10-Q

1

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM

10-Q

☑

Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended

February 27, 2021

or

☐

Transition report

pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ____________ to ____________

Commission File Number: 

000-38695

CAL-MAINE FOODS, INC

.

(Exact name of registrant as specified in its charter)

Delaware

64-0500378

(State or other jurisdiction of incorporation or organization)

(I.R.S Employer Identification No.)

3320 Woodrow Wilson Avenue

,

Jackson

,

Mississippi

39209

(Address of principal executive offices) (Zip Code)

(

601

)

948-6813

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value per share

CALM

The

NASDAQ

 Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the

Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to

file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes

☑

 No

☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted

pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period

tha

t the registrant was required to submit such files).

Yes

☑

 No

☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller

reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”,

“smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated filer

☑

Accelerated filer 

☐

Non – Accelerated filer 

☐

Smaller reporting company 

☐

Emerging growth company 

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended

transition period for complying with any new or revised financial accounting standards provided pursuant to

Section 13(a) of the Exchange Act

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes

☐

 No

☑

There were

44,056,163

 shares of Common Stock, $0.01 par value, and

4,800,000

 shares of Class A Common Stock, $0.01 par

value, outstanding as of March 29, 2021.

2

INDEX

Page

Number

Part I.

Financial Information

Item 1.

20

Item 2.

Item 4.

Part II.

Other Information

Item 1.

Item 1A.

Item 2.

Item 6.

3

PART I. FINANCIAL

INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Cal-Maine Foods, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except for par value amounts)

February 27, 2021

43981

Assets

Current assets:

Cash and cash equivalents

$

52,917

$

78,130

Investment securities available-for-sale

127,771

154,163

Trade and other receivables, net

130,314

98,375

Inventories

207,739

187,216

Prepaid expenses and other current assets

4,162

4,367

Total current assets

522,903

522,251

Property, plant & equipment, net

585,389

557,375

Finance lease right-of-use asset, net

563

678

Operating lease right-of-use asset, net

1,922

2,531

Investments in unconsolidated entities

57,055

60,982

Goodwill

35,525

35,525

Intangible assets, net

22,256

22,816

Other long-term assets

5,671

4,536

Total Assets

$

1,231,284

$

1,206,694

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable and accrued expenses

$

99,851

$

92,182

Current portion of finance lease obligation

212

205

Current portion of operating lease obligation

741

796

Total current liabilities

100,804

93,183

Long-term finance lease obligation

492

652

Long-term operating lease obligation

1,180

1,735

Other noncurrent liabilities

9,690

8,681

Deferred income taxes

102,669

92,768

Total liabilities

214,835

197,019

Commitments and contingencies - see

Note 12

—

—

Stockholders’ equity:

Common stock ($

0.01

 par value):

Common stock - authorized

120,000

 shares, issued

70,261

 shares

703

703

Class A convertible common stock - authorized and issued

4,800

 shares

48

48

Paid-in capital

63,170

60,372

Retained earnings

980,212

975,147

Accumulated other comprehensive income (loss), net of tax

(135)

79

Common stock in treasury at cost –

26,205

 shares at February 27, 2021 and

26,287

shares at May 30, 2020

(27,549)

(26,674)

Total stockholders’ equity

1,016,449

1,009,675

Total Liabilities and Stockholders’ Equity

$

1,231,284

 $ 

1,206,694

See Notes to Condensed Consolidated Financial Statements.

4

Cal-Maine Foods, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

Thirteen Weeks Ended

Thirty-nine Weeks Ended

February 27, 2021

February 29, 2020

February 27, 2021

February 29, 2020

Net sales

$

359,080

$

345,588

$

999,189

$

898,276

Cost of sales

311,563

295,760

876,457

840,198

Gross profit

47,517

49,828

122,732

58,078

Selling, general and administrative

47,656

44,231

135,494

132,434

Loss on disposal of fixed assets

354

385

476

467

Operating income (loss)

(493)

5,212

(13,238)

(74,823)

Other income (expense):

Interest income, net

591

803

2,181

3,628

Royalty income

321

414

906

1,173

Patronage dividends

9,004

10,096

9,004

10,096

Equity income of unconsolidated entities

1,872

1,445

1,886

537

Other, net

537

79

1,485

1,897

Total other income, net

12,325

12,837

15,462

17,331

Income (loss) before income taxes

11,832

18,049

2,224

(57,492)

Income tax (benefit) expense

(1,716)

4,278

(4,080)

(15,356)

Net income (loss)

13,548

13,771

6,304

(42,136)

Less: Income (loss) attributable to noncontrolling

interest

—

22

—

(64)

Net income (loss) attributable to Cal-Maine

Foods, Inc.

$

13,548

$

13,749

$

6,304

$

(42,072)

Net income (loss) per common share attributable

to Cal-Maine Foods, Inc.:

Basic

$

0.28

$

0.28

$

0.13

$

(0.87)

Diluted

$

0.28

$

0.28

$

0.13

$

(0.87)

Weighted average shares outstanding:

Basic

48,530

48,473

48,511

48,455

Diluted

48,659

48,588

48,649

48,455

See Notes to Condensed Consolidated Financial Statements.

5

Cal-Maine Foods, Inc. and Subsidiaries

Condensed Consolidated Statements of

Comprehensive Income (Loss)

(in thousands)

(unaudited)

Thirteen Weeks Ended

Thirty-nine Weeks Ended

February 27, 2021

February 29, 2020

February 27, 2021

February 29, 2020

Net profit (loss)

$

13,548

 $ 

13,771

 $ 

6,304

 $ 

(42,136)

Other comprehensive income (loss), before tax:

Unrealized holding loss on available-for-sale

securities, net of reclassification adjustments

(378)

(38)

(283)

(863)

Income tax benefit related to items of other

comprehensive income

92

9

69

210

Other comprehensive loss, net of tax

(286)

(29)

(214)

(653)

Comprehensive income (loss)

13,262

13,742

6,090

(42,789)

Less: Comprehensive income (loss) attributable

to the noncontrolling interest

—

22

—

(64)

Comprehensive income (loss) attributable to Cal-

Maine Foods, Inc.

$

13,262

$

13,720

$

6,090

$

(42,725)

See Notes to Condensed Consolidated Financial Statements.

6

Cal-Maine Foods, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Thirty-nine Weeks Ended

February 27, 2021

February 29, 2020

Operating activities:

Net income (loss)

$

6,304

$

(42,136)

Depreciation and amortization

44,391

42,911

Deferred income taxes

9,970

(13,406)

Impairment loss on property, plant & equipment

—

2,919

Other adjustments, net

(45,936)

(26,742)

Net cash provided by (used in) operations

14,729

(36,454)

Investing activities:

Purchases of investment securities

(59,415)

(12,100)

Sales and maturities of investment securities

85,202

181,533

Distributions from unconsolidated entities

5,813

6,114

Acquisition of business

—

(44,515)

Purchases of property, plant and equipment

(73,796)

(94,600)

Net proceeds from disposal of property, plant and equipment

3,273

1,839

Net cash provided by (used in) investing activities

(38,923)

38,271

Financing activities:

Purchase of common stock by treasury

(871)

(910)

Distributions to noncontrolling interests

—

(755)

Principal payments on long-term debt

—

(1,500)

Principal payments on finance lease

(153)

(146)

Contributions

5

—

Net cash used in financing activities

(1,019)

(3,311)

Net change in cash and cash equivalents

(25,213)

(1,494)

Cash and cash equivalents at beginning of period

78,130

69,247

Cash and cash equivalents at end of period

$

52,917

 $ 

67,753

Supplemental Information:

Cash paid for operating leases

$

703

$

635

Interest paid

$

193

 $ 

77

See Notes to Condensed Consolidated Financial Statements.

7

Cal-Maine Foods, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

February 27, 2021

(unaudited)

Note 1 - Summary of Significant Accounting Policies

Basis of Presentation

The unaudited condensed consolidated financial statements of Cal-Maine Foods, Inc. and its subsidiaries (the "Company,"

"we," "us," "our") have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. 

Therefore, they do not include all of the information and footnotes required by generally accepted accounting principles in the

United States of America ("GAAP") for complete financial statements and should be read in conjunction with our Annual

Report on Form 10-K for the fiscal year ended May 30, 2020 (the "2020 Annual Report"). These statements reflect all

adjustments that are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented

and, in the opinion of management, consist of adjustments of a normal recurring nature. Operating results for the interim

periods are not necessarily indicative of operating results for the entire fiscal year.

Fiscal Year

The Company's fiscal year ends on the Saturday closest to May 31. Each of the three-month periods and year-to-date periods

ended on February 27, 2021 and February 29, 2020 included 13 weeks and 39 weeks, respectively.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and

assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results

could differ from those estimates. 

The severity, magnitude and duration, as well as the economic consequences of the COVID-19 pandemic, are uncertain, rapidly

changing and difficult to predict. Therefore, our accounting estimates and assumptions might change materially in future

periods in response to COVID-19.

Investment Securities

Our investment securities are accounted for in accordance with ASC 320, “Investments - Debt and Equity Securities” (“ASC

320”). The Company considers all its debt securities for which there is a determinable fair market value, and there are no

restrictions on the Company's ability to sell within the next 12 months, as available-for-sale. We classify these securities as

current, because the amounts invested are available for current operations. Available-for-sale securities are carried at fair value,

with unrealized gains and losses reported as a separate component of stockholders’ equity. The Company regularly evaluates

changes to the rating of its debt securities by credit agencies and economic conditions to assess and record any expected credit

losses through allowance for credit losses limited to the amount that fair value was less than the amortized cost basis. The cost

basis for realized gains and losses on available-for-sale securities is determined by the specific identification method. Gains and

losses are recognized in other income (expenses) as Other, net in the Company's Condensed Consolidated Statements of

Operations. Investments in mutual funds are classified as “Other long-term assets” in the Company’s Consolidated Balance

Sheets.

Trade Receivables 

Trade receivables are stated at their carrying values, which include a reserve for credit losses. At February 27, 2021 and May

30, 2020, reserves for credit losses were $

728

 thousand and $

744

 thousand, respectively. The Company extends credit to

customers based on an evaluation of each customer's financial condition and credit history. Collateral is generally not required.

The Company minimizes exposure to counter party credit risk through credit analysis and approvals, credit

limits, and

monitoring procedures. In determining our reserve for credit losses, receivables are pooled according to age, with each pool

assigned an expected loss based on historical loss information adjusted as needed for economic and other forward-looking

factors.

8

Change in Accounting Principle

Effective May 31, 2020, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which is

intended to improve financial reporting by requiring more timely recording of credit losses on loans and other financial

instruments held by financial institutions and other organizations. The guidance replaces the prior “incurred loss” approach with

an “expected loss” model and requires measurement of all expected credit losses for financial assets held at the reporting date

based on historical experience, current conditions, and reasonable and supportable forecasts. The Company adopted the

guidance on a modified retrospective basis through a cumulative effect adjustment to retained earnings as of the beginning of

the period of adoption. The Company evaluated its current methodology of estimating allowance for doubtful accounts and the

risk profile of its receivables portfolio and developed a model that includes the qualitative and forecasting aspects of the

“expected loss” model under the amended guidance. The Company finalized its assessment of the impact of the amended

guidance and recorded a $

422

 thousand cumulative increase to retained earnings at May 31, 2020.

Note 2 - Investment

Securities

The following represents the Company’s investment securities as of February 27, 2021 and May 30, 2020 (in thousands):

February 27, 2021

Amortized

Cost

Unrealized 

Gains

Unrealized

Losses

Estimated 

Fair Value

Municipal bonds

$

16,157

$

52

$

—

$

16,209

Commercial paper

6,345

—

—

6,345

Corporate bonds

92,256

1,062

—

93,318

Certificates of deposits

2,084

—

7

2,077

Asset backed securities

9,823

—

1

9,822

Total current investment securities

$

126,665

$

1,114

$

8

$

127,771

Mutual funds

$

2,293

$

1,424

$

—

$

3,717

Total noncurrent investment securities

$

2,293

$

1,424

$

—

$

3,717

43981

Amortized 

Cost

Unrealized 

Gains

Unrealized

Losses

Estimated 

Fair Value

Municipal bonds

$

16,093

$

86

$

—

$

16,179

Commercial paper

6,965

17

—

6,982

Corporate bonds

125,594

1,274

—

126,868

Certificates of deposits

1,492

—

—

1,492

Asset backed securities

2,629

13

—

2,642

Total current investment securities

$

152,773

$

1,390

$

—

$

154,163

Mutual funds

$

2,005

$

744

$

—

$

2,749

Total noncurrent investment securities

$

2,005

$

744

$

—

$

2,749

Available-for-sale

Proceeds from sales and maturities of investment securities available-for-sale were $

85.2

 million and $

181.5

 million during the

thirty-nine weeks ended February 27, 2021 and February 29, 2020, respectively. Gross realized gains for the thirty-nine weeks

ended February 27, 2021 and February 29, 2020 were $

116

 thousand and $

246

 thousand, respectively. There were $

17

thousand and $

7

 thousand gross realized losses for the thirty-nine weeks ended February 27, 2021 and February 29, 2020,

respectively. There were

no

 allowance for credit losses at February 27, 2021 and May 30, 2020.

9

Actual maturities may differ from contractual maturities as some borrowers have the right to call or prepay obligations with or

without penalties. Contractual maturities of current investments at February 27, 2021 are as follows (in thousands):

Estimated Fair Value

Within one year

$

44,862

1-5 years

82,909

Total

$

127,771

Noncurrent 

There were

no

 sales of noncurrent investment securities during the thirty-nine weeks ended February 27, 2021. Proceeds from

sales and maturities of noncurrent investment securities were $

1.2

 million during the thirty-nine weeks ended February 29,

2020. Gross realized gains for the thirty-nine weeks ended February 29, 2020 were $

611

 thousand. There were

no

 realized

losses for the thirty-nine weeks ended February 27, 2021 and February 29, 2020.

Note 3 - Fair Value Measurements

The Company is required to categorize both financial and nonfinancial assets and liabilities based on the following fair value

hierarchy. The fair value of an asset is the price at which the asset could be sold in an orderly transaction between unrelated,

knowledgeable, and willing parties able to engage in the transaction. A liability’s fair value is defined as the amount that would

be paid to transfer the liability to a new obligor in a transaction between such parties, not the amount that would be paid to

settle the liability with the creditor.

•

Level 1

 - Quoted prices in active markets for identical assets or liabilities

•

Level 2

 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either

directly or indirectly, including:

◦

Quoted prices for similar assets or liabilities in active markets

◦

Quoted prices for identical or similar assets in non-active markets

◦

Inputs other than quoted prices that are observable for the asset or liability

◦

Inputs derived principally from or corroborated by other observable market data

•

Level 3

 - Unobservable inputs for the asset or liability that are supported by little or no market activity and that are

significant to the fair value of the assets or liabilities

The disclosures of fair value of certain financial assets and liabilities that are recorded at cost are as follows:

Cash and cash equivalents, accounts receivable, and accounts payable:

 The carrying amount approximates fair value due to the

short maturity of these instruments.

Lease obligations:

 The carrying value of the Company’s lease obligations is at its present value which approximates fair value.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

In accordance with the fair value hierarchy described above, the following table shows the fair value of financial assets and

liabilities measured at fair value on a recurring basis as of February 27, 2021 and May 30, 2020 (in thousands):

February 27, 2021

Level 1

Level 2

Level 3

Balance

Assets

Municipal bonds

$

—

$

16,209

$

—

$

16,209

Commercial paper

—

6,345

—

6,345

Corporate bonds

—

93,318

—

93,318

Certificates of deposits

—

2,077

—

2,077

Asset backed securities

—

9,822

—

9,822

Mutual funds

3,717

—

—

3,717

Total assets measured at fair value

$

3,717

$

127,771

$

—

$

131,488

10

43981

Level 1

Level 2

Level 3

Balance

Assets

Municipal bonds

$

—

$

16,179

$

—

$

16,179

Commercial paper

—

6,982

—

6,982

Corporate bonds

—

126,868

—

126,868

Certificates of deposits

—

1,492

—

1,492

Asset backed securities

—

2,642

—

2,642

Mutual funds

2,749

—

—

2,749

Total assets measured at fair value

$

2,749

$

154,163

$

—

$

156,912

Investment securities – available-for-sale classified as Level 2 consist of securities with maturities of three months or longer

when purchased. Observable inputs for these securities are yields, credit risks, default rates, and volatility.

Note 4 - Inventories

Inventories consisted of the following as of February 27, 2021 and May 30, 2020 (in thousands):

February 27, 2021

43981

Flocks, net of amortization

$

115,904

$

110,198

Eggs and egg products

18,069

18,487

Feed and supplies

73,766

58,531

$

207,739

$

187,216

We grow and maintain flocks of layers (mature female chickens), pullets (female chickens, under 18 weeks of age), and

breeders (male and female chickens used to produce fertile eggs to hatch for egg production flocks). Our total flock at February

27, 2021 consisted of approximately

9.6

 million pullets and breeders and

41.3

 million layers.

Note 5 - Accrued Dividends Payable and Dividends per Common Share

We accrue dividends at the end of each quarter according to the Company’s dividend policy adopted by its Board of Directors.

The Company pays a dividend to shareholders of its Common Stock and Class A Common Stock on a quarterly basis for each

quarter for which the Company reports net income attributable to Cal-Maine Foods, Inc. computed in accordance with GAAP

in an amount equal to one-third (1/3) of such quarterly income. Dividends are paid to shareholders of record as of the 60th day

following the last day of such quarter, except for the fourth fiscal quarter. For the fourth quarter, the Company pays dividends

to shareholders of record on the 65th day after the quarter end. Dividends are payable on the 15th day following the record date. 

Following a quarter for which the Company does not report net income attributable to Cal-Maine Foods, Inc., the Company will

not pay a dividend for a subsequent profitable quarter until the Company is profitable on a cumulative basis computed from the

date of the last quarter for which a dividend was paid. For the third quarter of fiscal 2021, we will pay a cash dividend of

approximately $

0.034

 per share to holders of our Common Stock and Class A Common Stock. The amount of the accrual is

recorded in Accounts payable and accrued expenses in the Company’s Condensed Consolidated Balance Sheets.

11

On our condensed consolidated statement of operations, we determine dividends per common share in accordance with the

computation in the following table (in thousands, except per share data):

Thirteen Weeks Ended

Thirty-nine Weeks Ended

February 27, 2021

February 29, 2020

February 27, 2021

February 29, 2020

Net income (loss) attributable to Cal-Maine

Foods, Inc.

$

13,548

$

13,749

$

6,304

$

(42,072)

Cumulative losses to be recovered prior to

payment of divided at beginning of period

(8,614)

(75,582)

(1,370)

(19,761)

Net income attributable to Cal-Maine Foods,

Inc. available for dividend

$

4,934

$

—

$

4,934

$

—

1/3 of net income attributable to Cal-Maine

Foods, Inc. available for dividend

1,645

Common stock outstanding (shares)

44,056

Class A common stock outstanding (shares)

4,800

Total common stock outstanding (shares)

48,856

Dividends per common share*

$

0.034

*

Dividends per common share = 1/3 of Net income (loss) attributable to Cal-Maine Foods, Inc. available for dividend ÷ Total common stock

outstanding (shares).

