Document and Entity Information
Document and Entity Information - USD ($) $ / shares in Units, $ in Billions | 12 Months Ended | ||
May 30, 2021 | Jul. 19, 2021 | Nov. 27, 2020 | |
Cover [Abstract] | |||
Entity Central Index Key | 0001679273 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | May 30, 2021 | ||
Entity File Number | 1-37830 | ||
Entity Registrant Name | LAMB WESTON HOLDINGS, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 61-1797411 | ||
Entity Address, Address Line One | 599 S. Rivershore Lane | ||
Entity Address, City or Town | Eagle | ||
Entity Address, State or Province | ID | ||
Entity Address, Postal Zip Code | 83616 | ||
City Area Code | 208 | ||
Local Phone Number | 938-1047 | ||
Title of 12(b) Security | Common Stock, $1.00 par value | ||
Trading Symbol | LW | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 10.7 | ||
Entity Common Stock, Shares Outstanding | 146,193,864 | ||
Entity Listing, Par Value Per Share | $ 1 | ||
Current Fiscal Year End Date | --05-30 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Consolidated Statements of Earnings | |||
Net sales | $ 3,670.9 | $ 3,792.4 | $ 3,756.5 |
Net sales, type | Product | Product | Product |
Cost of sales | $ 2,838.9 | $ 2,897.2 | $ 2,753 |
Cost of sales, type | Product | Product | Product |
Gross profit | $ 832 | $ 895.2 | $ 1,003.5 |
Selling, general and administrative expenses | 357.2 | 338.3 | 335.1 |
Income from operations | 474.8 | 556.9 | 668.4 |
Interest expense, net | 118.3 | 108 | 107.1 |
Income before income taxes and equity method earnings | 356.5 | 448.9 | 561.3 |
Income tax expense | 90.5 | 112.3 | 133.6 |
Equity method investment earnings | 51.8 | 29.3 | 59.5 |
Net income | 317.8 | 365.9 | 487.2 |
Less: Income attributable to noncontrolling interests | 8.6 | ||
Net income attributable to Lamb Weston Holdings, Inc. | $ 317.8 | $ 365.9 | $ 478.6 |
Earnings per share | |||
Basic (in dollars per share) | $ 2.17 | $ 2.50 | $ 3.19 |
Diluted (in dollars per share) | $ 2.16 | $ 2.49 | $ 3.18 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Other comprehensive income (loss) - pre-tax amount: | |||
Net income | $ 408.3 | $ 478.2 | $ 620.8 |
Reclassification of post-retirement benefits out of accumulated other comprehensive income (loss) | 0.3 | 0.8 | 0.7 |
Unrealized pension and post-retirement benefit obligations | (3.2) | 0.4 | (3.3) |
Unrealized currency translation gains (losses) | 76.1 | (17.4) | (19.1) |
Comprehensive income (loss) | 481.5 | 462 | 599.1 |
Less: Comprehensive income attributable to noncontrolling interests | 8.6 | ||
Comprehensive income attributable to Lamb Weston Holdings, Inc. | 481.5 | 462 | 590.5 |
Other comprehensive income (loss) - tax (expense) benefit: | |||
Net income | (90.5) | (112.3) | (133.6) |
Reclassification of post-retirement benefits out of accumulated other comprehensive income (loss) | (0.1) | (0.3) | (0.1) |
Unrealized pension and post-retirement benefit obligations | 0.7 | (0.1) | 0.8 |
Unrealized currency translation gains (losses) | (3.8) | 1.4 | |
Comprehensive income (loss) | (93.7) | (111.3) | (132.9) |
Comprehensive income attributable to Lamb Weston Holdings, Inc. | (93.7) | (111.3) | (132.9) |
Other comprehensive income (loss) - after tax amount: | |||
Net income | 317.8 | 365.9 | 487.2 |
Reclassification of post-retirement benefits out of accumulated other comprehensive income (loss) | 0.2 | 0.5 | 0.6 |
Unrealized pension and post-employment benefit obligations | (2.5) | 0.3 | (2.5) |
Unrealized currency translation gains (losses) | 72.3 | (16) | (19.1) |
Comprehensive income (loss) | 387.8 | 350.7 | 466.2 |
Less: Comprehensive income attributable to noncontrolling interests | 8.6 | ||
Comprehensive income attributable to Lamb Weston Holdings, Inc. | $ 387.8 | $ 350.7 | $ 457.6 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 783.5 | $ 1,364 |
Receivables, less allowance for doubtful accounts of $0.9 and $1.3 | 366.9 | 342.1 |
Inventories | 513.5 | 486.7 |
Prepaid expenses and other current assets | 117.8 | 109.8 |
Total current assets | 1,781.7 | 2,302.6 |
Property, plant and equipment, net | 1,524 | 1,535 |
Operating lease assets | 141.7 | 167 |
Equity method investments | 310.2 | 250.2 |
Goodwill | 334.5 | 303.8 |
Intangible assets, net | 36.9 | 38.3 |
Other assets | 80.4 | 65.4 |
Total assets | 4,209.4 | 4,662.3 |
Current liabilities: | ||
Short-term borrowings | 498.7 | |
Current portion of long-term debt and financing obligations | 32 | 48.8 |
Accounts payable | 359.3 | 244.4 |
Accrued liabilities | 226.9 | 233 |
Total current liabilities | 618.2 | 1,024.9 |
Long-term liabilities: | ||
Long-term debt and financing obligations, excluding current portion | 2,705.4 | 2,992.6 |
Deferred income taxes | 159.7 | 152.5 |
Other noncurrent liabilities | 245.5 | 252.3 |
Total long-term liabilities | 3,110.6 | 3,397.4 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock of $1.00 par value, 600,000,000 shares authorized; 147,640,632 and 146,993,751 shares issued | 147.6 | 147 |
Additional distributed capital | (836.8) | (862.9) |
Retained earnings | 1,244.6 | 1,064.6 |
Accumulated other comprehensive income (loss) | 29.5 | (40.5) |
Treasury stock, at cost, 1,448,768 and 954,858 common shares | (104.3) | (68.2) |
Total stockholders' equity | 480.6 | 240 |
Total liabilities and stockholders' equity | $ 4,209.4 | $ 4,662.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
Receivables | ||
Allowance for doubtful accounts | $ 0.9 | $ 1.3 |
Common stock | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized shares (in shares) | 600,000,000 | 600,000,000 |
Common stock, issued shares (in shares) | 147,640,632 | 146,993,751 |
Treasury stock | ||
Treasury stock, common shares (in shares) | 1,448,768 | 954,858 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Common Stock | Treasury Stock | Additional Paid-in (Distributed) Capital | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Cumulative Effect, Period of Adoption, Adjustment | Total |
Balance at the beginning of the period at May. 27, 2018 | $ 146.4 | $ (2.9) | $ (900.4) | $ 13.7 | $ 426.4 | $ (4.3) | $ 13.7 | $ (334.8) |
Balance at the beginning of the period (in shares) at May. 27, 2018 | 146,332,332 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Increase in redemption value of noncontrolling interests in excess of earnings allocated | (10.8) | (10.8) | ||||||
Dividends declared | (114.6) | (114.6) | ||||||
Common stock issued | $ 0.3 | 1.7 | 2 | |||||
Common stock issued (in shares) | 258,961 | |||||||
Stock-settled, stock-based compensation expense | 18.8 | 18.8 | ||||||
Repurchase of common stock and common stock withheld to cover taxes | (36.4) | (36.4) | ||||||
Repurchase of common stock and common stock withheld to cover taxes (in shares) | (522,260) | |||||||
Other | 0.4 | (0.5) | (0.1) | |||||
Comprehensive income | 478.6 | (21) | 457.6 | |||||
Balance at the end of the period at May. 26, 2019 | $ 146.7 | (39.3) | (890.3) | $ 20.5 | 803.6 | (25.3) | $ 20.5 | (4.6) |
Balance at the end of the period (in shares) at May. 26, 2019 | 146,069,033 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Dividends declared | (125.6) | (125.6) | ||||||
Common stock issued | $ 0.3 | 4 | 4.3 | |||||
Common stock issued (in shares) | 338,924 | |||||||
Stock-settled, stock-based compensation expense | 22.8 | 22.8 | ||||||
Repurchase of common stock and common stock withheld to cover taxes | (28.9) | (28.9) | ||||||
Repurchase of common stock and common stock withheld to cover taxes (in shares) | (369,064) | |||||||
Other | 0.6 | 0.2 | 0.8 | |||||
Comprehensive income | 365.9 | (15.2) | 350.7 | |||||
Balance at the end of the period at May. 31, 2020 | $ 147 | (68.2) | (862.9) | 1,064.6 | (40.5) | 240 | ||
Balance at the end of the period (in shares) at May. 31, 2020 | 146,038,893 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Dividends declared | (136.2) | (136.2) | ||||||
Common stock issued | $ 0.6 | 3.5 | 4.1 | |||||
Common stock issued (in shares) | 646,881 | |||||||
Stock-settled, stock-based compensation expense | 20.6 | 20.6 | ||||||
Repurchase of common stock and common stock withheld to cover taxes | (36.1) | (36.1) | ||||||
Repurchase of common stock and common stock withheld to cover taxes (in shares) | (493,910) | |||||||
Other | 2 | (1.6) | 0.4 | |||||
Comprehensive income | 317.8 | 70 | 387.8 | |||||
Balance at the end of the period at May. 30, 2021 | $ 147.6 | $ (104.3) | $ (836.8) | $ 1,244.6 | $ 29.5 | $ 480.6 | ||
Balance at the end of the period (in shares) at May. 30, 2021 | 146,191,864 | 146,191,864 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | ||
Aug. 29, 2021 | May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Dividends | ||||
Dividends declared (in dollars per share) | $ 0.235 | $ 0.9300 | $ 0.8600 | $ 0.7825 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Cash flows from operating activities | |||
Net income | $ 317.8 | $ 365.9 | $ 487.2 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of intangibles and debt issuance costs | 188.8 | 184 | 162.4 |
Stock-settled, stock-based compensation expense | 20.6 | 22.8 | 18.8 |
Earnings of joint ventures in excess of distributions | (33) | (0.4) | (13.8) |
Deferred income taxes | 3.8 | 20 | 37.5 |
Other | 10.7 | 15.6 | 13.2 |
Changes in operating assets and liabilities, net of acquisition: | |||
Receivables | (21) | 1.1 | (25.1) |
Inventories | (22) | 15.3 | (15.8) |
Income taxes payable/receivable, net | (3.3) | 2.7 | (16.4) |
Prepaid expenses and other current assets | (4.9) | (2) | (1.9) |
Accounts payable | 104.7 | (34.9) | 32.9 |
Accrued liabilities | (9) | (16.1) | 1.9 |
Net cash provided by operating activities | 553.2 | 574 | 680.9 |
Cash flows from investing activities | |||
Additions to property, plant and equipment | (147.2) | (167.7) | (334.2) |
Additions to other long-term assets | (16.1) | (40.7) | (2.7) |
Acquisition of business, net of cash acquired | (116.7) | (88.6) | |
Investment in equity method joint venture | (22.6) | ||
Other | 0.8 | 1.7 | 2.5 |
Net cash used for investing activities | (162.5) | (346) | (423) |
Cash flows from financing activities | |||
Proceeds (payments) of short-term borrowings, net | (498.8) | 490.5 | (1) |
Repayments of debt and financing obligations | (305.5) | (336.3) | (66.7) |
Dividends paid | (135.3) | (121.3) | (113.3) |
Repurchase of common stock and common stock withheld to cover taxes | (36.1) | (28.9) | (36.4) |
Proceeds from issuance of debt | 1,122.9 | ||
Acquisition of noncontrolling interest | (78.2) | ||
Cash distributions paid to noncontrolling interest | (6.1) | ||
Other | 1.7 | (1.9) | 2.1 |
Net cash provided by (used for) financing activities | (974) | 1,125 | (299.6) |
Effect of exchange rate changes on cash and cash equivalents | 2.8 | (1.2) | (1.7) |
Net increase (decrease) in cash and cash equivalents | (580.5) | 1,351.8 | (43.4) |
Cash and cash equivalents, beginning of the period | 1,364 | 12.2 | 55.6 |
Cash and cash equivalents, end of period | $ 783.5 | $ 1,364 | $ 12.2 |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
May 30, 2021 | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Lamb Weston Holdings, Inc. (“we,” “us,” “our,” the “Company,” or “Lamb Weston”), along with our joint venture partners, is a leading global producer, distributor, and marketer of value-added frozen potato products and is headquartered in Eagle, Idaho. We have four reportable segments: Global, Foodservice, Retail, and Other. See Note 14, Segments, for additional information on our reportable segments. On November 9, 2016, Lamb Weston separated from Conagra Brands, Inc. (formerly, ConAgra Foods, Inc., “Conagra”) and became an independent publicly traded company through the pro rata distribution by Conagra of 100% of the outstanding common stock of Lamb Weston to Conagra stockholders (“Separation”). Basis of Presentation These Consolidated Financial Statements present the financial results of Lamb Weston for the fiscal years ended May 30, 2021, May 31, 2020, and May 26, 2019 (“fiscal 2021, 2020, and 2019”), and have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America. The fiscal year of Lamb Weston ends the last Sunday in May. The fiscal years for the Consolidated Financial Statements presented consist of 52-week periods for fiscal 2021 and 2019, and a 53-week period for fiscal 2020. The financial statements include all adjustments (consisting only of normal recurring adjustments) that we consider necessary for a fair presentation of such financial statements. The preparation of financial statements involves the use of estimates and accruals. Actual results may vary from those estimates. Our consolidated financial statements include the accounts of Lamb Weston and all of our majority-owned subsidiaries. In addition, the accounts of all variable interest entities for which we are the primary beneficiary are included in our consolidated financial statements from the date such determination was made. Intercompany investments, accounts, and transactions have been eliminated. The equity method of accounting is applied for investments when the Company has significant influence over the investee’s operations, or when the investee is structured with separate capital accounts and our investment is considered more than minor. Our equity method investments are described in Note 4, Investments in Joint Ventures. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires us to make certain estimates and assumptions that affect the amounts reported in our consolidated financial statements and the accompanying notes. On an ongoing basis, we evaluate our estimates, including but not limited to those related to provisions for income taxes, estimates of sales incentives and trade promotion allowances, and the valuation of goodwill and intangible assets. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. We adjust such estimates and assumptions when facts and circumstances dictate. The inputs into our judgments and estimates consider the economic implications of the effects of the COVID-19 pandemic on our critical accounting estimates and significant accounting policies. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates will be reflected in the consolidated financial statements in future periods. Revenue from Contracts with Customers Generally, we recognize revenue on a point-in-time basis when the customer takes title to the product and assumes the risks and rewards for the product. However, for customized products, which are products manufactured to customers’ unique specifications, we recognize revenue over time, utilizing an output method, which is generally as the products are produced. This is because once a customized product is manufactured pursuant to a purchase order, we have an enforceable right to payment for that product. Our Global segment sells the majority of our customized products, for which revenue is recognized when a purchase order is received to the extent the product has been manufactured, as opposed to sales of non-customized products, for which revenue is generally recognized upon shipment. As a result, the timing of the receipt of a purchase order may create quarterly fluctuations in this segment. The nature of our contracts vary based on the business, customer type, and region; however, in all instances it is our customary business practice to receive a valid order from the customer, in which each party’s rights and related payment terms are clearly identifiable. Our payment terms are consistent with industry standards and generally include early pay discounts. Amounts billed and due from customers are short-term in nature and are classified as receivables, since payments are unconditional and only the passage of time is required before payments are due. As of May 30, 2021 and May 31, 2020, we had $111.0 million and $72.7 million, respectively, of unbilled receivables for customized products for which we have accelerated the recognition of revenue and recorded the amounts in “Receivables” on our Consolidated Balance Sheets. We generally do not offer financing to our customers. We also do not provide a general right of return. However, customers may seek to return defective or non-conforming products. Following a customer return, we may offer remedies, including cash refunds, credit towards future purchases, or product replacement. As a result, customers’ right of return and related refund or product liabilities are estimated and recorded as reductions in revenue. We have contract terms that give rise to variable consideration including, but not limited to, discounts, coupons, rebates, and volume-based incentives. We estimate volume rebates based on the most likely amount method outlined in ASC 606, Revenue from Contracts with Customers We have elected to present all sales taxes on a net basis, account for shipping and handling activities as fulfillment activities, recognize the incremental costs of obtaining a contract as expense when incurred if the amortization period of the asset we would recognize is one year or less, and not record interest income or interest expense when the difference in timing of control or transfer and customer payment is one year or less. Advertising and Promotion Advertising and promotion expenses totaled $17.8 million, $23.0 million, and $32.4 million in fiscal 2021, 2020, and 2019, respectively, and are included in “Selling, general and administrative expenses” in the Consolidated Statements of Earnings. Research and Development Research and development costs are expensed as incurred and totaled $12.9 million in fiscal 2021 and $15.4 million in both fiscal 2020 and 2019, and are included in “Selling, general and administrative expenses” in the Consolidated Statements of Earnings. Stock-Based Compensation Compensation expense resulting from all stock-based compensation transactions is measured and recorded in the consolidated financial statements based on the grant date fair value of the equity instruments issued. Compensation expense is recognized over the period the employee provides service in exchange for the award. See Note 11, Stock-Based Compensation, for additional information. Cash and Cash Equivalents Cash and all highly liquid investments with an original maturity of three months or less at the date of acquisition are classified as cash and cash equivalents and stated at cost, which approximates market value. We maintain various banking relationships with high quality financial institutions and believe we are not exposed to any significant credit risk for our cash and cash equivalents. Cash and cash equivalents totaled $783.5 million and $1,364.0 million at May 30, 2021 and May 31, 2020, respectively. We invest available cash in money market funds that are backed by U.S. Treasury securities and can be redeemed without notice. Trade Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are stated at the amount we expect to collect based on our past experience, as well as reliance on the Perishable Agricultural Commodities Act, which was enacted to help promote fair trade in the fruit and vegetable industry by establishing a code of fair business practices. The collectability of our accounts receivable is based upon a combination of factors. In circumstances where a specific customer is unable to meet its financial obligations (e.g., bankruptcy filings, substantial downgrading of credit sources), a specific reserve for bad debts is recorded against amounts due to the Company to reduce the net recorded receivable to the amount that we reasonably believe will be collected. For all other customers, reserves for bad debts are recognized based on forward-looking information to assess expected credit losses. If collection experience deteriorates, the estimate of the recoverability of amounts due could be reduced. We periodically review our allowance for doubtful accounts and adjustments to the valuation allowance are recorded as income or expense. Trade accounts receivable balances that remain outstanding after we have used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. At May 30, 2021 and May 31, 2020, the allowance for doubtful accounts was $0.9 million and $1.3 million, respectively. Inventories Inventories are valued at the lower of cost (determined using the first-in, first-out method) or net realizable value and include all costs directly associated with manufacturing products: materials, labor, and manufacturing overhead. The components of inventories were as follows (dollars in millions): May 30, May 31, 2021 2020 Raw materials and packaging $ 89.8 $ 106.2 Finished goods 377.8 339.2 Supplies and other 45.9 41.3 Inventories $ 513.5 $ 486.7 Leased Assets Lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from these leases. Effective May 27, 2019, the beginning