27, 2016. Debt Issuance Costs In April 2015, 2015 03, Interest - Imputation of Interest (Subtopic 835 30): 2015 03”). In August 2015, 2015 15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated With Line - of - Credit Arrangements 2015 15”). 2015 15 835 30 The Company adopted ASU 2015 03 2015 15 first August 28, 2016 May 29, 2016 2015 03 $817,000 May 29, 2016 May 29, 2016 (1) $175,000 (2) $642,000 (3) $817,000 2015 15 $120,00 $459,000 November 27, 2016. 2015 03 2015 15 Stock - Based Compensation In March 2016, 2016 09, Compensation - Stock Compensation (Topic 718): 2016 09”). May 29, 2017, The Company elected to early adopt the new guidance in for the quarter beginning May 30, 2016. (1) $549,000 (2) $200,000 $126,000 $74,000 (3) $90,000 six November 29, 2015 5 – Income Taxes for further information regarding additional effects related to the prospective application of excess tax benefits and tax deficiencies related to stock - based compensation on the Company’s financial statements. Recent Accounting Guidance Not Yet Adopted Leases In February 2016, 2016 02, Leases (Topic 842) 2016 02”), 2016 02 first 2020 2016 02 Revenue Recognition In May 2014, 2014 09, 606 , Revenue from Contracts with Customers 605, Revenue Recognition 2014 09”). five 2014 09 2015 14, Revenue from Contracts with Customers: Deferral of the Effective Date (Topic 606) one 2014 09 December 15, 2017, December 15, 2016. March 2016, 2016 08, Revenue from Contracts with Customers (Topic 606) 2014 09. April 2016, 2016 10, Revenue from Contracts with Customers Topic 606 Identifying Performance Obligations and Licensing, two 606: 2014 09. May 2016, 2016 12, Revenue from Contracts with Customers (Topic 606): 606 first 2019.

Note 2 - Investment in Non-publ

Note 2 - Investment in Non-public Company	6 Months Ended
	Nov. 27, 2016
Notes to Financial Statements
Investment Holdings [Text Block]	2. Investment in Non - public Company On February 15, 2011, Apio entered into a share purchase agreement (the “Windset Purchase Agreement”) with Windset. Pursuant to the Windset Purchase Agreement, Apio purchased from Windset 150,000 $15 201 $201. July 15, 2014, 68 51,211 $11 26.9% 7.5% 90 The Windset Purchase Agreement includes a put and call option, which can be exercised on the sixth 26.9% ’s common shares, plus the liquidation value of the preferred shares of $20.1 ($15 $5.1 one five On October 29, 2014, 70,000 $7 7.5% $1.5 first $2.75 second $2.75 third third may February 15, 2017, ’s partial call provision is restricted such that a partial call cannot result in Apio holding less than 10% 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 During each of the three November 27, 2016 November 29, 2015, $412,500 six November 27, 2016 November 29, 2015, $825,000 ’s investment in Windset for the three November 27, 2016 November 29, 2015 $0 $200,000, six November 27, 2016 November 29, 2015 $0 $1.0

Note 3 - Stock-based Compensati

Note 3 - Stock-based Compensation	6 Months Ended
	Nov. 27, 2016
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	3. Stock - Based Compensation The Company ’s stock - based awards include stock option grants and restricted stock unit awards (“RSUs”). The Company records compensation expense for stock - based awards issued to employees and directors in exchange for services provided based on the estimated fair value of the awards on their grant dates and is recognized over the required service periods, generally the vesting period. The following table summarizes the stock - based compensation for options and RSUs (in thousands): Three Months Ended Six Months Ended November 27, 2016 November 29, 2015 November 27, 2016 November 29, 2015 Options $ 307 $ 360 $ 599 $ 690 RSUs 659 540 1,174 1,007 Total stock-based compensation $ 966 $ 900 $ 1,773 $ 1,697 The following table summarizes the stock - based compensation by income statement line item (in thousands): Three Months Ended Six Months Ended November 27, 2016 November 29, 2015 November 27, 2016 November 29, 2015 Cost of sales $ 124 $ 100 $ 237 $ 198 Research and development 23 23 46 45 Selling, general and administrative 819 777 1,490 1,454 Total stock-based compensation $ 966 $ 900 $ 1,773 $ 1,697 The estimated fair value for stock options, which determines the Company ’s calculation of stock - based compensation expense, is based on the Black - Scholes option pricing model. RSUs are valued at the closing market price of the Company’s common stock on the date of grant. The Company uses the straight - line single option method to calculate and recognize the fair value of stock - based compensation arrangements. As of November 27, 2016, $6.5 1.8 1.7

Note 4 - Diluted Net Income Per

Note 4 - Diluted Net Income Per Share	6 Months Ended
	Nov. 27, 2016
Notes to Financial Statements
Earnings Per Share [Text Block]	4. Diluted Net Income Per Share The following table sets forth the computation of diluted net income per share (in thousands, except per share amounts): Three Months Ended Six Months Ended November 27, 2016 November 29, 2015 November 27, 2016 November 29, 2015 Numerator: Net income applicable to Common Stockholders $ 1,326 $ 1,868 $ 4,638 $ 4,820 Denominator: Weighted average shares for basic net income per share 27,249 27,021 27,234 27,013 Effect of dilutive securities: Stock options and restricted stock units 369 399 338 404 Weighted average shares for diluted net income per share 27,618 27,420 27,572 27,417 Diluted net income per share $ 0.05 $ 0.07 $ 0.17 $ 0.18 For the three November 27, 2016 November 29, 2015, 1,266,040 1,140,789 For the six November 27, 2016 November 27, 2015, 1,415,024 1,119,543

Note 5 - Income Taxes

Note 5 - Income Taxes	6 Months Ended
	Nov. 27, 2016
Notes to Financial Statements
Income Tax Disclosure [Text Block]	5. Income Taxes The provision for income taxes for the three November 27, 2016 November 29, 2015 $693,000 $1.1 six November 27, 2016 November 29, 2015 $2.6 $2.8 three November 27, 2016 34%. three November 27, 2016 35% due to the domestic manufacturing deduction and research and development credits; partially offset by state taxes and non - deductible stock - based compensation expense. The effective tax rate for the six November 27, 2016 three six November 29, 2015 36%. six November 27, 2016 three six November 29, 2015 35% As of November 27, 2016 May 29, 2016, $904,000 $842,000, Included in the balance of unrecognized tax benefits as of November 27, 2016 May 29, 2016 $764,000 $715,000, twelve November 27, 2016, $300,000 may During the six November 27, 2016, $59,000 2016 09, 1 – Organization, Basis of Presentation, and Summary of Significant Accounting Policies for further discussion regarding the adoption of ASU 2016 09. The Company has elected to classify interest and penalties related to uncertain tax positions as a component of its provision for income taxes. The Company has accrued an insignificant amount of interest and penalties relating to the income tax on the unrecognized tax benefits as of November 27, 2016 May 29, 2016. Due to tax attribute carryforwards, the Company is subject to examination for tax years 1997 1998

Note 6 - Inventories

Note 6 - Inventories	6 Months Ended
	Nov. 27, 2016
Notes to Financial Statements
Inventory Disclosure [Text Block]	6. Inventories Inventories are stated at the lower of cost (first first November 27, 2016 May 29, 2016 Finished goods $ 10,736 $ 12,165 Raw materials 4,190 9,855 Work in progress 13,044 3,515 Total $ 27,970 $ 25,535