Note 6 - Equity

The following reflects the equity activity, for the thirteen and thirty-nine weeks ended February 27, 2021 and February 29, 2020

(in thousands):

Thirteen Weeks Ended February 27, 2021

Cal-Maine Foods, Inc. Stockholders

Common Stock

Class A

Treasury

Paid In

Accum. Other

Retained

Amount

Amount

Amount

Capital

Comp. Income

Earnings

Total

Balance at November 28, 2020

$

703

$

48

$

(26,723)

$

62,206

$

151

$

968,325

$

1,004,710

Other comprehensive loss, net of

tax

—

—

—

—

(286)

—

(286)

Purchase of company stock

—

—

(826)

—

—

—

(826)

Restricted stock compensation

—

—

—

964

—

—

964

Dividends

—

—

—

—

—

(1,661)

(1,661)

Net income

—

—

—

—

—

13,548

13,548

Balance at February 27, 2021

$

703

$

48

$

(27,549)

$

63,170

$

(135)

$

980,212

$

1,016,449

12

Thirteen Weeks Ended February 29, 2020

Cal-Maine Foods, Inc. Stockholders

Common Stock

Class A

Treasury

Paid In

Accum. Other

Retained

Noncontrolling

Amount

Amount

Amount

Capital

Comp. Income

Earnings

Interest

Total

Balance at November 30,

2019

$

703

$

48

$

(25,888)

$

58,652

$

(269)

$

900,485

$

562

$

934,293

Other comprehensive

loss, net of tax

—

—

—

—

(29)

—

—

(29)

Restricted stock

forfeitures

—

—

103

(103)

—

—

—

—

Purchase of company

stock

—

—

(889)

—

—

—

—

(889)

Restricted stock

compensation

—

—

—

886

—

—

—

886

Net income

—

—

—

—

—

13,749

22

13,771

Balance at February 29,

2020

$

703

$

48

$

(26,674)

$

59,435

$

(298)

$

914,234

$

584

$

948,032

Thirty-nine Weeks Ended February 27, 2021

Cal-Maine Foods, Inc. Stockholders

Common Stock

Class A

Treasury

Paid In

Accum. Other

Retained

Amount

Amount

Amount

Capital

Comp. Income

Earnings

Total

Balance at May 30, 2020

$

703

$

48

$

(26,674)

$

60,372

$

79

$

975,147

$

1,009,675

Impact of ASC 326, see

Note 1

—

—

—

—

—

422

422

Balance at May 31, 2020

703

48

(26,674)

60,372

79

975,569

1,010,097

Other comprehensive loss, net of

tax

—

—

—

—

(214)

—

(214)

Restricted stock forfeitures

—

—

(4)

4

—

—

—

Purchase of company stock

—

—

(871)

—

—

—

(871)

Restricted stock compensation

—

—

—

2,789

—

—

2,789

Contributions

—

—

—

5

—

—

5

Dividends

—

—

—

—

—

(1,661)

(1,661)

Net income

—

—

—

—

—

6,304

6,304

Balance at February 27, 2021

$

703

$

48

$

(27,549)

$

63,170

$

(135)

$

980,212

$

1,016,449

13

Thirty-nine Weeks Ended February 29, 2020

Cal-Maine Foods, Inc. Stockholders

Common Stock

Class A

Treasury

Paid In

Accum. Other

Retained

Noncontrolling

Amount

Amount

Amount

Capital

Comp. Income

Earnings

Interest

Total

Balance at June 01, 2019

$

703

$

48

$

(25,866)

$

56,857

$

355

$

954,527

$

3,182

$

989,806

Other comprehensive

loss, net of tax

—

—

—

—

(653)

—

—

(653)

Restricted stock

forfeitures

—

—

102

(102)

—

—

—

—

Purchase of company

stock

—

—

(910)

—

—

—

—

(910)

Distributions to

noncontrolling interest

partners

—

—

—

—

—

—

(755)

(755)

Reclass of equity portion

of Texas Egg Products,

LLC in connection with

acquisition

—

—

—

—

—

1,779

(1,779)

—

Restricted stock

compensation

—

—

—

2,680

—

—

—

2,680

Net loss

—

—

—

—

—

(42,072)

(64)

(42,136)

Balance at February 29,

2020

$

703

$

48

$

(26,674)

$

59,435

$

(298)

$

914,234

$

584

$

948,032

Note 7 - Net Income (Loss) per Common Share

Basic net income (loss) per share attributable to Cal-Maine Foods, Inc. is based on the weighted average Common Stock and

Class A Common Stock outstanding. Diluted net income per share attributable to Cal-Maine Foods, Inc. is based on weighted-

average common shares outstanding during the relevant period adjusted for the dilutive effect of share-based awards. 

Restricted shares of

121

 thousand were antidilutive due to the net loss for the thirty-nine weeks ended February 29, 2020. 

These shares were not included in the diluted net loss per share calculation.

14

The following table provides a reconciliation of the numerators and denominators used to determine basic and diluted net

income per common share attributable to Cal-Maine Foods, Inc. (amounts in thousands, except per share data):

Thirteen Weeks Ended

Thirty-nine Weeks Ended

February 27, 2021

February 29, 2020

February 27, 2021

February 29, 2020

Numerator

Net income (loss)

$

13,548

$

13,771

$

6,304

$

(42,136)

Less: Income (loss) attributable to

noncontrolling interest

—

22

—

(64)

Net income (loss) attributable to Cal-

Maine Foods, Inc.

$

13,548

$

13,749

$

6,304

$

(42,072)

Denominator

Weighted-average common shares

outstanding, basic

48,530

48,473

48,511

48,455

Effect of dilutive restricted shares

129

115

138

—

Weighted-average common shares

outstanding, diluted

48,659

48,588

48,649

48,455

Net income (loss) per common share

attributable to Cal-Maine Foods, Inc.

Basic

$

0.28

$

0.28

$

0.13

$

(0.87)

Diluted

$

0.28

$

0.28

$

0.13

$

(0.87)

Note 8 - Revenue Recognition

Satisfaction of Performance Obligation

The vast majority of the Company’s revenue is derived from contracts with customers based on the customer placing an order

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

establishes the contract for that order. 

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

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

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

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

customer agreeing upon the order.

Returns and Refunds

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

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

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

corresponding reduction in trade accounts receivable. 

Sales Incentives Provided to Customers

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

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

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

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

reduction to sales price based on estimated future redemption rates.

15

Disaggregation of Revenue

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

Thirteen Weeks Ended

Thirty-nine Weeks Ended

February 27, 2021

February 29, 2020

February 27, 2021

February 29, 2020

Conventional shell egg sales

$

203,189

$

210,329

$

560,297

$

518,898

Specialty shell egg sales

145,210

125,019

408,537

352,118

Egg products

9,098

9,212

25,736

24,210

Other

1,583

1,028

4,619

3,050

$

359,080

$

345,588

$

999,189

$

898,276

Contract Costs

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

one year; therefore, they are expensed as incurred.

Contract Balances

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

There are rarely contract assets or liabilities related to performance under the contract and they are generally immaterial to the

financial statements.

Note 9 - Leases

Expenses related to operating leases, amortization of finance leases, right-of-use assets, and finance lease interest are included

in Cost of sales, Selling general and administrative expense, and Interest income, net in the Condensed Consolidated Statements

of Operations. The Company’s lease cost consists of the following (in thousands):

13 Weeks Ended February 27, 2021

39 Weeks Ended February 27, 2021

Operating Lease cost

$

233

$

703

Finance Lease cost

Amortization of right-of-use asset

$

44

$

125

Interest on lease obligations

$

9

$

27

Short term lease cost

$

857

$

2,714

16

Future minimum lease payments under non-cancelable leases are as follows (in thousands):

As of February 27, 2021

Operating Leases

Finance Leases

Remainder fiscal 2021

$

224

$

68

2022

802

239

2023

539

239

2024

380

218

2025

130

—

2026

26

—

Thereafter

5

—

Total

2,106

764

Less imputed interest

(185)

(60)

Total

$

1,921

$

704

The weighted-average remaining lease term and discount rate for lease liabilities included in our Condensed Consolidated

Balance Sheet are as follows:

As of February 27, 2021

Operating Leases

Finance Leases

Weighted-average remaining lease term (years)

3.0

2.8

Weighted-average discount rate

5.9

%

4.9

%

Note 10 - Stock Based Compensation

On October 2, 2020, shareholders approved the Amended and Restated Cal-Maine Foods, Inc. 2012 Omnibus Long-Term

Incentive Plan (the “Plan”). The purpose of the Plan is to assist us and our subsidiaries in attracting and retaining selected

individuals who are expected to contribute to our long-term success. The maximum number of shares of common stock

available for awards under the Plan is

2,000,000

, of which

1,128,488

 shares remain available for issuance, and may be

authorized but unissued shares or treasury shares. Awards may be granted under the Plan to any employee, any non-employee

member of the Company’s Board of Directors, and any consultant who is a natural person and provides services to us or one of

our subsidiaries (except for incentive stock options, which may be granted only to our employees).

The only outstanding awards under the Plan are restricted stock awards. The restricted stock vests one to three years from the

grant date, or upon death or disability, change in control, or retirement (subject to certain requirements). The restricted stock

contains no other service or performance conditions. Restricted stock is awarded in the name of the recipient and, except for the

right of disposal, constitutes issued and outstanding shares of the Company’s common stock for all corporate purposes during

the period of restriction including the right to receive dividends. Compensation expense is a fixed amount based on the grant

date closing price and is amortized over the vesting period.

Total stock-based compensation expense was $

2.8

 million and $

2.7

 million for the thirty-nine weeks ended February 27, 2021

and February 29, 2020, respectively.

Unrecognized compensation expense as a result of non-vested shares of restricted stock outstanding under the 2012 Omnibus

Long-Term Incentive Plan at February 27, 2021 of $

7.5

 million will be recorded over a weighted average period of

2.3

 years. 

Refer to Note 16 of our audited financial statements in our

2020

Annual Report for further information on our stock

compensation plans.

17

The Company’s restricted share activity for the thirty-nine weeks ended February 27, 2021 follows:

Number of

Shares

Weighted

Average Grant

Date Fair Value

Outstanding, May 30, 2020

273,046

$

41.36

Granted

110,560

37.71

Vested

(79,328)

43.96

Forfeited

(4,431)

40.12

Outstanding, February 27, 2021

299,847

$

39.35

Note 11 – Income Taxes

The differences between income tax expense (benefit) at the Company’s effective income tax rate and income tax expense at

the statutory federal income tax rate for the thirteen and thirty-nine weeks ended as of February 27, 2021 were as follows:

Thirteen Weeks Ended

Thirty-nine Weeks Ended

February 27, 2021

February 27, 2021

Statutory federal income tax 

$

2,907

$

543

Enacted net operating loss carryback provision

(6,422)

(6,422)

Domestic manufacturers deduction

1,408

1,408

Other, net

391

391

$

(1,716)

$

(4,080)

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted. The CARES

Act contains several income tax provisions, as well as other measures, that are intended to assist businesses impacted by the

economic effects of the COVID-19 pandemic. The most significant provision of the CARES Act that materially affects our

accounting for income taxes includes a five-year carryback allowance for taxable net operating losses generated in tax years

2018 through 2020, our fiscal years 2019 through 2021.

Our financial statements for the thirteen weeks ended February 27, 2021 were affected by the changes enacted by the CARES

Act. As a result of the applicable accounting guidance and the provisions enacted by the CARES Act, our income tax provision

for the third quarter of fiscal 2021 reflects the carryback of taxable net operating losses generated during periods in which the

statutory federal income tax rate was

21

% to periods in which the statutory federal income tax rate was

35

%. Due to the

difference in statutory rates, we recorded a $

6.4

 million discrete income tax benefit related to the carryback provisions during

the thirteen weeks ended February 27, 2021. Because the net operating losses were carried back to years in which we initially

reduced our taxable income using the Domestic Production Activities Deduction, we recorded a partially offsetting $

1.4

 million

discrete income tax expense during the thirteen weeks ended February 27, 2021 to account for the reduced taxable income.

Note 12 - Commitments and Contingencies

Financial Instruments

The Company maintained standby letters of credit ("LOC") totaling $

4.1

 million at February 27, 2021 which were issued under

the Company's Revolving Credit Facility. The outstanding LOCs are for the benefit of certain insurance companies, and are not

recorded as a liability on the consolidated balance sheets.

LEGAL PROCEEDINGS

State of Texas v. Cal-Maine Foods, Inc. d/b/a Wharton; and Wharton County Foods, LLC

On April 23, 2020, the Company and its subsidiary Wharton County Foods, LLC (“WCF”) were named as defendants in State

of Texas v. Cal-Maine Foods, Inc. d/b/a Wharton; and Wharton County Foods, LLC, Cause No. 2020-25427, in the District

Court of Harris County, Texas. The State of Texas (the “State”) asserted claims based on the Company’s and WCF’s alleged

violation of the Texas Deceptive Trade Practices—Consumer Protection Act, Tex. Bus. & Com. Code §§ 17.41-17.63

(“DTPA”). The State claimed that the Company and WCF offered shell eggs at excessive or exorbitant prices during the

COVID-19 state of emergency and made misleading statements about shell egg prices. The State sought temporary and

18

permanent injunctions against the Company and WCF to prevent further alleged violations of the DTPA, along with over

$

100,000

 in damages. On August 13, 2020, the court granted the defendants’ motion to dismiss the State’s original petition with

prejudice. On September 11, 2020, the State filed a notice of appeal, which was assigned to the Texas Court of Appeals for the

First District. The State filed its opening brief on December 7, 2020. The Company and WCF filed their response on February

8, 2021. Management believes the risk of material loss related to this matter to be remote.

Bell et al. v. Cal-Maine Foods et al.

On April 30, 2020, the Company was named as one of several defendants in Bell et al. v. Cal-Maine Foods et al., Case No.

1:20-cv-461, in the Western District of Texas, Austin Division. The defendants include numerous grocery stores, retailers,

producers, and farms. Plaintiffs assert that defendants violated the DTPA by allegedly demanding exorbitant or excessive prices

for eggs during the COVID-19 state of emergency. Plaintiffs request certification of a class of all consumers who purchased

eggs in Texas sold, distributed, produced, or handled by any of the defendants during the COVID-19 state of emergency.

Plaintiffs seek to enjoin the Company and other defendants from selling eggs at a price more than 10% greater than the price of

eggs prior to the declaration of the state of emergency and damages in the amount of $

10,000

 per violation, or $

250,000

 for

each violation impacting anyone over 65 years old. On December 1, 2020, the Company and certain other defendants filed their

motion to dismiss the plaintiffs’ first amended class action complaint. The court has not ruled on this motion to dismiss.

Management believes the risk of material loss related to this matter to be remote.

Kraft Foods Global, Inc. et al. v. United Egg Producers, Inc. et al.

As previously reported, on September 25, 2008, the Company was named as one of several defendants in numerous antitrust

cases involving the United States shell egg industry. The Company settled all of these cases, except for the claims of certain

plaintiffs who sought substantial damages allegedly arising from the purchase of egg products (as opposed to shell eggs). These

remaining plaintiffs are Kraft Food Global, Inc., General Mills, Inc., and Nestle USA, Inc. (the “Egg Products Plaintiffs”) and

The Kellogg Company.

On September 13, 2019, the case with the Egg Products Plaintiffs was remanded from a multi-district litigation proceeding in

the United States District Court for the Eastern District of Pennsylvania, In re Processed Egg Products Antitrust Litigation,

MDL No. 2002, to the United States District Court for the Northern District of Illinois, Kraft Foods Global, Inc. et al. v. United

Egg Producers, Inc. et al., Case No. 1:11-cv-8808, for trial. The Egg Products Plaintiffs allege that the Company and other

defendants violated Section 1 of the Sherman Act, 15. U.S.C. § 1, by agreeing to limit the production of eggs and thereby

illegally to raise the prices that plaintiffs paid for processed egg products. In particular, the Egg Products Plaintiffs are attacking

certain features of the United Egg Producers animal-welfare guidelines and program used by the Company and many other egg

producers. The Egg Products Plaintiffs seek to enjoin the Company and other defendants from engaging in antitrust violations

and seek treble money damages. The parties filed a joint status report on May 18, 2020, but no schedule has yet been entered by

the court. It appears that the case will not be tried until later in 2021 or 2022.

In addition, on October 24, 2019, the Company entered into a confidential settlement agreement with The Kellogg Company

dismissing all claims against the Company for an amount that did not have a material impact on the Company’s financial

condition or results of operations. On November 11, 2019, a stipulation for dismissal was filed with the court, but the court has

not yet entered a judgment on the filing.

The Company intends to continue to defend the remaining case with the Egg Products Plaintiffs as vigorously as possible based

on defenses which the Company believes are meritorious and provable. Adjustments, if any, which might result from the

resolution of this remaining matter with the Egg Products Plaintiffs have not been reflected in the financial statements. While

management believes that there is still a reasonable possibility of a material adverse outcome from the case with the Egg

Products Plaintiffs, at the present time, it is not possible to estimate the amount of monetary exposure, if any, to the Company

due to a range of factors, including the following, among others: the matter is in the early stages of preparing for trial following

remand; any trial will be before a different judge and jury in a different court than prior related cases; there are significant

factual issues to be resolved; and there are requests for damages other than compensatory damages (i.e., injunction and treble

money damages).

State of Oklahoma Watershed Pollution Litigation

On June 18, 2005, the State of Oklahoma filed suit, in the United States District Court for the Northern District of Oklahoma,

against Cal-Maine Foods, Inc. and Tyson Foods, Inc. and affiliates, Cobb-Vantress, Inc., Cargill, Inc. and its affiliate, George’s,

Inc. and its affiliate, Peterson Farms, Inc. and Simmons Foods, Inc. The State of Oklahoma claims that through the disposal of

chicken litter the defendants have polluted the Illinois River Watershed. This watershed provides water to eastern Oklahoma.

19

The complaint seeks injunctive relief and monetary damages, but the claim for monetary damages has been dismissed by the

court. Cal-Maine Foods, Inc. discontinued operations in the watershed. Accordingly, we do not anticipate that Cal-Maine

Foods, Inc. will be materially affected by the request for injunctive relief unless the court orders substantial affirmative

remediation. Since the litigation began, Cal-Maine Foods, Inc. purchased 100% of the membership interests of Benton County

Foods, LLC, which is an ongoing commercial shell egg operation within the Illinois River Watershed. Benton County Foods,

LLC is not a defendant in the litigation.

The trial in the case began in September 2009 and concluded in February 2010. The case was tried without a jury, and the court

has not yet issued its ruling. Management believes the risk of material loss related to this matter to be remote.

Other Matters

In addition to the above, the Company is involved in various other claims and litigation incidental to its business. Although the

outcome of these matters cannot be determined with certainty, management, upon the advice of counsel, is of the opinion that

the final outcome should not have a material effect on the Company’s consolidated results of operations or financial position.

Note 13 - Related Party Transaction

On August 24, 2020, Mrs. Jean Reed Adams, the wife of the Company’s late founder Fred R. Adams, Jr., and the Fred R.

Adams, Jr. Daughters’ Trust, dated July 20, 2018 (the “Daughters’ Trust”), of which the daughters of Mr. Adams are

beneficiaries (together, the “Selling Stockholders”), completed a registered secondary public offering of

6,900,000

 shares of

Common Stock held by them, pursuant to a previously disclosed Agreement Regarding Common Stock (the “Agreement”) filed

as an exhibit to our 2020 Annual Report. Mrs. Adams and the Daughters’ Trust advised the Company that they were conducting

the offering in order to pay estate taxes related to the settlement of Mr. Adam’s estate and to obtain liquidity. The public

offering was made pursuant to the Company’s effective shelf registration statement on Form S-3 (File No. 333-227742),

including the Prospectus contained therein dated October 9, 2018, and a related Prospectus Supplement dated August 19, 2020,

each of which is on file with the Securities and Exchange Commission. The public offering involved only the sale of shares of

Common Stock that were already outstanding, and thus the Company did not issue any new shares or raise any additional

capital in the offering. The expenses of the offering (not including the underwriting discount and legal fees and expenses of

legal counsel for the Selling Stockholders, which were paid by the Selling Stockholders) paid by the Company were

$

1,102,000

. Pursuant to the Agreement, the Selling Stockholders reimbursed the Company $

551,000

.