of our fiscal 2020, we adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) the lease and non-lease components as a single lease component for all of our leases. See Note 9, Leases, for more information. Property, Plant and Equipment Property, plant and equipment are recorded at cost. Cost includes expenditures for major improvements and replacements and the amount of interest cost associated with significant capital additions. The amount of interest capitalized from construction in progress was $1.9 million, $2.6 million, and $7.6 million in fiscal 2021, 2020, and 2019, respectively. Repairs and maintenance costs are expensed as incurred. The components of property, plant and equipment were as follows (dollars in millions): May 30, May 31, 2021 2020 Land and land improvements $ 108.2 $ 107.2 Buildings, machinery, and equipment 2,763.3 2,670.1 Furniture, fixtures, office equipment, and other 97.1 107.1 Construction in progress 122.5 58.3 Property, plant and equipment, at cost 3,091.1 2,942.7 Less accumulated depreciation (1,567.1) (1,407.7) Property, plant and equipment, net $ 1,524.0 $ 1,535.0 Depreciation is computed on the straight-line method over the estimated useful lives of the respective classes of assets as follows: Land improvements 2-30 years Buildings 10-40 years Machinery and equipment 5-20 years Furniture, fixtures, office equipment, and other 3-15 years We recorded $177.7 million, $175.3 million, and $155.5 million of depreciation expense in fiscal 2021, 2020, and 2019, respectively. At May 30, 2021 and May 31, 2020, purchases of property, plant and equipment included in accounts payable were $23.1 million and $9.9 million, respectively. Long-Lived Asset Impairment We review long-lived assets for impairment upon the occurrence of events or changes in circumstances which indicate that the carrying amount of the assets may not be fully recoverable, measured by comparing their net book value to the undiscounted projected future cash flows generated by their use. Impaired assets are recorded at their estimated fair value. Goodwill and Other Identifiable Intangible Assets We perform an annual impairment assessment of goodwill at the reporting unit level in the fourth quarter of each year, or more frequently if indicators of potential impairment exist. We have an option to evaluate goodwill for impairment by first performing a qualitative assessment of events and circumstances to determine whether it is more likely than not that the fair value of a reporting until is less than its carrying amount. If we determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amounts, then a quantitative goodwill impairment test is not required to be performed. The quantitative assessment requires us to estimate the fair value of our reporting units using a weighted approach based on discounted future cash flows, market multiples and transaction multiples. If the carrying amount of the reporting units is in excess of their estimated fair value, the reporting unit will record an impairment charge by the amount that the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to the reporting unit. We amortize acquisition-related intangible assets with finite lives over their estimated useful life. We perform a review of significant finite-lived identified intangible assets to determine whether facts and circumstances indicate that the carrying amount may not be recoverable. These reviews can be affected by various factors, including external factors such as industry and economic trends, and internal factors such as changes in our business strategy and our forecasts for our products lines. See Note 6, Goodwill and Other Identifiable Intangible Assets, for additional information. Fair Values of Financial Instruments When determining fair value, we consider the principal or most advantageous market in which we would transact, as well as assumptions that market participants would use when pricing the asset or liability. Unless otherwise specified, we believe the carrying value of financial instruments approximates their fair value. The three levels of inputs that may be used to measure fair value are: Level 1—Quoted market prices in active markets for identical assets or liabilities. We evaluate security-specific market data when determining whether a market is active. Level 2—Observable market-based inputs other than those included in Level 1, such as quoted prices for similar assets and liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. Level 3—Unobservable inputs for the asset or liability reflecting our own assumptions and best estimate of what inputs market participants would use in pricing the asset or liability. See Note 12, Fair Value Measurements, for additional information. Foreign Currency Most of our foreign subsidiaries use the local currency of their respective countries as their functional currency. Assets and liabilities are translated at exchange rates prevailing at the balance sheet dates. Revenues and expenses are translated into U.S. dollars using daily and monthly average exchange rates. Gains and losses resulting from the translation of Consolidated Balance Sheets are recorded as a component of “Accumulated other comprehensive income (loss).” Foreign currency transactions resulted in a gain of $1.3 million, and losses of $0.1 million, and $3.3 million in fiscal 2021, 2020, and 2019, respectively. These amounts were recorded in “Selling, general and administrative expenses” in the Consolidated Statements of Earnings. Derivative Financial Instruments We use derivatives and other financial instruments to hedge a portion of our commodity risks. We do not hold or issue derivatives and other financial instruments for trading purposes. Derivative instruments are reported in our Consolidated Balance Sheets at their fair values, unless the derivative instruments qualify for the normal purchase normal sale exception (“NPNS”) under GAAP and such exception has been elected. If the NPNS exception is elected, the fair values of such contracts are not recognized. We do not designate commodity derivatives to achieve hedge accounting treatment. Income Taxes We recognize current tax liabilities and assets based on an estimate of taxes payable or refundable in the current year for each of the jurisdictions in which we transact business. As part of the determination of our current tax liability, management exercises considerable judgment in evaluating positions taken in the tax returns. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. We also recognize deferred tax assets and liabilities for the estimated future tax effects attributable to temporary differences (e.g., the difference in book basis versus tax basis of fixed assets resulting from differing depreciation methods). If appropriate, we recognize valuation allowances to reduce deferred tax assets to amounts that are more likely than not to be ultimately realized, based on our assessment of estimated future taxable income. See Note 3, Income Taxes, for more information. New and Recently Issued Accounting Pronouncements Recently Adopted Accounting Pronouncements Receivables – Credit Losses In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Accounting Pronouncements Not Yet Adopted Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting There were no other accounting pronouncements recently issued that had or are expected to have a material impact on our financial statements. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
May 30, 2021 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 2. EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per common share for the periods presented (dollars and shares in millions, except per share amounts): For the Fiscal Years Ended May 2021 2020 2019 Numerator: Net income attributable to Lamb Weston Holdings, Inc. $ 317.8 $ 365.9 $ 478.6 Less: Increase in redemption value of noncontrolling interests in excess of earnings allocated, net of tax benefits (a) — — 10.8 Net income available to Lamb Weston common stockholders $ 317.8 $ 365.9 $ 467.8 Denominator: Basic weighted average common shares outstanding 146.4 146.2 146.5 Add: Dilutive effect of employee incentive plans (b) 0.7 0.9 0.8 Diluted weighted average common shares outstanding 147.1 147.1 147.3 Earnings per share (a) Basic $ 2.17 $ 2.50 $ 3.19 Diluted $ 2.16 $ 2.49 $ 3.18 (a) In November 2018, we entered into an agreement to acquire the remaining 50.01% interest in Lamb Weston BSW, LLC (“Lamb Weston BSW”). Our Consolidated Statements of Earnings includes 100% of Lamb Weston BSW’s earnings beginning November 2, 2018. During fiscal 2019, net income available to common stockholders and earnings per share included accretion expense, net of estimated tax benefits, of $9.4 million, or $0.06 per share, to increase the redeemable noncontrolling interest to the amount we agreed to pay to acquire the remaining interest in Lamb Weston BSW. While the accretion, net of estimated tax benefits, reduced net income available to Lamb Weston common stockholders and earnings per share, it did not impact net income in the Consolidated Statements of Earnings. See Note 6, Investments in Joint Ventures, in our Annual Report on Form 10-K for the fiscal year ended May 31, 2020, which we filed with the Securities and Exchange Commission on July 28, 2020. (b) Potentially dilutive shares of common stock from employee incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock options and the assumed vesting of outstanding restricted stock units and performance awards. As of May 30, 2021, we did not have any stock-based awards that were antidilutive. As of May 31, 2020 and May 26, 2019, an insignificant number of stock-based awards were excluded from the computation of diluted earnings per share because they would be antidilutive. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
May 30, 2021 | |
INCOME TAXES | |
INCOME TAXES | 3. INCOME TAXES Pre-tax income, inclusive of equity method investment earnings, consisted of the following (dollars in millions): For the Fiscal Years Ended May 2021 2020 2019 United States $ 352.0 $ 462.0 $ 574.5 Foreign 56.3 16.2 46.3 Total pre-tax income $ 408.3 $ 478.2 $ 620.8 The provision for income taxes included the following (dollars in millions): For the Fiscal Years Ended May 2021 2020 2019 Current U.S. federal $ 66.2 $ 75.7 $ 66.8 State and local 15.0 13.2 17.7 Foreign 5.5 3.4 11.6 Total current provision for taxes 86.7 92.3 96.1 Deferred U.S. federal (0.4) 18.6 42.2 State and local 1.2 4.4 (0.1) Foreign 3.0 (3.0) (4.6) Total deferred provision for taxes $ 3.8 $ 20.0 $ 37.5 Total provision for taxes $ 90.5 $ 112.3 $ 133.6 A reconciliation of income tax expense using the 21% U.S. statutory tax rate on income from operations, including equity method earnings and before income taxes, compared with the actual provision for income taxes follows (dollars in millions): For the Fiscal Years Ended May 2021 2020 2019 Provision computed at U.S. statutory rate $ 85.7 $ 100.4 $ 130.4 Increase (reduction) in rate resulting from: State and local taxes, net of federal benefit 13.7 15.3 14.8 Effect of taxes on foreign operations (4.7) (4.4) (4.7) Other (4.2) 1.0 (6.9) Total provision for taxes $ 90.5 $ 112.3 $ 133.6 Effective income tax rate (a) 22.2% 23.5% 21.5% (a) The effective income tax rate is calculated as the ratio of income tax expense to pre-tax income, inclusive of equity method investment earnings. Income Taxes Paid Income taxes paid, net of refunds, were $84.1 million, $82.5 million, and $103.0 million in fiscal 2021, 2020, and 2019, respectively. Deferred Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. Significant components of our deferred income tax assets and liabilities were as follows (dollars in millions): May 30, 2021 May 31, 2020 Assets Liabilities Assets Liabilities Property, plant and equipment $ — $ 187.1 $ — $ 188.8 Goodwill and other intangible assets 46.3 — 54.9 — Compensation and benefit related liabilities 32.2 — 19.7 — Net operating loss and credit carryforwards (a) 3.6 — 5.2 — Accrued expenses and other liabilities 13.9 — 15.2 — Inventory and inventory reserves 5.5 — 4.5 — Lease obligations 32.0 — 36.9 — Lease assets — 30.3 — 35.4 Debt issuance costs — 2.9 — 3.4 Investment in joint ventures — 4.7 — 3.6 Other 3.5 16.4 7.7 8.6 137.0 241.4 144.1 239.8 Less: Valuation allowance (b) (53.1) — (54.5) — Net deferred taxes (c) $ 83.9 $ 241.4 $ 89.6 $ 239.8 (a) At May 30, 2021, Lamb Weston had approximately $14.1 million of gross ($3.1 million after-tax) foreign net operating loss carryforwards, of which the majority expire during fiscal 2022. Lamb Weston also has a foreign tax credit carryforward of $0.5 million, which will expire by fiscal 2031. (b) The valuation allowance is predominantly related to non-amortizable intangibles and the portion of the net operating loss carryforwards that we are not more likely than not to realize. The net impact on income tax expense related to changes in the valuation allowance, including net operating loss carryforwards, was zero in fiscal 2021 and 2020, and $1.1 million of benefit in fiscal 2019. (c) Deferred tax assets of $2.2 million and $2.3 million as of May 30, 2021 and May 31, 2020, respectively, were presented in “Other assets.” Deferred tax liabilities of $159.7 million and $152.5 million as of May 30, 2021 and May 31, 2020, respectively, were presented in “Deferred income taxes” as “Long-term liabilities” on the Consolidated Balance Sheets. The deferred tax asset and liability net position is determined by tax jurisdiction. The FASB allows companies to adopt an accounting policy to either recognize deferred taxes for global intangible low-taxed income (“GILTI”) or treat such as a tax cost in the year incurred. We have elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. Under this policy, we have not provided deferred taxes on temporary differences that upon their reversal will affect the amount of income subject to GILTI in the period. We have not established deferred income taxes on accumulated undistributed earnings and other basis differences for operations outside the U.S., as such earnings and basis differences are indefinitely reinvested. Determining the unrecognized deferred tax liability for these earnings is not practicable. Generally, no U.S. federal income taxes will be imposed on future distributions of foreign earnings under the current law. However, distributions to the U.S. or other foreign jurisdictions could be subject to withholding and other local taxes, and these taxes would not be material. Uncertain Tax Positions The aggregate changes in the gross amount of unrecognized tax benefits, excluding interest and penalties consisted of the following (dollars in millions): For the Fiscal Years Ended May 2021 2020 2019 Beginning balance $ 31.3 $ 21.7 $ 13.2 Decreases from positions established during prior fiscal years — — (0.8) Increases from positions established during current and prior fiscal years 8.7 10.3 10.4 Decreases relating to settlements with taxing authorities (0.8) — — Expiration of statute of limitations (2.1) (0.7) (1.1) Ending balance (a) $ 37.1 $ 31.3 $ 21.7 (a) If we were to prevail on the unrecognized tax benefits recorded as of May 30, 2021 and May 30, 2020, it would result in a tax benefit of $31.6 million and $26.7 million, respectively, and a reduction in the effective tax rate. The ending balances exclude $7.2 million and $5.5 million of gross interest and penalties in fiscal 2021 and 2020, respectively. We accrue interest and penalties associated with uncertain tax positions as part of income tax expense. Lamb Weston conducts business and files tax returns in numerous countries, states, and local jurisdictions. We do not have any significant open tax audits. As part of the tax matters agreement we entered into with Conagra in connection with the Separation, Conagra has responsibility for tax audits associated with pre-Separation periods, including any associated adjustments for consolidated federal and state filings. Major jurisdictions where we conduct business generally have statutes of limitations ranging from three Although the timing of the resolutions and/or closures of audits is highly uncertain, it is reasonably possible that certain U.S. federal and non-U.S. tax audits may be concluded within the next 12 months, which could increase or decrease the balance of our gross unrecognized tax benefits. The estimated impact on income tax expense and net income is not expected to be significant. |
INVESTMENTS IN JOINT VENTURES
INVESTMENTS IN JOINT VENTURES | 12 Months Ended |
May 30, 2021 | |
INVESTMENTS IN JOINT VENTURES | |
INVESTMENTS IN JOINT VENTURES | 4. INVESTMENTS IN JOINT VENTURES Lamb Weston holds equity interests in three potato processing joint ventures, including 50% of Lamb-Weston/Meijer v.o.f. (“Lamb-Weston/Meijer”), Lamb-Weston/RDO Frozen Lamb Weston Alimentos Modernos S.A. Summarized combined financial information for our equity method investments based on 100%of their operations is as follows (dollars in millions): For the Fiscal Years Ended May 2021 2020 2019 Net sales $ 1,169.5 $ 1,137.7 $ 1,172.6 Gross profit 196.5 145.8 212.2 Income from operations 97.5 59.8 130.2 May 30, May 31, 2021 2020 Current assets $ 516.1 $ 413.8 Noncurrent assets 627.6 455.1 Current liabilities 366.3 298.8 Noncurrent liabilities 147.3 79.8 Lamb-Weston/Meijer We hold a 50% ownership interest in Lamb-Weston/Meijer, a joint venture with Meijer Frozen Foods B.V., that is headquartered in the Netherlands and manufactures and sells frozen potato products principally in Europe, Russia, and the Middle East. We receive a royalty from Lamb-Weston/Meijer based on a per ton rate of the sales volumes of the venture. The fees received were $1.6 million in both fiscal years 2021 and 2020 and $1.8 million in fiscal 2019. These fees are recorded as a reduction to “Selling, general and administrative expenses” in our Consolidated Statements of Earnings. Our ownership interest in this venture is included in “Equity method investments” on our Consolidated Balance Sheets. The balance of our investment was $263.3 million and $207.4 million at May 30, 2021 and May 31, 2020, respectively. We account for this investment using equity method accounting. We have an agreement to share the costs of our global ERP system and related software and services with Lamb-Weston/Meijer. Under the terms of the agreement, Lamb-Weston/Meijer will pay us for the majority of its portion of the ERP costs in five equal annual payments, plus interest, beginning in the period the system is deployed at Lamb-Weston/Meijer. As of May 30, 2021 and May 31, 2020, Lamb-Weston/Meijer’s portion of the ERP costs totaled $16.8 million and $13.0 million, respectively. We had $13.3 million and $12.0 million of receivables recorded on our Consolidated Balance Sheets at May 30, 2021 and May 31, 2020, respectively. Of the $13.3 million and $12.0 million of receivables, $0.1 million and $1.8 million were recorded in “Receivables, net” and $13.2 million and $10.2 million were recorded in “Other assets,” respectively. We expect the total receivable from Lamb-Weston/Meijer to increase as development and implementation of the next phase of our ERP system commences in fiscal 2022. Lamb Weston RDO We hold a 50% interest in Lamb Weston RDO, a joint venture with RDO Frozen Co. This joint venture operates a potato processing plant in Minnesota. We provide all sales and marketing services to Lamb Weston RDO, and we receive a fee for these services based on a percentage of the net sales of the venture. The fees received were $14.3 million, $14.1 million, and $14.8 million in fiscal 2021, 2020, and 2019, respectively. These fees are recorded as a reduction to “Selling, general and administrative expenses” in our Consolidated Statements of Earnings. Our ownership interest in this venture is included in “Equity method investments” on our Consolidated Balance Sheets. The balance of our investment was $17.4 million and $15.4 million at May 30, 2021 and May 31, 2020, respectively. We account for this investment using equity method accounting. LWAMSA We hold a 50% ownership interest in LWAMSA, a joint venture with Sociedad Comercial del Plata S.A. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
May 30, 2021 | |
ACQUISITIONS | |
ACQUISITIONS | 5. ACQUISITIONS On July 2, 2019 and December 21, 2018, we acquired 100% of the outstanding shares of two We allocated the purchase prices of the July 2019 and December 2018 acquisitions to the assets acquired and liabilities assumed based on estimates of the fair value at the respective date of the acquisition, of which $106.1 million and $75.1 million, respectively, after final working capital adjustments, was allocated to goodwill not deductible weighted average life |