Note 7 - Debt

Note 7 - Debt	6 Months Ended
	Nov. 27, 2016
Notes to Financial Statements
Debt Disclosure [Text Block]	7. Debt Long - term debt, net consists of the following (in thousands): November 27, 2016 May 29, 2016 Term loan with JPMorgan Chase Bank (“JPMorgan”), BMO Harris Bank N,A. (“BMO”), and City National Bank; due in quarterly principal and interest payments of $1,250 beginning December 1, 2016 through September 23, 2021 with the remainder due on maturity, with interest based on the Company ’s leverage ratio at a per annum rate of the Eurodollar rate plus a spread of between 1.25% and 2.25% $ 50,000 $ — Real property loan agreement with General Electric Capital Corporation (“GE Capital”); due in monthly principal and interest payments of $133 through May 1, 2022 with interest based on a fixed rate of 4.02% per annum — 14,167 Capital equipment loan with GE Capital; due in monthly principal and interest payments of $175 through May 1, 2019 with interest based on a fixed rate of 4.39% per annum — 5,904 Capital equipment loan with GE Capital; due in monthly principal and interest payments of $95 through July 17, 2019 with interest based on a fixed rate of 3.68% per annum — 5,558 Capital equipment loan with GE Capital; due in monthly principal and interest payments of $56 through December 1, 2019 with interest based on a fixed rate of 3.74% per annum — 3,375 Capital equipment loan with Bank of America (“BofA”); due in monthly principal and interest payments of $68 through June 28, 2020 with interest based on a fixed rate of 2.79% per annum — 3,158 Real property loan agreement with GE Capital; due in monthly principal payments of $32 through March 1, 2026, plus interest payable monthly at LIBOR plus 2.25% per annum — 7,622 Capital equipment loan with GE Capital; due in monthly principal payments of $108 through March 1, 2021, plus interest payable monthly at LIBOR plus 2.25% per annum — 8,873 Capital equipment loan with BofA; due in monthly principal and interest payments of $75 through November 27, 2020 with interest based on a fixed rate of 2.92% per annum — 3,940 Industrial revenue bonds (“IRBs”) issued by Lifecore; due in annual payments through 2020 with interest at a variable rate set weekly by the bond remarketing agent (0.59% at May 29, 2016) — 2,065 Total principal amount of long-term debt 50,000 54,662 Less: unamortized debt issuance costs (289 ) (817 ) Total long-term debt, net of unamortized debt issuance costs 49,711 53,845 Less: current portion of long-term debt, net (4,940 ) (7,873 ) Long-term debt, net $ 44,771 $ 45,972 On September 23, 2016, $100 $50 ’s direct and indirect subsidiaries and secured by substantially all of the Company’s assets, with the exception of the Company’s investment in Windset. Both the Revolver and the Term Loan mature in five September 23, 2021), $1.25 December 1, 2016, Interest on both the Revolver and the Term Loan is based either the prime rate or Eurodollar rate, at the Company ’s discretion, plus a spread based on the Company’s leverage ratio (generally defined as the ratio of the Company’s total indebtedness on such date to the Company’s consolidated earnings before interest, taxes, depreciation, and amortization (“EBITDA”) for the period of four 0.25% 1.25% 1.25% 2.25% The Credit Agreement also contains an accordion feature that provides the Company the right to increase the Revolver commitments and/or the Term Loan commitments by obtaining additional commitments either from one $75 The Credit Agreement contains customary financial covenants and events of default under which the obligation could be accelerated and/or the interest rate increased. The Company was in compliance with all financial covenants as of November 27, 2016. On November 1, 2016, $50 ’s Term Loan obligation from a variable interest rate to a fixed 30 1.22%. November 27, 2016, 2.97%. 1 In connection with the Credit Agreement, the Company incurred lender and third $897,000, $598,000 $299,000 As of November 27, 2016, $1.5 November 27, 2016, 2.29%. Concurrent with the close of the Credit Agreement, all of the proceeds of the Term Loan, and $1.5 $1.2 $233,000 November 27, 2016, ’s then existing debt as of September 23, 2016.

Note 8 - Related Party

Note 8 - Related Party	6 Months Ended
	Nov. 27, 2016
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	8. Related Party The Company sells products to and earns license fees from Windset. During the three November 27, 2016 November 29, 2015, $75,000 $140,000, six November 27, 2016 November 29, 2015, $193,000 $266,000, receivable balances of $183,000 $523,000 November 27, 2016 May 29, 2016, All related party transactions are monitored quarterly by the Company and approved by the Audit Committee of the Board of Directors.

Note 9 - Stockholders' Equity

Note 9 - Stockholders' Equity	6 Months Ended
	Nov. 27, 2016
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	9. Stockholders ’ Equity During the three November 27, 2016, 100,522 six November 27, 2016, 180,000 110,522 As of November 27, 2016, 2.6 On July 14, 2010, $10 ’s Common Stock. The Company may may three six November 27, 2016,

Note 10 - Comprehensive Income

Note 10 - Comprehensive Income	6 Months Ended
	Nov. 27, 2016
Notes to Financial Statements
Comprehensive Income (Loss) Note [Text Block]	10. Comprehensive Income Comprehensive income consists of two ’ 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 a cash flow hedge. The components of OCI, net of tax, were as follows (in thousands): Unrealized Gains on Cash Flow Hedge Balance as of August 28, 2016 $ - Other comprehensive income before reclassifications, net of tax effect 327 Amounts reclassified from OCI (- ) Other comprehensive income, net 327 Balance as of November 27, 2016 327 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

Note 11 - Business Segment Repo

Note 11 - Business Segment Reporting	6 Months Ended
	Nov. 27, 2016
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	11. Business Segment Reporting The Company manages its business operations through three The Packaged Fresh Vegetables segment markets and packs specialty packaged whole and fresh - cut vegetables, the majority of which incorporate the BreatheWay specialty packaging for the retail grocery, club store, and food services industries. In addition, the Packaged Fresh Vegetables segment sells BreatheWay packaging to partners for fruit and vegetable products. The Food Export segment consists of revenues generated from the purchase and sale of primarily whole commodity fruit and vegetable products primarily to Asia. The Biomaterials segment sells products utilizing hyaluronan, a naturally occurring polysaccharide that is widely distributed in the extracellular matrix of connective tissues in both animals and humans, and non - HA products for medical use primarily in the Ophthalmic, Orthopedic, and other markets. Corporate licenses Landec’s Intelimer polymers for agricultural products, personal care products, and other industrial products. The Corporate segment also includes general and administrative expenses, non - Packaged Fresh Vegetables and non - Biomaterials interest income and income tax expenses. All of the assets of the Company are located within the United States of America. The Company’s international sales were as follows (in millions): Three Months Ended Six Months Ended November 27, 2016 November 29, 2015 November 27, 2016 November 29, 2015 Canada $ 16.3 $ 20.0 $ 34.0 $ 40.4 Taiwan $ 11.1 $ 12.4 $ 24.9 $ 25.4 China $ 6.3 $ 3.3 $ 11.4 $ 7.3 Indonesia $ 3.6 $ 2.5 $ 5.1 $ 3.9 Japan $ 2.9 $ 1.6 $ 4.9 $ 3.6 Belgium $ 1.6 $ 0.2 $ 6.9 $ 1.0 Philippines $ 0.7 $ 0.6 $ 1.3 $ 1.5 All Other Countries $ 3.5 $ 3.4 $ 5.7 $ 7.1 Operations by business segment consisted of the following (in thousands): Three Months Ended November 27, 2016 Packaged Fresh Vegetables Food Export Biomaterials Corporate Total Net sales $ 97,978 $ 25,701 $ 11,931 $ 255 $ 135,865 International sales $ 16,422 $ 25,701 $ 3,831 $ — $ 45,954 Gross profit $ 12,001 $ 1,850 $ 4,938 $ 164 $ 18,953 Net income (loss) $ (250 ) $ 733 $ 1,312 $ (469 ) $ 1,326 Depreciation and amortization $ 1,792 $ 2 $ 719 $ 37 $ 2,560 Dividend income $ 413 $ — $ — $ — $ 413 Interest income $ 3 $ — $ — $ — $ 3 Interest expense $ 122 $ — $ (90 ) $ 348 $ 380 Income tax expense (benefit) $ (142 ) $ 207 $ 388 $ 240 $ 693 Three Months Ended November 29, 2015 Net sales $ 107,164 $ 22,140 $ 10,249 $ 888 $ 140,441 International sales $ 19,800 $ 22,140 $ 2,032 $ — $ 43,972 Gross profit $ 9,979 $ 1,676 $ 4,881 $ 729 $ 17,265 Net income (loss) $ (658 ) $ 1,176 $ 1,393 $ (43 ) $ 1,868 Depreciation and amortization $ 1,448 $ — $ 641 $ 39 $ 2,128 Dividend income $ 413 $ — $ — $ — $ 413 Interest income $ 16 $ — $ — $ — $ 16 Interest expense $ 410 $ — $ 29 $ — $ 439 Income tax expense (benefit) $ (16 ) $ 161 $ 393 $ 531 $ 1,069 Six Months Ended November 27, 2016 Net sales $ 193,923 $ 49,040 $ 24,263 $ 1,033 $ 268,259 International sales $ 34,266 $ 49,040 $ 10,873 $ — $ 94,179 Gross profit $ 26,407 $ 2,878 $ 10,060 $ 752 $ 40,097 Net income (loss) $ 2,073 $ 928 $ 2,555 $ (918 ) $ 4,638 Depreciation and amortization $ 3,612 $ 3 $ 1,431 $ 64 $ 5,110 Dividend income $ 825 $ — $ — $ — $ 825 Interest income $ 7 $ — $ — $ — $ 7 Interest expense $ 671 $ — $ 13 $ 348 $ 1,032 Income tax expense $ 513 $ 262 $ 738 $ 1,069 $ 2,582 Six Months Ended November 29, 2015 Net sales $ 210,870 $ 44,484 $ 19,047 $ 1,395 $ 275,796 International sales $ 40,605 $ 44,484 $ 5,159 $ — $ 90,248 Gross profit $ 23,231 $ 2,679 $ 8,096 $ 1,236 $ 35,242 Net income (loss) $ 2,602 $ 1,277 $ 1,461 $ (520 ) $ 4,820 Depreciation and amortization $ 3,015 $ 1 $ 1,246 $ 77 $ 4,339 Dividend income $ 825 $ — $ — $ — $ 825 Interest income $ 22 $ — $ 25 $ — $ 47 Interest expense $ 877 $ — $ 64 $ — $ 941 Income tax expense $ 905 $ 189 $ 412 $ 1,254 $ 2,760 During the six November 27, 2016 November 29, 2015, ’s top five 44% 45%, two 17% 13% six November 27, 2016, 19% 11% six November 29, 2015. may