20

ITEM 2. MANAGEMENT’S

DISCUSSION

AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS

The following should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results

of Operations included in Item 7 of the Company’s Annual Report on Form 10-K for its fiscal year ended May 30, 2020 (the

“2020 Annual Report”), and the accompanying financial statements and notes included in Part II, Item 8 of the 2020 Annual

Report and in

Part

 of this Quarterly Report on Form 10-Q (“Quarterly Report”).

This report contains numerous forward-looking statements within the meaning of Section 27A of the Securities Act of 1933

(the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”) relating to our shell egg

business, including estimated future production data, expected construction schedules, projected construction costs, potential

future supply of and demand for our products, potential future corn and soybean price trends, potential future impact on our

business of the COVID-19 pandemic, potential future impact on our business of new legislation, rules or policies, potential

outcomes of legal proceedings, and other projected operating data, including anticipated results of operations and financial

condition. Such forward-looking statements are identified by the use of words such as “believes,” “intends,” “expects,”

“hopes,” “may,” “should,” “plans,” “projected,” “contemplates,” “anticipates,” or similar words. Actual outcomes or results

could differ materially from those projected in the forward-looking statements. The forward-looking statements are based on

management’s current intent, belief, expectations, estimates, and projections regarding the Company and its industry. These

statements are not guarantees of future performance and involve risks, uncertainties, assumptions, and other factors that are

difficult to predict and may be beyond our control. The factors that could cause actual results to differ materially from those

projected in the forward-looking statements include, among others, (i) the risk factors set forth in Part I, Item 1A of the 2020

Annual Report (ii) the risks and hazards inherent in the shell egg business (including disease, pests, weather conditions, and

potential for product recall), (iii) changes in the demand for and market prices of shell eggs and feed costs, (iv) our ability to

predict and meet demand for cage-free and other specialty eggs, (v) risks, changes, or obligations that could result from our

future acquisition of new flocks or businesses and risks or changes that may cause conditions to completing a pending

acquisition not to be met, (vi) risks relating to the evolving COVID-19 pandemic, and (vii) adverse results in pending litigation

matters. Readers are cautioned not to place undue reliance on forward-looking statements because, while we believe the

assumptions on which the forward-looking statements are based are reasonable, there can be no assurance that these forward-

looking statements will prove to be accurate. Further, forward-looking statements included herein are only made as of the

respective dates thereof, or if no date is stated, as of the date hereof. Except as otherwise required by law, we disclaim any

intent or obligation to update publicly these forward-looking statements, whether because of new information, future events, or

otherwise.

GENERAL

Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packaging, marketing and distribution of fresh shell

eggs. Our operations are fully integrated under one operating segment. We are the largest producer and distributor of fresh shell

eggs in the United States. Our total flock of approximately 41.3 layers and 9.6 pullets and breeders is the largest in the U.S. We

sell most of our shell eggs to a diverse group of customers, including national and regional grocery store chains, club stores,

companies servicing independent supermarkets in the U.S., food service distributors, and egg product consumers in states

across the southwestern, southeastern, mid-western and mid -Atlantic regions of the United States.

Our operating results are materially impacted by market prices for eggs and feed grains (corn and soybean meal), which are

highly volatile, independent of each other, and out of our control. Generally speaking, higher market prices for eggs have a

positive impact on our financial results while higher market prices for feed grains have a negative impact on our financial

results. Although we use a variety of pricing mechanisms in pricing agreements with our customers, we sell the majority of our

conventional shell eggs based on formulas that take into account, in varying ways, independently quoted regional wholesale

market prices for shell eggs or formulas related to our costs of production which include the cost of corn and soybean meal. As

an example of the volatility in the market prices of shell eggs, the Urner -Barry Southeastern Regional Large Egg Market Price

per dozen eggs (“UB southeastern large index”) in fiscal year 2020 ranged from a low of $0.62 in July 2019 to a high of $3.18

in March 2020.

Generally, we purchase primary feed ingredients, mainly corn and soybean meal, at current market prices. Corn and soybean

meal are commodities and are subject to volatile price changes due to weather, various supply and demand factors,

transportation and storage costs, speculators, and agricultural, energy and trade policies in the U.S. and internationally. 

Specialty shell eggs have been a significant and growing portion of the market. In recent years, a significant number of large

restaurant chains, food service companies and grocery chains, including our largest customers, announced goals to transition to

an exclusively cage-free egg supply chain by specified future dates. Additionally, several states, representing 23% of the U.S.

21

total population according to the U.S. Census Bureau, have passed legislation requiring that all eggs sold in those states must be

cage-free eggs by specified future dates, and other states are considering such legislation. For additional information, see the

2020 Annual Report, Part I, Item 1, “Business – Growth Strategy” and “– Government Regulation,” and the fifth risk factor in

Part I, Item 1A, “Risk Factors.” 

Retail sales of shell eggs historically have been highest during the fall and winter months and lowest during the summer

months. Prices for shell eggs fluctuate in response to seasonal demand factors and a natural increase in egg production during

the spring and early summer. Historically, shell egg prices tend to increase with the start of the school year and tend to be

highest prior to holiday periods, particularly Thanksgiving, Christmas, and Easter. Consequently, and all other things being

equal, we would expect to experience lower selling prices, sales volumes and net income (and may incur net losses) in our first

and fourth fiscal quarters ending in August/September and May/June, respectively. Because of the seasonal and quarterly

fluctuations, comparisons of our sales and operating results between different quarters within a single fiscal year are not

necessarily meaningful comparisons.

COVID-19

Since early 2020, the coronavirus (“COVID-19”) outbreak, characterized as a pandemic by the World Health Organization on

March 11, 2020, has caused significant disruptions in international and U.S. economies and markets. We understand the

challenges and difficult economic environment facing the families in the communities where we live and work, and we are

committed to helping where we can. One way we have done this is by providing food assistance to those in need. Cal-Maine

Foods has donated approximately 1.5 million dozen eggs in the first three quarters of fiscal 2021. We believe we are taking all

reasonable precautions in the management of our operations in response to the COVID-19 pandemic. Our top priority is the

health and safety of our employees, who work hard every day to produce eggs for our customers. As part of the nation’s food

supply, we work in a critical infrastructure industry, and believe we have a special responsibility to maintain our normal work

schedule. As such, we are in regular communication with our managers across our operations and continue to closely monitor

the situation in our facilities and in the communities where we live and work. We have implemented procedures designed to

protect our employees, taking into account guidelines published by the Centers for Disease Control and other government

health agencies, and we have strict sanitation protocols and biosecurity measures in place throughout our operations with

restricted access to visitors. All non-essential corporate travel has been suspended. There are no known indications that

COVID-19 affects hens or can be transferred through the food supply. 

We continue to proactively monitor and manage operations during the COVID-19 pandemic, including additional related costs

that we incurred or may incur in the future. In the thirty-nine weeks ended February 27, 2021, we spent $1.8 million (excluding

medical insurance claims) related to the pandemic, of which $397 thousand was spent in the third quarter of fiscal 2021. The

majority of such expenses for both periods were related to additional labor, primarily reflected in cost of sales. Medical

insurance claims related to COVID-19 paid during the thirty-nine weeks ended February 27, 2021 were an additional $1.1

million of which $322 thousand were incurred in the third fiscal quarter of 2021. 

EXECUTIVE OVERVIEW

For the third quarter of fiscal 2021, we recorded a gross profit of $47.5 million compared to $49.8 million for the same period

of fiscal 2020. Demand for shell eggs remained favorable, primarily at the retail level as consumers continue to prepare more

meals at home during the COVID-19 pandemic. According to data provided by Informational Resources, Inc. (“IRI”) dozens

sold in the Total US - Multi Outlet channel for conventional eggs for the calendar year-to-date through March 7, 2021 increased

2.7% and specialty dozens increased 14.0% compared to the same period in the calendar year. Our total dozens sold increased

3.1% to 279.7 million dozen shell eggs for the third quarter of fiscal 2021 compared to 271.3 million dozen for the same period

of fiscal 2020. This is due to an increase in specialty egg dozens sold of 16.2%.

The daily average price for the UB southeastern large index for third quarter of fiscal 2021 increased 4.3% from the same

period in the prior year. Our net average selling price per dozen for the third quarter of fiscal 2021 was $1.246 compared to

$1.236 in the prior year period. Although the hen numbers reported by the United States Department of Agriculture (“USDA”)

as of March 1, 2020 were 327.4 million, which represents 3.1 million fewer hens than reported a year ago. The USDA reported

that the hatch from October 2020 through February 2021 increased 2.6% as compared to the prior comparable period, which

may indicate an increased supply of hens in the future. As we emerge from the COVID-19 pandemic with an anticipated return

in food service demand, these growing supply indicators could affect the overall balance of supply and demand for shell eggs

and have an impact on market prices.

Our farm production costs per dozen produced for the third quarter of fiscal 2021 increased 7.0% or $0.051 compared to third

quarter of fiscal 2020. This increase was primarily due to higher feed costs in the third quarter of fiscal 2021 compared to the

22

same period in the prior fiscal year due to increased prices for corn and soybeans caused by increased export demand, global

weather conditions and geopolitical issues. Other farm production costs for the third quarter of fiscal 2021 decreased 3.1%

compared to the same period in the prior fiscal year due to reductions in flock amortization and facility expenses. 

RESULTS OF OPERATIONS

The following table sets forth, for the periods indicated, certain items from our Condensed Consolidated Statements of

Operations expressed as a percentage of net sales.

13 Weeks Ended

39 Weeks Ended

February 27, 2021

February 29, 2020

February 27, 2021

February 29, 2020

Net sales

100.0

%

100.0

%

100.0

%

100.0

%

Cost of sales

86.8

%

85.6

%

87.7

%

93.5

%

Gross profit

13.2

%

14.4

%

12.3

%

6.5

%

Selling, general and administrative

13.3

%

12.8

%

13.6

%

14.7

%

Loss on disposal of fixed assets

0.1

%

0.1

%

—

%

0.1

%

Operating income (loss)

(0.2)

%

1.5

%

(1.3)

%

(8.3)

%

Total other income, net

3.4

%

3.7

%

1.5

%

1.9

%

Income (loss) before income taxes

3.2

%

5.2

%

0.2

%

(6.4)

%

Income tax (benefit) expense

(0.5)

%

1.2

%

(0.4)

%

(1.7)

%

Net income (loss)

3.7

%

4.0

%

0.6

%

(4.7)

%

Less: Income (loss) attributable to

noncontrolling interest

—

%

 (*) 

%

—

%

 (*) 

%

Net income (loss) attributable to Cal-Maine

Foods, Inc.

3.7

%

4.0

%

0.6

%

(4.7)

%

(*)

Represents less than

0.1% of Net sales

NET SALES

Net sales for the third quarter of fiscal 2021 were $359.1 million, an increase of $13.5 million, or 3.9%, compared to net sales

of $345.6 million for the same period of fiscal 2020. The increase was primarily due to a 3.1% increase in the total volume of

dozen eggs sold which accounted for a $10.5 million increase in net sales. Dozens sold for the third quarter ended February 27,

2021 were 279.7 million compared to 271.3 million for the same period of fiscal 2020.

Net shell egg sales of $350.0 million and $336.4 million made up approximately 97.5% and 97.3% of net sales for the third

quarters ended February 27, 2021 and February 29, 2020, respectively. The net average selling price per dozen of shell eggs for

the third quarters ended February 27, 2021 and February 29, 2020 was $1.246 and $1.236, respectively. The increase in selling

price per dozen accounted for a $2.8 million increase in net sales.

Egg products accounted for 2.5% and 2.7% of net sales for the third quarter ended February 27, 2021 and February 29, 2020,

respectively. These revenues were $9.1 million and $9.2 million for the third quarters of fiscal 2021 and 2020, respectively. 

The decrease is primarily due to decreased volume partially offset by higher selling prices.

Net sales for the thirty-nine weeks ended February 27, 2021 were $999.2 million, an increase of $100.9 million, or 11.2%,

compared to net sales of $898.3 million for the same period of fiscal 2020 . The increase was primarily due to a 7.0% increase

in egg selling prices which accounted for a $63.8 million increase in net sales. The net average selling price per dozen of shell

eggs for the thirty-nine weeks ended February 27, 2021 and February 29, 2020 was $1.185 and $1.107, respectively.

Net shell egg sales of $973.5 million and $874.1 million made up approximately 97.4% and 97.3% of net sales for the thirty-

nine weeks ended February 27, 2021 and February 29, 2020, respectively. Dozens sold for the thirty-nine weeks ended

February 27, 2021 were 817.4 million, a 3.9% increase from 786.7 million for the same period of fiscal 2020. The total volume

increase accounted for a $36.3 million increase in net sales. 

Egg products accounted for 2.6% and 2.7% of net sales for the thirty -nine weeks ended February 27, 2021 and February 29,

2020, respectively. These revenues were $25.7 million for the thirty-nine weeks ended February 27, 2021, compared to

$24.2 million for the same period in fiscal 2020, primarily due to higher selling prices slightly offset by decreased volume.

23

The table below presents an analysis of our conventional and specialty shell egg sales (in thousands, except percentage data):

13 Weeks Ended

39 Weeks Ended

February 27, 2021

February 29, 2020

February 27, 2021

February 29, 2020

Total net sales

$

359,080

$

345,588

$

999,189

$

898,276

Conventional

$

203,189

58.0

%

$

210,329

62.5

%

$

560,297

57.5

%

$

518,898

59.4

%

Specialty

145,210

41.5

%

125,019

37.2

%

408,537

42.0

%

352,118

40.3

%

Egg sales, net

348,399

99.5

%

335,348

99.7

%

968,834

99.5

%

871,016

99.7

%

Other

1,583

0.5

%

1,028

0.3

%

4,619

0.5

%

3,050

0.3

%

Net shell egg sales

$

349,982

100.0

%

$

336,376

100.0

%

$

973,453

100.0

%

$

874,066

100.0

%

Net shell egg sales as a

percent of total net sales

97.5

%

97.3

%

97.4

%

97.3

%

Dozens sold:

Conventional

203,070

72.6

%

205,307

75.7

%

599,625

73.4

%

599,788

76.2

%

Specialty

76,645

27.4

%

65,970

24.3

%

217,735

26.6

%

186,939

23.8

%

Total dozens sold

279,715

100.0

%

271,277

100.0

%

817,360

100.0

%

786,727

100.0

%

Net average selling price per

dozen:

Conventional

$

1.001

$

1.024

$

0.934

$

0.865

Specialty

$

1.895

$

1.895

$

1.876

$

1.884

All shell eggs

$

1.246

$

1.236

$

1.185

$

1.107

Conventional shell eggs include all shell egg sales not specifically identified as specialty shell egg sales. Comparing the third

quarters ended February 27, 2021 and February 29, 2020, conventional egg dozens sold decreased 1.1% and the average selling

price per dozen decreased 2.2% to $1.001 from $1.024. Comparing the thirty-nine weeks ended February 27, 2021 and

February 29, 2020, conventional shell egg dozens sold remained relatively flat while the average selling price per dozen

increased 8.0% to $0.934 from $0.865.

Specialty eggs, which include nutritionally enhanced, cage-free, organic and brown eggs, continued to make up a significant

portion of our total shell egg revenue and dozens sold. Specialty egg retail prices are less cyclical than conventional shell egg

prices and are generally higher due to consumer willingness to pay more for specialty eggs. For the third quarter of fiscal 2021

and 2020, specialty shell egg dozens sold increased 16.2%, and the average selling price per dozen remained the same at

$1.895. For the thirty-nine weeks ended February 27, 2021, specialty shell egg dozens sold increased 16.5% and the average

selling price decreased 0.4% to $1.876 from $1.884 for the same period of fiscal 2020. In the third quarter of fiscal 2021,

demand for specialty eggs increased as consumers opted for the specialty eggs which is noted in the Executive Overview above

along with increased promotional spending. For the thirty-nine weeks ended February 27, 2021, demand for specialty eggs was

positively impacted by the higher conventional egg prices as compared to the same period in the prior year.

The shell egg sales classified as “Other” represent sales of hard cooked eggs, hatching eggs, and other miscellaneous products

included with our shell egg operations. 

Egg products are shell eggs that are broken and sold in liquid, frozen, or dried form. Our egg products are sold through our

wholly-owned subsidiaries American Egg Products, LLC and Texas Egg Products, LLC. Comparing the third quarters of fiscal

2021 and 2020, pounds sold decreased 11.3%; however, the average selling price per pound increased 11.2 % to $0.584 from

$0.525. Comparing the thirty-nine weeks ended February 27, 2021 and February 29, 2020, pounds sold decreased 8.9% while

the average selling price per pound increased 16.7% to $0.553 from $0.474. 

COST OF SALES

Cost of sales consists of costs directly related to production, processing and packing of shell eggs, purchases of shell eggs from

outside producers, processing and packing of liquid and frozen egg products, and other non-egg costs. Farm production costs

24

are costs incurred at the egg production facility, including feed, facility, hen amortization, and other related farm production

costs.

The following table presents the key variables affecting cost of sales (in thousands, except cost per dozen data):

13 Weeks Ended

39 Weeks Ended

February 27, 2021

February 29, 2020

% Change

February 27, 2021

February 29, 2020

% Change

Cost of Sales:

Farm production

$

190,883

$

172,525

10.6

%

$

531,877

$

499,840

6.4

%

Processing,

packaging, and

warehouse

63,640

60,186

5.7

187,014

170,998

9.4

Egg purchases and

other (including

change in inventory)

50,443

56,179

(10.2)

137,001

146,754

(6.6)

Total shell eggs

304,966

288,890

5.6

855,892

817,592

4.7

Egg products

6,597

6,870

(4.0)

20,565

19,687

4.5

Other

—

—

—

—

2,919

(100.0)

Total

$

311,563

$

295,760

5.3

%

$

876,457

$

840,198

4.3

%

Farm production costs

(per dozen produced)

Feed

$

0.467

$

0.406

15.0

%

$

0.422

$

0.411

2.7

%

Other

$

0.313

$

0.323

(3.1)

%

$

0.318

$

0.328

(3.0)

%

Total

$

0.780

$

0.729

7.0

%

$

0.740

$

0.739

0.1

%

Outside egg purchases

(average cost per

dozen)

$

1.26

$

1.17

7.7

%

$

1.23

$

1.12

9.8

%

Dozens produced

248,130

239,072

3.8

%

731,205

684,837

6.8

%

Dozens sold

279,715

271,277

3.1

%

817,360

786,727

3.9

%

Cost of sales for the third quarter of fiscal 2021 was $311.6 million, an increase of $15.8 million, or 5.3%, from $295.8 million

for the same period of fiscal 2020. The increase was primarily driven by the increase in farm production costs and processing

costs. Farm production costs were primarily impacted by higher feed costs of $0.467 per dozen produced compared to $0.406

per dozen produced for the same period in the prior year. Other farm production costs per dozen produced decreased 3.1% to

$0.313 for the quarter ended February 27, 2021, compared to $0.323 for the same period of last year, primarily from lower

facility costs and amortization expense. The lower feed costs in prior periods which are capitalized in our flocks during pullet

production helped reduce amortization expense in the third quarter of fiscal 2021 as compared to the same period in fiscal 2020.