GOODWILL AND OTHER IDENTIFIABLE
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS | 12 Months Ended |
May 30, 2021 | |
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS | |
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS | 6. GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS The following table presents changes in goodwill balances, by segment, for fiscal years 2021 and 2020 (dollars in millions): Global Foodservice Retail Other Total Balance at May 26, 2019 $ 147.7 $ 42.8 $ 10.9 $ 4.5 $ 205.9 Acquisition (a) 106.1 — — — 106.1 Foreign currency translation adjustment (8.2) — — — (8.2) Balance at May 31, 2020 $ 245.6 $ 42.8 $ 10.9 $ 4.5 $ 303.8 Foreign currency translation adjustment 30.7 — — — 30.7 Balance at May 30, 2021 $ 276.3 $ 42.8 $ 10.9 $ 4.5 $ 334.5 (a) In July 2019, we acquired a frozen potato processor in Australia and recorded $106.1 million of goodwill in our Global segment. See Note 5, Acquisitions, for more information. Other identifiable intangible assets were as follows (dollars in millions): May 30, 2021 May 31, 2020 Weighted Weighted Average Gross Average Gross Useful Life Carrying Accumulated Intangible Useful Life Carrying Accumulated Intangible (in years) Amount Amortization Assets, Net (in years) Amount Amortization Assets, Net Non-amortizing intangible assets (a) n/a $ 18.0 $ — $ 18.0 n/a $ 18.0 $ — $ 18.0 Amortizing intangible assets (b) 11 42.2 (23.3) 18.9 11 42.4 (22.1) 20.3 $ 60.2 $ (23.3) $ 36.9 $ 60.4 $ (22.1) $ 38.3 (a) Non-amortizing intangible assets represent brands and trademarks. (b) Amortizing intangible assets are principally comprised of licensing agreements, brands, and customer relationships. In addition, developed technology is recorded as “Other assets” on our Consolidated Balance Sheet. Amortization expense was $5.0 million, $2.5 million, and $2.2 million in fiscal 2021, 2020, and 2019, respectively. Foreign intangible assets are affected by foreign currency translation. Based on current intangibles subject to amortization, we expect intangible asset amortization expense, excluding developed technology, will be approximately $2.7 million, $2.6 million, and $2.1 million in fiscal 2022, 2023, and 2024, respectively, $1.8 million in fiscal 2025 and 2026 Impairment Testing We test goodwill and non-amortizing intangible assets for impairment annually in the fourth quarter or sooner if events or changes in circumstances indicate that the carrying value of the asset may exceed fair value. Additionally, when we experience changes to our business or operating environment, we evaluate the remaining useful lives of our finite-lived purchased intangible assets to determine whether any adjustments to the useful lives are necessary. During the annual goodwill impairment test we performed in the fourth quarter of fiscal 2021, we assessed qualitative factors to determine whether it was more likely than not that the fair value of each reporting unit was less than its carrying value. Based on the results of the qualitative impairment test, we determined that it was not more likely than not that the fair value was less than the carrying value of our Global, Foodservice, Retail, and Other reporting units. Additionally, we completed our tests of our non-amortizing intangibles |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
May 30, 2021 | |
ACCRUED LIABILITIES | |
ACCRUED LIABILITIES | 7. ACCRUED LIABILITIES The components of accrued liabilities were as follows (dollars in millions): May 30, May 31, 2021 2020 Compensation and benefits $ 83.2 $ 74.5 Accrued trade promotions 39.9 42.5 Dividends payable to shareholders 34.4 33.6 Current portion of operating lease obligations 29.1 28.4 Franchise, property, and sales and use taxes 11.3 9.4 Accrued interest 7.9 8.7 Income taxes payable 0.8 1.3 Other 20.3 34.6 Accrued liabilities $ 226.9 $ 233.0 |
DEBT AND FINANCING OBLIGATIONS
DEBT AND FINANCING OBLIGATIONS | 12 Months Ended |
May 30, 2021 | |
DEBT AND FINANCING OBLIGATIONS | |
DEBT AND FINANCING OBLIGATIONS | 8. DEBT AND FINANCING OBLIGATIONS At May 30, 2021 and May 31, 2020, our debt and financing obligations were as follows (dollars in millions): May 30, May 31, 2021 2020 Short-term borrowings: Revolving credit facility $ — $ 495.0 Other credit facilities — 3.7 — 498.7 Long-term debt: Term loan facility, due November 2021 — 276.6 Term A-1 loan facility, due June 2024 273.8 288.7 Term A-2 loan facility, due April 2025 312.8 325.0 4.625% senior notes, due November 2024 833.0 833.0 4.875% senior notes, due November 2026 833.0 833.0 4.875% senior notes, due May 2028 500.0 500.0 2,752.6 3,056.3 Financing obligations: Lease financing obligations due on various dates through 2040 (a) 7.3 13.3 7.3 13.3 Total debt and financing obligations 2,759.9 3,568.3 Debt issuance costs (b) (22.5) (28.2) Short-term borrowings — (498.7) Current portion of long-term debt and financing obligations (32.0) (48.8) Long-term debt and financing obligations, excluding current portion $ 2,705.4 $ 2,992.6 (a) The interest rates on our lease financing obligations ranged from 2.49% to 4.10% at May 30, 2021 and 2.31% to 4.10% at May 30, 2020, respectively. For more information on our lease financing obligations, see Note 9, Leases. (b) We amortize debt issuance costs into interest expense using the effective interest method over the life of the loan facilities. In fiscal 2021, 2020, and 2019, we recorded $6.1 million, $6.2 million, and $4.7 million, respectively, of amortization expense in “Interest expense” in our Consolidated Statements of Earnings. Fiscal 2021 included a $1.0 million write-off of debt issuance cost in connection with the Amended Revolving Credit Facility. Fiscal 2020 included a $1.7 million write-off of debt issuance costs in connection with the $300.0 million payment on the term loan facility due in 2021. Amended Revolving Credit Facility We are party to a senior secured credit agreement, dated as of November 9, 2016, with a syndicate of lenders. On September 17, 2020, we amended the credit agreement to, among other things, increase the aggregate principal amount of available revolving credit facility borrowings to $750.0 million and extend the maturity date to September 17, 2023 (“Amended Revolving Credit Facility”). In addition, we may add incremental term loan facilities, increase commitments and/or add new revolving commitments in an aggregate principal amount not to exceed the sum of (A) the greater of $600.0 million or 75% of our Consolidated EBITDA (as defined in the Amended Revolving Credit Facility) and (B) an amount based on our consolidated net leverage ratio. Borrowings under the Amended Revolving Credit Facility bear interest at LIBOR or the Base Rate (each as defined in the Amended Revolving Credit Facility) plus an applicable rate ranging from 1.25% to 2.25% for LIBOR-based loans and from 0.25% to 1.25% for Base Rate-based loans, depending upon our consolidated net leverage ratio. In addition to paying interest, we pay an annual commitment fee for undrawn amounts at a rate of 0.20% to 0.40%, depending on our consolidated net leverage ratio. The Amended Revolving Credit Facility requires us to maintain a consolidated net leverage ratio no greater than 5.00 to 1.00, decreasing ratably to 4.50 to 1.00 on February 26, 2022 through maturity; and an interest coverage ratio no less than 2.75 to 1.00. The Amended Revolving Credit Facility also contains covenants that, subject to exceptions, limit our ability and the ability of our subsidiaries to, among other things, incur, assume or guarantee additional indebtedness, pay distributions on, redeem or repurchase capital stock or redeem or repurchase subordinated debt, make loans and investments, incur or suffer to exist liens, sell, transfer or otherwise dispose of assets, enter into agreements that restrict distributions or other payments from restricted subsidiaries to us, engage in transactions with affiliates, designate subsidiaries as unrestricted or restricted, and consolidate, merge, amalgamate or transfer all or substantially all of our assets. Upon the occurrence of an event of default, among other things, amounts outstanding under the credit facility may be accelerated and the commitments may be terminated. Our obligations under the Amended Revolving Credit Facility are unconditionally guaranteed by certain of our direct and indirect domestic subsidiaries on the terms set forth in the credit agreement. The credit agreement is secured by security interests and liens on substantially all of our and each of our subsidiary guarantor’s assets, unless Lamb Weston is rated investment grade by at least two of Fitch Ratings, Inc., Moody’s Investors Service, Inc., and Standard & Poor’s Ratings Services. In connection with the Amended Revolving Credit Facility, we repaid the outstanding $271.9 million term loan facility due in November 2021 with cash on hand and capitalized $2.4 million of debt issuance costs as “Other assets” on our Consolidated Balance Sheet. During fiscal 2021, we recognized $1.0 million of expenses, in “Interest expense, net” for the write-off of debt issuance costs related to the payoff of the term loan facility. At May 30, 2021, we had no borrowings outstanding under our Amended Revolving Credit Facility. At May 30, 2021, we had $744.6 million of availability under the facility, which is net of outstanding letters of credit of $5.4 million. For the period from June 1, 2020 through May 30, 2021, borrowings under our revolving credit facility ranged from zero dollars to a high of $495.0 million. For the period from June 1, 2020 through May 30, 2021 and May 27, 2019 through May 31, 2020, the weighted average interest rate for our outstanding borrowings under the revolving credit facility was 1.68% and 2.35%, respectively. In March 2020, we drew $495.0 million available under the revolving credit facility and in June and July 2020, we repaid $100.0 million and $395.0 million, respectively. Term A-1 and A-2 Loan Facilities On June 28, 2019, we entered into a credit agreement, among Lamb Weston, certain of our subsidiaries as guarantors, certain lenders, and Northwest Farm Credit Services, PCA, as administrative agent for the lenders, providing for a $300.0 million term loan facility and, under certain circumstances, the ability to add incremental facilities in an aggregate amount of up to $100.0 million (collectively, “Term A-1 Loan Facility”). Borrowings on the Term A-1 Loan Facility amortize in equal quarterly installments for a total of 5% annually, with the balance payable in June 2024. Borrowings under the Term A-1 Loan Facility bear interest, before anticipated patronage dividends, at LIBOR or the Base Rate (as defined in the Term A-1 Loan Facility agreement) plus an applicable margin ranging from 1.625% to 2.375% for LIBOR-based loans and from 0.625% to 1.375% for Base Rate-based loans, depending upon our consolidated net leverage ratio. During the years ended May 30, 2021 and May 31, 2020, the average interest rate on the Term A-1 Loan Facility was approximately 1.77% and 3.33%, respectively. We have received and expect to continue receiving patronage dividends under the Term A-1 Loan Facility. After giving effect to expected patronage distributions, the effective average interest rate on the Term A-1 Loan Facility was approximately 0.95% and 2.52%, for the years ended May 30, 2021 and May 31, 2020, respectively. On April 20, 2020, we amended the Term A-1 Loan Facility agreement to, among other things, provide for a new $325.0 million term loan facility (“Term A-2 Loan Facility”). Borrowings under the Term A-2 Loan Facility bear interest, before anticipated patronage dividends, at LIBOR or the Base Rate (as defined in the Term A-2 Loan Facility agreement) plus an applicable rate ranging from 2.200% to 2.950% for LIBOR-based loans and from 1.200% to 1.950% for Base Rate-based loans, depending on our consolidated net leverage ratio. Borrowings on the Term A-2 Loan Facility amortize in equal quarterly installments for a total of 5% annually, with the balance payable in April 2025. During the years ended May 30, 2021 and May 31, 2020, the average interest rate on the Term A-2 Loan Facility was approximately 2.34% and 2.85%, respectively. We have received and expect to continue receiving patronage dividends under the Term A-2 Loan Facility. After giving effect to expected patronage distributions, the effective average interest rate on the Term A-2 Loan Facility was approximately 1.53% and 2.03%, for the years ended May 30, 2021 and May 31, 2020, respectively. The Term A-1 and A-2 Loan Facilities are unconditionally guaranteed by the same subsidiaries as the Amended Revolving Credit Facility. Borrowings under the Term A-1 and A-2 Loan Facilities may be prepaid without premium or penalty and once repaid, cannot be reborrowed. On September 23, 2020, in connection with the Amended Revolving Credit Facility, we amended the credit agreement relating to the Term A-1 and A-2 Loan Facilities, to, among other things, modify the term loan facilities to make conforming changes to the affirmative and negative covenants under the facilities. As such, the covenants, events of default, securities and liens under the Term A-1 and A-2 Loan Facilities are consistent with the Amended Revolving Credit Facility. The financial covenants under the Term A-1 and A-2 Loan Facilities, however, remain unchanged, requiring us to maintain a consolidated net leverage ratio no greater than 4.50 to 1.00 1.00 4.625% Senior Notes due 2024 and 4.875% Senior Notes due 2026 In November 2016, we issued (i) $833.0 million aggregate principal amount of 4.625% senior notes due 2024 (“2024 Notes”) and (ii) $833.0 million aggregate principal amount of 4.875% senior notes due 2026 (“2026 Notes”) pursuant to indentures, dated as of November 9, 2016, among Lamb Weston, certain of our subsidiaries as guarantors and Wells Fargo Bank, National Association, as trustee. Our obligations under the 2024 Notes and 2026 Notes are unconditionally guaranteed on a senior unsecured basis by each of our subsidiaries that guarantee our obligations under the Amended Revolving Credit Facility and Term A-1 and A-2 Loan Facilities. The 2024 Notes and 2026 Notes are senior unsecured obligations and rank equally with all of our current and future senior indebtedness, rank senior to all our current and future subordinated indebtedness and are subordinated to all of our current and future secured indebtedness (including all borrowings with respect to the Amended Revolving Credit Facility and Term A-1 and A-2 Loan Facilities to the extent of the value of the assets securing such indebtedness). Interest on the 2024 Notes and 2026 Notes is due semiannually. The 2024 Notes mature on November 1, 2024 and the 2026 Notes mature on November 1, 2026, unless either is redeemed or repurchased. Upon a change of control (as defined in the indentures governing the 2024 Notes and 2026 Notes), we must offer to repurchase the 2024 Notes and 2026 Notes at 101% of the principal amount of such notes, plus accrued and unpaid interest. We may redeem all or a portion of the 2024 Notes at any time on or after November 1, 2021, at declining prices starting at 102.313%, plus accrued and unpaid interest. We may redeem all or a portion of the 2026 Notes at any time on or after November 1, 2021, at declining prices starting at 102.438%, plus accrued and unpaid interest. Prior to November 1, 2021, we may redeem notes of either series, in whole at any time or in part, from time to time, at a price equal to 100% of the principal amount thereof, plus a make-whole premium, plus accrued and unpaid interest. The indentures governing the 2024 Notes and 2026 Notes contain covenants that, subject to exceptions, limit our ability and the ability of our subsidiaries to, among other things, incur, assume or guarantee additional indebtedness, pay distributions on, redeem or repurchase capital stock or redeem or repurchase subordinated debt, make loans and investments, incur or suffer to exist liens, sell, transfer or otherwise dispose of assets, enter into agreements that restrict distributions or other payments from restricted subsidiaries to us, engage in transactions with affiliates, designate subsidiaries as unrestricted or restricted, and consolidate, merge, amalgamate or transfer all or substantially all of our assets. 4.875% Senior Notes due 2028 In May 2020, we issued $500.0 million aggregate principal amount of 4.875% senior notes due in 2028 (“2028 Notes”) pursuant to an indenture, dated as of May 12, 2020, among Lamb Weston, certain of our subsidiaries as guarantors and Wells Fargo Bank, National Association, as trustee. Our obligations under the 2028 Notes are unconditionally guaranteed on a senior unsecured basis by each of our subsidiaries that guarantee our obligations under the Amended Revolving Credit Facility and Term A-1 and A-2 Loan Facilities. The 2028 Notes bear interest at a rate of 4.875% per year and mature on May 15, 2028, unless earlier redeemed or repurchased. We capitalized approximately $6.2 million of debt issuance costs associated with this offering. The 2028 Notes are senior unsecured obligations and rank equally with all of our current and future senior indebtedness (including the 2024 and 2026 Notes), rank senior to all our current and future subordinated indebtedness and are subordinated to all of our current and future secured indebtedness (including all borrowings with respect to the Amended Revolving Credit Facility and Term A-1 and A-2 Loan Facilities to the extent of the value of the assets securing such indebtedness). Interest on the 2028 Notes is due semiannually. Upon a change of control (as defined in the indenture governing the 2028 Notes), we must offer to repurchase the 2028 Notes at 101% of the principal amount of the notes, plus accrued and unpaid interest. Prior to November 15, 2027, we may redeem the 2028 Notes, in whole at any time or in part, from time to time, at a price equal to 100% of the principal amount thereof, plus a make-whole premium, plus accrued and unpaid interest. On and after November 15, 2027, we may redeem all or any portion of the 2028 Notes, at once or over time, at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest. The covenants and events of default are substantially similar to the 2024 and 2026 Notes discussed above. Debt Maturities The aggregate minimum principal maturities of our long-term debt, including current portion, for the next five fiscal years and thereafter, are as follows (dollars in millions): Debt (a) 2022 $ 31.3 2023 31.3 2024 31.3 2025 1,325.7 2026 — Thereafter 1,333.0 $ 2,752.6 (a) See Note 9, Leases, for maturities of our lease financing obligations. Other During fiscal 2021, 2020, and 2019 we paid $120.6 million, $105.7 million, and $107.8 million, respectively, of interest on debt. Other Credit Facilities At May 30, 2021, one of our subsidiaries had $56.5 million of availability under an overdraft line of credit facility with a financial institution with no borrowings outstanding. At May 31, 2020, we had $30.8 million of availability under this facility and another credit facility with the same financial institution, with $3.7 million of borrowings outstanding. Borrowings under these facilities bear interest at an effective rate of 3.915% and 3.560% at May 30, 2021 and May 31, 2020, respectively, and may be prepaid without penalty. We guarantee the full amount of our subsidiary’s obligations to the financial institution up to the maximum amount of borrowings under the credit facilities. |
LEASES
LEASES | 12 Months Ended |
May 30, 2021 | |
LEASES | |