Significant Accounting Policies

Significant Accounting Policies (Policies)	6 Months Ended
	Nov. 27, 2016
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation The accompanying unaudited consolidated financial statements of Landec have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and with the instructions for Form 10 10 November 27, 2016 10 May 29, 2016. The results of operations for the six November 27, 2016 may ’s food business, particularly, Apio’s export business, and the order patterns of Lifecore’s customers which may
Consolidation, Policy [Policy Text Block]	Basis of Consolidation The consolidated financial statements are presented on the accrual basis of accounting in accordance with GAAP and include the accounts of Landec Corporation and its subsidiaries, Apio and Lifecore. All intercompany transactions and balances have been eliminated. 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 party, including equity holders, or b) as a group the holders of the equity investment at risk lack any one three 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 its partnership interest in Apio Cooling, LP (see below) and its equity investment in the non - public company (see Note 2)
Use of Estimates, Policy [Policy Text Block]	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; the valuation of 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 ’s estimates.
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash and Cash Equivalents The Company records all highly liquid securities with three
Debt Issuance Costs [Policy Text Block]	Debt Issuance Costs The Company records its line of credit debt issuance costs as an asset, and as such, $120,000 $459,000 November 27, 2016. $60,000 $229,000 November 27, 2016 7).
Fair Value of Financial Instruments, Policy [Policy Text Block]	F inancial Instruments The Company ’s financial instruments are primarily composed of commercial - term trade payables, grower advances, notes receivable, and debt instruments. For short - term instruments, the historical carrying amount approximates the fair value of the instrument. The fair value of long - term debt approximates its carrying value. Cash Flow Hedges The Company entered into an interest rate swap agreement to manage interest rate risk. This derivative instrument may 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 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. For additional information refer to Note 10 – Comprehensive Income.
Investment In Non Public Companies [Policy Text Block]	Investment in Non - Public Company On February 15, 2011, 150,000 $15 201 $201 2010 (“Windset”). On July 15, 2014, 68 51,211 $11 October 29, 2014, 70,000 $7 November 27, 2016 May 29, 2016. 2).
Goodwill and Intangible Assets, Policy [Policy Text Block]	Intangible Assets The Company ’s intangible assets are comprised of customer relationships with a finite estimated useful life of twelve thirteen 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 350 30 35.
Self Insurance Reserve [Policy Text Block]	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 and represents management's best estimate of the amounts that have been incurred but not yet been paid as of November 27, 2016 May 29, 2016. may
Fair Value Measurement, Policy [Policy Text Block]	Fair Value Measurements The Company uses fair value measurement accounting for financial assets and liabilities and for financial instruments and certain other items measured at fair value. The Company has elected the fair value option for its investment in a non - public company (see Note 2). The accounting guidance established a three 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 November 27, 2016 May 29, 2016, The fair value of the Company ’s interest rate swap is determined based on model inputs that can be observed in a liquid market, including yield curves, and is categorized as a Level 2 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 six November 27, 2016. November 27, 2016 May 29, 2016 Revenue growth rates 4% 4% Expense growth rates 4% 4% Income tax rates 15% 15% Discount rates 12% 12.5% 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 investment in Windset as of November 27, 2016 10% increase in revenue growth rates $ 400 10% increase in expense growth rates $ (400 ) 10% increase in income tax rates $ — 10% increase in discount rates $ (200 ) 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 November 27, 2016 Fair Value at May 29, 2016 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Interest rate swap (1) $ — $ 519 $ — $ — $ — $ — Investment in non-public company — — 62,700 — — 62,700 Total $ — $ 519 $ 62,700 $ — $ — $ 62,700 (1) Recorded in Other assets.
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition See Note 11 – Business Segment Reporting, for a discussion about the Company’s four Revenue from product sales is recognized when there is persuasive evidence that an arrangement exists, title has transferred, the price is fixed and determinable, and collectability is reasonably assured. Allowances are established for estimated uncollectible amounts, product returns, and discounts based on specific identification and historical losses. Apio ’s Packaged Fresh Vegetables revenues generally consist of revenues generated from the sale of specialty packaged fresh - cut and whole value - added vegetable products that are generally washed and packaged in Apio’s proprietary packaging and sold under Apio’s Eat Smart and GreenLine brands and various private labels. Revenue is generally recognized upon shipment of these products to customers. The Company takes title to all produce it trades and/or packages, and therefore, records revenues and cost of sales at gross amounts in the Consolidated Statements of Comprehensive Income. In addition, Packaged Fresh Vegetables revenues include the revenues generated from Apio Cooling, LP, a vegetable cooling operation in which Apio is the general partner with a 60% ’s customers. Sales of BreatheWay packaging are recognized when shipped to Apio’s customers. Apio ’s Food Export revenues consist of revenues generated from the purchase and sale of primarily whole commodity fruit and vegetable products to Asia through its subsidiary, Cal - Ex Trading Company (“Cal - Ex”). As most Cal - Ex customers are in countries outside of the U.S., title transfers and revenue is generally recognized upon arrival of the shipment in the foreign port. Apio records revenue equal to the sale price to third Lifecore ’s Biomaterials business principally generates revenue through the sale of products containing HA. Lifecore primarily sells products to customers in three (1) 55% 2016, (2) 20% 2016, (3) 25% 2016. Lifecore ’s business development revenues, a portion of which are included in all three Contract R&D revenue is recorded as earned, based on the performance requirements of the contract. Non - refundable contract fees for which no further performance obligations exist, and there is no continuing involvement by the Company, are recognized on the earlier of when the payment is received or collection is assured. For sales arrangements that contain multiple elements, the Company splits the arrangement into separate units of accounting if the individually delivered elements have value to the customer on a standalone basis. The Company also evaluates whether multiple transactions with the same customer or related party should be considered part of a multiple element arrangement, whereby the Company assesses, among other factors, whether the contracts or agreements are negotiated or executed within a short time frame of each other or if there are indicators that the contracts are negotiated in contemplation of each other. The Company then allocates revenue to each element based on a selling price hierarchy. The relative selling price for a deliverable is based on its vendor - specific objective evidence (“VSOE”), if available, third The Company limits the amount of revenue recognition for delivered elements to