Facility costs decreased in the third quarter of fiscal 2021 compared to the same period in fiscal 2020 due to improved

efficiencies in our utilization of our facilities and increased volume of production. Processing costs increased due to a 3.2%

increase in the volume of eggs processed compared to the same period of the prior year. The cost of packaging materials

increased 2.0% compared to the prior year period as the retail channel demand increased due to the pandemic. The pandemic

led to an increase in labor costs. Dozens produced increased 3.8% compared to the same period of fiscal 2020. Egg purchase

expenses decreased 10.2%, primarily due to the decrease in the volume of outside egg purchases, partially offset by an increase

in the cost of these purchases.

Cost of sales for the thirty-nine weeks ended February 27, 2021 was $876.5 million, an increase of $36.3 million, or 4.3%, from

$840.2 million for the same period of fiscal 2020. The increase was primarily driven by the increase in farm production costs

and processing costs. Processing costs increased due to a 5.5% increase in the volume of eggs processed compared to the same

period of the prior year. The cost of packaging materials increased 2.8% compared to the prior year period as the retail channel

demand increased due to the pandemic. The pandemic led to an increase in labor costs. Farm production costs for the thirty-

nine weeks ended February 27, 2021 increased $32.0 million, which was primarily due to an increase in production volume of

6.8% compared to the same period of fiscal 2020. Feed cost per dozen for the thirty-nine weeks ended February 27, 2021 was

$0.422, compared to $0.411 per dozen for the comparable period of fiscal 2020, an increase of 2.7%. Other farm production

costs per dozen produced decreased 3.0% to $0.318 for the thirty-nine weeks ended February 27, 2021 , compared to $0.328 for

25

the same period of last year, primarily from lower amortization and facility expense. In the prior fiscal year we incurred higher

amortization expense due to selling flocks early in fiscal 2020 in response to market conditions. Facility costs decreased due to

improved efficiencies in our utilization of our facilities and increased volume of our production. Egg purchase expenses

decreased 6.6%, primarily due to the decrease in the volume of outside egg purchases, partially offset by an increase in the cost

of these purchases.

Included in cost of sales for the thirty-nine weeks ended February 29, 2020 is a $2.9 million impairment charge related to

decommissioning older, less efficient production facilities as we invest in new facilities to meet the increasing demand for

specialty eggs and reduce production costs.

Feed costs started trending higher midway through the second quarter of fiscal 2021. For the third quarter, the average Chicago

Board of Trade (“CBOT”) daily market price was $4.97 per bushel for corn and $422.61 per ton for soybean meal, representing

an increase of 29.9% and 42.4%, respectively, compared to the daily average CBOT prices for the same period last year. As

feed ingredient prices rose through the second and third quarters of fiscal 2021, we benefited from our normal operating

practices of filling our storage bins at harvest and locking in the basis portion of our grain purchases several months in advance

to help ensure availability of feed ingredients. Most of this benefit has been realized in our second and third fiscal quarters,

however, during our fourth fiscal quarter we will be exposed more directly to price movements in the feed ingredient market.

We expect to see continued price volatility for the remainder of fiscal 2021 as increased export demand for both soybeans and

corn is placing pressure on domestic supplies and carryout inventories are projected to be lower. Additionally, the ongoing

uncertainties and supply chain disruptions related to the COVID-19 outbreak, weather fluctuations and geopolitical issues will

continue to affect market prices for our primary feed ingredients.

GROSS PROFIT 

Gross profit for the third quarter of fiscal 2021 was $47.5 million compared to $49.8 million for the same period of fiscal 2020.

The decrease of $2.3 million was primarily due to increased farm production cost and processing costs, partially offset by an

increase in dozens sold for specialty eggs.

For the thirty-nine weeks ended February 27, 2021 gross profit was $122.7 million compared to $58.1 million for the same

period of fiscal 2020. The increase of $64.7 million was primarily due to the increase in conventional shell egg selling prices

and an increase in dozens sold for specialty eggs.

SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES

Selling, general, and administrative (“SGA”) expenses include costs of marketing, distribution, accounting, and corporate

overhead. The following table presents an analysis of our SGA expenses (in thousands):

13 Weeks Ended

February 27, 2021

February 29, 2020

$ Change

% Change

Specialty egg expense

$

16,162

$

12,581

$

3,581

28.5

%

Delivery expense

13,359

13,309

50

0.4

%

Payroll, taxes and benefits

10,195

10,639

(444)

(4.2)

%

Stock compensation expense

964

886

78

8.8

%

Other expenses

6,976

6,816

160

2.3

%

Total

$

47,656

$

44,231

$

3,425

7.7

%

For the third quarter of fiscal 2021, SGA expenses increased 7.7% to $47.7 million from $44.2 million for the same period in

fiscal 2020. Specialty egg expense increased $3.6 million, or 28.5%, compared to the same period of the prior year. Specialty

egg expense, which includes franchise fees and advertising expense, typically fluctuates with specialty egg dozens sold, which

increased 16.2% for the third quarter ended February 27, 2021. 

26

39 Weeks Ended

February 27, 2021

February 29, 2020

$ Change

% Change

Specialty egg expense

$

42,898

$

35,995

$

6,903

19.2

%

Delivery expense

38,905

39,341

(436)

(1.1)

%

Payroll, taxes and benefits

31,526

31,391

135

0.4

%

Stock compensation expense

2,789

2,680

109

4.1

%

Other expenses

19,376

23,027

(3,651)

(15.9)

%

Total

$

135,494

$

132,434

$

3,060

2.3

%

For the thirty-nine weeks ended February 27, 2021, SGA expense increased 2.3% to $135.5 million from $132.4 million for the

same period in fiscal 2020. Specialty egg expense increased $6.9 million, or 19.2%, compared to the same period of the prior

year. Specialty egg expense typically fluctuates with specialty egg dozens sold, which increased 16.5% for the thirty-nine

weeks ended February 27, 2021. Other expenses decreased $3.7 million or 15.9% compared to the same period in fiscal 2020. 

This decrease is primarily due to the legal settlement paid in the second quarter of fiscal 2020 and the first quarter of fiscal 2021

return of brokerage commissions on property and casualty insurance placements refunded after final reconciliation of all

brokerage service agreements.

Included in Other expenses is approximately $551 thousand relating to the secondary public offering completed in August 2020

by the wife of our late founder and a trust of which his daughters are beneficiaries. For more information, see

 – Related

Party Transaction of the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report.

OPERATING INCOME (LOSS)

For the third quarter of fiscal 2021, we recorded an operating loss of $493 thousand compared to an operating income of $5.2

million for the same period of fiscal 2020.

For the thirty-nine weeks ended February 27, 2021, we recorded an operating loss of $13.2 million compared to an operating

loss of $74.8 million for the same period of fiscal 2020.

OTHER INCOME (EXPENSE) 

Total other income (expense) consists of items not directly charged or related to operations, such as interest income and

expense, royalty income, equity in income or loss of unconsolidated entities, and patronage income, among other items. 

For the third quarter of fiscal 2021, we earned $661 thousand of interest income compared to $880 thousand for the same

period of fiscal 2020. For the thirty-nine weeks ended February 27, 2021, we earned $2.4 million of interest income compared

to $3.9 million for the same period of fiscal 2020. The decrease for both periods resulted from significantly lower interest rates.

The Company recorded interest expense of $70 thousand and $77 thousand for the third quarters ended February 27, 2021 and

February 29, 2020 , respectively. For the thirty-nine weeks ended February 27, 2021 and February 29, 2020 interest expense

was $205 thousand and $258 thousand, respectively.

Patronage dividends, which represent distributions from our membership in Eggland’s Best, Inc. were $9.0 million and $10.1

million for the thirteen and thirty-nine weeks ended February 27, 2021 and February 29, 2020, respectively. Patronage

dividends are paid once a year based on the profits of Eggland’s Best as well as its available cash.

For the third quarter of fiscal 2021, equity income of unconsolidated entities was $1.9 million compared to $1.4 million in the

prior year period. For the thirty-nine weeks ended February 27, 2021, equity income of unconsolidated entities was $1.9

million compared to $537 thousand for the prior year period. The increase for both periods is primarily due to the increase in

egg selling prices positively impacting the profitability of our joint ventures.

Other, net for the third quarter ended February 27, 2021, was income of $537 thousand compared to income of $79 thousand

for the same period of fiscal 2020. 

Other, net for the thirty-nine weeks ended February 27, 2021, was income of $1.5 million compared to income of $1.9 million

for the same period of fiscal 2020. The decrease is primarily driven by lower realized and unrealized gains in investment

securities available-for-sale.

27

INCOME TAXES

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted. The most

significant provision of the CARES Act that materially affected the Company’s income taxes included the five-year carryback

allowance for taxable net operating losses generated in the tax years 2018 through 2020, our fiscal years 2019 through 2021.

The Company is electing to utilize that provision, which will provide additional liquidity in the form of an income tax refund

currently estimated to be approximately $14.6 million. We anticipate we will receive the refund during fiscal year 2022. 

Additionally, we recorded an income tax benefit of approximately $5.0 million related to the carryback provision.

For the third quarter of fiscal 2021, pre-tax income was $11.8 million compared to pre-tax income of $18.0 million for the same

period of fiscal 2020. We recorded an income tax benefit of $1.7 million for the third quarter of fiscal 2021, which includes the

discrete tax benefit of $5.0 million described above. Excluding the tax benefit, income tax expense was $2.9 million for the

third quarter of fiscal 2021 with an adjusted effective tax rate of 24.6%. Income tax expense was $4.3 million for the

comparable period of fiscal 2020, which reflects an effective tax rate of 23.7%. 

For the thirty-nine weeks ended February 27, 2021, pre-tax income was $2.2 million compared to pre-tax loss of $57.5 million

for the same period of fiscal 2020. We recorded an income tax benefit of $4.1 million, which includes the discrete tax benefit of

$5.0 million described above. Excluding the tax benefit, income tax expense of $543 thousand was recorded with an adjusted

effective tax rate of 24.3%. Income tax benefit of $15.4 million was recorded for the comparable period of fiscal 2020, which

reflects an effective tax rate of 26.7%.

At February 27, 2021, trade and other receivables included income taxes receivables of $23.6 million compared to $9.9 million

at May 30, 2020. 

Our effective tax rate differs from the federal statutory income tax rate due to state income taxes, certain federal tax credits and

certain items included in income for financial reporting purposes that are not included in taxable income for income tax

purposes, including tax exempt interest income, certain nondeductible expenses and net income or loss attributable to

noncontrolling interest. Results for the current quarter were favorably impacted by a $5.0 million discrete tax benefit related to

the CARES Act, as discussed above and in

Note 11

 – Income Taxes of the Notes to Condensed Consolidated Financial

Statements in this Quarterly Report.

NET INCOME (LOSS) ATTRIBUTABLE TO CAL-MAINE FOODS, INC.

Net income for the third quarter ended February 27, 2021 was $13.5 million, or $0.28 per basic and diluted share, compared to

net income of $13.7 million or $0.28 per basic and diluted share for the same period of fiscal 2020.

Net income for the thirty-nine weeks ended February 27, 2021 was $6.3 million, or $0.13 per basic and diluted share, compared

to a net loss of $42.1 million or $0.87 per basic and diluted share for the same period of fiscal 2020.

28

CAPITAL RESOURCES AND LIQUIDITY

Our working capital at February 27, 2021 was $422.0 million, compared to $429.1 million at May 30, 2020. The calculation of

working capital is defined as current assets less current liabilities. Our current ratio was 5.19 at February 27, 2021, compared

with 5.60 at May 30, 2020. 

We had no long-term debt outstanding at February 27, 2021 or May 30, 2020. On July 10, 2018, we entered into a $100.0

million Senior Secured Revolving Credit Facility (the “Revolving Credit Facility”). As of February 27, 2021, no amounts were

borrowed under the Revolving Credit Facility. We have $4.1 million in outstanding standby letters of credit, issued under our

Revolving Credit Facility for the benefit of certain insurance companies. Refer to Note 10 of our audited financial statements

included in our 2020 Annual Report for further information regarding our long-term debt.

For the thirty-nine weeks ended February 27, 2021 , $14.7 million in net cash was provided by operating activities, compared to

$36.4 million used in operating activities for the comparable period in fiscal 2020. This is primarily due to an increase in egg

selling prices compared to the prior year period. 

We continue to invest in our facilities with $73.8 million used to purchase property, plant and equipment for the thirty-nine

weeks ended February 27, 2021 compared to $94.6 million in the same period of fiscal 2020. Sales and maturities of

investment securities, net of purchases, were $25.8 million for the thirty-nine weeks ended February 27, 2021 compared to

$169.4 million for the comparable period in fiscal 2020. We received $5.8 million in distributions from unconsolidated entities

during the first three quarters of fiscal 2021 compared to $6.1 million for the same peri od fiscal of 2020. During the thirty-nine

weeks ended February 29, 2020, we used $44.5 million in cash in connection with our purchase of certain assets of Mahard Egg

Farm. We used $153 thousand for principal payments on finance leases in the first three quarters of fiscal 2021 compared to

$1.6 million for principal payments on long-term debt and finance leases for the same period of fiscal 2020. 

As of February 27, 2021, cash decreased $25.2 million since May 30, 2020 compared to a decrease of $1.5 million during the

same period of fiscal 2020.

We continue to take aggressive steps to position Cal-Maine Foods to meet the expected future demand for cage-free eggs. We

have invested approximately $418 million in facilities, equipment and related operations to expand our cage-free production

starting with our first facility in 2008. The following table presents material construction projects approved as of February 27,

2021 (in thousands):

Project(s) Type

Projected 

Completion

Projected Cost

Spent as of 

February 27, 2021

Remaining

Projected Cost

Convertible/Cage-Free Layer Houses & Pullet

Houses

Fiscal 2021

$

46,950

$

10,337

$

36,613

Cage-Free Layer & Pullet Houses/Processing

Facility

Fiscal 2022

94,632

79,558

15,074

$

141,582

$

89,895

$

51,687

We believe our current cash balances, investments, cash flows from operations, and Revolving Credit Facility will be sufficient

to fund our current and projected capital needs for at least the next twelve months.

RECENTLY ISSUED/ADOPTED ACCOUNTING STANDARDS

For information on changes in accounting principles and new accounting policies, see

 of the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report.

CRITICAL ACCOUNTING ESTIMATES 

Critical accounting estimates are those estimates made in accordance with U.S. generally accepted accounting principles that

involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our

financial condition or results of operations. There have been no changes to our critical accounting estimates identified in our

2020 Annual Report.

29

ITEM 4. CONTROLS

AND

PROCEDURES

Disclosure Controls and Procedures

Our disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed

by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time

periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include,

without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that

we file or submit under the Exchange Act is accumulated and communicated to management, including our principal executive

and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding

required disclosure. Based on an evaluation of our disclosure controls and procedures conducted by our Chief Executive Officer

and Chief Financial Officer, together with other financial officers, such officers concluded that our disclosure controls and

procedures were effective as of February 27, 2021 at the reasonable assurance level.

Changes in Internal Control Over Financial Reporting

There was no change in our internal control over financial reporting that occurred during the quarter ended February 27, 2021

that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

ITEM 1A. RISK

FACTORS

Except as set forth below, there have been no material changes in the risk factors previously disclosed in the 2020 Annual

Report.

We are controlled by the family of our late founder, Fred R. Adams, Jr., and Adolphus B. Baker, our Chief Executive

Officer and Chairman of our Board of Directors controls the vote of 100% of our outstanding Class A Common Stock.

Fred R. Adams, Jr., our Founder and Chairman Emeritus died on March 29, 2020. Mr. Adams’ son-in-law, Adolphus B. Baker,

our Chief Executive Officer and Chairman of our board of directors, Mr. Baker’s spouse and her three sisters (who are Mr.

Adams’ four daughters) beneficially own, directly or indirectly through related entities, 100% of our outstanding Class A

Common Stock, controlling approximately 52.2% of our total voting power. Additionally, such persons and Jean Reed Adams

(“Mrs. Adams”), the wife of our late founder, Fred R. Adams, Jr., also have additional voting power due to beneficial

ownership of our Common Stock, directly or indirectly through related entities, resulting in family voting control of

approximately 57.7% of our total voting power. Mr. Baker controls the vote of 100% of our outstanding Class A Common

Stock.

We understand that the Adams and Baker families intend to retain ownership of a sufficient amount of our Common Stock and

our Class A Common Stock to assure continued ownership of more than 50% of the voting power of our outstanding shares of

capital stock. As a result of this ownership, the Adams and Baker families have the ability to exert substantial influence over

matters requiring action by our stockholders, including amendments to our certificate of incorporation and by-laws, the election

and removal of directors, and any merger, consolidation, or sale of all or substantially all of our assets, or other corporate

transactions. Delaware law provides that the holders of a majority of the voting power of shares entitled to vote must approve

certain fundamental corporate transactions such as a merger, consolidation and sale of all or substantially all of a corporation’s

assets; accordingly, such a transaction involving us and requiring stockholder approval cannot be effected without the approval

of the Adams and Baker families. Such ownership will make an unsolicited acquisition of our Company more difficult and

discourage certain types of transactions involving a change of control of our Company, including transactions in which the

holders of our Common Stock might otherwise receive a premium for their shares over then current market prices. The Adams

and Baker families’ controlling ownership of our capital stock may adversely affect the market price of our Common Stock.

The price of our Common Stock may be affected by the availability of shares for sale in the market, and you may

experience significant dilution as a result of future issuances of our securities, which could materially and adversely

affect the market price of our Common Stock.

The sale or availability for sale of substantial amounts of our Common Stock could adversely impact its price. Our articles of

incorporation authorize us to issue 120,000,000 shares of our Common Stock. As of March 29, 2021, there were 44,056,163

shares of our Common Stock outstanding. Accordingly, a substantial number of shares of our Common Stock are outstanding

and are, or could become, available for sale in the market. In addition, we may be obligated to issue additional shares of our

Common Stock in connection with employee benefit plans (including equity incentive plans).

30

In the future, we may decide to raise capital through offerings of our Common Stock, additional securities convertible into or

exchangeable for Common Stock, or rights to acquire these securities or our Common Stock. The issuance of additional shares

of our Common Stock or additional securities convertible into or exchangeable for our Common Stock could result in dilution

of existing stockholders’ equity interests in us. Issuances of substantial amounts of our Common Stock, or the perception that

such issuances could occur, may adversely affect prevailing market prices for our Common Stock, and we cannot predict the

effect this dilution may have on the price of our Common Stock.

As described in

Note 13

 – Related Party Transaction of the Notes to Condensed Consolidated Financial Statements included in

this Quarterly Report, in August 2020 Mrs. Adams and the Daughters’ Trust (of which the daughters of our late founder are

beneficiaries) sold 6.9 million shares of Common Stock in a secondary public offering pursuant to a previously disclosed

Agreement Regarding Common Stock (the “Agreement”) filed as an exhibit to our 2020 Annual Report. After the sale,

approximately 5.0 million shares (the “Subject Shares”) remain registered under a shelf registration statement and prospectus

dated October 9, 2018 for potential resale, which shares are subject to the Agreement. The Agreement generally provides that if

a holder of Subject Shares intends to sell any of the Subject Shares, such party must give the Company a right of first refusal to

purchase all or any of such shares. The price payable by the Company to purchase shares pursuant to the exercise of the right of

first refusal will reflect a 6% discount to the then-current market price based on the 20 business-day volume weighted average

price. If the Company does not exercise its right of first refusal and purchase the shares offered, such party will, subject to the

approval of a special committee of independent directors of the Board of Directors, be permitted to sell the shares not purchased

by the Company pursuant to a Company registration statement, Rule 144 under the Securities Act of 1933, or another manner

of sale agreed to by the Company. Although pursuant to the Agreement the Company will have a right of first refusal to

purchase all or any of those shares, the Company may elect not to exercise its rights of first refusal, and if so such shares would

be eligible for sale pursuant to the registration rights in the Agreement or pursuant to Rule 144 under the Securities Act of 1933.