LEASES | 9. LEASES We lease various real estate, including certain operating facilities, warehouses, office space, and land. We also lease material handling equipment, vehicles, and certain other equipment. Our leases have remaining terms one The components of total lease costs, net, consisted of the following (dollars in millions): For the Fiscal Year Ended May (a) 2021 2020 Operating lease costs $ 33.2 $ 29.7 Short-term and variable lease costs 9.0 5.8 Sublease income (3.4) (2.7) Finance lease costs: Amortization of lease assets 1.9 3.2 Interest on lease obligations 0.3 0.6 Total lease costs, net $ 41.0 $ 36.6 (a) Supply-chain-related lease costs are included in “Cost of sales” and the remainder is recorded in “Selling, general, and administrative expenses.” Interest on finance lease obligations is included in “Interest expense, net,” in our Consolidated Statements of Earnings. Rent expense, prior to the adoption of ASC 842, was $24.3 million in fiscal 2019. Operating and finance leases, with initial terms greater than one year, were as follows (dollars in millions): May 30, May 31, Leases Classification 2021 2020 Assets: Operating lease assets Operating lease assets $ 141.7 $ 167.0 Finance lease assets Property, plant and equipment, net (a) (b) 5.4 11.3 Total leased assets $ 147.1 $ 178.3 Liabilities: Lease obligations due within one year: Operating lease obligations Accrued liabilities $ 29.1 $ 28.4 Finance lease obligations Current portion of long-term debt and financing obligations (b) 0.7 2.8 Long-term lease obligations: Operating lease obligations Other noncurrent liabilities 120.3 144.6 Finance lease obligations Long-term debt and financing obligations, excluding current portion (b) 6.6 10.5 Total lease obligations $ 156.7 $ 186.3 (a) Finance leases are net of accumulated amortization of $4.7 million and $12.2 million at May 30, 2021 and May 31, 2020, respectively. (b) During fiscal 2021, we modified certain finance leases in the normal course of business resulting in a reduction of approximately $4.3 million of finance lease assets and short-term and long-term finance lease obligations recorded on our Consolidated Balance Sheet. The maturities of our lease obligations for operating and finance leases at May 30, 2021 for the next five fiscal years and thereafter are as follows (dollars in millions): Operating Finance Leases Leases 2022 $ 31.7 $ 0.9 2023 21.8 1.0 2024 20.7 1.0 2025 18.6 0.9 2026 15.2 0.8 Thereafter 62.7 4.5 Total lease payments 170.7 9.1 Less: Interest (21.3) (1.8) Present value of lease obligations $ 149.4 $ 7.3 Weighted-average remaining lease term (years) 7.9 13.9 Weighted-average discount rate 3.4% 3.2% Supplemental cash flow information related to leases was as follows (dollars in millions): For the Fiscal Years Ended May 2021 2020 Cash paid for amounts included in the measurement of lease obligations: Operating cash flows for operating leases $ 30.9 $ 26.8 Financing cash flows for finance leases 1.7 2.6 Noncash investing and financing activities: Assets obtained in exchange for new operating lease obligations 5.2 41.4 Assets obtained in exchange for new finance lease obligations — 2.2 |
EMPLOYEE BENEFIT PLANS AND OTHE
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS | 12 Months Ended |
May 30, 2021 | |
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS | |
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS | 10. EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS Only certain hourly employees covered by certain collective bargaining agreements continue to accrue pension benefits. Participants that do not actively participate in a pension plan are eligible to participate in defined contribution savings plans with employer matching provisions consistent with other employees without pension benefits. We also have a nonqualified defined benefit pension plan that provides unfunded supplemental retirement benefits to certain executives. This plan is closed to new participants and pension benefit accruals are frozen for active participants. Other Plans Eligible U.S. employees participate in a contributory defined contribution plan (“the Plan”). The Plan permits participants to make contributions by salary reduction pursuant to Section 401(k) of the Internal Revenue Code of 1986, as amended. We generally match 100% of the first 6% of the employee’s contribution election and provide an additional 3% contribution to eligible participants, regardless of employee participation level. The Plan’s matching contributions have a five-year graded vesting with 20% vesting each year. We made employer-matching contributions of $28.8 million, $28.7 million, and $21.3 million in fiscal 2021, 2020, and 2019, respectively. We sponsor a deferred compensation savings plan that permits eligible employees to continue to make deferrals and receive company matching contributions when their contributions to the defined contribution plan are stopped due to limitations under U.S. tax law. In addition, we sponsor a deferred compensation plan for non-employee directors that allow directors to defer their cash compensation and stock awards. Both deferred compensation plans are unfunded nonqualified defined contribution plans. Participant deferrals and company matching contributions (for the employee deferred compensation plan only) are not invested in separate trusts, but are paid directly from our general assets at the time benefits become due and payable. At May 30, 2021 and May 31, 2020, we had $23.5 million and $18.0 million, respectively, of liabilities attributable to participation in our deferred compensation plan recorded on our Consolidated Balance Sheets. Obligations and Funded Status of Defined Benefit Pension and Other Post-retirement Benefit Plans The funded status of our plans is based on company contributions, benefit payments, the plan asset investment return, the discount rate used to measure the liability, and expected participant longevity. The following table, which includes only company-sponsored defined benefit and other post-retirement benefit plans, reconciles the beginning and ending balances of the projected benefit obligation and the fair value of plan assets. We recognize the unfunded status of these plans on the Consolidated Balance Sheets, and we recognize changes in funded status in the year changes occur through the Consolidated Statements of Comprehensive Income (dollars in millions): For the Fiscal Years Ended May 2021 2020 Pension Plans Post-Retirement Plan Pension Plans Post-Retirement Plan Change in benefit obligation Benefit obligation at beginning of year $ 37.3 $ 6.5 $ 27.4 $ 7.3 Service cost 3.0 — 3.1 — Interest cost 1.2 0.1 1.1 0.2 Participant contributions — 0.3 — 0.2 Benefits paid (0.5) (0.2) (0.3) (0.3) Plan settlements (a) — — (0.4) — Actuarial (gain) loss 0.5 (0.2) 6.4 (0.9) Benefit obligation at fiscal year end $ 41.5 $ 6.5 $ 37.3 $ 6.5 Accumulated benefit obligation portion of above $ 41.5 $ 37.3 Change in fair value of plan assets Fair value of plan assets at beginning of year $ 27.2 $ — $ 17.1 $ — Actual return on plan assets (2.0) — 6.6 — Company contributions 3.4 — 3.8 0.1 Participant contributions — 0.3 — 0.2 Benefits paid (0.5) (0.2) (0.3) (0.3) Other — (0.1) — — Fair value of plan assets at end of year $ 28.1 $ — $ 27.2 $ — Underfunded status $ (13.4) $ (6.5) $ (10.1) $ (6.5) Amounts recognized on Consolidated Balance Sheets Accrued liabilities $ — $ (0.3) $ — $ (0.2) Other noncurrent liabilities (13.4) (6.2) (10.1) (6.3) Accrued obligation recognized $ (13.4) $ (6.5) $ (10.1) $ (6.5) Amounts recognized in Accumulated Other Comprehensive (Income) Loss (Pre-tax) Actuarial loss $ 7.7 $ 0.7 $ 4.4 $ 1.1 Total $ 7.7 $ 0.7 $ 4.4 $ 1.1 (a) In fiscal 2020, plan settlements of $0.4 million were paid to certain participants from our rabbi trust plan assets. These assets are excluded from our pension plan assets. Components of Net Periodic Benefit Cost and Other Comprehensive (Income) Loss The components of net periodic benefit cost were as follows (dollars in millions): For the Fiscal Years Ended May 2021 2020 2019 Pension Post-Retirement Pension Post-Retirement Pension Post-Retirement Plans Plan Plans Plan Plans Plan Service cost $ 3.0 $ — $ 3.1 $ — $ 6.0 $ — Interest cost 1.2 0.1 1.1 0.2 0.8 0.3 Expected return on plan assets (0.8) — (0.9) — (0.9) — Net amortization of unrecognized amounts Actuarial loss 0.1 0.2 0.2 0.6 — 0.7 Net periodic benefit cost (a) $ 3.5 $ 0.3 $ 3.5 $ 0.8 $ 5.9 $ 1.0 Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss Actuarial (gain) loss $ 3.4 $ (0.2) $ 0.6 $ (1.0) $ 3.3 $ — Amortization of actuarial loss (b) (0.1) (0.2) (0.2) (0.6) — (0.7) Total recognized in other comprehensive loss (income) $ 3.3 $ (0.4) $ 0.4 $ (1.6) $ 3.3 $ (0.7) Total recognized in net periodic benefit cost and other comprehensive loss (income) (pre-tax) (c) $ 6.8 $ (0.1) $ 3.9 $ (0.8) $ 9.2 $ 0.3 (a) Pension service costs are allocated to operations and reflected in “Cost of sales” and expected returns on pension assets and interest costs are reflected in “Selling, general and administrative expenses” in the Consolidated Statements of Earnings. The decrease in fiscal 2021 and 2020 net periodic pension cost, compared with fiscal 2019, reflects amendments to the pension plans so that no future benefits accrue after certain dates. We did not recognize a curtailment gain or loss with any of the amendments. (b) Accumulated losses in excess of 10% of the greater of the projected benefit obligation or the market-related value of assets will be recognized on a straight-line basis over the average remaining service period of active employees in our plans (which is between seven to ten years for our pension plans and approximately two years for our post-retirement benefit plan), to the extent that losses are not offset by gains in subsequent years. Assumptions The actuarial assumptions used in determining the benefit obligations and net periodic pension cost for our defined benefit and post-retirement plans are as follows: For the Fiscal Years Ended May 2021 2020 2019 Pension Plans Post-Retirement Plan Pension Plans Post-Retirement Plan Pension Plans Post-Retirement Plan Weighted-average assumptions used to determine benefit obligations: Discount rate 3.11% 2.82% 3.14% 2.85% 4.01% 3.81% Weighted-average assumptions used to determine net periodic benefit cost: Discount rate 3.14% 2.85% 4.01% 3.81% 4.25% 4.18% Expected return on plan assets 2.90% N/A 5.12% N/A 5.30% N/A Discount Rate Assumption. Asset Return Assumption: Health Care Cost Trend Rate Assumptions. . 2021 2020 2019 Health care cost trend rate assumed for next year (Pre65) 6.19% 6.75% 7.31% Ultimate health care cost trend rate 4.50% 4.50% 4.50% Year that the rate reaches the ultimate trend rate 2024 2024 2024 Investment Policies and Strategies and Fair Value Measurements of Plan Assets We utilize professional advisors to oversee pension investments and provide recommendations regarding investment strategy. Our overall strategy and related apportionments between equity and debt securities may change from time to time based on market conditions, external economic factors, timing of contributions and the funded status of the plans. The general investment objective for all of our plan assets is to optimize growth of the pension plan trust assets, while minimizing the risk of significant losses to enable the plans to satisfy their benefit payment obligations over time. The objectives consider the long-term nature of the benefit obligations, the liquidity needs of the plans, and the expected risk/return trade-offs of the asset classes in which the plans may choose to invest. Our current investment policy is to invest 30% in equity securities and 70% in fixed income securities. Investment securities, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility risk, all of which are subject to change. Due to the level of risk associated with some investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term, and such changes could materially affect the reported amounts (dollars in millions): Fair Value Measurements at May 30, 2021 Quoted Market Prices in Active Markets for Identical Assets Significant Observable Market-Based Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 0.4 $ — $ — $ 0.4 Equity securities: U.S. equity securities (a) $ — $ 4.7 $ — $ 4.7 International equity securities (a) — 3.7 — 3.7 Fixed income securities: Government securities (b) 19.3 — — 19.3 Total assets $ 19.7 $ 8.4 $ — $ 28.1 Fair Value Measurements at May 31, 2020 Quoted Market Prices in Active Markets for Identical Assets Significant Observable Market-Based Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Total Equity securities: U.S. equity securities (a) $ — $ 4.1 $ — $ 4.1 International equity securities (a) — 3.9 — 3.9 Fixed income securities: Government securities (b) 19.2 — — 19.2 Total assets $ 19.2 $ 8.0 $ — $ 27.2 (a) Includes investments in common/collective trust funds that are valued using net asset values (“NAV”) provided by the administrator of the funds. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of units outstanding. While the underlying assets are actively traded on an exchange, the funds are not. There are currently no redemption restrictions or unfunded commitments on these investments. There are certain funds with thirty-day redeemable notice requirements. (b) Includes investments in exchange-traded funds based on quoted prices in active markets. Funding and Cash Flows We make pension plan The following are estimated benefit payments to be paid to current plan participants by fiscal year (dollars in millions). Qualified pension benefit payments are paid from plan assets, while nonqualified pension benefit payments are paid by the Company. Pension Plans Post-Retirement Plan 2022 $ 0.5 $ 0.2 2023 0.7 0.3 2024 0.9 0.3 2025 1.0 0.4 2026 1.2 0.4 2027-2031 8.7 2.1 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
May 30, 2021 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | 11. STOCK-BASED COMPENSATION On October 29, 2016, our Board of Directors adopted the Lamb Weston Holdings, Inc. 2016 Stock Plan, which was amended in July 2017 (“Stock Plan”). The Compensation Committee (“the Committee”) of our Board of Directors administers our stock compensation plan. The Committee, in its discretion, authorizes grants of restricted stock units (“RSUs”), performance awards payable upon the attainment of specified performance goals (“Performance Shares”), dividend equivalents, and other stock-based awards. At May 30, 2021, we had 10.0 million shares authorized under the Stock Plan, and 7.4 million were available for future grant. RSUs and Performance Shares We grant RSUs to eligible employees and non-employee directors. The employee RSUs generally vest over a three-year period while the non-employee director RSUs generally vest after one year. We estimate the fair value of the RSUs based upon the market price of our common stock at the date of grant. Performance Shares are granted to certain executives and other key employees with vesting contingent upon meeting various Company-wide performance goals. Awards actually earned range from 0% to 200% of the targeted number of Performance Shares for each of the performance periods. Awards, if earned, will be paid in shares of our common stock. Subject to limited exceptions set forth in the Stock Plan, any shares earned will be distributed at the end of the three-year performance period. The value of the Performance Shares is adjusted based upon the market price of our common stock at the end of each reporting period and amortized as compensation expense over the vesting period. The following table summarizes RSU and Performance Share activity for fiscal 2021: Stock-Settled Performance Shares Weighted- Weighted- Average Average Grant- Grant- Date Fair Date Fair Shares Value Shares Value Outstanding at May 31, 2020 662,205 $ 60.28 444,457 $ 57.96 Granted (a) 298,040 62.61 107,451 63.93 Vested (b) (253,912) 46.42 (198,436) 44.83 Forfeited/expired/cancelled (31,031) 64.32 (18,027) 69.37 Outstanding at May 30, 2021 675,302 $ 66.34 335,445 $ 67.02 (a) Granted represents new grants and dividend equivalents accrued. (b) The aggregate fair value of awards that vested in fiscal 2021, 2020, and 2019 was $29.3 million, $24.9 million, and $24.7 million, respectively, which represents the market value of our common stock on the date that the RSUs and Performance Shares vested. The number of RSUs and Performance Shares vested includes shares of common stock that we withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements. RSUs that are expected to vest are net of estimated future forfeitures. Compensation Expense Our stock-based compensation expense is recorded in “Selling, general and administrative expenses.” Compensation expense for stock-based awards recognized in the Consolidated Statements of Earnings, net of forfeitures, was as follows (dollars in millions): For the Fiscal Years Ended May 2021 2020 2019 Total compensation expense 20.6 23.8 22.1 Income tax benefit (a) (3.7) (4.6) (4.4) Total compensation expense, net of tax benefit $ 16.9 $ 19.2 $ 17.7 (a) Income tax benefit represents the marginal tax rate, excluding non-deductible compensation. Based on estimates at May 30, 2021, total unrecognized compensation expense related to stock-based awards was as follows (dollars in millions): Remaining Weighted Unrecognized Average Compensation Recognition Expense Period (in years) Stock-settled RSUs $ 18.0 1.8 Performance Shares 8.8 1.6 Total unrecognized stock-based expense $ 26.8 1.8 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
May 30, 2021 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 12. FAIR VALUE MEASUREMENTS The following table presents our financial assets and liabilities measured at fair value on a recurring basis based upon the level within the fair value hierarchy in which the fair value measurements fall, as of May 30, 2021 and May 31, 2020 (dollars in millions): As of May 30, 2021 Level 1 Level 2 Level 3 Total Assets: Pension plan assets $ 19.7 $ 8.4 $ — $ 28.1 Derivative assets (a) — 15.3 — 15.3 Total assets $ 19.7 $ 23.7 $ — $ 43.4 Liabilities: Deferred compensation liabilities (b) $ — $ 23.5 $ — $ 23.5 Total liabilities $ — $ 23.5 $ — $ 23.5 As of May 31, 2020 Level 1 Level 2 Level 3 Total Assets: Pension plan assets $ 19.2 $ 8.0 $ — $ 27.2 Deferred compensation assets 0.1 — — 0.1 Total assets $ 19.3 $ 8.0 $ — $ 27.3 Liabilities: Derivative liabilities (a) $ — $ 4.7 $ — $ 4.7 Deferred compensation liabilities (b) — 18.0 — 18.0 Total liabilities $ — $ 22.7 $ — $ 22.7 (a) Derivative assets and liabilities included in Level 2 primarily represent commodity swap and option contracts. The fair values of our Level 2 derivative assets and liabilities were determined using valuation models that use market observable inputs including both forward and spot prices for commodities. Derivative assets are presented within “Prepaid expenses and other current assets” and derivative liabilities are presented within “Accrued liabilities” on our Consolidated Balance Sheets. (b) The fair values of our Level 2 deferred compensation liabilities were valued using third-party valuations, which are based on the net asset values of mutual funds in our retirement plans. While the underlying assets are actively traded on an exchange, the funds are not. The fair values of cash equivalents, receivables, accounts payable and short-term debt approximate their carrying amounts due to their short duration. Non-financial assets such as property, plant and equipment, and intangible assets are recorded at fair value only if an impairment is recognized. Cost and equity investments are measured at fair value on a non-recurring basis. At May 30, 2021, we had $2,166.0 million of fixed-rate and $586.6 million of variable-rate debt outstanding. Based on current market rates, the fair value of our fixed-rate debt at May 30, 2021 was estimated to be $2,277.7 million. Any differences between the book value and fair value are due to the difference between the period-end market interest rate and the stated rate of our fixed-rate debt. We estimated the fair value of our fixed-rate debt using quoted market prices (Level 2 inputs) within the fair value hierarchy that is described above. The fair value of our variable-rate term debt approximates the carrying amount as our cost of borrowing is variable and approximates current market prices. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
May 30, 2021 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | 13. STOCKHOLDERS’ EQUITY Our certificate of incorporation authorizes 600,000,000 shares of common stock and 60,000,000 shares of preferred stock. We had 146,191,864 shares of common stock issued and outstanding as of May 30, 2021. Each share of common stock entitles the holder to one vote on matters to be voted on by our stockholders. No preferred stock was issued or outstanding Share Repurchase Program In December 2018, our Board of Directors authorized a program, with no expiration date, to repurchase shares of our common stock in an amount not to exceed $250.0 million in the aggregate, on an opportunistic basis. During fiscal 2021, we purchased 328,918 shares for $25.7 million, or a weighted-average price of $78.19 per share. As of May 30, 2021, $169.6 million remained authorized for repurchase under the program. Dividends During fiscal 2021, 2020, and 2019, we paid $135.3 million, $121.3 Accumulated Other Comprehensive Income (Loss) (“AOCI”) Comprehensive income includes net income, currency translation adjustments, and changes in prior service cost and net actuarial gains (losses) from pension and post-retirement benefit plans. We generally deem our foreign investments to be indefinite in nature and we do not provide for taxes on currency translation adjustments arising from converting the investment denominated in a foreign currency to the U.S. dollar. If we determine that a foreign investment, as well as undistributed earnings, are no longer indefinite in nature, estimated taxes are provided for the related deferred tax liability (asset), if any, resulting from currency translation adjustments. Changes in AOCI, net of taxes, as of May 30, 2021, were as follows (dollars in millions): Foreign Accumulated Currency Pension and Other Translation Post-Retirement Comprehensive Gains (Losses) Benefits Income (Loss) Balance as of May 31, 2020 $ (36.3) $ (4.2) $ (40.5) Other comprehensive income before reclassifications, net of tax 72.3 (2.5) 69.8 Amounts reclassified out of AOCI, net of tax — 0.2 (a) 0.2 Net current-period other comprehensive income (loss) 72.3 (2.3) 70.0 Balance as of May 30, 2021 $ 36.0 $ (6.5) $ 29.5 (a) These AOCI components are included in the computation of net pension and postretirement benefit costs. See Note 10, Employee Benefit Plans and Other Post-Retirement Benefits, for additional information. |