the amount that is not contingent on the future delivery of products or services or future performance obligations or subject to customer - specific cancellation rights. The Company evaluates each deliverable in an arrangement to determine whether it represents a separate unit of accounting. A deliverable constitutes a separate unit of accounting when it has stand - alone value, and for an arrangement that includes a general right of return relative to the delivered products or services, delivery or performance of the undelivered product or service is considered probable and is substantially controlled by the Company. The Company considers a deliverable to have stand - alone value if the product or service is sold separately by the Company or another vendor or could be resold by the customer. Further, the revenue arrangements generally do not include a general right of return relative to delivered products. Where the aforementioned criteria for a separate unit of accounting are not met, the deliverable is combined with the undelivered element(s) and treated as a single unit of accounting for the purposes of allocation of the arrangement consideration and revenue recognition. The Company allocates the total arrangement consideration to each separable element of an arrangement based upon the relative selling price of each element. Allocation of the consideration is determined at arrangement inception on the basis of each unit ’s relative selling price. In instances where the Company has not established fair value for any undelivered element, revenue for all elements is deferred until delivery of the final element is completed and all recognition criteria are met. For licensing revenue, the initial license fees are deferred and amortized to revenue over the period of the agreement when a contract exists, the fee is fixed and determinable, and collectability is reasonably assured. Noncancellable, nonrefundable license fees are recognized over the period of the agreement, including those governing research and development activities and any related supply agreement entered into concurrently with the license when the risk associated with commercialization of a product is non - substantive at the outset of the arrangement. From time to time, the Company offers customers sales incentives, which include volume rebates and discounts. These amounts are estimated on a quarterly basis and recorded as a reduction of revenue. A summary of revenues by type of arrangement as described above is as follows (in thousands): Three Months Ended Six Months Ended November 27, 2016 November 29, 2015 November 27, 2016 November 29, 2015 Recorded upon shipment $ 107,987 $ 112,709 $ 214,152 $ 223,125 Recorded upon acceptance in foreign port 25,701 22,140 49,040 44,484 Revenue from multiple element arrangements 1,683 4,058 3,268 5,647 Revenue from license fees, R&D contracts and royalties/profit sharing 494 1,534 1,799 2,540 Total $ 135,865 $ 140,441 $ 268,259 $ 275,796
Legal Costs, Policy [Policy Text Block]	Legal Contingencies In the ordinary course of business, the Company is involved in various legal proceedings and claims related to matters such as wage and hour 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, estimated settlements, legal rulings, advice of legal counsel, and other information and events pertaining to a particular matter. In management ’s opinion, resolution of all current matters is not expected to have a material adverse impact on the Company’s consolidated financial statements. However, depending on the nature and timing of any such dispute, an unfavorable resolution of a matter could materially affect the Company’s results of operations or cash flows, or both, in a particular quarter. During the six November 27, 2016, $500,000, $0.01 ’s best estimate of settlement charges for all legal matters currently underway.
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Adopted Accounting Guidance Debt Extinguishment Costs In August 2016, 2016 15, Statement of Cash Flows (Topic 230) 2016 15”). 2016 15 230. 2016 15 eight one 15 December 2017, 2016 15 November 27, 2016. $233,000 November 27, 2016. Debt Issuance Costs In April 2015, 2015 03, Interest - Imputation of Interest (Subtopic 835 30): 2015 03”). In August 2015, 2015 15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated With Line - of - Credit Arrangements 2015 15”). 2015 15 835 30 The Company adopted ASU 2015 03 2015 15 first August 28, 2016 May 29, 2016 2015 03 $817,000 May 29, 2016 May 29, 2016 (1) $175,000 (2) $642,000 (3) $817,000 2015 15 $120,00 $459,000 November 27, 2016. 2015 03 2015 15 Stock - Based Compensation In March 2016, 2016 09, Compensation - Stock Compensation (Topic 718): 2016 09”). May 29, 2017, The Company elected to early adopt the new guidance in for the quarter beginning May 30, 2016. (1) $549,000 (2) $200,000 $126,000 $74,000 (3) $90,000 six November 29, 2015 5 – Income Taxes for further information regarding additional effects related to the prospective application of excess tax benefits and tax deficiencies related to stock - based compensation on the Company’s financial statements. Recent Accounting Guidance Not Yet Adopted Leases In February 2016, 2016 02, Leases (Topic 842) 2016 02”), 2016 02 first 2020 2016 02 Revenue Recognition In May 2014, 2014 09, 606 , Revenue from Contracts with Customers 605, Revenue Recognition 2014 09”). five 2014 09 2015 14, Revenue from Contracts with Customers: Deferral of the Effective Date (Topic 606) one 2014 09 December 15, 2017, December 15, 2016. March 2016, 2016 08, Revenue from Contracts with Customers (Topic 606) 2014 09. April 2016, 2016 10, Revenue from Contracts with Customers Topic 606 Identifying Performance Obligations and Licensing, two 606: 2014 09. May 2016, 2016 12, Revenue from Contracts with Customers (Topic 606): 606 first 2019.

Note 1 - Organization, Basis 21

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Nov. 27, 2016
Notes Tables
Schedule of Effect of Significant Unobservable Inputs for Investment [Table Text Block]	November 27, 2016 May 29, 2016 Revenue growth rates 4% 4% Expense growth rates 4% 4% Income tax rates 15% 15% Discount rates 12% 12.5%
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets [Table Text Block]	Impact on value of investment in Windset as of November 27, 2016 10% increase in revenue growth rates $ 400 10% increase in expense growth rates $ (400 ) 10% increase in income tax rates $ — 10% increase in discount rates $ (200 )
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	Fair Value at November 27, 2016 Fair Value at May 29, 2016 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Interest rate swap (1) $ — $ 519 $ — $ — $ — $ — Investment in non-public company — — 62,700 — — 62,700 Total $ — $ 519 $ 62,700 $ — $ — $ 62,700
Revenue Recognition, Multiple-deliverable Arrangements [Table Text Block]	Three Months Ended Six Months Ended November 27, 2016 November 29, 2015 November 27, 2016 November 29, 2015 Recorded upon shipment $ 107,987 $ 112,709 $ 214,152 $ 223,125 Recorded upon acceptance in foreign port 25,701 22,140 49,040 44,484 Revenue from multiple element arrangements 1,683 4,058 3,268 5,647 Revenue from license fees, R&D contracts and royalties/profit sharing 494 1,534 1,799 2,540 Total $ 135,865 $ 140,441 $ 268,259 $ 275,796

Note 3 - Stock-based Compensa22

Note 3 - Stock-based Compensation (Tables)	6 Months Ended
	Nov. 27, 2016
Notes Tables
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	Three Months Ended Six Months Ended November 27, 2016 November 29, 2015 November 27, 2016 November 29, 2015 Options $ 307 $ 360 $ 599 $ 690 RSUs 659 540 1,174 1,007 Total stock-based compensation $ 966 $ 900 $ 1,773 $ 1,697 Three Months Ended Six Months Ended November 27, 2016 November 29, 2015 November 27, 2016 November 29, 2015 Cost of sales $ 124 $ 100 $ 237 $ 198 Research and development 23 23 46 45 Selling, general and administrative 819 777 1,490 1,454 Total stock-based compensation $ 966 $ 900 $ 1,773 $ 1,697