Sales, or the availability for sale, of a large number of shares of our Common Stock could result in a decline in the market price

of our Common Stock.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Refer to the discussion of certain legal proceedings involving the Company and/or its subsidiaries in (i) our 2020 Annual

Report, Part I Item 3: Legal Proceedings, and Part II Item 8, Notes to Consolidated Financial Statements and Supplementary

Data, Note 18: Commitments and Contingencies, and (ii) in this Quarterly Report in

of the Notes to Condensed Consolidated Financial Statements, which discussions are incorporated herein by reference.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table is a summary of our third quarter 2021 share repurchases:

Total Number of

Maximum Number

Shares Purchased

of Shares that

Total Number

Average

as Part of Publicly

May Yet Be

of Shares

Price Paid

Announced Plans

Purchased Under the

Period

Purchased (1)

per Share

Or Programs

Plans or Programs

11/29/20 to 12/26/20

—

$

—

—

—

12/27/20 to 01/23/21

—

—

—

—

01/24/21 to 02/27/21

22,628

36.47

—

—

22,628

$

36.47

—

—

(1)

As permitted under our Amended and Restated 2012 Omnibus Long

-

term Incentive Plan,

these shares were withheld

by us to satisfy tax withholding obligations for employees in connection with the vesting of restricted common stock.

31

ITEM 6. EXHIBITS

Exhibits

No.

Description

3.1

Second Amended and Restated Certificate of Incorporation of the Registrant (incorporated by reference to

Exhibit 3.1 in the Registrant’s Form 8-K, filed July 20, 2018)

3.2

Composite Bylaws of the Company (incorporated by reference to Exhibit 3.2 in the Registrant’s Form 10-Q

for the quarter ended March 2, 2013, filed April 5, 2013)

31.1*

Rule 13a-14(a) Certification of the Chief Executive Officer

31.2*

Rule 13a-14(a) Certification of the Chief Financial Officer

32**

Section 1350 Certification of the Chief Executive Officer and the Chief Financial Officer

101.SCH*+

Inline XBRL Taxonomy Extension Schema Document

101.CAL*+

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF*+

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB*+

Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE*+

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

*

Filed herewith as an Exhibit. 

**

Furnished herewith as an Exhibit.

+

Submitted electronically with this Quarterly Report.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on

its behalf by the undersigned, thereunto duly authorized.

CAL-MAINE FOODS, INC.

(Registrant)

Date: 

March 29, 2021

/s/ Max P. Bowman

Max P. Bowman

Vice President, Chief Financial Officer

(Principal Financial Officer)

໿

Date: 

March 29, 2021

/s/ Michael D. Castleberry

Michael D. Castleberry

Vice President, Controller

(Principal Accounting Officer)

໿

EX-31.1

Exhibit 31.1

1

Certification

Pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934,

As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Adolphus B. Baker, certify that:

1.

I have reviewed this Quarterly Report on Form 10-Q of Cal-Maine Foods, Inc.;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact

necessary to make the statements made, in light of the circumstances under which such statements were made, not

misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in

all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods

presented in this report;

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and

procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as

defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed

under our supervision, to ensure that material information relating to the registrant, including its consolidated

subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is

being prepared;

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be

designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the

preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our

conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this

report based on such evaluation; and

(d)

 Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the

registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has

materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

and

5.

The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over

financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons

performing the equivalent functions):

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial

reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report

financial information; and

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the

registrant’s internal control over financial reporting.

/s/ Adolphus B. Baker

Adolphus B. Baker

Chief Executive Officer and Chairman of the Board

Date:

March 29, 2021

EX-31.2

Exhibit 31.2

1

Certification

Pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934,

As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Max P. Bowman, certify that

1.

I have reviewed this Quarterly Report on Form 10-Q of Cal-Maine Foods, Inc.;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact

necessary to make the statements made, in light of the circumstances under which such statements were made, not

misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in

all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods

presented in this report;

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and

procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as

defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed

under our supervision, to ensure that material information relating to the registrant, including its consolidated

subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is

being prepared;

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be

designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the

preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our

conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by

this report based on such evaluation; and

(d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the

registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has

materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

and

5.

The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over

financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons

performing the equivalent functions):

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial

reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and

report financial information; and

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the

registrant’s internal control over financial reporting.

/s/ Max P. Bowman

Max P. Bowman

Vice President and Chief Financial Officer

Date:

March 29, 2021

EX-32

Exhibit 32

1

Certifications Pursuant to 18 U.S.C. §1350,

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Solely for the purposes of complying with 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of

2002, we, the undersigned Chief Executive Officer and Chief Financial Officer of Cal-Maine Foods, Inc. (the “Company”),

hereby certify, based on our knowledge, that the Quarterly Report on Form 10-Q of the Company for the quarter ended

February 27, 2021 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act

of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and

results of operations of the Company.

/s/ Adolphus B. Baker

Adolphus B. Baker

Chief Executive Officer and Chairman of the Board

/s/ Max P. Bowman

Max P. Bowman

Vice President and Chief Financial Officer

Date:

March 29, 2021

XML

Document And Entity Information - shares	9 Months Ended
	Feb. 27, 2021	Mar. 29, 2021
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Feb. 27, 2021
Document Transition Report	false
Entity File Number	000-38695
Entity Registrant Name	CAL-MAINE FOODS, INC
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	64-0500378
Local Phone Number	948-6813
City Area Code	601
Entity Address Postal Zip Code	39209
Entity Address State Or Province	MS
Entity Address City Or Town	Jackson
Entity Address Address Line 1	3320 Woodrow Wilson Avenue
Security 12b Title	Common Stock, $0.01 par value per share
Trading Symbol	CALM
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Central Index Key	0000016160
Current Fiscal Year End Date	--05-29
Common Stock [Member]
Document Information [Line Items]
Entity Common Stock Shares Outstanding		44,056,163
Class A Common Stock [Member]
Document Information [Line Items]
Entity Common Stock Shares Outstanding		4,800,000

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Feb. 27, 2021	May 30, 2020
Current assets:
Cash and cash equivalents	$ 52,917	$ 78,130
Investment securities available-for-sale	127,771	154,163
Trade and other receivables, net	130,314	98,375
Inventories	207,739	187,216
Prepaid expenses and other current assets	4,162	4,367
Total current assets	522,903	522,251
Property, plant & equipment, net	585,389	557,375
Finance lease right-of-use asset, net	563	678
Operating lease right-of-use asset, net	1,922	2,531
Investments in unconsolidated entities	57,055	60,982
Goodwill	35,525	35,525
Intangible assets, net	22,256	22,816
Other long-term assets	5,671	4,536
Total Assets	1,231,284	1,206,694
Current liabilities:
Accounts payable and accrued expenses	99,851	92,182
Current portion of finance lease obligation	212	205
Current portion of operating lease obligation	741	796
Total current liabilities	100,804	93,183
Long-term finance lease obligation	492	652
Long-term operating lease obligation	1,180	1,735
Other noncurrent liabilities	9,690	8,681
Deferred income taxes	102,669	92,768
Total liabilities	214,835	197,019
Commitments and contingencies - see Note 12
Stockholders' equity:
Paid-in capital	63,170	60,372
Retained earnings	980,212	975,147
Accumulated other comprehensive income (loss), net of tax	(135)	79
Common stock in treasury at cost - 26,205 shares at February 27, 2021 and 26,287 shares at May 30, 2020	(27,549)	(26,674)
Total stockholders' equity	1,016,449	1,009,675
Total Liabilities and Stockholders' Equity	1,231,284	1,206,694
Common Stock [Member]
Stockholders' equity:
Common stock	703	703
Class A Common Stock [Member]
Stockholders' equity:
Common stock	$ 48	$ 48

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Feb. 27, 2021	May 30, 2020
Treasury stock, shares	26,205,000	26,287,000
Common Stock [Member]
Common stock, par value per share	$ 0.01	$ 0.01
Common stock, shares authorized	120,000,000	120,000,000
Common stock, shares issued	70,261,000	70,261,000
Class A Common Stock [Member]
Common stock, par value per share	$ 0.01	$ 0.01
Common stock, shares authorized	4,800,000	4,800,000
Common stock, shares issued	4,800,000	4,800,000

XML

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Feb. 27, 2021	Feb. 29, 2020	Feb. 27, 2021	Feb. 29, 2020
Condensed Consolidated Statements of Operations [Abstract]
Net sales	$ 359,080	$ 345,588	$ 999,189	$ 898,276
Cost of sales	311,563	295,760	876,457	840,198
Gross profit	47,517	49,828	122,732	58,078
Selling, general and administrative	47,656	44,231	135,494	132,434
Loss on disposal of fixed assets	354	385	476	467
Operating income (loss)	(493)	5,212	(13,238)	(74,823)
Other income (expense):
Interest income, net	591	803	2,181	3,628
Royalty income	321	414	906	1,173
Patronage dividends	9,004	10,096	9,004	10,096
Equity income of unconsolidated entities	1,872	1,445	1,886	537
Other, net	537	79	1,485	1,897
Total other income, net	12,325	12,837	15,462	17,331
Income (loss) before income taxes	11,832	18,049	2,224	(57,492)
Income tax (benefit) expense	(1,716)	4,278	(4,080)	(15,356)
Net income (loss)	13,548	13,771	6,304	(42,136)
Less: Income (loss) attributable to noncontrolling interest	0	22	0	(64)
Net income (loss) attributable to Cal-Maine Foods, Inc.	$ 13,548	$ 13,749	$ 6,304	$ (42,072)
Net income (loss) per common share attributable to Cal-Maine Foods, Inc.:
Basic (in dollars per share)	$ 0.28	$ 0.28	$ 0.13	$ (0.87)
Diluted (in dollars per share)	$ 0.28	$ 0.28	$ 0.13	$ (0.87)
Weighted average shares outstanding:
Basic	48,530	48,473	48,511	48,455
Diluted	48,659	48,588	48,649	48,455

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Feb. 27, 2021	Feb. 29, 2020	Feb. 27, 2021	Feb. 29, 2020
Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract]
Net profit (loss)	$ 13,548	$ 13,771	$ 6,304	$ (42,136)
Other comprehensive income (loss), before tax:
Unrealized holding loss on available-for-sale securities, net of reclassification adjustments	(378)	(38)	(283)	(863)
Income tax benefit related to items of other comprehensive income	92	9	69	210
Other comprehensive loss, net of tax	(286)	(29)	(214)	(653)
Comprehensive income (loss)	13,262	13,742	6,090	(42,789)
Less: Comprehensive income (loss) attributable to the noncontrolling interest	0	22	0	(64)
Comprehensive income (loss) attributable to Cal-Maine Foods, Inc.	$ 13,262	$ 13,720	$ 6,090	$ (42,725)

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Feb. 27, 2021	Feb. 29, 2020
Operating activities:
Net income (loss)	$ 6,304	$ (42,136)
Depreciation and amortization	44,391	42,911
Deferred income taxes	9,970	(13,406)
Impairment loss on property, plant & equipment	0	2,919
Other adjustments, net	(45,936)	(26,742)
Net cash provided by (used in) operations	14,729	(36,454)
Investing activities:
Purchases of investment securities	(59,415)	(12,100)
Sales and maturities of investment securities	85,202	181,533
Distributions from unconsolidated entities	5,813	6,114
Acquisition of business	0	(44,515)
Purchases of property, plant and equipment	(73,796)	(94,600)
Net proceeds from disposal of property, plant and equipment	3,273	1,839
Net cash provided by (used in) investing activities	(38,923)	38,271
Financing activities:
Purchase of common stock by treasury	(871)	(910)
Distributions to noncontrolling interests	0	(755)
Principal payments on long-term debt	0	(1,500)
Principal payments on finance lease	(153)	(146)
Contributions	5	0
Net cash used in financing activities	(1,019)	(3,311)
Net change in cash and cash equivalents	(25,213)	(1,494)
Cash and cash equivalents at beginning of period	78,130	69,247
Cash and cash equivalents at end of period	52,917	67,753
Supplemental Information:
Cash paid for operating leases	703	635
Interest paid	$ 193	$ 77

XML

Summary of Significant Accounting Policies

9 Months Ended

Feb. 27, 2021

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 1 - Summary of Significant Accounting Policies

Basis of Presentation

The unaudited condensed consolidated financial statements of Cal-Maine Foods, Inc. and its subsidiaries (the "Company,"

"we," "us," "our") have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. 

Therefore, they do not include all of the information and footnotes required by generally accepted accounting principles in the

United States of America ("GAAP") for complete financial statements and should be read in conjunction with our Annual

Report on Form 10-K for the fiscal year ended May 30, 2020 (the "2020 Annual Report"). These statements reflect all

adjustments that are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented

and, in the opinion of management, consist of adjustments of a normal recurring nature. Operating results for the interim

periods are not necessarily indicative of operating results for the entire fiscal year.

Fiscal Year

The Company's fiscal year ends on the Saturday closest to May 31. Each of the three-month periods and year-to-date periods

ended on February 27, 2021 and February 29, 2020 included 13 weeks and 39 weeks, respectively.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and

assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results

could differ from those estimates. 

The severity, magnitude and duration, as well as the economic consequences of the COVID-19 pandemic, are uncertain, rapidly

changing and difficult to predict. Therefore, our accounting estimates and assumptions might change materially in future

periods in response to COVID-19.

Investment Securities

Our investment securities are accounted for in accordance with ASC 320, “Investments - Debt and Equity Securities” (“ASC

320”). The Company considers all its debt securities for which there is a determinable fair market value, and there are no

restrictions on the Company's ability to sell within the next 12 months, as available-for-sale. We classify these securities as

current, because the amounts invested are available for current operations. Available-for-sale securities are carried at fair value,

with unrealized gains and losses reported as a separate component of stockholders’ equity. The Company regularly evaluates

changes to the rating of its debt securities by credit agencies and economic conditions to assess and record any expected credit

losses through allowance for credit losses limited to the amount that fair value was less than the amortized cost basis. The cost

basis for realized gains and losses on available-for-sale securities is determined by the specific identification method. Gains and

losses are recognized in other income (expenses) as Other, net in the Company's Condensed Consolidated Statements of

Operations. Investments in mutual funds are classified as “Other long-term assets” in the Company’s Consolidated Balance

Sheets.

Trade Receivables 

Trade receivables are stated at their carrying values, which include a reserve for credit losses. At February 27, 2021 and May

30, 2020, reserves for credit losses were $

728

 thousand and $

744

 thousand, respectively. The Company extends credit to

customers based on an evaluation of each customer's financial condition and credit history. Collateral is generally not required.

The Company minimizes exposure to counter party credit risk through credit analysis and approvals, credit

limits, and

monitoring procedures. In determining our reserve for credit losses, receivables are pooled according to age, with each pool

assigned an expected loss based on historical loss information adjusted as needed for economic and other forward-looking

factors.

Change in Accounting Principle

Effective May 31, 2020, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which is

intended to improve financial reporting by requiring more timely recording of credit losses on loans and other financial

instruments held by financial institutions and other organizations. The guidance replaces the prior “incurred loss” approach with

an “expected loss” model and requires measurement of all expected credit losses for financial assets held at the reporting date

based on historical experience, current conditions, and reasonable and supportable forecasts. The Company adopted the

guidance on a modified retrospective basis through a cumulative effect adjustment to retained earnings as of the beginning of

the period of adoption. The Company evaluated its current methodology of estimating allowance for doubtful accounts and the

risk profile of its receivables portfolio and developed a model that includes the qualitative and forecasting aspects of the

“expected loss” model under the amended guidance. The Company finalized its assessment of the impact of the amended

guidance and recorded a $

422

 thousand cumulative increase to retained earnings at May 31, 2020.

XML

Investment Securities

9 Months Ended

Feb. 27, 2021

Investments Securities [Abstract]

Investment Securities

Note 2 - Investment

Securities

The following represents the Company’s investment securities as of February 27, 2021 and May 30, 2020 (in thousands):

February 27, 2021

Amortized

Cost

Unrealized 

Gains

Unrealized

Losses

Estimated 

Fair Value

Municipal bonds

$

16,157

$

52

$

—

$

16,209

Commercial paper

6,345

—

—

6,345

Corporate bonds

92,256

1,062

—

93,318

Certificates of deposits

2,084

—

7

2,077

Asset backed securities

9,823

—

1

9,822

Total current investment securities

$

126,665

$

1,114

$

8

$

127,771

Mutual funds

$

2,293

$

1,424

$

—

$

3,717

Total noncurrent investment securities

$

2,293

$

1,424

$

—

$

3,717

43981

Amortized 

Cost

Unrealized 

Gains

Unrealized

Losses

Estimated 

Fair Value

Municipal bonds

$

16,093

$

86

$

—

$

16,179

Commercial paper

6,965

17

—

6,982

Corporate bonds

125,594

1,274

—

126,868

Certificates of deposits

1,492

—

—

1,492

Asset backed securities

2,629

13

—

2,642

Total current investment securities

$

152,773

$

1,390

$

—

$

154,163

Mutual funds

$

2,005

$

744

$

—

$

2,749

Total noncurrent investment securities

$

2,005

$

744

$

—

$

2,749

Available-for-sale

Proceeds from sales and maturities of investment securities available-for-sale were $

85.2

 million and $

181.5

 million during the

thirty-nine weeks ended February 27, 2021 and February 29, 2020, respectively. Gross realized gains for the thirty-nine weeks

ended February 27, 2021 and February 29, 2020 were $

116

 thousand and $

246

 thousand, respectively. There were $

17

thousand and $

7

 thousand gross realized losses for the thirty-nine weeks ended February 27, 2021 and February 29, 2020,

respectively. There were

no

 allowance for credit losses at February 27, 2021 and May 30, 2020.

Actual maturities may differ from contractual maturities as some borrowers have the right to call or prepay obligations with or

without penalties. Contractual maturities of current investments at February 27, 2021 are as follows (in thousands):

Estimated Fair Value

Within one year

$

44,862

1-5 years

82,909

Total

$

127,771

Noncurrent 

There were

no

 sales of noncurrent investment securities during the thirty-nine weeks ended February 27, 2021. Proceeds from

sales and maturities of noncurrent investment securities were $

1.2

 million during the thirty-nine weeks ended February 29,

2020. Gross realized gains for the thirty-nine weeks ended February 29, 2020 were $

611

 thousand. There were

no

 realized

losses for the thirty-nine weeks ended February 27, 2021 and February 29, 2020.

XML

Fair Value Measurements

9 Months Ended

Feb. 27, 2021

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 3 - Fair Value Measurements

The Company is required to categorize both financial and nonfinancial assets and liabilities based on the following fair value

hierarchy. The fair value of an asset is the price at which the asset could be sold in an orderly transaction between unrelated,

knowledgeable, and willing parties able to engage in the transaction. A liability’s fair value is defined as the amount that would

be paid to transfer the liability to a new obligor in a transaction between such parties, not the amount that would be paid to

settle the liability with the creditor.

•

Level 1

 - Quoted prices in active markets for identical assets or liabilities

•

Level 2

 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either

directly or indirectly, including:

◦

Quoted prices for similar assets or liabilities in active markets

◦

Quoted prices for identical or similar assets in non-active markets

◦

Inputs other than quoted prices that are observable for the asset or liability

◦

Inputs derived principally from or corroborated by other observable market data

•

Level 3

 - Unobservable inputs for the asset or liability that are supported by little or no market activity and that are

significant to the fair value of the assets or liabilities

The disclosures of fair value of certain financial assets and liabilities that are recorded at cost are as follows:

Cash and cash equivalents, accounts receivable, and accounts payable:

 The carrying amount approximates fair value due to the

short maturity of these instruments.