SEGMENTS
SEGMENTS | 12 Months Ended |
May 30, 2021 | |
SEGMENTS | |
SEGMENTS | 14. SEGMENTS We have four operating segments, each of which is a reportable segment: Global, Foodservice, Retail, and Other. Our chief operating decision maker receives periodic management reports under this structure that generally focus on the nature and scope of our customers’ businesses, which enables operating decisions, performance assessment, and resource allocation decisions at the segment level. The reportable segments are each managed by a general manager and supported by a cross functional team assigned to support the segment (dollars in millions). See “Part I, Item 1. Business” of this Form 10-K for more information on our segments. For the Fiscal Years Ended May 2021 (a) 2020 (a) 2019 Net sales Global $ 1,911.5 $ 1,973.6 $ 1,961.5 Foodservice 1,017.3 1,069.1 1,156.1 Retail 603.4 595.5 498.3 Other 138.7 154.2 140.6 Total net sales 3,670.9 3,792.4 3,756.5 Product contribution margin (b) Global 306.2 374.5 446.3 Foodservice 340.0 356.0 402.4 Retail 120.2 117.6 98.8 Other (c) 47.8 24.1 23.6 814.2 872.2 971.1 Add: Advertising and promotion expenses (b) 17.8 23.0 32.4 Gross profit 832.0 895.2 1,003.5 Selling, general and administrative expenses 357.2 338.3 335.1 Income from operations 474.8 556.9 668.4 Interest expense, net 118.3 108.0 107.1 Income tax expense (d) 90.5 112.3 133.6 Equity method investment earnings 51.8 29.3 59.5 Net income 317.8 365.9 487.2 Less: Income attributable to noncontrolling interests (e) — — 8.6 Net income attributable to Lamb Weston Holdings, Inc. $ 317.8 $ 365.9 $ 478.6 (a) On March 11, 2020, the World Health Organization declared the spread of COVID-19 a global pandemic. In an attempt to minimize the transmission of COVID-19, significant social and economic restrictions, including restrictions on dine-in purchases and the imposition of stay-at-home orders, were imposed in the United States and in our international markets. These restrictions had a negative impact on our sales, costs, and earnings of our joint ventures, resulting in a negative impact on our net income in fiscal 2021 and 2020. The increase in our costs, and the costs of our joint ventures, related to factory utilization and production inefficiencies, manufacturing and operational disruptions directly attributable to the pandemic, as well as incremental warehousing and transportation costs, and costs to enhance employee safety measures, including purchases of safety and health screening equipment, retaining sales employees, and expensing certain capitalized manufacturing facility expansion projects that were stopped. (b) Product contribution margin represents net sales less cost of sales and advertising and promotion expenses. Product contribution margin includes advertising and promotion expenses because those expenses are directly associated with segment performance. (c) The Other segment primarily includes our vegetable and dairy businesses and unrealized mark-to-market adjustments associated with commodity hedging contracts. (d) In fiscal 2019, the Tax Act decreased income tax expense and increased net income by $27.2 million, or $0.19 per share, including a $24.8 million, or $0.17 per share, tax benefit related to a lower U.S. corporate tax rate and a $2.4 million, or $0.02 per share, benefit from the true-up of the transition tax on previously untaxed foreign earnings. We completed our analysis of the one-time impacts of the Tax Act in fiscal 2019. (e) In November 2018, we entered into an agreement to acquire the remaining 50.01% interest in Lamb Weston BSW. Our Consolidated Statements of Earnings includes 100% of Lamb Weston BSW’s earnings beginning November 2, 2018. See Note 6, Investments in Joint Ventures, in our Annual Report on Form 10-K for the fiscal year ended May 31, 2020, which we filed with the Securities and Exchange Commission on July 28, 2020. Assets by Segment The manufacturing assets of Lamb Weston are shared across all reporting segments. Output from these facilities used by each reporting segment can change from fiscal year to fiscal year. Therefore, it is impracticable to allocate those assets to the reporting segments, as well as disclose total assets by segment. Concentrations Lamb Weston’s largest customer, McDonald’s Corporation, accounted for approximately 11% of our consolidated net sales in fiscal 2021, and 10%of our consolidated net sales in both fiscal 2020 and 2019. No customer accounted for 10% of our consolidated accounts receivable at May 30, 2021 or May 31, 2020. Other Information The net sales of each of our Global, Foodservice, and Retail reporting segments are comprised of sales of frozen potato and frozen sweet potato products. The net sales of our Other reporting segment included vegetable sales of $91.3 million, $104.9 million, and $88.5 million, various byproduct sales of $36.1 million, $36.4 million, and $40.2 million, and dairy product sales of $11.3 million, $12.9 million, and $11.9 million in fiscal 2021, 2020, and 2019, respectively. Our operations are principally in the United States. With respect to operations outside of the United States, no single foreign country or geographic region was significant with respect to consolidated operations in fiscal 2021, 2020, and 2019. Foreign net sales, including sales by domestic segments to customers located outside of the United States, were $700.2 million, $776.4 million, and $742.7 million in fiscal 2021, 2020, and 2019, respectively. Our long-lived assets located outside of the United States are not significant. Labor At May 30, 2021, we had approximately 7,800 employees, of which approximately 800 of these employees work outside of the United States. Approximately 27% of our employees are parties to collective bargaining agreements on terms that we believe are typical for the industry in which we operate. Most of the union workers at our facilities are represented under contracts that expire at various times throughout the next several years. Collective bargaining agreements that represent 55% of our hourly employees, who are parties to collective bargaining agreements, are scheduled to expire over the course of fiscal 2022. As these agreements expire, we believe they will be renegotiated on terms satisfactory to us. |
COMMITMENTS, CONTINGENCIES, GUA
COMMITMENTS, CONTINGENCIES, GUARANTEES AND LEGAL PROCEEDINGS | 12 Months Ended |
May 30, 2021 | |
COMMITMENTS, CONTINGENCIES, GUARANTEES AND LEGAL PROCEEDINGS | |
COMMITMENTS, CONTINGENCIES, GUARANTEES AND LEGAL PROCEEDINGS | 15. COMMITMENTS, CONTINGENCIES, GUARANTEES, AND LEGAL PROCEEDINGS We have financial commitments and obligations that arise in the ordinary course of our business. These include long-term debt (discussed in Note 8, Debt and Financing Obligations), lease obligations, purchase commitments for goods and services, and legal proceedings (discussed below). Capital Commitments We had capital commitments of approximately $75.0 million and $36.5 million as of May 30, 2021 and May 31, 2020, respectively, in connection with the expansion and replacement of existing facilities and equipment. Guarantees and Indemnifications We provide guarantees, indemnifications, and other assurances to third parties in the normal course of our business. These include tort indemnifications, environmental assurances, and representations and warranties in commercial agreements. At May 30, 2021, we were not aware of any material liabilities arising from any guarantee, indemnification, or financial assurance we have provided. If the fair value of such liability becomes material, we will accrue for it at that time. Lamb Weston is a party to various potato purchase supply agreements with partner growers, under which they deliver their potato crop from the contracted acres to Lamb Weston during the harvest season, and pursuant to the potato supply agreements, pricing for this inventory is determined after delivery, taking into account crop size and quality, among other factors. Total purchases under these agreements were $139.8 million, $142.7 million, and $152.0 million in fiscal 2021, 2020, and 2019, respectively, under the terms of the potato supply agreements. These purchases are initially recorded in inventory and charged to cost of sales as related inventories are produced and subsequently sold. Under the terms of these potato supply agreements, Lamb Weston has guaranteed repayment of short-term bank loans of the potato suppliers, under certain conditions. At May 30, 2021, Lamb Weston has effectively guaranteed $35.6 million of supplier loans. Lamb Weston has not established a liability for these guarantees, as Lamb Weston has determined that the likelihood of Lamb Weston’s required performance under the guarantees is remote. Under certain other potato supply agreements, Lamb Weston makes advances to growers prior to the delivery of potatoes. The aggregate amounts of these advances were $23.9 million and $31.9 Lamb Weston and Lamb Weston’s partner are jointly and severally liable for all legal liabilities of Lamb-Weston/Meijer. See Note 4, Investments in Joint Ventures, for further information on Lamb-Weston/Meijer’s liabilities and capital structure. After taking into account liabilities recognized for all of the foregoing matters, management believes the ultimate resolution of such matters would not have a material adverse effect on Lamb Weston’s financial condition, results of operations, or cash flows. It is reasonably possible that a change to an estimate of the foregoing matters may occur in the future. Legal Proceedings We are a party to legal actions arising in the ordinary course of our business. These claims, legal proceedings and litigation principally arise from alleged casualty, product liability, employment, and other disputes. In determining loss contingencies, we consider the likelihood of loss as well as the ability to reasonably estimate the amount of such loss or liability. An estimated loss is recognized when it is considered probable that a liability has been incurred and when the amount of loss can be reasonably estimated. While any claim, proceeding or litigation has an element of uncertainty, we believe the outcome of any of these that are pending or threatened will not have a material adverse effect on our financial condition, results of operations, or cash flows. |
SCHEDULE II Valuation and Quali
SCHEDULE II Valuation and Qualifying Accounts | 12 Months Ended |
May 30, 2021 | |
SCHEDULE II Valuation and Qualifying Accounts | |
SCHEDULE II Valuation and Qualifying Accounts | Schedule II – Lamb Weston - Valuation and Qualifying Accounts (dollars in millions). Additions Charged Balance to Costs, Deductions Balance Beginning of Expenses from End of Year and Equity Reserves Year Year ended May 30, 2021 Deferred tax asset valuation allowance $ 54.5 $ — $ 1.4 $ 53.1 Year ended May 31, 2020 Deferred tax asset valuation allowance $ 64.6 $ — $ 10.1 $ 54.5 Year ended May 26, 2019 Deferred tax asset valuation allowance $ 62.0 $ 3.7 $ 1.1 $ 64.6 |
NATURE OF OPERATIONS AND SUMM_2
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
May 30, 2021 | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation These Consolidated Financial Statements present the financial results of Lamb Weston for the fiscal years ended May 30, 2021, May 31, 2020, and May 26, 2019 (“fiscal 2021, 2020, and 2019”), and have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America. The fiscal year of Lamb Weston ends the last Sunday in May. The fiscal years for the Consolidated Financial Statements presented consist of 52-week periods for fiscal 2021 and 2019, and a 53-week period for fiscal 2020. The financial statements include all adjustments (consisting only of normal recurring adjustments) that we consider necessary for a fair presentation of such financial statements. The preparation of financial statements involves the use of estimates and accruals. Actual results may vary from those estimates. Our consolidated financial statements include the accounts of Lamb Weston and all of our majority-owned subsidiaries. In addition, the accounts of all variable interest entities for which we are the primary beneficiary are included in our consolidated financial statements from the date such determination was made. Intercompany investments, accounts, and transactions have been eliminated. The equity method of accounting is applied for investments when the Company has significant influence over the investee’s operations, or when the investee is structured with separate capital accounts and our investment is considered more than minor. Our equity method investments are described in Note 4, Investments in Joint Ventures. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires us to make certain estimates and assumptions that affect the amounts reported in our consolidated financial statements and the accompanying notes. On an ongoing basis, we evaluate our estimates, including but not limited to those related to provisions for income taxes, estimates of sales incentives and trade promotion allowances, and the valuation of goodwill and intangible assets. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. We adjust such estimates and assumptions when facts and circumstances dictate. The inputs into our judgments and estimates consider the economic implications of the effects of the COVID-19 pandemic on our critical accounting estimates and significant accounting policies. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates will be reflected in the consolidated financial statements in future periods. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Generally, we recognize revenue on a point-in-time basis when the customer takes title to the product and assumes the risks and rewards for the product. However, for customized products, which are products manufactured to customers’ unique specifications, we recognize revenue over time, utilizing an output method, which is generally as the products are produced. This is because once a customized product is manufactured pursuant to a purchase order, we have an enforceable right to payment for that product. Our Global segment sells the majority of our customized products, for which revenue is recognized when a purchase order is received to the extent the product has been manufactured, as opposed to sales of non-customized products, for which revenue is generally recognized upon shipment. As a result, the timing of the receipt of a purchase order may create quarterly fluctuations in this segment. The nature of our contracts vary based on the business, customer type, and region; however, in all instances it is our customary business practice to receive a valid order from the customer, in which each party’s rights and related payment terms are clearly identifiable. Our payment terms are consistent with industry standards and generally include early pay discounts. Amounts billed and due from customers are short-term in nature and are classified as receivables, since payments are unconditional and only the passage of time is required before payments are due. As of May 30, 2021 and May 31, 2020, we had $111.0 million and $72.7 million, respectively, of unbilled receivables for customized products for which we have accelerated the recognition of revenue and recorded the amounts in “Receivables” on our Consolidated Balance Sheets. We generally do not offer financing to our customers. We also do not provide a general right of return. However, customers may seek to return defective or non-conforming products. Following a customer return, we may offer remedies, including cash refunds, credit towards future purchases, or product replacement. As a result, customers’ right of return and related refund or product liabilities are estimated and recorded as reductions in revenue. We have contract terms that give rise to variable consideration including, but not limited to, discounts, coupons, rebates, and volume-based incentives. We estimate volume rebates based on the most likely amount method outlined in ASC 606, Revenue from Contracts with Customers We have elected to present all sales taxes on a net basis, account for shipping and handling activities as fulfillment activities, recognize the incremental costs of obtaining a contract as expense when incurred if the amortization period of the asset we would recognize is one year or less, and not record interest income or interest expense when the difference in timing of control or transfer and customer payment is one year or less. |
Advertising and Promotion | Advertising and Promotion Advertising and promotion expenses totaled $17.8 million, $23.0 million, and $32.4 million in fiscal 2021, 2020, and 2019, respectively, and are included in “Selling, general and administrative expenses” in the Consolidated Statements of Earnings. |
Research and Development | Research and Development Research and development costs are expensed as incurred and totaled $12.9 million in fiscal 2021 and $15.4 million in both fiscal 2020 and 2019, and are included in “Selling, general and administrative expenses” in the Consolidated Statements of Earnings. |
Stock-Based Compensation | Stock-Based Compensation Compensation expense resulting from all stock-based compensation transactions is measured and recorded in the consolidated financial statements based on the grant date fair value of the equity instruments issued. Compensation expense is recognized over the period the employee provides service in exchange for the award. See Note 11, Stock-Based Compensation, for additional information. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and all highly liquid investments with an original maturity of three months or less at the date of acquisition are classified as cash and cash equivalents and stated at cost, which approximates market value. We maintain various banking relationships with high quality financial institutions and believe we are not exposed to any significant credit risk for our cash and cash equivalents. Cash and cash equivalents totaled $783.5 million and $1,364.0 million at May 30, 2021 and May 31, 2020, respectively. We invest available cash in money market funds that are backed by U.S. Treasury securities and can be redeemed without notice. |
Trade Accounts Receivable and Allowance for Doubtful Accounts | Trade Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are stated at the amount we expect to collect based on our past experience, as well as reliance on the Perishable Agricultural Commodities Act, which was enacted to help promote fair trade in the fruit and vegetable industry by establishing a code of fair business practices. The collectability of our accounts receivable is based upon a combination of factors. In circumstances where a specific customer is unable to meet its financial obligations (e.g., bankruptcy filings, substantial downgrading of credit sources), a specific reserve for bad debts is recorded against amounts due to the Company to reduce the net recorded receivable to the amount that we reasonably believe will be collected. For all other customers, reserves for bad debts are recognized based on forward-looking information to assess expected credit losses. If collection experience deteriorates, the estimate of the recoverability of amounts due could be reduced. We periodically review our allowance for doubtful accounts and adjustments to the valuation allowance are recorded as income or expense. Trade accounts receivable balances that remain outstanding after we have used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. At May 30, 2021 and May 31, 2020, the allowance for doubtful accounts was $0.9 million and $1.3 million, respectively. |