Note 4 - Diluted Net Income P23

Note 4 - Diluted Net Income Per Share (Tables)	6 Months Ended
	Nov. 27, 2016
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended Six Months Ended November 27, 2016 November 29, 2015 November 27, 2016 November 29, 2015 Numerator: Net income applicable to Common Stockholders $ 1,326 $ 1,868 $ 4,638 $ 4,820 Denominator: Weighted average shares for basic net income per share 27,249 27,021 27,234 27,013 Effect of dilutive securities: Stock options and restricted stock units 369 399 338 404 Weighted average shares for diluted net income per share 27,618 27,420 27,572 27,417 Diluted net income per share $ 0.05 $ 0.07 $ 0.17 $ 0.18

Note 6 - Inventories (Tables)

Note 6 - Inventories (Tables)	6 Months Ended
	Nov. 27, 2016
Notes Tables
Schedule of Inventory, Current [Table Text Block]	November 27, 2016 May 29, 2016 Finished goods $ 10,736 $ 12,165 Raw materials 4,190 9,855 Work in progress 13,044 3,515 Total $ 27,970 $ 25,535

Note 7 - Debt (Tables)

Note 7 - Debt (Tables)	6 Months Ended
	Nov. 27, 2016
Notes Tables
Schedule of Long-term Debt Instruments [Table Text Block]	November 27, 2016 May 29, 2016 Term loan with JPMorgan Chase Bank (“JPMorgan”), BMO Harris Bank N,A. (“BMO”), and City National Bank; due in quarterly principal and interest payments of $1,250 beginning December 1, 2016 through September 23, 2021 with the remainder due on maturity, with interest based on the Company ’s leverage ratio at a per annum rate of the Eurodollar rate plus a spread of between 1.25% and 2.25% $ 50,000 $ — Real property loan agreement with General Electric Capital Corporation (“GE Capital”); due in monthly principal and interest payments of $133 through May 1, 2022 with interest based on a fixed rate of 4.02% per annum — 14,167 Capital equipment loan with GE Capital; due in monthly principal and interest payments of $175 through May 1, 2019 with interest based on a fixed rate of 4.39% per annum — 5,904 Capital equipment loan with GE Capital; due in monthly principal and interest payments of $95 through July 17, 2019 with interest based on a fixed rate of 3.68% per annum — 5,558 Capital equipment loan with GE Capital; due in monthly principal and interest payments of $56 through December 1, 2019 with interest based on a fixed rate of 3.74% per annum — 3,375 Capital equipment loan with Bank of America (“BofA”); due in monthly principal and interest payments of $68 through June 28, 2020 with interest based on a fixed rate of 2.79% per annum — 3,158 Real property loan agreement with GE Capital; due in monthly principal payments of $32 through March 1, 2026, plus interest payable monthly at LIBOR plus 2.25% per annum — 7,622 Capital equipment loan with GE Capital; due in monthly principal payments of $108 through March 1, 2021, plus interest payable monthly at LIBOR plus 2.25% per annum — 8,873 Capital equipment loan with BofA; due in monthly principal and interest payments of $75 through November 27, 2020 with interest based on a fixed rate of 2.92% per annum — 3,940 Industrial revenue bonds (“IRBs”) issued by Lifecore; due in annual payments through 2020 with interest at a variable rate set weekly by the bond remarketing agent (0.59% at May 29, 2016) — 2,065 Total principal amount of long-term debt 50,000 54,662 Less: unamortized debt issuance costs (289 ) (817 ) Total long-term debt, net of unamortized debt issuance costs 49,711 53,845 Less: current portion of long-term debt, net (4,940 ) (7,873 ) Long-term debt, net $ 44,771 $ 45,972

Note 10 - Comprehensive Income

Note 10 - Comprehensive Income (Tables)	6 Months Ended
	Nov. 27, 2016
Notes Tables
Comprehensive Income (Loss) [Table Text Block]	Unrealized Gains on Cash Flow Hedge Balance as of August 28, 2016 $ - Other comprehensive income before reclassifications, net of tax effect 327 Amounts reclassified from OCI (- ) Other comprehensive income, net 327 Balance as of November 27, 2016 327

Note 11 - Business Segment Re27

Note 11 - Business Segment Reporting (Tables)	6 Months Ended
	Nov. 27, 2016
Notes Tables
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]	Three Months Ended Six Months Ended November 27, 2016 November 29, 2015 November 27, 2016 November 29, 2015 Canada $ 16.3 $ 20.0 $ 34.0 $ 40.4 Taiwan $ 11.1 $ 12.4 $ 24.9 $ 25.4 China $ 6.3 $ 3.3 $ 11.4 $ 7.3 Indonesia $ 3.6 $ 2.5 $ 5.1 $ 3.9 Japan $ 2.9 $ 1.6 $ 4.9 $ 3.6 Belgium $ 1.6 $ 0.2 $ 6.9 $ 1.0 Philippines $ 0.7 $ 0.6 $ 1.3 $ 1.5 All Other Countries $ 3.5 $ 3.4 $ 5.7 $ 7.1
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three Months Ended November 27, 2016 Packaged Fresh Vegetables Food Export Biomaterials Corporate Total Net sales $ 97,978 $ 25,701 $ 11,931 $ 255 $ 135,865 International sales $ 16,422 $ 25,701 $ 3,831 $ — $ 45,954 Gross profit $ 12,001 $ 1,850 $ 4,938 $ 164 $ 18,953 Net income (loss) $ (250 ) $ 733 $ 1,312 $ (469 ) $ 1,326 Depreciation and amortization $ 1,792 $ 2 $ 719 $ 37 $ 2,560 Dividend income $ 413 $ — $ — $ — $ 413 Interest income $ 3 $ — $ — $ — $ 3 Interest expense $ 122 $ — $ (90 ) $ 348 $ 380 Income tax expense (benefit) $ (142 ) $ 207 $ 388 $ 240 $ 693 Three Months Ended November 29, 2015 Net sales $ 107,164 $ 22,140 $ 10,249 $ 888 $ 140,441 International sales $ 19,800 $ 22,140 $ 2,032 $ — $ 43,972 Gross profit $ 9,979 $ 1,676 $ 4,881 $ 729 $ 17,265 Net income (loss) $ (658 ) $ 1,176 $ 1,393 $ (43 ) $ 1,868 Depreciation and amortization $ 1,448 $ — $ 641 $ 39 $ 2,128 Dividend income $ 413 $ — $ — $ — $ 413 Interest income $ 16 $ — $ — $ — $ 16 Interest expense $ 410 $ — $ 29 $ — $ 439 Income tax expense (benefit) $ (16 ) $ 161 $ 393 $ 531 $ 1,069 Six Months Ended November 27, 2016 Net sales $ 193,923 $ 49,040 $ 24,263 $ 1,033 $ 268,259 International sales $ 34,266 $ 49,040 $ 10,873 $ — $ 94,179 Gross profit $ 26,407 $ 2,878 $ 10,060 $ 752 $ 40,097 Net income (loss) $ 2,073 $ 928 $ 2,555 $ (918 ) $ 4,638 Depreciation and amortization $ 3,612 $ 3 $ 1,431 $ 64 $ 5,110 Dividend income $ 825 $ — $ — $ — $ 825 Interest income $ 7 $ — $ — $ — $ 7 Interest expense $ 671 $ — $ 13 $ 348 $ 1,032 Income tax expense $ 513 $ 262 $ 738 $ 1,069 $ 2,582 Six Months Ended November 29, 2015 Net sales $ 210,870 $ 44,484 $ 19,047 $ 1,395 $ 275,796 International sales $ 40,605 $ 44,484 $ 5,159 $ — $ 90,248 Gross profit $ 23,231 $ 2,679 $ 8,096 $ 1,236 $ 35,242 Net income (loss) $ 2,602 $ 1,277 $ 1,461 $ (520 ) $ 4,820 Depreciation and amortization $ 3,015 $ 1 $ 1,246 $ 77 $ 4,339 Dividend income $ 825 $ — $ — $ — $ 825 Interest income $ 22 $ — $ 25 $ — $ 47 Interest expense $ 877 $ — $ 64 $ — $ 941 Income tax expense $ 905 $ 189 $ 412 $ 1,254 $ 2,760