Lease obligations:

 The carrying value of the Company’s lease obligations is at its present value which approximates fair value.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

In accordance with the fair value hierarchy described above, the following table shows the fair value of financial assets and

liabilities measured at fair value on a recurring basis as of February 27, 2021 and May 30, 2020 (in thousands):

February 27, 2021

Level 1

Level 2

Level 3

Balance

Assets

Municipal bonds

$

—

$

16,209

$

—

$

16,209

Commercial paper

—

6,345

—

6,345

Corporate bonds

—

93,318

—

93,318

Certificates of deposits

—

2,077

—

2,077

Asset backed securities

—

9,822

—

9,822

Mutual funds

3,717

—

—

3,717

Total assets measured at fair value

$

3,717

$

127,771

$

—

$

131,488

43981

Level 1

Level 2

Level 3

Balance

Assets

Municipal bonds

$

—

$

16,179

$

—

$

16,179

Commercial paper

—

6,982

—

6,982

Corporate bonds

—

126,868

—

126,868

Certificates of deposits

—

1,492

—

1,492

Asset backed securities

—

2,642

—

2,642

Mutual funds

2,749

—

—

2,749

Total assets measured at fair value

$

2,749

$

154,163

$

—

$

156,912

Investment securities – available-for-sale classified as Level 2 consist of securities with maturities of three months or longer

when purchased. Observable inputs for these securities are yields, credit risks, default rates, and volatility.

XML

Inventories

9 Months Ended

Feb. 27, 2021

Inventories [Abstract]

Inventories

Note 4 - Inventories

Inventories consisted of the following as of February 27, 2021 and May 30, 2020 (in thousands):

February 27, 2021

43981

Flocks, net of amortization

$

115,904

$

110,198

Eggs and egg products

18,069

18,487

Feed and supplies

73,766

58,531

$

207,739

$

187,216

We grow and maintain flocks of layers (mature female chickens), pullets (female chickens, under 18 weeks of age), and

breeders (male and female chickens used to produce fertile eggs to hatch for egg production flocks). Our total flock at February

27, 2021 consisted of approximately

9.6

 million pullets and breeders and

41.3

 million layers.

XML

Accrued Dividends Payable and Dividends per Common Share

9 Months Ended

Feb. 27, 2021

Accrued Dividends Payable and Dividends per Common Share [Abstract]

Accrued Dividends Payable and Dividends Per Common Share

Note 5 - Accrued Dividends Payable and Dividends per Common Share

We accrue dividends at the end of each quarter according to the Company’s dividend policy adopted by its Board of Directors.

The Company pays a dividend to shareholders of its Common Stock and Class A Common Stock on a quarterly basis for each

quarter for which the Company reports net income attributable to Cal-Maine Foods, Inc. computed in accordance with GAAP

in an amount equal to one-third (1/3) of such quarterly income. Dividends are paid to shareholders of record as of the 60th day

following the last day of such quarter, except for the fourth fiscal quarter. For the fourth quarter, the Company pays dividends

to shareholders of record on the 65th day after the quarter end. Dividends are payable on the 15th day following the record date. 

Following a quarter for which the Company does not report net income attributable to Cal-Maine Foods, Inc., the Company will

not pay a dividend for a subsequent profitable quarter until the Company is profitable on a cumulative basis computed from the

date of the last quarter for which a dividend was paid. For the third quarter of fiscal 2021, we will pay a cash dividend of

approximately $

0.034

 per share to holders of our Common Stock and Class A Common Stock. The amount of the accrual is

recorded in Accounts payable and accrued expenses in the Company’s Condensed Consolidated Balance Sheets.

On our condensed consolidated statement of operations, we determine dividends per common share in accordance with the

computation in the following table (in thousands, except per share data):

Thirteen Weeks Ended

Thirty-nine Weeks Ended

February 27, 2021

February 29, 2020

February 27, 2021

February 29, 2020

Net income (loss) attributable to Cal-Maine

Foods, Inc.

$

13,548

$

13,749

$

6,304

$

(42,072)

Cumulative losses to be recovered prior to

payment of divided at beginning of period

(8,614)

(75,582)

(1,370)

(19,761)

Net income attributable to Cal-Maine Foods,

Inc. available for dividend

$

4,934

$

—

$

4,934

$

—

1/3 of net income attributable to Cal-Maine

Foods, Inc. available for dividend

1,645

Common stock outstanding (shares)

44,056

Class A common stock outstanding (shares)

4,800

Total common stock outstanding (shares)

48,856

Dividends per common share*

$

0.034

*

Dividends per common share = 1/3 of Net income (loss) attributable to Cal-Maine Foods, Inc. available for dividend ÷ Total common stock

outstanding (shares).

XML

Equity

9 Months Ended

Feb. 27, 2021

Equity [Abstract]

Equity

Note 6 - Equity

The following reflects the equity activity, for the thirteen and thirty-nine weeks ended February 27, 2021 and February 29, 2020

(in thousands):

Thirty-nine Weeks Ended February 27, 2021

Cal-Maine Foods, Inc. Stockholders

Common Stock

Class A

Treasury

Paid In

Accum. Other

Retained

Amount

Amount

Amount

Capital

Comp. Income

Earnings

Total

Balance at May 30, 2020

$

703

$

48

$

(26,674)

$

60,372

$

79

$

975,147

$

1,009,675

Impact of ASC 326, see

Note 1

—

—

—

—

—

422

422

Balance at May 31, 2020

703

48

(26,674)

60,372

79

975,569

1,010,097

Other comprehensive loss, net of

tax

—

—

—

—

(214)

—

(214)

Restricted stock forfeitures

—

—

(4)

4

—

—

—

Purchase of company stock

—

—

(871)

—

—

—

(871)

Restricted stock compensation

—

—

—

2,789

—

—

2,789

Contributions

—

—

—

5

—

—

5

Dividends

—

—

—

—

—

(1,661)

(1,661)

Net income

—

—

—

—

—

6,304

6,304

Balance at February 27, 2021

$

703

$

48

$

(27,549)

$

63,170

$

(135)

$

980,212

$

1,016,449

Thirty-nine Weeks Ended February 29, 2020

Cal-Maine Foods, Inc. Stockholders

Common Stock

Class A

Treasury

Paid In

Accum. Other

Retained

Noncontrolling

Amount

Amount

Amount

Capital

Comp. Income

Earnings

Interest

Total

Balance at June 01, 2019

$

703

$

48

$

(25,866)

$

56,857

$

355

$

954,527

$

3,182

$

989,806

Other comprehensive

loss, net of tax

—

—

—

—

(653)

—

—

(653)

Restricted stock

forfeitures

—

—

102

(102)

—

—

—

—

Purchase of company

stock

—

—

(910)

—

—

—

—

(910)

Distributions to

noncontrolling interest

partners

—

—

—

—

—

—

(755)

(755)

Reclass of equity portion

of Texas Egg Products,

LLC in connection with

acquisition

—

—

—

—

—

1,779

(1,779)

—

Restricted stock

compensation

—

—

—

2,680

—

—

—

2,680

Net loss

—

—

—

—

—

(42,072)

(64)

(42,136)

Balance at February 29,

2020

$

703

$

48

$

(26,674)

$

59,435

$

(298)

$

914,234

$

584

$

948,032

Thirteen Weeks Ended February 27, 2021

Cal-Maine Foods, Inc. Stockholders

Common Stock

Class A

Treasury

Paid In

Accum. Other

Retained

Amount

Amount

Amount

Capital

Comp. Income

Earnings

Total

Balance at November 28, 2020

$

703

$

48

$

(26,723)

$

62,206

$

151

$

968,325

$

1,004,710

Other comprehensive loss, net of

tax

—

—

—

—

(286)

—

(286)

Purchase of company stock

—

—

(826)

—

—

—

(826)

Restricted stock compensation

—

—

—

964

—

—

964

Dividends

—

—

—

—

—

(1,661)

(1,661)

Net income

—

—

—

—

—

13,548

13,548

Balance at February 27, 2021

$

703

$

48

$

(27,549)

$

63,170

$

(135)

$

980,212

$

1,016,449

Thirteen Weeks Ended February 29, 2020

Cal-Maine Foods, Inc. Stockholders

Common Stock

Class A

Treasury

Paid In

Accum. Other

Retained

Noncontrolling

Amount

Amount

Amount

Capital

Comp. Income

Earnings

Interest

Total

Balance at November 30,

2019

$

703

$

48

$

(25,888)

$

58,652

$

(269)

$

900,485

$

562

$

934,293

Other comprehensive

loss, net of tax

—

—

—

—

(29)

—

—

(29)

Restricted stock

forfeitures

—

—

103

(103)

—

—

—

—

Purchase of company

stock

—

—

(889)

—

—

—

—

(889)

Restricted stock

compensation

—

—

—

886

—

—

—

886

Net income

—

—

—

—

—

13,749

22

13,771

Balance at February 29,

2020

$

703

$

48

$

(26,674)

$

59,435

$

(298)

$

914,234

$

584

$

948,032

XML

Net Income (Loss) per Common Share

9 Months Ended

Feb. 27, 2021

Net Income (Loss) per Common Share [Abstract]

Net Income (Loss) per Common Share

Note 7 - Net Income (Loss) per Common Share

Basic net income (loss) per share attributable to Cal-Maine Foods, Inc. is based on the weighted average Common Stock and

Class A Common Stock outstanding. Diluted net income per share attributable to Cal-Maine Foods, Inc. is based on weighted-

average common shares outstanding during the relevant period adjusted for the dilutive effect of share-based awards. 

Restricted shares of

121

 thousand were antidilutive due to the net loss for the thirty-nine weeks ended February 29, 2020. 

These shares were not included in the diluted net loss per share calculation.

The following table provides a reconciliation of the numerators and denominators used to determine basic and diluted net

income per common share attributable to Cal-Maine Foods, Inc. (amounts in thousands, except per share data):

Thirteen Weeks Ended

Thirty-nine Weeks Ended

February 27, 2021

February 29, 2020

February 27, 2021

February 29, 2020

Numerator

Net income (loss)

$

13,548

$

13,771

$

6,304

$

(42,136)

Less: Income (loss) attributable to

noncontrolling interest

—

22

—

(64)

Net income (loss) attributable to Cal-

Maine Foods, Inc.

$

13,548

$

13,749

$

6,304

$

(42,072)

Denominator

Weighted-average common shares

outstanding, basic

48,530

48,473

48,511

48,455

Effect of dilutive restricted shares

129

115

138

—

Weighted-average common shares

outstanding, diluted

48,659

48,588

48,649

48,455

Net income (loss) per common share

attributable to Cal-Maine Foods, Inc.

Basic

$

0.28

$

0.28

$

0.13

$

(0.87)

Diluted

$

0.28

$

0.28

$

0.13

$

(0.87)

XML

Revenue Recognition

9 Months Ended

Feb. 27, 2021

Revenue Recognition [Abstract]

Revenue Recognition

Note 8 - Revenue Recognition

Satisfaction of Performance Obligation

The vast majority of the Company’s revenue is derived from contracts with customers based on the customer placing an order

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

establishes the contract for that order. 

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

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

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

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

customer agreeing upon the order.

Returns and Refunds

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

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

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

corresponding reduction in trade accounts receivable. 

Sales Incentives Provided to Customers

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

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

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

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

reduction to sales price based on estimated future redemption rates.

Disaggregation of Revenue

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

Thirteen Weeks Ended

Thirty-nine Weeks Ended

February 27, 2021

February 29, 2020

February 27, 2021

February 29, 2020

Conventional shell egg sales

$

203,189

$

210,329

$

560,297

$

518,898

Specialty shell egg sales

145,210

125,019

408,537

352,118

Egg products

9,098

9,212

25,736

24,210

Other

1,583

1,028

4,619

3,050

$

359,080

$

345,588

$

999,189

$

898,276

Contract Costs

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

one year; therefore, they are expensed as incurred.

Contract Balances

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

There are rarely contract assets or liabilities related to performance under the contract and they are generally immaterial to the

financial statements.

XML

Leases

9 Months Ended

Feb. 27, 2021

Leases [Abstract]

Leases

Note 9 - Leases

Expenses related to operating leases, amortization of finance leases, right-of-use assets, and finance lease interest are included

in Cost of sales, Selling general and administrative expense, and Interest income, net in the Condensed Consolidated Statements

of Operations. The Company’s lease cost consists of the following (in thousands):

13 Weeks Ended February 27, 2021

39 Weeks Ended February 27, 2021

Operating Lease cost

$

233

$

703

Finance Lease cost

Amortization of right-of-use asset

$

44

$

125

Interest on lease obligations

$

9

$

27

Short term lease cost

$

857

$

2,714

Future minimum lease payments under non-cancelable leases are as follows (in thousands):

As of February 27, 2021

Operating Leases

Finance Leases

Remainder fiscal 2021

$

224

$

68

2022

802

239

2023

539

239

2024

380

218

2025

130

—

2026

26

—

Thereafter

5

—

Total

2,106

764

Less imputed interest

(185)

(60)

Total

$

1,921

$

704

The weighted-average remaining lease term and discount rate for lease liabilities included in our Condensed Consolidated

Balance Sheet are as follows:

As of February 27, 2021

Operating Leases

Finance Leases

Weighted-average remaining lease term (years)

3.0

2.8

Weighted-average discount rate

5.9

%

4.9

%

XML

Stock Based Compensation

9 Months Ended

Feb. 27, 2021

Stock Based Compensation [Abstract]

Stock Based Compensation

Note 10 - Stock Based Compensation

On October 2, 2020, shareholders approved the Amended and Restated Cal-Maine Foods, Inc. 2012 Omnibus Long-Term

Incentive Plan (the “Plan”). The purpose of the Plan is to assist us and our subsidiaries in attracting and retaining selected

individuals who are expected to contribute to our long-term success. The maximum number of shares of common stock

available for awards under the Plan is

2,000,000

, of which

1,128,488

 shares remain available for issuance, and may be

authorized but unissued shares or treasury shares. Awards may be granted under the Plan to any employee, any non-employee

member of the Company’s Board of Directors, and any consultant who is a natural person and provides services to us or one of

our subsidiaries (except for incentive stock options, which may be granted only to our employees).

The only outstanding awards under the Plan are restricted stock awards. The restricted stock vests one to three years from the

grant date, or upon death or disability, change in control, or retirement (subject to certain requirements). The restricted stock

contains no other service or performance conditions. Restricted stock is awarded in the name of the recipient and, except for the

right of disposal, constitutes issued and outstanding shares of the Company’s common stock for all corporate purposes during

the period of restriction including the right to receive dividends. Compensation expense is a fixed amount based on the grant

date closing price and is amortized over the vesting period.

Total stock-based compensation expense was $

2.8

 million and $

2.7

 million for the thirty-nine weeks ended February 27, 2021

and February 29, 2020, respectively.

Unrecognized compensation expense as a result of non-vested shares of restricted stock outstanding under the 2012 Omnibus

Long-Term Incentive Plan at February 27, 2021 of $

7.5

 million will be recorded over a weighted average period of

2.3

 years. 

Refer to Note 16 of our audited financial statements in our

2020

Annual Report for further information on our stock

compensation plans.

The Company’s restricted share activity for the thirty-nine weeks ended February 27, 2021 follows:

Number of

Shares

Weighted

Average Grant

Date Fair Value

Outstanding, May 30, 2020

273,046

$

41.36

Granted

110,560

37.71

Vested

(79,328)

43.96

Forfeited

(4,431)

40.12

Outstanding, February 27, 2021

299,847

$

39.35

XML

Income Taxes

9 Months Ended

Feb. 27, 2021

Income Taxes [Abstract]

Income Taxes

Note 11 – Income Taxes

The differences between income tax expense (benefit) at the Company’s effective income tax rate and income tax expense at

the statutory federal income tax rate for the thirteen and thirty-nine weeks ended as of February 27, 2021 were as follows:

Thirteen Weeks Ended

Thirty-nine Weeks Ended

February 27, 2021

February 27, 2021

Statutory federal income tax 

$

2,907

$

543

Enacted net operating loss carryback provision

(6,422)

(6,422)

Domestic manufacturers deduction

1,408

1,408

Other, net

391

391

$

(1,716)

$

(4,080)

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted. The CARES

Act contains several income tax provisions, as well as other measures, that are intended to assist businesses impacted by the

economic effects of the COVID-19 pandemic. The most significant provision of the CARES Act that materially affects our

accounting for income taxes includes a five-year carryback allowance for taxable net operating losses generated in tax years

2018 through 2020, our fiscal years 2019 through 2021.

Our financial statements for the thirteen weeks ended February 27, 2021 were affected by the changes enacted by the CARES

Act. As a result of the applicable accounting guidance and the provisions enacted by the CARES Act, our income tax provision

for the third quarter of fiscal 2021 reflects the carryback of taxable net operating losses generated during periods in which the

statutory federal income tax rate was

21

% to periods in which the statutory federal income tax rate was

35

%. Due to the

difference in statutory rates, we recorded a $

6.4

 million discrete income tax benefit related to the carryback provisions during

the thirteen weeks ended February 27, 2021. Because the net operating losses were carried back to years in which we initially

reduced our taxable income using the Domestic Production Activities Deduction, we recorded a partially offsetting $

1.4

 million

discrete income tax expense during the thirteen weeks ended February 27, 2021 to account for the reduced taxable income.

XML

Commitments and Contingencies

9 Months Ended

Feb. 27, 2021

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 12 - Commitments and Contingencies

Financial Instruments

The Company maintained standby letters of credit ("LOC") totaling $

4.1

 million at February 27, 2021 which were issued under

the Company's Revolving Credit Facility. The outstanding LOCs are for the benefit of certain insurance companies, and are not

recorded as a liability on the consolidated balance sheets.

LEGAL PROCEEDINGS

State of Texas v. Cal-Maine Foods, Inc. d/b/a Wharton; and Wharton County Foods, LLC

On April 23, 2020, the Company and its subsidiary Wharton County Foods, LLC (“WCF”) were named as defendants in State

of Texas v. Cal-Maine Foods, Inc. d/b/a Wharton; and Wharton County Foods, LLC, Cause No. 2020-25427, in the District

Court of Harris County, Texas. The State of Texas (the “State”) asserted claims based on the Company’s and WCF’s alleged

violation of the Texas Deceptive Trade Practices—Consumer Protection Act, Tex. Bus. & Com. Code §§ 17.41-17.63

(“DTPA”). The State claimed that the Company and WCF offered shell eggs at excessive or exorbitant prices during the

COVID-19 state of emergency and made misleading statements about shell egg prices. The State sought temporary and

permanent injunctions against the Company and WCF to prevent further alleged violations of the DTPA, along with over

$

100,000

 in damages. On August 13, 2020, the court granted the defendants’ motion to dismiss the State’s original petition with

prejudice. On September 11, 2020, the State filed a notice of appeal, which was assigned to the Texas Court of Appeals for the

First District. The State filed its opening brief on December 7, 2020. The Company and WCF filed their response on February

8, 2021. Management believes the risk of material loss related to this matter to be remote.

Bell et al. v. Cal-Maine Foods et al.

On April 30, 2020, the Company was named as one of several defendants in Bell et al. v. Cal-Maine Foods et al., Case No.

1:20-cv-461, in the Western District of Texas, Austin Division. The defendants include numerous grocery stores, retailers,

producers, and farms. Plaintiffs assert that defendants violated the DTPA by allegedly demanding exorbitant or excessive prices

for eggs during the COVID-19 state of emergency. Plaintiffs request certification of a class of all consumers who purchased

eggs in Texas sold, distributed, produced, or handled by any of the defendants during the COVID-19 state of emergency.