Inventories | Inventories Inventories are valued at the lower of cost (determined using the first-in, first-out method) or net realizable value and include all costs directly associated with manufacturing products: materials, labor, and manufacturing overhead. The components of inventories were as follows (dollars in millions): May 30, May 31, 2021 2020 Raw materials and packaging $ 89.8 $ 106.2 Finished goods 377.8 339.2 Supplies and other 45.9 41.3 Inventories $ 513.5 $ 486.7 |
Leased Assets | Leased Assets Lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from these leases. Effective May 27, 2019, the beginning of our fiscal 2020, we adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) the lease and non-lease components as a single lease component for all of our leases. See Note 9, Leases, for more information. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost. Cost includes expenditures for major improvements and replacements and the amount of interest cost associated with significant capital additions. The amount of interest capitalized from construction in progress was $1.9 million, $2.6 million, and $7.6 million in fiscal 2021, 2020, and 2019, respectively. Repairs and maintenance costs are expensed as incurred. The components of property, plant and equipment were as follows (dollars in millions): May 30, May 31, 2021 2020 Land and land improvements $ 108.2 $ 107.2 Buildings, machinery, and equipment 2,763.3 2,670.1 Furniture, fixtures, office equipment, and other 97.1 107.1 Construction in progress 122.5 58.3 Property, plant and equipment, at cost 3,091.1 2,942.7 Less accumulated depreciation (1,567.1) (1,407.7) Property, plant and equipment, net $ 1,524.0 $ 1,535.0 Depreciation is computed on the straight-line method over the estimated useful lives of the respective classes of assets as follows: Land improvements 2-30 years Buildings 10-40 years Machinery and equipment 5-20 years Furniture, fixtures, office equipment, and other 3-15 years We recorded $177.7 million, $175.3 million, and $155.5 million of depreciation expense in fiscal 2021, 2020, and 2019, respectively. At May 30, 2021 and May 31, 2020, purchases of property, plant and equipment included in accounts payable were $23.1 million and $9.9 million, respectively. |
Long-Lived Asset Impairment | Long-Lived Asset Impairment We review long-lived assets for impairment upon the occurrence of events or changes in circumstances which indicate that the carrying amount of the assets may not be fully recoverable, measured by comparing their net book value to the undiscounted projected future cash flows generated by their use. Impaired assets are recorded at their estimated fair value. |
Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Identifiable Intangible Assets We perform an annual impairment assessment of goodwill at the reporting unit level in the fourth quarter of each year, or more frequently if indicators of potential impairment exist. We have an option to evaluate goodwill for impairment by first performing a qualitative assessment of events and circumstances to determine whether it is more likely than not that the fair value of a reporting until is less than its carrying amount. If we determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amounts, then a quantitative goodwill impairment test is not required to be performed. The quantitative assessment requires us to estimate the fair value of our reporting units using a weighted approach based on discounted future cash flows, market multiples and transaction multiples. If the carrying amount of the reporting units is in excess of their estimated fair value, the reporting unit will record an impairment charge by the amount that the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to the reporting unit. We amortize acquisition-related intangible assets with finite lives over their estimated useful life. We perform a review of significant finite-lived identified intangible assets to determine whether facts and circumstances indicate that the carrying amount may not be recoverable. These reviews can be affected by various factors, including external factors such as industry and economic trends, and internal factors such as changes in our business strategy and our forecasts for our products lines. See Note 6, Goodwill and Other Identifiable Intangible Assets, for additional information. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments When determining fair value, we consider the principal or most advantageous market in which we would transact, as well as assumptions that market participants would use when pricing the asset or liability. Unless otherwise specified, we believe the carrying value of financial instruments approximates their fair value. The three levels of inputs that may be used to measure fair value are: Level 1—Quoted market prices in active markets for identical assets or liabilities. We evaluate security-specific market data when determining whether a market is active. Level 2—Observable market-based inputs other than those included in Level 1, such as quoted prices for similar assets and liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. Level 3—Unobservable inputs for the asset or liability reflecting our own assumptions and best estimate of what inputs market participants would use in pricing the asset or liability. See Note 12, Fair Value Measurements, for additional information. |
Foreign Currency | Foreign Currency Most of our foreign subsidiaries use the local currency of their respective countries as their functional currency. Assets and liabilities are translated at exchange rates prevailing at the balance sheet dates. Revenues and expenses are translated into U.S. dollars using daily and monthly average exchange rates. Gains and losses resulting from the translation of Consolidated Balance Sheets are recorded as a component of “Accumulated other comprehensive income (loss).” Foreign currency transactions resulted in a gain of $1.3 million, and losses of $0.1 million, and $3.3 million in fiscal 2021, 2020, and 2019, respectively. These amounts were recorded in “Selling, general and administrative expenses” in the Consolidated Statements of Earnings. |
Derivative Financial Instruments | Derivative Financial Instruments We use derivatives and other financial instruments to hedge a portion of our commodity risks. We do not hold or issue derivatives and other financial instruments for trading purposes. Derivative instruments are reported in our Consolidated Balance Sheets at their fair values, unless the derivative instruments qualify for the normal purchase normal sale exception (“NPNS”) under GAAP and such exception has been elected. If the NPNS exception is elected, the fair values of such contracts are not recognized. We do not designate commodity derivatives to achieve hedge accounting treatment. |
Income Taxes | Income Taxes We recognize current tax liabilities and assets based on an estimate of taxes payable or refundable in the current year for each of the jurisdictions in which we transact business. As part of the determination of our current tax liability, management exercises considerable judgment in evaluating positions taken in the tax returns. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. We also recognize deferred tax assets and liabilities for the estimated future tax effects attributable to temporary differences (e.g., the difference in book basis versus tax basis of fixed assets resulting from differing depreciation methods). If appropriate, we recognize valuation allowances to reduce deferred tax assets to amounts that are more likely than not to be ultimately realized, based on our assessment of estimated future taxable income. See Note 3, Income Taxes, for more information. |
New and Recently Issued Accounting Pronouncements | New and Recently Issued Accounting Pronouncements Recently Adopted Accounting Pronouncements Receivables – Credit Losses In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Accounting Pronouncements Not Yet Adopted Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting There were no other accounting pronouncements recently issued that had or are expected to have a material impact on our financial statements. |
NATURE OF OPERATIONS AND SUMM_3
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
May 30, 2021 | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of components of inventories | May 30, May 31, 2021 2020 Raw materials and packaging $ 89.8 $ 106.2 Finished goods 377.8 339.2 Supplies and other 45.9 41.3 Inventories $ 513.5 $ 486.7 |
Schedule of property, plant and equipment | May 30, May 31, 2021 2020 Land and land improvements $ 108.2 $ 107.2 Buildings, machinery, and equipment 2,763.3 2,670.1 Furniture, fixtures, office equipment, and other 97.1 107.1 Construction in progress 122.5 58.3 Property, plant and equipment, at cost 3,091.1 2,942.7 Less accumulated depreciation (1,567.1) (1,407.7) Property, plant and equipment, net $ 1,524.0 $ 1,535.0 Land improvements 2-30 years Buildings 10-40 years Machinery and equipment 5-20 years Furniture, fixtures, office equipment, and other 3-15 years |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
May 30, 2021 | |
EARNINGS PER SHARE | |
Schedule of computation of basic and diluted earnings per common | For the Fiscal Years Ended May 2021 2020 2019 Numerator: Net income attributable to Lamb Weston Holdings, Inc. $ 317.8 $ 365.9 $ 478.6 Less: Increase in redemption value of noncontrolling interests in excess of earnings allocated, net of tax benefits (a) — — 10.8 Net income available to Lamb Weston common stockholders $ 317.8 $ 365.9 $ 467.8 Denominator: Basic weighted average common shares outstanding 146.4 146.2 146.5 Add: Dilutive effect of employee incentive plans (b) 0.7 0.9 0.8 Diluted weighted average common shares outstanding 147.1 147.1 147.3 Earnings per share (a) Basic $ 2.17 $ 2.50 $ 3.19 Diluted $ 2.16 $ 2.49 $ 3.18 (a) In November 2018, we entered into an agreement to acquire the remaining 50.01% interest in Lamb Weston BSW, LLC (“Lamb Weston BSW”). Our Consolidated Statements of Earnings includes 100% of Lamb Weston BSW’s earnings beginning November 2, 2018. During fiscal 2019, net income available to common stockholders and earnings per share included accretion expense, net of estimated tax benefits, of $9.4 million, or $0.06 per share, to increase the redeemable noncontrolling interest to the amount we agreed to pay to acquire the remaining interest in Lamb Weston BSW. While the accretion, net of estimated tax benefits, reduced net income available to Lamb Weston common stockholders and earnings per share, it did not impact net income in the Consolidated Statements of Earnings. See Note 6, Investments in Joint Ventures, in our Annual Report on Form 10-K for the fiscal year ended May 31, 2020, which we filed with the Securities and Exchange Commission on July 28, 2020. (b) Potentially dilutive shares of common stock from employee incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock options and the assumed vesting of outstanding restricted stock units and performance awards. As of May 30, 2021, we did not have any stock-based awards that were antidilutive. As of May 31, 2020 and May 26, 2019, an insignificant number of stock-based awards were excluded from the computation of diluted earnings per share because they would be antidilutive. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
May 30, 2021 | |
INCOME TAXES | |
Schedule of Pre-tax income (loss) | For the Fiscal Years Ended May 2021 2020 2019 United States $ 352.0 $ 462.0 $ 574.5 Foreign 56.3 16.2 46.3 Total pre-tax income $ 408.3 $ 478.2 $ 620.8 |
Schedule of analysis of the components of the consolidated income tax provision | For the Fiscal Years Ended May 2021 2020 2019 Current U.S. federal $ 66.2 $ 75.7 $ 66.8 State and local 15.0 13.2 17.7 Foreign 5.5 3.4 11.6 Total current provision for taxes 86.7 92.3 96.1 Deferred U.S. federal (0.4) 18.6 42.2 State and local 1.2 4.4 (0.1) Foreign 3.0 (3.0) (4.6) Total deferred provision for taxes $ 3.8 $ 20.0 $ 37.5 Total provision for taxes $ 90.5 $ 112.3 $ 133.6 |
Schedule of reconciliation of income tax expense using the statutory U.S. income tax rate compared with the actual income tax provision | For the Fiscal Years Ended May 2021 2020 2019 Provision computed at U.S. statutory rate $ 85.7 $ 100.4 $ 130.4 Increase (reduction) in rate resulting from: State and local taxes, net of federal benefit 13.7 15.3 14.8 Effect of taxes on foreign operations (4.7) (4.4) (4.7) Other (4.2) 1.0 (6.9) Total provision for taxes $ 90.5 $ 112.3 $ 133.6 Effective income tax rate (a) 22.2% 23.5% 21.5% (a) The effective income tax rate is calculated as the ratio of income tax expense to pre-tax income, inclusive of equity method investment earnings. |
Schedule of deferred income tax assets and liabilities | May 30, 2021 May 31, 2020 Assets Liabilities Assets Liabilities Property, plant and equipment $ — $ 187.1 $ — $ 188.8 Goodwill and other intangible assets 46.3 — 54.9 — Compensation and benefit related liabilities 32.2 — 19.7 — Net operating loss and credit carryforwards (a) 3.6 — 5.2 — Accrued expenses and other liabilities 13.9 — 15.2 — Inventory and inventory reserves 5.5 — 4.5 — Lease obligations 32.0 — 36.9 — Lease assets — 30.3 — 35.4 Debt issuance costs — 2.9 — 3.4 Investment in joint ventures — 4.7 — 3.6 Other 3.5 16.4 7.7 8.6 137.0 241.4 144.1 239.8 Less: Valuation allowance (b) (53.1) — (54.5) — Net deferred taxes (c) $ 83.9 $ 241.4 $ 89.6 $ 239.8 (a) At May 30, 2021, Lamb Weston had approximately $14.1 million of gross ($3.1 million after-tax) foreign net operating loss carryforwards, of which the majority expire during fiscal 2022. Lamb Weston also has a foreign tax credit carryforward of $0.5 million, which will expire by fiscal 2031. (b) The valuation allowance is predominantly related to non-amortizable intangibles and the portion of the net operating loss carryforwards that we are not more likely than not to realize. The net impact on income tax expense related to changes in the valuation allowance, including net operating loss carryforwards, was zero in fiscal 2021 and 2020, and $1.1 million of benefit in fiscal 2019. (c) Deferred tax assets of $2.2 million and $2.3 million as of May 30, 2021 and May 31, 2020, respectively, were presented in “Other assets.” Deferred tax liabilities of $159.7 million and $152.5 million as of May 30, 2021 and May 31, 2020, respectively, were presented in “Deferred income taxes” as “Long-term liabilities” on the Consolidated Balance Sheets. The deferred tax asset and liability net position is determined by tax jurisdiction. |
Schedule of change in the unrecognized tax benefits | For the Fiscal Years Ended May 2021 2020 2019 Beginning balance $ 31.3 $ 21.7 $ 13.2 Decreases from positions established during prior fiscal years — — (0.8) Increases from positions established during current and prior fiscal years 8.7 10.3 10.4 Decreases relating to settlements with taxing authorities (0.8) — — Expiration of statute of limitations (2.1) (0.7) (1.1) Ending balance (a) $ 37.1 $ 31.3 $ 21.7 (a) If we were to prevail on the unrecognized tax benefits recorded as of May 30, 2021 and May 30, 2020, it would result in a tax benefit of $31.6 million and $26.7 million, respectively, and a reduction in the effective tax rate. The ending balances exclude $7.2 million and $5.5 million of gross interest and penalties in fiscal 2021 and 2020, respectively. We accrue interest and penalties associated with uncertain tax positions as part of income tax expense. |
INVESTMENTS IN JOINT VENTURES (
INVESTMENTS IN JOINT VENTURES (Tables) | 12 Months Ended |
May 30, 2021 | |
INVESTMENTS IN JOINT VENTURES | |
Summarized combined financial information for our equity method investments | For the Fiscal Years Ended May 2021 2020 2019 Net sales $ 1,169.5 $ 1,137.7 $ 1,172.6 Gross profit 196.5 145.8 212.2 Income from operations 97.5 59.8 130.2 May 30, May 31, 2021 2020 Current assets $ 516.1 $ 413.8 Noncurrent assets 627.6 455.1 Current liabilities 366.3 298.8 Noncurrent liabilities 147.3 79.8 |
GOODWILL AND OTHER IDENTIFIAB_2
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS (Tables) | 12 Months Ended |
May 30, 2021 | |
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS | |
Schedule of changes in the carrying amount of goodwill | Global Foodservice Retail Other Total Balance at May 26, 2019 $ 147.7 $ 42.8 $ 10.9 $ 4.5 $ 205.9 Acquisition (a) 106.1 — — — 106.1 Foreign currency translation adjustment (8.2) — — — (8.2) Balance at May 31, 2020 $ 245.6 $ 42.8 $ 10.9 $ 4.5 $ 303.8 Foreign currency translation adjustment 30.7 — — — 30.7 Balance at May 30, 2021 $ 276.3 $ 42.8 $ 10.9 $ 4.5 $ 334.5 (a) In July 2019, we acquired a frozen potato processor in Australia and recorded $106.1 million of goodwill in our Global segment. See Note 5, Acquisitions, for more information. |
Schedule of other identifiable intangible assets, non-amortizing intangible assets | May 30, 2021 May 31, 2020 Weighted Weighted Average Gross Average Gross Useful Life Carrying Accumulated Intangible Useful Life Carrying Accumulated Intangible (in years) Amount Amortization Assets, Net (in years) Amount Amortization Assets, Net Non-amortizing intangible assets (a) n/a $ 18.0 $ — $ 18.0 n/a $ 18.0 $ — $ 18.0 Amortizing intangible assets (b) 11 42.2 (23.3) 18.9 11 42.4 (22.1) 20.3 $ 60.2 $ (23.3) $ 36.9 $ 60.4 $ (22.1) $ 38.3 (a) Non-amortizing intangible assets represent brands and trademarks. (b) Amortizing intangible assets are principally comprised of licensing agreements, brands, and customer relationships. In addition, developed technology is recorded as “Other assets” on our Consolidated Balance Sheet. Amortization expense was $5.0 million, $2.5 million, and $2.2 million in fiscal 2021, 2020, and 2019, respectively. Foreign intangible assets are affected by foreign currency translation. |
Schedule of other identifiable intangible assets, amortizing intangible assets | May 30, 2021 May 31, 2020 Weighted Weighted Average Gross Average Gross Useful Life Carrying Accumulated Intangible Useful Life Carrying Accumulated Intangible (in years) Amount Amortization Assets, Net (in years) Amount Amortization Assets, Net Non-amortizing intangible assets (a) n/a $ 18.0 $ — $ 18.0 n/a $ 18.0 $ — $ 18.0 Amortizing intangible assets (b) 11 42.2 (23.3) 18.9 11 42.4 (22.1) 20.3 $ 60.2 $ (23.3) $ 36.9 $ 60.4 $ (22.1) $ 38.3 (a) Non-amortizing intangible assets represent brands and trademarks. (b) Amortizing intangible assets are principally comprised of licensing agreements, brands, and customer relationships. In addition, developed technology is recorded as “Other assets” on our Consolidated Balance Sheet. Amortization expense was $5.0 million, $2.5 million, and $2.2 million in fiscal 2021, 2020, and 2019, respectively. Foreign intangible assets are affected by foreign currency translation. |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
May 30, 2021 | |
ACCRUED LIABILITIES | |
Schedule of components of accrued liabilities | May 30, May 31, 2021 2020 Compensation and benefits $ 83.2 $ 74.5 Accrued trade promotions 39.9 42.5 Dividends payable to shareholders 34.4 33.6 Current portion of operating lease obligations 29.1 28.4 Franchise, property, and sales and use taxes 11.3 9.4 Accrued interest 7.9 8.7 Income taxes payable 0.8 1.3 Other 20.3 34.6 Accrued liabilities $ 226.9 $ 233.0 |
DEBT AND FINANCING OBLIGATIONS
DEBT AND FINANCING OBLIGATIONS (Tables) | 12 Months Ended |
May 30, 2021 | |
DEBT AND FINANCING OBLIGATIONS | |
Schedule of debt, including financing obligations | May 30, May 31, 2021 2020 Short-term borrowings: Revolving credit facility $ — $ 495.0 Other credit facilities — 3.7 — 498.7 Long-term debt: Term loan facility, due November 2021 — 276.6 Term A-1 loan facility, due June 2024 273.8 288.7 Term A-2 loan facility, due April 2025 312.8 325.0 4.625% senior notes, due November 2024 833.0 833.0 4.875% senior notes, due November 2026 833.0 833.0 4.875% senior notes, due May 2028 500.0 500.0 2,752.6 3,056.3 Financing obligations: Lease financing obligations due on various dates through 2040 (a) 7.3 13.3 7.3 13.3 Total debt and financing obligations 2,759.9 3,568.3 Debt issuance costs (b) (22.5) (28.2) Short-term borrowings — (498.7) Current portion of long-term debt and financing obligations (32.0) (48.8) Long-term debt and financing obligations, excluding current portion $ 2,705.4 $ 2,992.6 (a) The interest rates on our lease financing obligations ranged from 2.49% to 4.10% at May 30, 2021 and 2.31% to 4.10% at May 30, 2020, respectively. For more information on our lease financing obligations, see Note 9, Leases. (b) We amortize debt issuance costs into interest expense using the effective interest method over the life of the loan facilities. In fiscal 2021, 2020, and 2019, we recorded $6.1 million, $6.2 million, and $4.7 million, respectively, of amortization expense in “Interest expense” in our Consolidated Statements of Earnings. Fiscal 2021 included a $1.0 million write-off of debt issuance cost in connection with the Amended Revolving Credit Facility. Fiscal 2020 included a $1.7 million write-off of debt issuance costs in connection with the $300.0 million payment on the term loan facility due in 2021. |