Note 1 - Organization, Basis 28

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies (Details Textual) - USD ($)		Jul. 15, 2014	Oct. 29, 2014	Feb. 15, 2011	Nov. 27, 2016	Aug. 28, 2016	Nov. 27, 2016	Nov. 29, 2015	[1]	May 29, 2016	May 30, 2016
Number of Proprietary Platforms					2		2
Debt Issuance Costs, Current, Net					$ 60,000		$ 60,000
Debt Issuance Costs, Noncurrent, Net					229,000		229,000
Loss Contingency, Loss in Period					$ 500,000
Loss Contingency Per Diluted Share					$ 0.01
Payments of Debt Extinguishment Costs					$ 233,000		233,000
Cumulative Effect of New Accounting Principle in Period of Adoption	[2]				623,000		623,000
Reclassification of Debt Issuance Costs from Assets to Reduction in Liabilities [Member] | May 29, 2016 [Member]
Prior Period Reclassification Adjustment						$ 817,000
Reclassification of Debt Issuance Costs from Other Current Assets to Reduction in Current Portion of Long-term Debt [Member] | May 29, 2016 [Member]
Prior Period Reclassification Adjustment						175,000
Reclassification of Debt Issuance Costs from Other Noncurrent Assets to Reduction in Long-term Debt [Member] | May 29, 2016 [Member]
Prior Period Reclassification Adjustment						$ 642,000
Reclassifiction of Stock-based Compensation Excess Tax Benefits from Financing Activities to Operating Activities [Member] | Six Months Ended November 29th, 2015 [Member]
Prior Period Reclassification Adjustment							$ 90,000
Sales Revenue, Goods, Net [Member] | Product Concentration Risk [Member] | Ophthalmic [Member] | HA Based Biomaterials [Member]
Concentration Risk, Percentage										55.00%
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | Orthopedic [Member] | HA Based Biomaterials [Member]
Concentration Risk, Percentage										20.00%
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | Other/Non-HA [Member] | HA Based Biomaterials [Member]
Concentration Risk, Percentage										25.00%
Customer Relationships [Member] | Minimum [Member]
Finite-Lived Intangible Asset, Useful Life							12 years
Customer Relationships [Member] | Maximum [Member]
Finite-Lived Intangible Asset, Useful Life							13 years
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	[2]				423,000		$ 423,000
Retained Earnings [Member] | Adjustment for Unrecoganized Excess Tax Benefits [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption											$ 549,000
Retained Earnings [Member] | Adjustment for Forfeitures Treatment [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption											(126,000)
Additional Paid-in Capital [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	[2]				$ 200,000		$ 200,000
Additional Paid-in Capital [Member] | Adjustment for Forfeitures Treatment [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption											200,000
Windset [Member]
Investment Ownership Percentage		26.90%
Apio [Member] | Windset [Member]
Payments to Acquire Investments		$ 11,000,000
Investment Ownership Percentage					60.00%		60.00%
Apio [Member] | Windset [Member] | Common Stock [Member]
Investment In Non Public Company Shares		68		201
Payments to Acquire Investments				$ 201
Apio [Member] | Windset [Member] | Senior B Preferred Stock [Member]
Investment In Non Public Company Shares			70,000	150,000
Payments to Acquire Investments			$ 7,000,000	$ 15,000,000
Apio [Member] | Windset [Member] | Junior Preferred Shares [Member]
Investment In Non Public Company Shares		51,211
Payments to Acquire Investments		$ 11,000,000
Prepaid Expenses and Other Current Assets [Member]
Debt Issuance Costs, Gross					$ 120,000		$ 120,000
Other Assets [Member]
Debt Issuance Costs, Gross					$ 459,000		$ 459,000
Deferred Taxes [Member] | Adjustment for Forfeitures Treatment [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption											$ (74,000)
[1]	See Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies for a discussion of accounting principles adopted during the period.
[2]	See Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies for a discussion of accounting guidance adopted during the period.

Note 1 - Organization, Basis 29

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Significant Unobservable Inputs Used in Discounted Cash Flow Models (Details)	6 Months Ended	12 Months Ended
	Nov. 27, 2016	May 29, 2016
Revenue growth rates	4.00%	4.00%
Expense growth rates	4.00%	4.00%
Income tax rates	15.00%	15.00%
Discount rates	12.00%	12.50%

Note 1 - Organization, Basis 30

Note 1 - Organization, Basis of Presentation and Summary of Significant Accounting Policies - Assumptions Used in Discounted Cash Flow Models (Details) $ in Millions	Nov. 27, 2016USD ($)
10% increase in revenue growth rates	$ 0.4
10% increase in expense growth rates	(0.4)
10% increase in income tax rates
10% increase in discount rates	$ (0.2)

Note 1 - Organization, Basis 31

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands		Nov. 27, 2016	May 29, 2016
Assets:
Investment in non-public company		$ 62,700	$ 62,700	[1]
Fair Value, Inputs, Level 1 [Member]
Assets:
Investment in non-public company
Total
Fair Value, Inputs, Level 1 [Member] | Interest Rate Swap [Member]
Assets:
Interest rate swap (1)	[2]
Fair Value, Inputs, Level 2 [Member]
Assets:
Investment in non-public company
Total		519
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member]
Assets:
Interest rate swap (1)	[2]	519
Fair Value, Inputs, Level 3 [Member]
Assets:
Investment in non-public company		62,700	62,700
Total		62,700	62,700
Fair Value, Inputs, Level 3 [Member] | Interest Rate Swap [Member]
Assets:
Interest rate swap (1)	[2]
[1]	Derived from audited financial statements. See Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies for discussion of accounting guidance adopted during the period.
[2]	Recorded in Other assets.

Note 1 - Organization, Basis 32

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Revenue Arrangements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 27, 2016	Nov. 29, 2015	Nov. 27, 2016	Nov. 29, 2015
Product sales	$ 135,865	$ 140,441	$ 268,259	$ 275,796
Revenue Recorded Upon Shipment [Member]
Product sales	107,987	112,709	214,152	223,125
Revenue Recorded Upon Acceptance in Foreign Port [Member]
Product sales	25,701	22,140	49,040	44,484
Revenue from Multiple Element Arrangements [Member]
Product sales	1,683	4,058	3,268	5,647
Revenue from License Fees, R&D Contracts and Royalties/Profit Sharing [Member]
Product sales	$ 494	$ 1,534	$ 1,799	$ 2,540

Note 2 - Investment in Non-pu33

Note 2 - Investment in Non-public Company (Details Textual) - USD ($)	Jul. 15, 2014	Jul. 15, 2014	Oct. 29, 2014	Feb. 15, 2011	Nov. 27, 2016	Nov. 29, 2015	Nov. 27, 2016	Nov. 29, 2015
Investment Income, Dividend					$ 413,000	$ 413,000	$ 825,000	$ 825,000
Senior A Preferred Stock [Member]
Preferred Stock, Dividend Rate, Percentage		7.50%
Windset [Member]
Investment Ownership Percentage	26.90%	26.90%
Investment Income, Dividend					412,500		825,000
Change In Market Value Of Investment In Company					$ 0	$ 200,000	$ 0	$ 1,000,000
Windset [Member] | Apio [Member]
Payments to Acquire Investments	$ 11,000,000
Investment Ownership Percentage					60.00%		60.00%
Preferred Stock, Liquidation Preference, Value					$ 20,100,000		$ 20,100,000
Windset [Member] | Apio [Member] | Senior A Preferred Stock [Member]
Investment In Non Public Company Shares				150,000
Payments to Acquire Investments				$ 15,000,000
Preferred Stock, Liquidation Preference, Value					15,000,000		15,000,000
Windset [Member] | Apio [Member] | Common Stock [Member]
Investment In Non Public Company Shares	68	68		201
Payments to Acquire Investments				$ 201
Windset [Member] | Apio [Member] | Junior Preferred Shares [Member]
Investment In Non Public Company Shares	51,211	51,211
Preferred Stock, Liquidation Preference, Value					$ 5,100,000		$ 5,100,000
Windset [Member] | Apio [Member] | Senior B Preferred Stock [Member]
Investment In Non Public Company Shares			70,000
Payments to Acquire Investments			$ 7,000,000
Preferred Stock, Dividend Rate, Percentage			7.50%
Windset [Member] | Apio [Member] | Senior B Preferred Stock [Member] | First Anniversary [Member]
Investments, Value of Shares with Put Option			$ 1,500,000
Windset [Member] | Apio [Member] | Senior B Preferred Stock [Member] | Second Anniversary [Member]
Investments, Value of Shares with Put Option			2,750,000
Windset [Member] | Apio [Member] | Senior B Preferred Stock [Member] | Third Anniversary [Member]
Investments, Value of Shares with Put Option			$ 2,750,000