Plaintiffs seek to enjoin the Company and other defendants from selling eggs at a price more than 10% greater than the price of

eggs prior to the declaration of the state of emergency and damages in the amount of $

10,000

 per violation, or $

250,000

 for

each violation impacting anyone over 65 years old. On December 1, 2020, the Company and certain other defendants filed their

motion to dismiss the plaintiffs’ first amended class action complaint. The court has not ruled on this motion to dismiss.

Management believes the risk of material loss related to this matter to be remote.

Kraft Foods Global, Inc. et al. v. United Egg Producers, Inc. et al.

As previously reported, on September 25, 2008, the Company was named as one of several defendants in numerous antitrust

cases involving the United States shell egg industry. The Company settled all of these cases, except for the claims of certain

plaintiffs who sought substantial damages allegedly arising from the purchase of egg products (as opposed to shell eggs). These

remaining plaintiffs are Kraft Food Global, Inc., General Mills, Inc., and Nestle USA, Inc. (the “Egg Products Plaintiffs”) and

The Kellogg Company.

On September 13, 2019, the case with the Egg Products Plaintiffs was remanded from a multi-district litigation proceeding in

the United States District Court for the Eastern District of Pennsylvania, In re Processed Egg Products Antitrust Litigation,

MDL No. 2002, to the United States District Court for the Northern District of Illinois, Kraft Foods Global, Inc. et al. v. United

Egg Producers, Inc. et al., Case No. 1:11-cv-8808, for trial. The Egg Products Plaintiffs allege that the Company and other

defendants violated Section 1 of the Sherman Act, 15. U.S.C. § 1, by agreeing to limit the production of eggs and thereby

illegally to raise the prices that plaintiffs paid for processed egg products. In particular, the Egg Products Plaintiffs are attacking

certain features of the United Egg Producers animal-welfare guidelines and program used by the Company and many other egg

producers. The Egg Products Plaintiffs seek to enjoin the Company and other defendants from engaging in antitrust violations

and seek treble money damages. The parties filed a joint status report on May 18, 2020, but no schedule has yet been entered by

the court. It appears that the case will not be tried until later in 2021 or 2022.

In addition, on October 24, 2019, the Company entered into a confidential settlement agreement with The Kellogg Company

dismissing all claims against the Company for an amount that did not have a material impact on the Company’s financial

condition or results of operations. On November 11, 2019, a stipulation for dismissal was filed with the court, but the court has

not yet entered a judgment on the filing.

The Company intends to continue to defend the remaining case with the Egg Products Plaintiffs as vigorously as possible based

on defenses which the Company believes are meritorious and provable. Adjustments, if any, which might result from the

resolution of this remaining matter with the Egg Products Plaintiffs have not been reflected in the financial statements. While

management believes that there is still a reasonable possibility of a material adverse outcome from the case with the Egg

Products Plaintiffs, at the present time, it is not possible to estimate the amount of monetary exposure, if any, to the Company

due to a range of factors, including the following, among others: the matter is in the early stages of preparing for trial following

remand; any trial will be before a different judge and jury in a different court than prior related cases; there are significant

factual issues to be resolved; and there are requests for damages other than compensatory damages (i.e., injunction and treble

money damages).

State of Oklahoma Watershed Pollution Litigation

On June 18, 2005, the State of Oklahoma filed suit, in the United States District Court for the Northern District of Oklahoma,

against Cal-Maine Foods, Inc. and Tyson Foods, Inc. and affiliates, Cobb-Vantress, Inc., Cargill, Inc. and its affiliate, George’s,

Inc. and its affiliate, Peterson Farms, Inc. and Simmons Foods, Inc. The State of Oklahoma claims that through the disposal of

chicken litter the defendants have polluted the Illinois River Watershed. This watershed provides water to eastern Oklahoma.

The complaint seeks injunctive relief and monetary damages, but the claim for monetary damages has been dismissed by the

court. Cal-Maine Foods, Inc. discontinued operations in the watershed. Accordingly, we do not anticipate that Cal-Maine

Foods, Inc. will be materially affected by the request for injunctive relief unless the court orders substantial affirmative

remediation. Since the litigation began, Cal-Maine Foods, Inc. purchased 100% of the membership interests of Benton County

Foods, LLC, which is an ongoing commercial shell egg operation within the Illinois River Watershed. Benton County Foods,

LLC is not a defendant in the litigation.

The trial in the case began in September 2009 and concluded in February 2010. The case was tried without a jury, and the court

has not yet issued its ruling. Management believes the risk of material loss related to this matter to be remote.

Other Matters

In addition to the above, the Company is involved in various other claims and litigation incidental to its business. Although the

outcome of these matters cannot be determined with certainty, management, upon the advice of counsel, is of the opinion that

the final outcome should not have a material effect on the Company’s consolidated results of operations or financial position.

XML

Related Party Transaction

9 Months Ended

Feb. 27, 2021

Related Party Transactions [Abstract]

Related Party Transaction

Note 13 - Related Party Transaction

On August 24, 2020, Mrs. Jean Reed Adams, the wife of the Company’s late founder Fred R. Adams, Jr., and the Fred R.

Adams, Jr. Daughters’ Trust, dated July 20, 2018 (the “Daughters’ Trust”), of which the daughters of Mr. Adams are

beneficiaries (together, the “Selling Stockholders”), completed a registered secondary public offering of

6,900,000

 shares of

Common Stock held by them, pursuant to a previously disclosed Agreement Regarding Common Stock (the “Agreement”) filed

as an exhibit to our 2020 Annual Report. Mrs. Adams and the Daughters’ Trust advised the Company that they were conducting

the offering in order to pay estate taxes related to the settlement of Mr. Adam’s estate and to obtain liquidity. The public

offering was made pursuant to the Company’s effective shelf registration statement on Form S-3 (File No. 333-227742),

including the Prospectus contained therein dated October 9, 2018, and a related Prospectus Supplement dated August 19, 2020,

each of which is on file with the Securities and Exchange Commission. The public offering involved only the sale of shares of

Common Stock that were already outstanding, and thus the Company did not issue any new shares or raise any additional

capital in the offering. The expenses of the offering (not including the underwriting discount and legal fees and expenses of

legal counsel for the Selling Stockholders, which were paid by the Selling Stockholders) paid by the Company were

$

1,102,000

. Pursuant to the Agreement, the Selling Stockholders reimbursed the Company $

551,000

.

XML

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Feb. 27, 2021

Summary of Significant Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The unaudited condensed consolidated financial statements of Cal-Maine Foods, Inc. and its subsidiaries (the "Company,"

"we," "us," "our") have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. 

Therefore, they do not include all of the information and footnotes required by generally accepted accounting principles in the

United States of America ("GAAP") for complete financial statements and should be read in conjunction with our Annual

Report on Form 10-K for the fiscal year ended May 30, 2020 (the "2020 Annual Report"). These statements reflect all

adjustments that are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented

and, in the opinion of management, consist of adjustments of a normal recurring nature. Operating results for the interim

periods are not necessarily indicative of operating results for the entire fiscal year.

Fiscal Year

Fiscal Year

The Company's fiscal year ends on the Saturday closest to May 31. Each of the three-month periods and year-to-date periods

ended on February 27, 2021 and February 29, 2020 included 13 weeks and 39 weeks, respectively.

Use of Estimates

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and

assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results

could differ from those estimates. 

The severity, magnitude and duration, as well as the economic consequences of the COVID-19 pandemic, are uncertain, rapidly

changing and difficult to predict. Therefore, our accounting estimates and assumptions might change materially in future

periods in response to COVID-19.

Investment Securities

Investment Securities

Our investment securities are accounted for in accordance with ASC 320, “Investments - Debt and Equity Securities” (“ASC

320”). The Company considers all its debt securities for which there is a determinable fair market value, and there are no

restrictions on the Company's ability to sell within the next 12 months, as available-for-sale. We classify these securities as

current, because the amounts invested are available for current operations. Available-for-sale securities are carried at fair value,

with unrealized gains and losses reported as a separate component of stockholders’ equity. The Company regularly evaluates

changes to the rating of its debt securities by credit agencies and economic conditions to assess and record any expected credit

losses through allowance for credit losses limited to the amount that fair value was less than the amortized cost basis. The cost

basis for realized gains and losses on available-for-sale securities is determined by the specific identification method. Gains and

losses are recognized in other income (expenses) as Other, net in the Company's Condensed Consolidated Statements of

Operations. Investments in mutual funds are classified as “Other long-term assets” in the Company’s Consolidated Balance

Sheets.

Trade Receivables

Trade Receivables 

Trade receivables are stated at their carrying values, which include a reserve for credit losses. At February 27, 2021 and May

30, 2020, reserves for credit losses were $

728

 thousand and $

744

 thousand, respectively. The Company extends credit to

customers based on an evaluation of each customer's financial condition and credit history. Collateral is generally not required.

The Company minimizes exposure to counter party credit risk through credit analysis and approvals, credit

limits, and

monitoring procedures. In determining our reserve for credit losses, receivables are pooled according to age, with each pool

assigned an expected loss based on historical loss information adjusted as needed for economic and other forward-looking

factors.

Change in Accounting Principle

Change in Accounting Principle

Effective May 31, 2020, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which is

intended to improve financial reporting by requiring more timely recording of credit losses on loans and other financial

instruments held by financial institutions and other organizations. The guidance replaces the prior “incurred loss” approach with

an “expected loss” model and requires measurement of all expected credit losses for financial assets held at the reporting date

based on historical experience, current conditions, and reasonable and supportable forecasts. The Company adopted the

guidance on a modified retrospective basis through a cumulative effect adjustment to retained earnings as of the beginning of

the period of adoption. The Company evaluated its current methodology of estimating allowance for doubtful accounts and the

risk profile of its receivables portfolio and developed a model that includes the qualitative and forecasting aspects of the

“expected loss” model under the amended guidance. The Company finalized its assessment of the impact of the amended

guidance and recorded a $

422

 thousand cumulative increase to retained earnings at May 31, 2020.

XML

Investment Securities (Tables)

9 Months Ended

Feb. 27, 2021

Investments Securities [Abstract]

Schedule of Investment Securities

February 27, 2021

Amortized

Cost

Unrealized 

Gains

Unrealized

Losses

Estimated 

Fair Value

Municipal bonds

$

16,157

$

52

$

—

$

16,209

Commercial paper

6,345

—

—

6,345

Corporate bonds

92,256

1,062

—

93,318

Certificates of deposits

2,084

—

7

2,077

Asset backed securities

9,823

—

1

9,822

Total current investment securities

$

126,665

$

1,114

$

8

$

127,771

Mutual funds

$

2,293

$

1,424

$

—

$

3,717

Total noncurrent investment securities

$

2,293

$

1,424

$

—

$

3,717

43981

Amortized 

Cost

Unrealized 

Gains

Unrealized

Losses

Estimated 

Fair Value

Municipal bonds

$

16,093

$

86

$

—

$

16,179

Commercial paper

6,965

17

—

6,982

Corporate bonds

125,594

1,274

—

126,868

Certificates of deposits

1,492

—

—

1,492

Asset backed securities

2,629

13

—

2,642

Total current investment securities

$

152,773

$

1,390

$

—

$

154,163

Mutual funds

$

2,005

$

744

$

—

$

2,749

Total noncurrent investment securities

$

2,005

$

744

$

—

$

2,749

Schedule of Contractual Maturities of Investment Securities

Estimated Fair Value

Within one year

$

44,862

1-5 years

82,909

Total

$

127,771

XML

Fair Value Measurements (Tables)

9 Months Ended

Feb. 27, 2021

Fair Value Measurements [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

February 27, 2021

Level 1

Level 2

Level 3

Balance

Assets

Municipal bonds

$

—

$

16,209

$

—

$

16,209

Commercial paper

—

6,345

—

6,345

Corporate bonds

—

93,318

—

93,318

Certificates of deposits

—

2,077

—

2,077

Asset backed securities

—

9,822

—

9,822

Mutual funds

3,717

—

—

3,717

Total assets measured at fair value

$

3,717

$

127,771

$

—

$

131,488

43981

Level 1

Level 2

Level 3

Balance

Assets

Municipal bonds

$

—

$

16,179

$

—

$

16,179

Commercial paper

—

6,982

—

6,982

Corporate bonds

—

126,868

—

126,868

Certificates of deposits

—

1,492

—

1,492

Asset backed securities

—

2,642

—

2,642

Mutual funds

2,749

—

—

2,749

Total assets measured at fair value

$

2,749

$

154,163

$

—

$

156,912

XML

Inventories (Tables)

9 Months Ended

Feb. 27, 2021

Inventories [Abstract]

Schedule of Inventories

February 27, 2021

43981

Flocks, net of amortization

$

115,904

$

110,198

Eggs and egg products

18,069

18,487

Feed and supplies

73,766

58,531

$

207,739

$

187,216

XML

Accrued Dividends Payable and Dividends per Common Share (Tables)

9 Months Ended

Feb. 27, 2021

Accrued Dividends Payable and Dividends per Common Share [Abstract]

Schedule of Dividends

Thirteen Weeks Ended

Thirty-nine Weeks Ended

February 27, 2021

February 29, 2020

February 27, 2021

February 29, 2020

Net income (loss) attributable to Cal-Maine

Foods, Inc.

$

13,548

$

13,749

$

6,304

$

(42,072)

Cumulative losses to be recovered prior to

payment of divided at beginning of period

(8,614)

(75,582)

(1,370)

(19,761)

Net income attributable to Cal-Maine Foods,

Inc. available for dividend

$

4,934

$

—

$

4,934

$

—

1/3 of net income attributable to Cal-Maine

Foods, Inc. available for dividend

1,645

Common stock outstanding (shares)

44,056

Class A common stock outstanding (shares)

4,800

Total common stock outstanding (shares)

48,856

Dividends per common share*

$

0.034

XML

Equity (Tables)

9 Months Ended

Feb. 27, 2021

Equity [Abstract]

Schedule of Statement of Stockholders' Equity Activities, Including Noncontrolling Interest

Thirteen Weeks Ended February 27, 2021

Cal-Maine Foods, Inc. Stockholders

Common Stock

Class A

Treasury

Paid In

Accum. Other

Retained

Amount

Amount

Amount

Capital

Comp. Income

Earnings

Total

Balance at November 28, 2020

$

703

$

48

$

(26,723)

$

62,206

$

151

$

968,325

$

1,004,710

Other comprehensive loss, net of

tax

—

—

—

—

(286)

—

(286)

Purchase of company stock

—

—

(826)

—

—

—

(826)

Restricted stock compensation

—

—

—

964

—

—

964

Dividends

—

—

—

—

—

(1,661)

(1,661)

Net income

—

—

—

—

—

13,548

13,548

Balance at February 27, 2021

$

703

$

48

$

(27,549)

$

63,170

$

(135)

$

980,212

$

1,016,449

Thirty-nine Weeks Ended February 27, 2021

Cal-Maine Foods, Inc. Stockholders

Common Stock

Class A

Treasury

Paid In

Accum. Other

Retained

Amount

Amount

Amount

Capital

Comp. Income

Earnings

Total

Balance at May 30, 2020

$

703

$

48

$

(26,674)

$

60,372

$

79

$

975,147

$

1,009,675

Impact of ASC 326, see

Note 1

—

—

—

—

—

422

422

Balance at May 31, 2020

703

48

(26,674)

60,372

79

975,569

1,010,097

Other comprehensive loss, net of

tax

—

—

—

—

(214)

—

(214)

Restricted stock forfeitures

—

—

(4)

4

—

—

—

Purchase of company stock

—

—

(871)

—

—

—

(871)

Restricted stock compensation

—

—

—

2,789

—

—

2,789

Contributions

—

—

—

5

—

—

5

Dividends

—

—

—

—

—

(1,661)

(1,661)

Net income

—

—

—

—

—

6,304

6,304

Balance at February 27, 2021

$

703

$

48

$

(27,549)

$

63,170

$

(135)

$

980,212

$

1,016,449

Thirteen Weeks Ended February 29, 2020

Cal-Maine Foods, Inc. Stockholders

Common Stock

Class A

Treasury

Paid In

Accum. Other

Retained

Noncontrolling

Amount

Amount

Amount

Capital

Comp. Income

Earnings

Interest

Total

Balance at November 30,

2019

$

703

$

48

$

(25,888)

$

58,652

$

(269)

$

900,485

$

562

$

934,293

Other comprehensive

loss, net of tax

—

—

—

—

(29)

—

—

(29)

Restricted stock

forfeitures

—

—

103

(103)

—

—

—

—

Purchase of company

stock

—

—

(889)

—

—

—

—

(889)

Restricted stock

compensation

—

—

—

886

—

—

—

886

Net income

—

—

—

—

—

13,749

22

13,771

Balance at February 29,

2020

$

703

$

48

$

(26,674)

$

59,435

$

(298)

$

914,234

$

584

$

948,032

Thirty-nine Weeks Ended February 29, 2020

Cal-Maine Foods, Inc. Stockholders

Common Stock

Class A

Treasury

Paid In

Accum. Other

Retained

Noncontrolling

Amount

Amount

Amount

Capital

Comp. Income

Earnings

Interest

Total

Balance at June 01, 2019

$

703

$

48

$

(25,866)

$

56,857

$

355

$

954,527

$

3,182

$

989,806

Other comprehensive

loss, net of tax

—

—

—

—

(653)

—

—

(653)

Restricted stock

forfeitures

—

—

102

(102)

—

—

—

—

Purchase of company

stock

—

—

(910)

—

—

—

—

(910)

Distributions to

noncontrolling interest

partners

—

—

—

—

—

—

(755)

(755)

Reclass of equity portion

of Texas Egg Products,

LLC in connection with

acquisition

—

—

—

—

—

1,779

(1,779)

—

Restricted stock

compensation

—

—

—

2,680

—

—

—

2,680

Net loss

—

—

—

—

—

(42,072)

(64)

(42,136)

Balance at February 29,

2020

$

703

$

48

$

(26,674)

$

59,435

$

(298)

$

914,234

$

584

$

948,032

XML

Net Income (Loss) per Common Share (Tables)

9 Months Ended

Feb. 27, 2021

Net Income (Loss) per Common Share [Abstract]

Computation of Basic and Diluted Net Income Per Share Attributable to the Company

Thirteen Weeks Ended

Thirty-nine Weeks Ended

February 27, 2021

February 29, 2020

February 27, 2021

February 29, 2020

Numerator

Net income (loss)

$

13,548

$

13,771

$

6,304

$

(42,136)

Less: Income (loss) attributable to

noncontrolling interest

—

22

—

(64)

Net income (loss) attributable to Cal-

Maine Foods, Inc.

$

13,548

$

13,749

$

6,304

$

(42,072)

Denominator

Weighted-average common shares

outstanding, basic

48,530

48,473

48,511

48,455

Effect of dilutive restricted shares

129

115

138

—

Weighted-average common shares

outstanding, diluted

48,659

48,588

48,649

48,455

Net income (loss) per common share

attributable to Cal-Maine Foods, Inc.