Schedule of aggregate minimum principal maturities of long term debt | Debt (a) 2022 $ 31.3 2023 31.3 2024 31.3 2025 1,325.7 2026 — Thereafter 1,333.0 $ 2,752.6 (a) See Note 9, Leases, for maturities of our lease financing obligations. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
May 30, 2021 | |
LEASES | |
Schedule of components of total lease costs, net | For the Fiscal Year Ended May (a) 2021 2020 Operating lease costs $ 33.2 $ 29.7 Short-term and variable lease costs 9.0 5.8 Sublease income (3.4) (2.7) Finance lease costs: Amortization of lease assets 1.9 3.2 Interest on lease obligations 0.3 0.6 Total lease costs, net $ 41.0 $ 36.6 (a) Supply-chain-related lease costs are included in “Cost of sales” and the remainder is recorded in “Selling, general, and administrative expenses.” Interest on finance lease obligations is included in “Interest expense, net,” in our Consolidated Statements of Earnings. |
Schedule of operating and finance leases, with terms greater than one year | May 30, May 31, Leases Classification 2021 2020 Assets: Operating lease assets Operating lease assets $ 141.7 $ 167.0 Finance lease assets Property, plant and equipment, net (a) (b) 5.4 11.3 Total leased assets $ 147.1 $ 178.3 Liabilities: Lease obligations due within one year: Operating lease obligations Accrued liabilities $ 29.1 $ 28.4 Finance lease obligations Current portion of long-term debt and financing obligations (b) 0.7 2.8 Long-term lease obligations: Operating lease obligations Other noncurrent liabilities 120.3 144.6 Finance lease obligations Long-term debt and financing obligations, excluding current portion (b) 6.6 10.5 Total lease obligations $ 156.7 $ 186.3 (a) Finance leases are net of accumulated amortization of $4.7 million and $12.2 million at May 30, 2021 and May 31, 2020, respectively. (b) During fiscal 2021, we modified certain finance leases in the normal course of business resulting in a reduction of approximately $4.3 million of finance lease assets and short-term and long-term finance lease obligations recorded on our Consolidated Balance Sheet. |
Schedule of maturities of lease liabilities for operating leases | Operating Finance Leases Leases 2022 $ 31.7 $ 0.9 2023 21.8 1.0 2024 20.7 1.0 2025 18.6 0.9 2026 15.2 0.8 Thereafter 62.7 4.5 Total lease payments 170.7 9.1 Less: Interest (21.3) (1.8) Present value of lease obligations $ 149.4 $ 7.3 Weighted-average remaining lease term (years) 7.9 13.9 Weighted-average discount rate 3.4% 3.2% |
Schedule of maturities of lease liabilities for finance leases | Operating Finance Leases Leases 2022 $ 31.7 $ 0.9 2023 21.8 1.0 2024 20.7 1.0 2025 18.6 0.9 2026 15.2 0.8 Thereafter 62.7 4.5 Total lease payments 170.7 9.1 Less: Interest (21.3) (1.8) Present value of lease obligations $ 149.4 $ 7.3 Weighted-average remaining lease term (years) 7.9 13.9 Weighted-average discount rate 3.4% 3.2% |
Schedule of supplemental cash flow information related to leases | For the Fiscal Years Ended May 2021 2020 Cash paid for amounts included in the measurement of lease obligations: Operating cash flows for operating leases $ 30.9 $ 26.8 Financing cash flows for finance leases 1.7 2.6 Noncash investing and financing activities: Assets obtained in exchange for new operating lease obligations 5.2 41.4 Assets obtained in exchange for new finance lease obligations — 2.2 |
EMPLOYEE BENEFIT PLANS AND OT_2
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS (Tables) | 12 Months Ended |
May 30, 2021 | |
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS | |
Schedule of funded status and amounts recognized in our Condensed Combined and Consolidated Balance Sheets | For the Fiscal Years Ended May 2021 2020 Pension Plans Post-Retirement Plan Pension Plans Post-Retirement Plan Change in benefit obligation Benefit obligation at beginning of year $ 37.3 $ 6.5 $ 27.4 $ 7.3 Service cost 3.0 — 3.1 — Interest cost 1.2 0.1 1.1 0.2 Participant contributions — 0.3 — 0.2 Benefits paid (0.5) (0.2) (0.3) (0.3) Plan settlements (a) — — (0.4) — Actuarial (gain) loss 0.5 (0.2) 6.4 (0.9) Benefit obligation at fiscal year end $ 41.5 $ 6.5 $ 37.3 $ 6.5 Accumulated benefit obligation portion of above $ 41.5 $ 37.3 Change in fair value of plan assets Fair value of plan assets at beginning of year $ 27.2 $ — $ 17.1 $ — Actual return on plan assets (2.0) — 6.6 — Company contributions 3.4 — 3.8 0.1 Participant contributions — 0.3 — 0.2 Benefits paid (0.5) (0.2) (0.3) (0.3) Other — (0.1) — — Fair value of plan assets at end of year $ 28.1 $ — $ 27.2 $ — Underfunded status $ (13.4) $ (6.5) $ (10.1) $ (6.5) Amounts recognized on Consolidated Balance Sheets Accrued liabilities $ — $ (0.3) $ — $ (0.2) Other noncurrent liabilities (13.4) (6.2) (10.1) (6.3) Accrued obligation recognized $ (13.4) $ (6.5) $ (10.1) $ (6.5) Amounts recognized in Accumulated Other Comprehensive (Income) Loss (Pre-tax) Actuarial loss $ 7.7 $ 0.7 $ 4.4 $ 1.1 Total $ 7.7 $ 0.7 $ 4.4 $ 1.1 (a) In fiscal 2020, plan settlements of $0.4 million were paid to certain participants from our rabbi trust plan assets. These assets are excluded from our pension plan assets. |
Schedule of components of net periodic benefit cost for our pension and postretirement benefit plans | For the Fiscal Years Ended May 2021 2020 2019 Pension Post-Retirement Pension Post-Retirement Pension Post-Retirement Plans Plan Plans Plan Plans Plan Service cost $ 3.0 $ — $ 3.1 $ — $ 6.0 $ — Interest cost 1.2 0.1 1.1 0.2 0.8 0.3 Expected return on plan assets (0.8) — (0.9) — (0.9) — Net amortization of unrecognized amounts Actuarial loss 0.1 0.2 0.2 0.6 — 0.7 Net periodic benefit cost (a) $ 3.5 $ 0.3 $ 3.5 $ 0.8 $ 5.9 $ 1.0 Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss Actuarial (gain) loss $ 3.4 $ (0.2) $ 0.6 $ (1.0) $ 3.3 $ — Amortization of actuarial loss (b) (0.1) (0.2) (0.2) (0.6) — (0.7) Total recognized in other comprehensive loss (income) $ 3.3 $ (0.4) $ 0.4 $ (1.6) $ 3.3 $ (0.7) Total recognized in net periodic benefit cost and other comprehensive loss (income) (pre-tax) (c) $ 6.8 $ (0.1) $ 3.9 $ (0.8) $ 9.2 $ 0.3 (a) Pension service costs are allocated to operations and reflected in “Cost of sales” and expected returns on pension assets and interest costs are reflected in “Selling, general and administrative expenses” in the Consolidated Statements of Earnings. The decrease in fiscal 2021 and 2020 net periodic pension cost, compared with fiscal 2019, reflects amendments to the pension plans so that no future benefits accrue after certain dates. We did not recognize a curtailment gain or loss with any of the amendments. (b) Accumulated losses in excess of 10% of the greater of the projected benefit obligation or the market-related value of assets will be recognized on a straight-line basis over the average remaining service period of active employees in our plans (which is between seven to ten years for our pension plans and approximately two years for our post-retirement benefit plan), to the extent that losses are not offset by gains in subsequent years. |
Schedule of actuarial assumptions used in determining the benefit obligations and net periodic pension cost for our defined benefit and postretirement plans | For the Fiscal Years Ended May 2021 2020 2019 Pension Plans Post-Retirement Plan Pension Plans Post-Retirement Plan Pension Plans Post-Retirement Plan Weighted-average assumptions used to determine benefit obligations: Discount rate 3.11% 2.82% 3.14% 2.85% 4.01% 3.81% Weighted-average assumptions used to determine net periodic benefit cost: Discount rate 3.14% 2.85% 4.01% 3.81% 4.25% 4.18% Expected return on plan assets 2.90% N/A 5.12% N/A 5.30% N/A |
Schedule of health care cost trend rate assumption | 2021 2020 2019 Health care cost trend rate assumed for next year (Pre65) 6.19% 6.75% 7.31% Ultimate health care cost trend rate 4.50% 4.50% 4.50% Year that the rate reaches the ultimate trend rate 2024 2024 2024 |
Schedule of fair Value measurements of plan assets | Fair Value Measurements at May 30, 2021 Quoted Market Prices in Active Markets for Identical Assets Significant Observable Market-Based Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 0.4 $ — $ — $ 0.4 Equity securities: U.S. equity securities (a) $ — $ 4.7 $ — $ 4.7 International equity securities (a) — 3.7 — 3.7 Fixed income securities: Government securities (b) 19.3 — — 19.3 Total assets $ 19.7 $ 8.4 $ — $ 28.1 Fair Value Measurements at May 31, 2020 Quoted Market Prices in Active Markets for Identical Assets Significant Observable Market-Based Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Total Equity securities: U.S. equity securities (a) $ — $ 4.1 $ — $ 4.1 International equity securities (a) — 3.9 — 3.9 Fixed income securities: Government securities (b) 19.2 — — 19.2 Total assets $ 19.2 $ 8.0 $ — $ 27.2 (a) Includes investments in common/collective trust funds that are valued using net asset values (“NAV”) provided by the administrator of the funds. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of units outstanding. While the underlying assets are actively traded on an exchange, the funds are not. There are currently no redemption restrictions or unfunded commitments on these investments. There are certain funds with thirty-day redeemable notice requirements. (b) Includes investments in exchange-traded funds based on quoted prices in active markets. |
Schedule of Expected Benefit Payments | Pension Plans Post-Retirement Plan 2022 $ 0.5 $ 0.2 2023 0.7 0.3 2024 0.9 0.3 2025 1.0 0.4 2026 1.2 0.4 2027-2031 8.7 2.1 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
May 30, 2021 | |
STOCK-BASED COMPENSATION | |
The schedule of RSU and Performance Share activity | Stock-Settled Performance Shares Weighted- Weighted- Average Average Grant- Grant- Date Fair Date Fair Shares Value Shares Value Outstanding at May 31, 2020 662,205 $ 60.28 444,457 $ 57.96 Granted (a) 298,040 62.61 107,451 63.93 Vested (b) (253,912) 46.42 (198,436) 44.83 Forfeited/expired/cancelled (31,031) 64.32 (18,027) 69.37 Outstanding at May 30, 2021 675,302 $ 66.34 335,445 $ 67.02 (a) Granted represents new grants and dividend equivalents accrued. (b) The aggregate fair value of awards that vested in fiscal 2021, 2020, and 2019 was $29.3 million, $24.9 million, and $24.7 million, respectively, which represents the market value of our common stock on the date that the RSUs and Performance Shares vested. The number of RSUs and Performance Shares vested includes shares of common stock that we withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements. RSUs that are expected to vest are net of estimated future forfeitures. |
Schedule of compensation expenses for stock-based awards recognized, net of forfeitures | For the Fiscal Years Ended May 2021 2020 2019 Total compensation expense 20.6 23.8 22.1 Income tax benefit (a) (3.7) (4.6) (4.4) Total compensation expense, net of tax benefit $ 16.9 $ 19.2 $ 17.7 (a) Income tax benefit represents the marginal tax rate, excluding non-deductible compensation. |
Schedule of total unrecognized compensation expense, net of estimated forfeitures, related to stock-based payments | Remaining Weighted Unrecognized Average Compensation Recognition Expense Period (in years) Stock-settled RSUs $ 18.0 1.8 Performance Shares 8.8 1.6 Total unrecognized stock-based expense $ 26.8 1.8 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
May 30, 2021 | |
FAIR VALUE MEASUREMENTS | |
Schedule of financial assets and liabilities measured at fair value on recurring basis | As of May 30, 2021 Level 1 Level 2 Level 3 Total Assets: Pension plan assets $ 19.7 $ 8.4 $ — $ 28.1 Derivative assets (a) — 15.3 — 15.3 Total assets $ 19.7 $ 23.7 $ — $ 43.4 Liabilities: Deferred compensation liabilities (b) $ — $ 23.5 $ — $ 23.5 Total liabilities $ — $ 23.5 $ — $ 23.5 As of May 31, 2020 Level 1 Level 2 Level 3 Total Assets: Pension plan assets $ 19.2 $ 8.0 $ — $ 27.2 Deferred compensation assets 0.1 — — 0.1 Total assets $ 19.3 $ 8.0 $ — $ 27.3 Liabilities: Derivative liabilities (a) $ — $ 4.7 $ — $ 4.7 Deferred compensation liabilities (b) — 18.0 — 18.0 Total liabilities $ — $ 22.7 $ — $ 22.7 (a) Derivative assets and liabilities included in Level 2 primarily represent commodity swap and option contracts. The fair values of our Level 2 derivative assets and liabilities were determined using valuation models that use market observable inputs including both forward and spot prices for commodities. Derivative assets are presented within “Prepaid expenses and other current assets” and derivative liabilities are presented within “Accrued liabilities” on our Consolidated Balance Sheets. (b) The fair values of our Level 2 deferred compensation liabilities were valued using third-party valuations, which are based on the net asset values of mutual funds in our retirement plans. While the underlying assets are actively traded on an exchange, the funds are not. |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
May 30, 2021 | |
STOCKHOLDERS' EQUITY | |
Schedule of changes in AOCI, net of tax | Foreign Accumulated Currency Pension and Other Translation Post-Retirement Comprehensive Gains (Losses) Benefits Income (Loss) Balance as of May 31, 2020 $ (36.3) $ (4.2) $ (40.5) Other comprehensive income before reclassifications, net of tax 72.3 (2.5) 69.8 Amounts reclassified out of AOCI, net of tax — 0.2 (a) 0.2 Net current-period other comprehensive income (loss) 72.3 (2.3) 70.0 Balance as of May 30, 2021 $ 36.0 $ (6.5) $ 29.5 (a) These AOCI components are included in the computation of net pension and postretirement benefit costs. See Note 10, Employee Benefit Plans and Other Post-Retirement Benefits, for additional information. |
SEGMENTS (Tables)
SEGMENTS (Tables) | 12 Months Ended |
May 30, 2021 | |
SEGMENTS | |
Schedule of segment information | For the Fiscal Years Ended May 2021 (a) 2020 (a) 2019 Net sales Global $ 1,911.5 $ 1,973.6 $ 1,961.5 Foodservice 1,017.3 1,069.1 1,156.1 Retail 603.4 595.5 498.3 Other 138.7 154.2 140.6 Total net sales 3,670.9 3,792.4 3,756.5 Product contribution margin (b) Global 306.2 374.5 446.3 Foodservice 340.0 356.0 402.4 Retail 120.2 117.6 98.8 Other (c) 47.8 24.1 23.6 814.2 872.2 971.1 Add: Advertising and promotion expenses (b) 17.8 23.0 32.4 Gross profit 832.0 895.2 1,003.5 Selling, general and administrative expenses 357.2 338.3 335.1 Income from operations 474.8 556.9 668.4 Interest expense, net 118.3 108.0 107.1 Income tax expense (d) 90.5 112.3 133.6 Equity method investment earnings 51.8 29.3 59.5 Net income 317.8 365.9 487.2 Less: Income attributable to noncontrolling interests (e) — — 8.6 Net income attributable to Lamb Weston Holdings, Inc. $ 317.8 $ 365.9 $ 478.6 (a) On March 11, 2020, the World Health Organization declared the spread of COVID-19 a global pandemic. In an attempt to minimize the transmission of COVID-19, significant social and economic restrictions, including restrictions on dine-in purchases and the imposition of stay-at-home orders, were imposed in the United States and in our international markets. These restrictions had a negative impact on our sales, costs, and earnings of our joint ventures, resulting in a negative impact on our net income in fiscal 2021 and 2020. The increase in our costs, and the costs of our joint ventures, related to factory utilization and production inefficiencies, manufacturing and operational disruptions directly attributable to the pandemic, as well as incremental warehousing and transportation costs, and costs to enhance employee safety measures, including purchases of safety and health screening equipment, retaining sales employees, and expensing certain capitalized manufacturing facility expansion projects that were stopped. (b) Product contribution margin represents net sales less cost of sales and advertising and promotion expenses. Product contribution margin includes advertising and promotion expenses because those expenses are directly associated with segment performance. (c) The Other segment primarily includes our vegetable and dairy businesses and unrealized mark-to-market adjustments associated with commodity hedging contracts. (d) In fiscal 2019, the Tax Act decreased income tax expense and increased net income by $27.2 million, or $0.19 per share, including a $24.8 million, or $0.17 per share, tax benefit related to a lower U.S. corporate tax rate and a $2.4 million, or $0.02 per share, benefit from the true-up of the transition tax on previously untaxed foreign earnings. We completed our analysis of the one-time impacts of the Tax Act in fiscal 2019. (e) In November 2018, we entered into an agreement to acquire the remaining 50.01% interest in Lamb Weston BSW. Our Consolidated Statements of Earnings includes 100% of Lamb Weston BSW’s earnings beginning November 2, 2018. See Note 6, Investments in Joint Ventures, in our Annual Report on Form 10-K for the fiscal year ended May 31, 2020, which we filed with the Securities and Exchange Commission on July 28, 2020. |
NATURE OF OPERATIONS AND SUMM_4
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reportable Segments (Details) - segment | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Number of reportable segments | 4 | 4 | 4 |
NATURE OF OPERATIONS AND SUMM_5
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - General Information (Details) | Nov. 09, 2016 |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Divestiture of stock pro rata distribution (as a percent) | 100.00% |
NATURE OF OPERATIONS AND SUMM_6
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basis of Presentation (Details) | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Fiscal year duration (weeks converted to days) | 364 days | 371 days | 364 days |
NATURE OF OPERATIONS AND SUMM_7
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Unbilled Receivables (Details) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
Unbilled receivables | ||
Unbilled receivables, current | $ 111 | $ 72.7 |
NATURE OF OPERATIONS AND SUMM_8
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Sales Incentives and Trade Promotion Allowances (Details) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Accrued sales incentives and trade promotions | $ 39.9 | $ 42.5 |
NATURE OF OPERATIONS AND SUMM_9
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Advertising and Promotion (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Advertising and Promotion | |||
Advertising and promotion expenses | $ 17.8 | $ 23 | $ 32.4 |
NATURE OF OPERATIONS AND SUM_10
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Research and Development (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Research and Development | |||
Research and development costs | $ 12.9 | $ 15.4 | $ 15.4 |
NATURE OF OPERATIONS AND SUM_11
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
Cash and Cash Equivalents | ||
Cash and cash equivalents | $ 783.5 | $ 1,364 |
NATURE OF OPERATIONS AND SUM_12
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Trade Accounts Receivable and Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
Trade Accounts Receivable and Allowance for Doubtful Accounts | ||
Allowance for doubtful accounts | $ 0.9 | $ 1.3 |
NATURE OF OPERATIONS AND SUM_13
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventories (Details) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
Components of inventories | ||
Raw materials and packaging | $ 89.8 | $ 106.2 |
Finished goods | 377.8 | 339.2 |
Supplies and other | 45.9 | 41.3 |
Inventories | $ 513.5 | $ 486.7 |
NATURE OF OPERATIONS AND SUM_14
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Leased Assets (Details) | May 30, 2021 |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Lease, Practical Expedient, Lessor Single Lease Component | true |
NATURE OF OPERATIONS AND SUM_15
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Plant and Equipment - Interest Capitalized (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Construction in progress | |||
Property, Plant and Equipment | |||
Interest capitalized | $ 1.9 | $ 2.6 | $ 7.6 |
NATURE OF OPERATIONS AND SUM_16
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Plant and Equipment - Components (Details) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | $ 3,091.1 | $ 2,942.7 |
Less accumulated depreciation | (1,567.1) | (1,407.7) |
Property, plant and equipment, net | 1,524 | 1,535 |