Note 3 - Stock-based Compensa34

Note 3 - Stock-based Compensation (Details Textual) $ in Millions	6 Months Ended
	Nov. 27, 2016USD ($)
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 6.5
Employee Stock Option [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 292 days
Restricted Stock [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 255 days

Note 3 - Stock-based Compensa35

Note 3 - Stock-based Compensation - Summary of Stock-based Compensation by Income Statement Line Item (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 27, 2016	Nov. 29, 2015	Nov. 27, 2016	Nov. 29, 2015
Stock-based Compensation Expense	$ 966	$ 900	$ 1,773	$ 1,697
Cost of Sales [Member]
Stock-based Compensation Expense	124	100	237	198
Research and Development Expense [Member]
Stock-based Compensation Expense	23	23	46	45
Selling, General and Administrative Expenses [Member]
Stock-based Compensation Expense	819	777	1,490	1,454
Employee Stock Option [Member]
Stock-based Compensation Expense	307	360	599	690
Restricted Stock Units (RSUs) [Member]
Stock-based Compensation Expense	$ 659	$ 540	$ 1,174	$ 1,007

Note 4 - Diluted Net Income P36

Note 4 - Diluted Net Income Per Share (Details Textual) - shares	3 Months Ended		6 Months Ended
	Nov. 27, 2016	Nov. 29, 2015	Nov. 27, 2016	Nov. 29, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,266,040	1,140,789	1,415,024	1,119,543

Note 4 - Diluted Net Income P37

Note 4 - Diluted Net Income Per Share - Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 27, 2016	Nov. 29, 2015	Nov. 27, 2016	Nov. 29, 2015
Numerator:
Net income applicable to Common Stockholders	$ 1,326	$ 1,868	$ 4,638	$ 4,820
Denominator:
Weighted average shares for basic net income per share (in shares)	27,249	27,021	27,234	27,013
Effect of dilutive securities:
Stock options and restricted stock units (in shares)	369	399	338	404
Weighted average shares for diluted net income per share (in shares)	27,618	27,420	27,572	27,417
Diluted net income per share (in dollars per share)	$ 0.05	$ 0.07	$ 0.17	$ 0.18

Note 5 - Income Taxes (Details

Note 5 - Income Taxes (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Nov. 27, 2016	Nov. 29, 2015	Nov. 27, 2016	Nov. 29, 2015	May 29, 2016
Income Tax Expense (Benefit)	$ 693,000	$ 1,069,000	$ 2,582,000	$ 2,760,000
Effective Income Tax Rate Reconciliation, Percent	34.00%		36.00%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	35.00%		35.00%
Unrecognized Tax Benefits	$ 904,000		$ 904,000		$ 842,000
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	764,000		764,000		$ 715,000
Decrease in Unrecognized Tax Benefits is Reasonably Possible	$ 300,000		300,000
Excess Tax Deficiencies from Share-based Compensation			$ 59,000
Domestic Tax Authority [Member] | Earliest Tax Year [Member]
Open Tax Year			1,997
State and Local Jurisdiction [Member] | Earliest Tax Year [Member]
Open Tax Year			1,998

Note 6 - Inventories - Inventor

Note 6 - Inventories - Inventories (Details) - USD ($) $ in Thousands	Nov. 27, 2016	May 29, 2016
Finished goods	$ 10,736	$ 12,165
Raw materials	4,190	9,855
Work in progress	13,044	3,515
Total	$ 27,970	$ 25,535	[1]
[1]	Derived from audited financial statements. See Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies for discussion of accounting guidance adopted during the period.

Note 7 - Debt (Details Textual)

Note 7 - Debt (Details Textual) - USD ($)	Sep. 24, 2016	Sep. 23, 2016	Nov. 27, 2016	Nov. 29, 2015	Nov. 27, 2016	Nov. 29, 2015	[2]	Nov. 01, 2016	May 29, 2016
Long-term Debt			$ 49,711,000		$ 49,711,000				$ 53,845,000
Debt Issuance Costs, Net			289,000		289,000				817,000
Line of Credit, Current			1,500,000		1,500,000				$ 3,500,000	[1]
Proceeds from Lines of Credit	$ 1,500,000				1,500,000	$ 10,500,000
Gain (Loss) on Extinguishment of Debt			(1,233,000)		(1,233,000)
Payments of Debt Extinguishment Costs			$ 233,000		$ 233,000
Interest Rate Swap [Member] | BMO [Member]
Derivative, Notional Amount								$ 50,000,000
Derivative, Fixed Interest Rate								1.22%
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank [Member]
Debt Instrument, Additional Borrowing Amount		$ 75,000,000
Debt Issuance Costs, Net		$ 897,000
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank [Member] | Prime Rate [Member] | Minimum [Member]
Debt Instrument, Basis Spread on Variable Rate		0.25%
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank [Member] | Prime Rate [Member] | Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate		1.25%
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank [Member] | Eurodollar [Member] | Minimum [Member]
Debt Instrument, Basis Spread on Variable Rate		1.25%
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank [Member] | Eurodollar [Member] | Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate		2.25%
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank [Member] | Term Loan [Member]
Long-term Debt		$ 50,000,000
Debt Instrument, Term		5 years
Debt Instrument, Periodic Payment		$ 1,250,000
Debt Instrument, Interest Rate, Effective Percentage			2.97%		2.97%
Debt Issuance Costs, Net		299,000
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank [Member] | Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity		100,000,000
Debt Issuance Costs, Net		$ 598,000
Line of Credit, Current			$ 1,500,000		$ 1,500,000
Line of Credit Facility, Interest Rate at Period End			2.29%		2.29%
[1]	Derived from audited financial statements. See Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies for discussion of accounting guidance adopted during the period.
[2]	See Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies for a discussion of accounting principles adopted during the period.

Note 7 - Debt - Long-term Debt

Note 7 - Debt - Long-term Debt (Details) - USD ($) $ in Thousands	Nov. 27, 2016	May 29, 2016
Long-term debt	$ 50,000	$ 54,662
Less: unamortized debt issuance costs	(289)	(817)
Total long-term debt, net of unamortized debt issuance costs	49,711	53,845
Less: current portion of long-term debt, net	(4,940)	(7,873)	[1]
Long-term debt, net	44,771	45,972	[1]
Term Loan [Member]
Long-term debt	50,000
Real Estate Loan [Member]
Long-term debt		14,167
Capital Equipment Loan 1 [Member]
Long-term debt		5,904
Capital Equipment Loan 2 [Member]
Long-term debt		5,558
Capital Equipment Loan 3 [Member]
Long-term debt		3,375
Capital Equipment Loan 4 [Member]
Long-term debt		3,158
Real Estate Loan 2 [Member]
Long-term debt		7,622
Capital Equipment Loan 5 [Member]
Long-term debt		8,873
Capital Equipment Loan 6 [Member]
Long-term debt		3,940
Industrial Revenue Bonds [Member]
Long-term debt		$ 2,065
[1]	Derived from audited financial statements. See Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies for discussion of accounting guidance adopted during the period.