Basic

$

0.28

$

0.28

$

0.13

$

(0.87)

Diluted

$

0.28

$

0.28

$

0.13

$

(0.87)

XML

Revenue Recognition (Tables)

9 Months Ended

Feb. 27, 2021

Revenue Recognition [Abstract]

Disaggregation of Revenue

Thirteen Weeks Ended

Thirty-nine Weeks Ended

February 27, 2021

February 29, 2020

February 27, 2021

February 29, 2020

Conventional shell egg sales

$

203,189

$

210,329

$

560,297

$

518,898

Specialty shell egg sales

145,210

125,019

408,537

352,118

Egg products

9,098

9,212

25,736

24,210

Other

1,583

1,028

4,619

3,050

$

359,080

$

345,588

$

999,189

$

898,276

XML

Leases (Tables)

9 Months Ended

Feb. 27, 2021

Leases [Abstract]

Schedule of Lease Cost

13 Weeks Ended February 27, 2021

39 Weeks Ended February 27, 2021

Operating Lease cost

$

233

$

703

Finance Lease cost

Amortization of right-of-use asset

$

44

$

125

Interest on lease obligations

$

9

$

27

Short term lease cost

$

857

$

2,714

Schedule of Future Minimum Lease Payments

As of February 27, 2021

Operating Leases

Finance Leases

Remainder fiscal 2021

$

224

$

68

2022

802

239

2023

539

239

2024

380

218

2025

130

—

2026

26

—

Thereafter

5

—

Total

2,106

764

Less imputed interest

(185)

(60)

Total

$

1,921

$

704

Schedule of Weighted-Average Information

As of February 27, 2021

Operating Leases

Finance Leases

Weighted-average remaining lease term (years)

3.0

2.8

Weighted-average discount rate

5.9

%

4.9

%

XML

Stock Based Compensation (Tables)

9 Months Ended

Feb. 27, 2021

Stock Based Compensation [Abstract]

Summary of Restricted Share Activity

Number of

Shares

Weighted

Average Grant

Date Fair Value

Outstanding, May 30, 2020

273,046

$

41.36

Granted

110,560

37.71

Vested

(79,328)

43.96

Forfeited

(4,431)

40.12

Outstanding, February 27, 2021

299,847

$

39.35

XML

Income Taxes (Tables)

9 Months Ended

Feb. 27, 2021

Income Taxes [Abstract]

Schedule Of Effective Income Tax Rate Reconciliation

Thirteen Weeks Ended

Thirty-nine Weeks Ended

February 27, 2021

February 27, 2021

Statutory federal income tax 

$

2,907

$

543

Enacted net operating loss carryback provision

(6,422)

(6,422)

Domestic manufacturers deduction

1,408

1,408

Other, net

391

391

$

(1,716)

$

(4,080)

XML

Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands	Feb. 27, 2021	Nov. 28, 2020	May 30, 2020	Feb. 29, 2020	Nov. 30, 2019	Jun. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for doubtful accounts	$ 728		$ 744
Stockholders' equity	1,016,449	$ 1,004,710	1,009,675	$ 948,032	$ 934,293	$ 989,806
Retained Earnings [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' equity	$ 980,212	$ 968,325	975,147	$ 914,234	$ 900,485	$ 954,527
Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' equity			422
Adjustment [Member] | Retained Earnings [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' equity			$ 422

XML

Investment Securities (Narrative) (Details) - USD ($)	9 Months Ended
	Feb. 27, 2021	Feb. 29, 2020	May 30, 2020
Noncurrent Assets [Member]
Debt Securities, Available-for-sale [Line Items]
Proceeds from sale of available-for-sale securities	$ 0	$ 1,200,000
Gross realized gains on sales of available-for-sale securities		611,000
Gross realized losses on sales of available-for-sale securities	0	0
Available-for-sale Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Proceeds from sale of available-for-sale securities	85,200,000	181,500,000
Gross realized gains on sales of available-for-sale securities	116,000	246,000
Gross realized losses on sales of available-for-sale securities	17,000	$ 7,000
Accounts receivable, allowance for credit loss	$ 0		$ 0

XML

Investment Securities (Schedule of Investment Securities) (Details) - USD ($) $ in Thousands	Feb. 27, 2021	May 30, 2020
Debt Securities, Available-for-sale [Line Items]
Estimated Fair Value	$ 131,488	$ 156,912
Current Assets [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	126,665	152,773
Unrealized Gains	1,114	1,390
Unrealized Losses	8	0
Estimated Fair Value	127,771	154,163
Noncurrent Assets [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,293	2,005
Unrealized Gains	1,424	744
Unrealized Losses	0	0
Estimated Fair Value	3,717	2,749
Municipal Bonds [Member] | Current Assets [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	16,157	16,093
Unrealized Gains	52	86
Unrealized Losses	0	0
Estimated Fair Value	16,209	16,179
Municipal Bonds [Member] | Noncurrent Assets [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,293	2,005
Unrealized Gains	1,424	744
Unrealized Losses	0	0
Estimated Fair Value	3,717	2,749
Commercial Paper [Member] | Current Assets [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	6,345	6,965
Unrealized Gains	0	17
Unrealized Losses	0	0
Estimated Fair Value	6,345	6,982
Corporate Bonds [Member] | Current Assets [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	92,256	125,594
Unrealized Gains	1,062	1,274
Unrealized Losses	0	0
Estimated Fair Value	93,318	126,868
Certificates Of Deposits [Member] | Current Assets [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,084	1,492
Unrealized Gains	0	0
Unrealized Losses	7	0
Estimated Fair Value	2,077	1,492
Asset-backed Securities [Member] | Current Assets [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	9,823	2,629
Unrealized Gains	0	13
Unrealized Losses	1	0
Estimated Fair Value	$ 9,822	$ 2,642

XML

Investment Securities (Schedule of Contractual Maturities of Investment Securities) (Details) $ in Thousands	Feb. 27, 2021 USD ($)
Investments Securities [Abstract]
Within one year	$ 44,862
1-5 years	82,909
Total	$ 127,771

XML

Fair Value Measurements (Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands	Feb. 27, 2021	May 30, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	$ 131,488	$ 156,912
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	3,717	2,749
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	127,771	154,163
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	0	0
Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	16,209	16,179
Municipal Bonds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	0	0
Municipal Bonds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	16,209	16,179
Municipal Bonds [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	0	0
Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	6,345	6,982
Commercial Paper [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	0	0
Commercial Paper [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	6,345	6,982
Commercial Paper [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	0	0
Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	93,318	126,868
Corporate Bonds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	0	0
Corporate Bonds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	93,318	126,868
Corporate Bonds [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	0	0
Certificates Of Deposits [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	2,077	1,492
Certificates Of Deposits [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	0	0
Certificates Of Deposits [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	2,077	1,492
Certificates Of Deposits [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	0	0
Asset-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	9,822	2,642
Asset-backed Securities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	0	0
Asset-backed Securities [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	9,822	2,642
Asset-backed Securities [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	0	0
Mutual Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	3,717	2,749
Mutual Funds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	3,717	2,749
Mutual Funds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	0	0
Mutual Funds [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	$ 0	$ 0

XML

Inventories (Narrative) (Details) Pellets in Millions, Layers in Millions	Feb. 27, 2021 Layers Pellets
Inventories [Abstract]
Pullets and breeders | Pellets	9.6
Layer | Layers	41.3

XML

Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands	Feb. 27, 2021	May 30, 2020
Inventories [Abstract]
Flocks, net of amortization	$ 115,904	$ 110,198
Eggs and egg products	18,069	18,487
Feed and supplies	73,766	58,531
Total inventories	$ 207,739	$ 187,216

XML

Accrued Dividends Payable and Dividends per Common Share (Narrative) (Details)	3 Months Ended
	Feb. 27, 2021 $ / shares
Accrued Dividends Payable and Dividends per Common Share [Abstract]
Dividends per common share	$ 0.034	[1]

[1] Dividends per common share   = 1/3 of Net   income (loss) attributable to   Cal-Maine Foods, Inc. available   for dividend ÷ Total   common stock outstanding (shares).

XML

Accrued Dividends Payable and Dividends per Common Share (Schedule of Dividends) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Feb. 27, 2021	Feb. 29, 2020	Feb. 27, 2021	Feb. 29, 2020
Class of Stock [Line Items]
Net income (loss) attributable to Cal-Maine Foods, Inc.		$ 13,548	$ 13,749	$ 6,304	$ (42,072)
Cumulative losses to be recovered prior to payment of divided at beginning of period		(8,614)	(75,582)	(1,370)	(19,761)
Net income attributable to Cal-Maine Foods, Inc. available for dividend		4,934	$ 0	$ 4,934	$ 0
1/3 of net income attributable to Cal-Maine Foods, Inc. available for dividend		$ 1,645
Stock outstanding (shares)		48,856		48,856
Dividends per common share	[1]	$ 0.034
Common Stock [Member]
Class of Stock [Line Items]
Stock outstanding (shares)		44,056		44,056
Class A Common Stock [Member]
Class of Stock [Line Items]
Stock outstanding (shares)		4,800		4,800

[1] Dividends per common share   = 1/3 of Net   income (loss) attributable to   Cal-Maine Foods, Inc. available   for dividend ÷ Total   common stock outstanding (shares).

XML

Equity (Schedule of Statement of Stockholders' Equity Activities, Including Noncontrolling Interest) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Feb. 27, 2021	Feb. 29, 2020	Feb. 27, 2021	Feb. 29, 2020
Schedule of Stockholders Equity [Line Items]
Beginning balance	$ 1,004,710	$ 934,293	$ 1,009,675	$ 989,806
Other comprehensive income (loss), net of tax	(286)	(29)	(214)	(653)
Purchase of company stock	(826)	(889)	(871)	(910)
Distributions to noncontrolling interest partners				(755)
Restricted stock compensation	964	886	2,789	2,680
Contributions			5
Dividends	(1,661)		(1,661)
Net income (loss)	13,548	13,771	6,304	(42,136)
Ending balance	1,016,449	948,032	1,016,449	948,032
Adjustment [Member]
Schedule of Stockholders Equity [Line Items]
Beginning balance			422
Cumulative Effect Period Of Adoption Adjusted Balance [Member]
Schedule of Stockholders Equity [Line Items]
Beginning balance			1,010,097
Treasury Stock [Member]
Schedule of Stockholders Equity [Line Items]
Beginning balance	(26,723)	(25,888)	(26,674)	(25,866)
Restricted stock forfeitures		103	(4)	102
Purchase of company stock	(826)	(889)	(871)	(910)
Ending balance	(27,549)	(26,674)	(27,549)	(26,674)
Treasury Stock [Member] | Cumulative Effect Period Of Adoption Adjusted Balance [Member]
Schedule of Stockholders Equity [Line Items]
Beginning balance			(26,674)
Paid In Capital [Member]
Schedule of Stockholders Equity [Line Items]
Beginning balance	62,206	58,652	60,372	56,857
Restricted stock forfeitures		(103)	4	(102)
Restricted stock compensation	964	886	2,789	2,680
Contributions			5
Ending balance	63,170	59,435	63,170	59,435
Paid In Capital [Member] | Cumulative Effect Period Of Adoption Adjusted Balance [Member]
Schedule of Stockholders Equity [Line Items]
Beginning balance			60,372
Accumulated Other Comprehensive Loss [Member]
Schedule of Stockholders Equity [Line Items]
Beginning balance	151	(269)	79	355
Other comprehensive income (loss), net of tax	(286)	(29)	(214)	(653)
Ending balance	(135)	(298)	(135)	(298)
Accumulated Other Comprehensive Loss [Member] | Cumulative Effect Period Of Adoption Adjusted Balance [Member]
Schedule of Stockholders Equity [Line Items]
Beginning balance			79
Retained Earnings [Member]
Schedule of Stockholders Equity [Line Items]
Beginning balance	968,325	900,485	975,147	954,527
Reclass of equity portion of Texas Egg Products, LLC in connection with acquisition				1,779
Dividends	(1,661)		(1,661)
Net income (loss)	13,548	13,749	6,304	(42,072)
Ending balance	980,212	914,234	980,212	914,234
Retained Earnings [Member] | Adjustment [Member]
Schedule of Stockholders Equity [Line Items]
Beginning balance			422
Retained Earnings [Member] | Cumulative Effect Period Of Adoption Adjusted Balance [Member]
Schedule of Stockholders Equity [Line Items]
Beginning balance			975,569
Noncontrolling Interests [Member]
Schedule of Stockholders Equity [Line Items]
Beginning balance		562		3,182
Distributions to noncontrolling interest partners				(755)
Reclass of equity portion of Texas Egg Products, LLC in connection with acquisition				(1,779)
Net income (loss)		22		(64)
Ending balance		584		584
Common Stock [Member] | Common Stock [Member]
Schedule of Stockholders Equity [Line Items]
Beginning balance	703	703	703	703
Ending balance	703	703	703	703
Common Stock [Member] | Common Stock [Member] | Cumulative Effect Period Of Adoption Adjusted Balance [Member]
Schedule of Stockholders Equity [Line Items]
Beginning balance			703
Class A Common Stock [Member] | Common Stock [Member]
Schedule of Stockholders Equity [Line Items]
Beginning balance	48	48	48	48
Ending balance	$ 48	$ 48	48	$ 48
Class A Common Stock [Member] | Common Stock [Member] | Cumulative Effect Period Of Adoption Adjusted Balance [Member]
Schedule of Stockholders Equity [Line Items]
Beginning balance			$ 48

XML

Net Income (Loss) per Common Share (Narrative) (Details) shares in Thousands	9 Months Ended
	Feb. 27, 2021 shares
Net Income (Loss) per Common Share [Abstract]
Antidilutive restricted shares	121

XML

Net Income (Loss) per Common Share (Computation of Basic and Diluted Net Income Per Share Attributable to the Company) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Feb. 27, 2021	Feb. 29, 2020	Feb. 27, 2021	Feb. 29, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income (loss)	$ 13,548	$ 13,771	$ 6,304	$ (42,136)
Less: Income (loss) attributable to noncontrolling interest	0	22	0	(64)
Net income (loss) attributable to Cal-Maine Foods, Inc.	$ 13,548	$ 13,749	$ 6,304	$ (42,072)
Weighted-average common shares outstanding, basic	48,530	48,473	48,511	48,455
Effect of dilutive restricted shares	129	115	138	0
Weighted-average common shares outstanding, diluted	48,659	48,588	48,649	48,455
Net income (loss) per common share attributable to Cal-Maine Foods, Inc.
Basic (in dollars per share)	$ 0.28	$ 0.28	$ 0.13	$ (0.87)
Diluted (in dollars per share)	$ 0.28	$ 0.28	$ 0.13	$ (0.87)

XML

Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Feb. 27, 2021	Feb. 29, 2020	Feb. 27, 2021	Feb. 29, 2020
Disaggregation of Revenue [Line Items]
Revenues	$ 359,080	$ 345,588	$ 999,189	$ 898,276
Conventional Shell Egg Sales [Member]
Disaggregation of Revenue [Line Items]
Revenues	203,189	210,329	560,297	518,898
Specialty Shell Egg Sales [Member]
Disaggregation of Revenue [Line Items]
Revenues	145,210	125,019	408,537	352,118
Egg Products [Member]
Disaggregation of Revenue [Line Items]
Revenues	9,098	9,212	25,736	24,210
Other [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 1,583	$ 1,028	$ 4,619	$ 3,050

XML

Leases (Schedule of Lease Cost) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Feb. 27, 2021	Feb. 27, 2021
Leases [Abstract]
Operating Lease cost	$ 233	$ 703
Finance Lease cost
Amortization of right-of-use asset	44	125
Interest on lease obligations	9	27
Short term lease cost	$ 857	$ 2,714

XML

Leases (Schedule of Future Minimum Lease Payments) (Details) $ in Thousands	Feb. 27, 2021 USD ($)
Operating Leases
Remainder fiscal 2021	$ 224
2022	802
2023	539
2024	380
2025	130
2026	26
Thereafter	5
Total	2,106
Less imputed interest	(185)
Total	1,921
Finance Leases
Remainder fiscal 2021	68
2022	239
2023	239
2024	218
2025	0
2026	0
Thereafter	0
Total	764
Less imputed interest	(60)
Total	$ 704

XML

Leases (Schedule of Future Minimum Lease Payments - Section 2) (Details) $ in Thousands	Feb. 27, 2021 USD ($)
Leases [Abstract]
Lessee, Operating Lease, Liability, to be Paid	$ 2,106
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	185
Operating Lease, Liability	1,921
Finance Lease, Liability, Payment, Due	764
Finance Lease, Liability, Undiscounted Excess Amount	60
Finance Lease, Liability	$ 704

XML

Leases (Schedule of Weighted-Average Information) (Details)	Feb. 27, 2021
Operating Leases
Weighted-average remaining lease term (years)	3 years
Weighted-average discount rate	5.90%
Finance Leases
Weighted-average remaining lease term (years)	2 years 9 months 18 days
Weighted-average discount rate	4.90%

XML

Stock Based Compensation (Summary of Restricted Share Activity) (Details) shares in Thousands	9 Months Ended
	Feb. 27, 2021 $ / shares shares
Number of Shares
Number of Shares, Outstanding, Beginning Balance (in shares) | shares	273,046
Number of Shares, Granted (in shares) | shares	110,560
Number of Shares, Vested (in shares) | shares	(79,328)
Number of Shares, Forfeited (in shares) | shares	(4,431)
Number of Shares, Outstanding, Ending Balance (in shares) | shares	299,847
Weighted Average Grant Date Fair Value
Weighted Average Grant Date Fair Value, Outstanding, Beginning Balance (in dollars per share) | $ / shares	$ 41.36
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares	37.71
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | $ / shares	43.96
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | $ / shares	40.12
Weighted Average Grant Date Fair Value, Outstanding, Ending Balance (in dollars per share) | $ / shares	$ 39.35

XML

Stock Based Compensation (Narrative) (Details) - USD ($) $ in Millions	9 Months Ended
	Feb. 27, 2021	Feb. 29, 2020	Oct. 02, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized			2,000,000
Number of shares available for issuance			1,128,488
Stock based compensation expense (benefit)	$ 2.8	$ 2.7
Unrecognized compensation cost	$ 7.5
Weighted average period of unrecognized compensation expense (in years)	2 years 3 months 18 days

XML

Income Taxes (Narrative) (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Feb. 27, 2021	Dec. 31, 2017
Income Taxes [Abstract]
Statutory income tax rate	21.00%	35.00%
Discrete income tax benefit, due to difference in statutory tax rates	$ 6.4
Partially offsetting discrete income tax expense, related to net operating losses	$ 1.4

XML

Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Feb. 27, 2021	Feb. 29, 2020	Feb. 27, 2021	Feb. 29, 2020
Income Taxes [Abstract]
Statutory federal income tax	$ 2,907		$ 543
Enacted net operating loss carryback provision	(6,422)		(6,422)
Domestic manufacturers deduction	1,408		1,408
Other, net	391		391
Income tax expense	$ (1,716)	$ 4,278	$ (4,080)	$ (15,356)

XML

Commitment and Contingencies (Narrative) (Details) - USD ($)	Apr. 30, 2020	Apr. 23, 2020	Feb. 27, 2021
Loss Contingencies [Line Items]
Standby letters of credit			$ 4,100,000
State of Texas v. Cal-Maine Foods, Inc. d/b/a Wharton; and Wharton County Foods, LLC [Member] | Pending Litigation [Member]
Loss Contingencies [Line Items]
Loss contingency, damages sought		$ 100,000
Bell et al. v. Cal-Maine Foods et al. [Member] | Pending Litigation [Member] | Minimum [Member]
Loss Contingencies [Line Items]
Loss contingency, damages sought	$ 10,000
Bell et al. v. Cal-Maine Foods et al. [Member] | Pending Litigation [Member] | Maximum [Member]
Loss Contingencies [Line Items]
Loss contingency, damages sought	$ 250,000

XML

Related Party Transaction (Narrative) (Details) - Immediate Family Member of Management or Principal Owner [Member]	Aug. 24, 2020 USD ($) shares
Related Party Transaction [Line Items]
Secondary Public Offering | shares	6,900,000
Amount payable to the Selling Stockholders	$ 1,102,000
Amount reimbursable by the Selling Stockholders	$ 551,000,000