Note 7 - Debt - Long-term Deb42

Note 7 - Debt - Long-term Debt (Details) (Parentheticals) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Nov. 27, 2016	May 29, 2016
Term Loan [Member]
Debt Instrument, Periodic Payment	$ 1,250
Term Loan [Member] | Minimum [Member]
Interest rate	1.25%
Term Loan [Member] | Maximum [Member]
Interest rate	2.25%
Real Estate Loan [Member]
Debt Instrument, Periodic Payment	$ 133,060	$ 133,060
Interest rate	4.02%	4.02%
Capital Equipment Loan 1 [Member]
Debt Instrument, Periodic Payment	$ 175,356	$ 175,356
Interest rate	4.39%	4.39%
Capital Equipment Loan 2 [Member]
Debt Instrument, Periodic Payment	$ 95,120	$ 95,120
Interest rate	3.68%	3.68%
Capital Equipment Loan 3 [Member]
Debt Instrument, Periodic Payment	$ 55,828	$ 55,828
Interest rate	3.74%	3.74%
Capital Equipment Loan 4 [Member]
Debt Instrument, Periodic Payment	$ 68,274	$ 68,274
Interest rate	2.79%	2.79%
Real Estate Loan 2 [Member]
Debt Instrument, Periodic Payment	$ 32,000
Real Estate Loan 2 [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	2.25%
Capital Equipment Loan 5 [Member]
Debt Instrument, Periodic Payment	$ 108,000
Capital Equipment Loan 5 [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	2.25%
Capital Equipment Loan 6 [Member]
Debt Instrument, Periodic Payment	$ 75,000
Capital Equipment Loan 6 [Member] | London Interbank Offered Rate (LIBOR) [Member]
Interest rate	2.92%
Industrial Revenue Bonds [Member]
Interest rate		0.59%

Note 8 - Related Party (Details

Note 8 - Related Party (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Nov. 27, 2016	Nov. 29, 2015	Nov. 27, 2016	Nov. 29, 2015	May 29, 2016
Revenue from Related Parties	$ 75,000	$ 140,000	$ 193,000	$ 266,000
Accounts Receivable, Related Parties, Current	$ 183,000		$ 183,000		$ 523,000

Note 9 - Stockholders' Equity (

Note 9 - Stockholders' Equity (Details Textual) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Nov. 27, 2016	Nov. 27, 2016	Jul. 14, 2010
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		180,000
Common Stock, Capital Shares Reserved for Future Issuance	2,600,000	2,600,000
Stock Repurchase Program, Authorized Amount			$ 10
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	100,522	110,522

Note 10 - Comprehensive Incom45

Note 10 - Comprehensive Income - Components of Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 27, 2016	Nov. 29, 2015	Nov. 27, 2016		Nov. 29, 2015
Balance				[1]
Other comprehensive income before reclassifications, net of tax effect	327		327
Amounts reclassified from OCI
Other comprehensive income, net	327		327
Balance	$ 327		$ 327
[1]	Derived from audited financial statements. See Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies for discussion of accounting guidance adopted during the period.

Note 11 - Business Segment Re46

Note 11 - Business Segment Reporting (Details Textual)	6 Months Ended
	Nov. 27, 2016	Nov. 29, 2015
Number of Operating Segments	3
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Packaged Fresh Vegetables [Member]
Entity Wide Revenue Major Customer Number	2
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Top Five Customers [Member]
Concentration Risk, Percentage	44.00%	45.00%
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Costco [Member] | Packaged Fresh Vegetables [Member]
Concentration Risk, Percentage	17.00%	19.00%
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Wal-mart [Member] | Packaged Fresh Vegetables [Member]
Concentration Risk, Percentage	13.00%	11.00%

Note 11 - Business Segment Re47

Note 11 - Business Segment Reporting - Sales by Geographic Area (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 27, 2016	Nov. 29, 2015	Nov. 27, 2016	Nov. 29, 2015
CANADA
Segment sales	$ 16.3	$ 20	$ 34	$ 40.4
TAIWAN, PROVINCE OF CHINA
Segment sales	11.1	12.4	24.9	25.4
CHINA
Segment sales	6.3	3.3	11.4	7.3
INDONESIA
Segment sales	3.6	2.5	5.1	3.9
JAPAN
Segment sales	2.9	1.6	4.9	3.6
BELGIUM
Segment sales	1.6	0.2	6.9	1
PHILIPPINES
Segment sales	0.7	0.6	1.3	1.5
All Other Countries [Member]
Segment sales	$ 3.5	$ 3.4	$ 5.7	$ 7.1

Note 11 - Business Segment Re48

Note 11 - Business Segment Reporting - Operations by Business Segment (Details) - USD ($)	3 Months Ended		6 Months Ended
	Nov. 27, 2016	Nov. 29, 2015	Nov. 27, 2016	Nov. 29, 2015
Net sales	$ 135,865,000	$ 140,441,000	$ 268,259,000	$ 275,796,000
International sales	45,954,000	43,972,000	94,179,000	90,248,000
Gross profit	18,953,000	17,265,000	40,097,000	35,242,000
Net income (loss)	1,326,000	1,868,000	4,638,000	4,820,000
Depreciation and amortization	2,560,000	2,128,000	5,110,000	4,339,000	[1]
Dividend income	413,000	413,000	825,000	825,000
Interest income	3,000	16,000	7,000	47,000
Interest expense	380,000	439,000	1,032,000	941,000
Income tax expense (benefit)	693,000	1,069,000	2,582,000	2,760,000
Packaged Fresh Vegetables [Member]
Net sales	97,978,000	107,164,000	193,923,000	210,870,000
International sales	16,422,000	19,800,000	34,266,000	40,605,000
Gross profit	12,001,000	9,979,000	26,407,000	23,231,000
Net income (loss)	(250,000)	(658,000)	2,073,000	2,602,000
Depreciation and amortization	1,792,000	1,448,000	3,612,000	3,015,000
Dividend income	413,000	413,000	825,000	825,000
Interest income	3,000	16,000	7,000	22,000
Interest expense	122,000	410,000	671,000	877,000
Income tax expense (benefit)	(142,000)	(16,000)	513,000	905,000
Food Export [Member]
Net sales	25,701,000	22,140,000	49,040,000	44,484,000
International sales	25,701,000	22,140,000	49,040,000	44,484,000
Gross profit	1,850,000	1,676,000	2,878,000	2,679,000
Net income (loss)	733,000	1,176,000	928,000	1,277,000
Depreciation and amortization	2,000		3,000	1,000
Dividend income
Interest income
Interest expense
Income tax expense (benefit)	207,000	161,000	262,000	189,000
Biomaterials [Member]
Net sales	11,931,000	10,249,000	24,263,000	19,047,000
International sales	3,831,000	2,032,000	10,873,000	5,159,000
Gross profit	4,938,000	4,881,000	10,060,000	8,096,000
Net income (loss)	1,312,000	1,393,000	2,555,000	1,461,000
Depreciation and amortization	719,000	641,000	1,431,000	1,246,000
Dividend income
Interest income				25,000
Interest expense	(90,000)	29,000	13,000	64,000
Income tax expense (benefit)	388,000	393,000	738,000	412,000
Corporate Segment [Member]
Net sales	255,000	888,000	1,033,000	1,395,000
International sales
Gross profit	164,000	729,000	752,000	1,236,000
Net income (loss)	(469,000)	(43,000)	(918,000)	(520,000)
Depreciation and amortization	37,000	39,000	64,000	77,000
Dividend income
Interest income
Interest expense	348,000		348,000
Income tax expense (benefit)	$ 240,000	$ 531,000	$ 1,069,000	$ 1,254,000
[1]	See Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies for a discussion of accounting principles adopted during the period.