Land and land improvements | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | 108.2 | 107.2 |
Buildings, machinery, and equipment | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | 2,763.3 | 2,670.1 |
Furniture, fixtures, office equipment, and other | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | 97.1 | 107.1 |
Construction in progress | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | $ 122.5 | $ 58.3 |
NATURE OF OPERATIONS AND SUM_17
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Plant and Equipment - Useful Lives (Details) | 12 Months Ended |
May 30, 2021 | |
Land improvements | Minimum | |
Property, Plant and Equipment | |
Estimated useful lives | 2 years |
Land improvements | Maximum | |
Property, Plant and Equipment | |
Estimated useful lives | 30 years |
Buildings | Minimum | |
Property, Plant and Equipment | |
Estimated useful lives | 10 years |
Buildings | Maximum | |
Property, Plant and Equipment | |
Estimated useful lives | 40 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment | |
Estimated useful lives | 5 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment | |
Estimated useful lives | 20 years |
Furniture, fixtures, office equipment, and other | Minimum | |
Property, Plant and Equipment | |
Estimated useful lives | 3 years |
Furniture, fixtures, office equipment, and other | Maximum | |
Property, Plant and Equipment | |
Estimated useful lives | 15 years |
NATURE OF OPERATIONS AND SUM_18
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Plant and Equipment - Depreciation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Property, Plant and Equipment | |||
Depreciation expense | $ 177.7 | $ 175.3 | $ 155.5 |
NATURE OF OPERATIONS AND SUM_19
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Plant and Equipment - Purchases in Accounts Payable (Details) - USD ($) $ in Millions | 12 Months Ended | |
May 30, 2021 | May 31, 2020 | |
Property, Plant and Equipment | ||
Purchases of property, plant and equipment included in accounts payable | $ 23.1 | $ 9.9 |
NATURE OF OPERATIONS AND SUM_20
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Foreign Currency (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Foreign Currency | |||
Gains and losses from foreign currency transactions | $ 1.3 | $ (0.1) | $ (3.3) |
NATURE OF OPERATIONS AND SUM_21
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - New and Recently Issued Accounting Standards (Details) | May 30, 2021 |
Accounting Standards Update 2016-02 | |
New and Recently Issued Accounting Standards | |
Change in Accounting Principle, Accounting Standards Update, Adopted | true |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | May 27, 2019 |
Accounting Standards Update 2016-13 | |
New and Recently Issued Accounting Standards | |
Change in Accounting Principle, Accounting Standards Update, Adopted | true |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jun. 1, 2020 |
Accounting Standards Update 2020-04 | |
New and Recently Issued Accounting Standards | |
Change in Accounting Principle, Accounting Standards Update, Adopted | false |
EARNINGS PER SHARE - Tabular Di
EARNINGS PER SHARE - Tabular Disclosure (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Numerator: | |||
Net income attributable to Lamb Weston Holdings, Inc. | $ 317.8 | $ 365.9 | $ 478.6 |
Less: Increase in redemption value of noncontrolling interests in excess of earnings allocated, net of tax benefits | 10.8 | ||
Net income available to Lamb Weston common stockholders, basic | 317.8 | 365.9 | 467.8 |
Net income available to Lamb Weston common stockholders, diluted | $ 317.8 | $ 365.9 | $ 467.8 |
Denominator: | |||
Basic weighted average common shares outstanding (in shares) | 146.4 | 146.2 | 146.5 |
Add: Dilutive effect of employee incentive plans (in shares) | 0.7 | 0.9 | 0.8 |
Diluted weighted average common shares outstanding (in shares) | 147.1 | 147.1 | 147.3 |
Earnings per share | |||
Basic (in dollars per share) | $ 2.17 | $ 2.50 | $ 3.19 |
Diluted (in dollars per share) | $ 2.16 | $ 2.49 | $ 3.18 |
EARNINGS PER SHARE - Variable I
EARNINGS PER SHARE - Variable Interest Entity - Consolidated - Acquisition - Ownership Interest (Details) - Lamb Weston BSW, LLC | Nov. 02, 2018 |
Ownership interest acquired | |
Ownership interest acquired (as a percent) | 50.01% |
Ownership interest after completion of the acquisition | |
Ownership interest after completion of the acquisition (as a percent) | 100.00% |
EARNINGS PER SHARE - Variable_2
EARNINGS PER SHARE - Variable Interest Entity - Consolidated - Acquisition - Additional Information (Details) - Lamb Weston BSW, LLC $ / shares in Units, $ in Millions | 12 Months Ended |
May 26, 2019USD ($)$ / shares | |
Pro Forma Information | |
Net income available to common stockholders | $ | $ (9.4) |
Basic and diluted earning per share (in dollars per share) | $ / shares | $ (0.06) |
EARNINGS PER SHARE - Antidiluti
EARNINGS PER SHARE - Antidilutive Securities (Details) - shares | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Stock options | |||
EARNINGS PER SHARE | |||
Antidilutive securities (in shares) | 0 | 0 | 0 |
Restricted Stock Units (RSUs) | |||
EARNINGS PER SHARE | |||
Antidilutive securities (in shares) | 0 | 0 | 0 |
Performance shares | |||
EARNINGS PER SHARE | |||
Antidilutive securities (in shares) | 0 | 0 | 0 |
INCOME TAXES - Pre-tax Income I
INCOME TAXES - Pre-tax Income Inclusive of Equity Method Investment Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Pre-tax income inclusive of equity method investment earnings | |||
United States | $ 352 | $ 462 | $ 574.5 |
Foreign | 56.3 | 16.2 | 46.3 |
Total pre-tax income | $ 408.3 | $ 478.2 | $ 620.8 |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Current | |||
U.S. federal | $ 66.2 | $ 75.7 | $ 66.8 |
State and local | 15 | 13.2 | 17.7 |
Foreign | 5.5 | 3.4 | 11.6 |
Total current provision for taxes | 86.7 | 92.3 | 96.1 |
Deferred | |||
U.S. federal | (0.4) | 18.6 | 42.2 |
State and local | 1.2 | 4.4 | (0.1) |
Foreign | 3 | (3) | (4.6) |
Total deferred provision for taxes | 3.8 | 20 | 37.5 |
Total provision for taxes | $ 90.5 | $ 112.3 | $ 133.6 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Income Tax Expenses - Statutory Rates (Details) | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
INCOME TAXES | |||
Federal statutory tax rate (as a percent) | 21.00% | 21.00% | 21.00% |
INCOME TAXES - Reconciliation_2
INCOME TAXES - Reconciliation of Income Tax Expenses - Tabular Disclosure (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Reconciliation of income tax expense | |||
Provision computed at U.S. statutory rate | $ 85.7 | $ 100.4 | $ 130.4 |
State and local taxes, net of federal benefit | 13.7 | 15.3 | 14.8 |
Effect of taxes on foreign operations | (4.7) | (4.4) | (4.7) |
Other | (4.2) | 1 | (6.9) |
Total provision for taxes | $ 90.5 | $ 112.3 | $ 133.6 |
Effective income tax rate (as a percent) | 22.20% | 23.50% | 21.50% |
INCOME TAXES - Income Taxes Pai
INCOME TAXES - Income Taxes Paid (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
INCOME TAXES | |||
Income taxes paid, net of refunds | $ 84.1 | $ 82.5 | $ 103 |
INCOME TAXES - Deferred Income
INCOME TAXES - Deferred Income Taxes - Deferred Tax Assets (Details) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
Deferred Tax Assets | ||
Goodwill and other intangible assets | $ 46.3 | $ 54.9 |
Compensation and benefit related liabilities | 32.2 | 19.7 |
Net operating loss and credit carryforwards | 3.6 | 5.2 |
Accrued expenses and other liabilities | 13.9 | 15.2 |
Inventory and inventory reserves | 5.5 | 4.5 |
Lease obligations | 32 | 36.9 |
Other | 3.5 | 7.7 |
Deferred Tax Assets, Gross, Total | 137 | 144.1 |
Less: Valuation allowance | (53.1) | (54.5) |
Net deferred tax assets | $ 83.9 | $ 89.6 |
INCOME TAXES - Deferred Incom_2
INCOME TAXES - Deferred Income Taxes - Deferred Tax Liabilities (Details) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
Deferred Tax Liabilities | ||
Property, plant and equipment | $ 187.1 | $ 188.8 |
Lease assets | 30.3 | 35.4 |
Debt issuance cost | 2.9 | 3.4 |
Investment in joint ventures | 4.7 | 3.6 |
Other | 16.4 | 8.6 |
Deferred Tax Liabilities, Gross, Total | $ 241.4 | $ 239.8 |
INCOME TAXES - Deferred Incom_3
INCOME TAXES - Deferred Income Taxes - Net Operating Loss Carryforwards (Details) - Foreign $ in Millions | May 30, 2021USD ($) |
Net operating loss carryforwards | |
Net operating loss carryforwards | $ 14.1 |
Net operating loss carryforwards, after tax | $ 3.1 |
INCOME TAXES - Deferred Incom_4
INCOME TAXES - Deferred Income Taxes - Tax Credit Carryforwards (Details) $ in Millions | May 30, 2021USD ($) |
Foreign | |
Tax credit carryforwards | |
Tax credit carryforwards | $ 0.5 |
INCOME TAXES - Deferred Incom_5
INCOME TAXES - Deferred Income Taxes - Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Income Taxes | |||
Income tax expense | $ 90.5 | $ 112.3 | $ 133.6 |
Increase (Decrease) in Valuation Allowance, Including Net Operating Loss Carryforwards | |||
Income Taxes | |||
Income tax expense | $ 0 | $ 0 | $ (1.1) |
INCOME TAXES - Deferred Incom_6
INCOME TAXES - Deferred Income Taxes - Consolidated Balance Sheets (Details) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
Deferred income taxes | ||
Deferred income taxes | $ 159.7 | $ 152.5 |
Other Noncurrent Assets | ||
Other assets | ||
Deferred tax assets | $ 2.2 | $ 2.3 |
INCOME TAXES - Uncertain Tax Po
INCOME TAXES - Uncertain Tax Positions - Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Uncertain Tax Positions | |||
Beginning balance | $ 31.3 | $ 21.7 | $ 13.2 |
Decreases from positions established during prior fiscal years | (0.8) | ||
Increases from positions established during current and prior fiscal years | 8.7 | 10.3 | 10.4 |
Decreases relating to settlements with taxing authorities | (0.8) | ||
Expiration of statute of limitations | (2.1) | (0.7) | (1.1) |
Ending balance | $ 37.1 | $ 31.3 | $ 21.7 |
INCOME TAXES - Uncertain Tax _2
INCOME TAXES - Uncertain Tax Positions - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
May 30, 2021 | May 31, 2020 | |
INCOME TAXES | ||
Tax benefit if unrecognized tax benefits are recognized | $ 31.6 | $ 26.7 |
Gross interest and penalties excluded from unrecognized tax benefits | $ 7.2 | $ 5.5 |
Statute of limitations, minimum | 3 years | |
Statute of limitations, maximum | 5 years | |
Statute of limitations, expiration, reduction in uncertain tax positions, next twelve months | $ 6.5 |
INVESTMENTS IN JOINT VENTURES -
INVESTMENTS IN JOINT VENTURES - General Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2020 | May 30, 2021 | Oct. 15, 2019 | |
Equity Method Investments | |||
Equity method investments | $ 250.2 | $ 310.2 | |
Lamb-Weston Meijer v.o.f. | |||
Equity Method Investments | |||
Ownership interest (as a percent) | 50.00% | ||
Equity method investments | 207.4 | $ 263.3 | |
Lamb-Weston RDO Frozen | |||
Equity Method Investments | |||
Ownership interest (as a percent) | 50.00% | ||
Equity method investments | 15.4 | $ 17.4 | |
Lamb Weston Alimentos Modernos S.A. | |||
Equity Method Investments | |||
Ownership interest (as a percent) | 50.00% | ||
Equity method investments | 26.5 | $ 28.8 | $ 27.3 |
Investment in equity method joint venture | $ 22.6 | ||
Investment in equity method joint venture, payable | $ 5.5 | ||
Equity method investments, basis difference | $ 4.8 |
INVESTMENTS IN JOINT VENTURES_2
INVESTMENTS IN JOINT VENTURES - Equity Method Investments - Fees Received (Details) - Equity Method Investee - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Related Party Transactions | |||
Revenue from related parties | $ 15.3 | $ 27.8 | $ 29.9 |
Fees for Services Provided | Lamb-Weston Meijer v.o.f. | |||
Related Party Transactions | |||
Revenue from related parties | 1.6 | 1.6 | 1.8 |
Fees for Services Provided | Lamb-Weston RDO Frozen | |||
Related Party Transactions | |||
Revenue from related parties | $ 14.3 | $ 14.1 | $ 14.8 |
INVESTMENTS IN JOINT VENTURES_3
INVESTMENTS IN JOINT VENTURES - Agreement - Equity Method Investee Information (Details) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
Lamb-Weston Meijer v.o.f. | ||
Equity Method Investments | ||
ERP costs | $ 16.8 | $ 13 |
INVESTMENTS IN JOINT VENTURES_4
INVESTMENTS IN JOINT VENTURES - Agreement - Related Party Information (Details) - Equity Method Investee $ in Millions | 12 Months Ended | |
May 30, 2021USD ($)payment | May 31, 2020USD ($) | |
Accounts receivable | ||
Accounts receivable, current | $ 6.3 | $ 7.1 |
Lamb-Weston Meijer v.o.f. | ||
Related Party Transactions | ||
Number of annual payments | payment | 5 | |
Accounts receivable | ||
Accounts receivable | $ 13.3 | 12 |
Accounts receivable, current | 0.1 | 1.8 |
Accounts receivable, noncurrent | $ 13.2 | $ 10.2 |
INVESTMENTS IN JOINT VENTURES_5
INVESTMENTS IN JOINT VENTURES - Sales and Payments (Details) - Equity Method Investee - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Related Party Transactions | |||
Sales | $ 15.3 | $ 27.8 | $ 29.9 |
Payments | $ 5.2 | $ 8.6 | $ 10.9 |
INVESTMENTS IN JOINT VENTURES_6
INVESTMENTS IN JOINT VENTURES - Dividends (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Dividends from equity method investments | |||
Dividends from equity method investments | $ 18.8 | $ 29 | $ 45.7 |
INVESTMENTS IN JOINT VENTURES_7
INVESTMENTS IN JOINT VENTURES - Equity Method Investments - Accounts Receivable (Details) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
Equity Method Investee | ||
Due from related parties, current | ||
Accounts receivable, current | $ 6.3 | $ 7.1 |
INVESTMENTS IN JOINT VENTURES_8
INVESTMENTS IN JOINT VENTURES - Equity Method Investments - Summarized Financial Information - General Information (Details) | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Summarized combined financial information for equity method investments | |||
Summarized financial information of equity method investments, percentage of operations presented (as a percent) | 100.00% | 100.00% | 100.00% |
INVESTMENTS IN JOINT VENTURES_9
INVESTMENTS IN JOINT VENTURES - Equity Method Investments - Summarized Financial Information - Income Statement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Summarized combined financial information for equity method investments | |||
Gross profit | $ 832 | $ 895.2 | $ 1,003.5 |
Income from operations | 408.3 | 478.2 | 620.8 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||
Summarized combined financial information for equity method investments | |||
Net sales | 1,169.5 | 1,137.7 | 1,172.6 |
Gross profit | 196.5 | 145.8 | 212.2 |
Income from operations | $ 97.5 | $ 59.8 | $ 130.2 |
INVESTMENTS IN JOINT VENTURE_10
INVESTMENTS IN JOINT VENTURES - Equity Method Investments - Summarized Financial Information - Balance Sheet (Details) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
Summarized combined financial information for equity method investments | ||
Current assets | $ 1,781.7 | $ 2,302.6 |
Current liabilities | 618.2 | 1,024.9 |
Noncurrent liabilities | 3,110.6 | 3,397.4 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||
Summarized combined financial information for equity method investments | ||
Current assets | 516.1 | 413.8 |
Noncurrent assets | 627.6 | 455.1 |
Current liabilities | 366.3 | 298.8 |
Noncurrent liabilities | $ 147.3 | $ 79.8 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) lb in Millions, $ in Millions | Jul. 02, 2019USD ($)lb | Dec. 21, 2018USD ($)lb | May 30, 2021USD ($) | May 31, 2020USD ($) | May 26, 2019USD ($) |
Purchase price allocation | |||||
Goodwill | $ 334.5 | $ 303.8 | $ 205.9 | ||
Frozen Potato Processor in Australia, Acquired 2 July 2019 | |||||
Ownership interest acquired | |||||
Ownership interest acquired (as a percent) | 100.00% | ||||
Consideration transferred | |||||
Consideration transferred | $ 116.7 | ||||
Increase in production capacity | lb | 70 | ||||
Purchase price allocation | |||||
Goodwill | $ 106.1 | ||||
Goodwill deductible for tax purposes | 0 | ||||
Intangible assets | $ 3.7 | ||||
Weighted average life | 10 years | ||||
Frozen Potato Processor in Australia | |||||
Ownership interest acquired | |||||
Ownership interest acquired (as a percent) | 100.00% | ||||
Consideration transferred | |||||
Consideration transferred | $ 88.6 | ||||
Increase in production capacity | lb | 50 | ||||
Purchase price allocation | |||||
Goodwill | $ 75.1 | ||||
Goodwill deductible for tax purposes | 0 | ||||
Intangible assets | $ 4.4 | ||||
Weighted average life | 10 years |
GOODWILL AND OTHER IDENTIFIAB_3
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS - Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
May 30, 2021 | May 31, 2020 | |
Goodwill | ||
Balance at the beginning period | $ 303.8 | $ 205.9 |
Acquisition | 106.1 | |
Foreign currency translation adjustment | 30.7 | (8.2) |
Balance at the end of the period | 334.5 | 303.8 |
Global | ||
Goodwill | ||
Balance at the beginning period | 245.6 | 147.7 |
Acquisition | 106.1 | |
Foreign currency translation adjustment | 30.7 | (8.2) |
Balance at the end of the period | 276.3 | 245.6 |
Foodservice | ||
Goodwill | ||
Balance at the beginning period | 42.8 | 42.8 |
Balance at the end of the period | 42.8 | 42.8 |
Retail | ||
Goodwill | ||
Balance at the beginning period | 10.9 | 10.9 |
Balance at the end of the period | 10.9 | 10.9 |
Other | ||
Goodwill | ||
Balance at the beginning period | 4.5 | 4.5 |
Balance at the end of the period | $ 4.5 | $ 4.5 |
GOODWILL AND OTHER IDENTIFIAB_4
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS - Goodwill Acquired (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Jul. 31, 2019 | May 31, 2020 | |
Goodwill | ||
Acquisition | $ 106.1 | |
Global | ||
Goodwill | ||
Acquisition | $ 106.1 | |
Frozen Potato Processor in Australia | Global | ||
Goodwill | ||
Acquisition | $ 106.1 |
GOODWILL AND OTHER IDENTIFIAB_5
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS - Weighted Average Useful Life (Details) | 12 Months Ended | |
May 30, 2021 | May 31, 2020 | |
Weighted Average | ||
Amortizing Intangible Assets | ||
Weighted Average Useful Life, amortizing intangible assets (in years) | 11 years | 11 years |
GOODWILL AND OTHER IDENTIFIAB_6
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS - Amortizing Intangible Assets (Details) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
Amortizing Intangible Assets | ||
Amortizing intangible assets, gross | $ 42.2 | $ 42.4 |
Accumulated amortization | (23.3) | (22.1) |
Amortizing intangible assets, net | $ 18.9 | $ 20.3 |
GOODWILL AND OTHER IDENTIFIAB_7
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS - Other Identifiable Intangible Assets (Details) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
Other Identifiable Intangible Assets | ||
Non-amortizing intangible assets | $ 18 | $ 18 |
Amortizing intangible assets, net | 18.9 | 20.3 |
Other identifiable intangible assets, net | 36.9 | 38.3 |
Other identifiable intangible assets, gross | $ 60.2 | $ 60.4 |
GOODWILL AND OTHER IDENTIFIAB_8
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS - Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS | |||
Amortization expense | $ 5 | $ 2.5 | $ 2.2 |
GOODWILL AND OTHER IDENTIFIAB_9
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS - Estimated Intangible Assets Amortization Expense (Details) $ in Millions | May 30, 2021USD ($) |
Estimated intangible asset amortization expense | |
2022 | $ 2.7 |
2023 | 2.6 |
2024 | 2.1 |
2025 | 1.8 |
2026 | 1.8 |
Thereafter | $ 7.9 |
GOODWILL AND OTHER IDENTIFIA_10
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS - Impairment Testing (Details) $ in Millions | 12 Months Ended |
May 30, 2021USD ($) | |
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS | |
Goodwill impairment | $ 0 |
Non-amortizing intangible assets impairment | $ 0 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
ACCRUED LIABILITIES | ||
Compensation and benefits | $ 83.2 | $ 74.5 |
Accrued trade promotions | 39.9 | 42.5 |
Dividends payable to shareholders | 34.4 | 33.6 |
Current portion of operating lease obligations | 29.1 | 28.4 |
Franchise, property, and sales and use taxes | 11.3 | 9.4 |
Accrued interest | 7.9 | 8.7 |
Income taxes payable | 0.8 | 1.3 |
Other | 20.3 | 34.6 |
Accrued liabilities | $ 226.9 | $ 233 |
DEBT AND FINANCING OBLIGATION_2
DEBT AND FINANCING OBLIGATIONS - Tabular Disclosure - Components (Details) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 | May 12, 2020 | Nov. 30, 2016 |
Debt and Financing Obligations | ||||
Short-term borrowings | $ 498.7 | |||
Long-term debt | $ 2,752.6 | 3,056.3 | ||
Financing obligations | 7.3 | 13.3 | ||
Total debt and financing obligations | 2,759.9 | 3,568.3 | ||
4.625% Senior Notes, due November 2024 | Senior Notes | ||||
Debt and Financing Obligations | ||||
Long-term debt | $ 833 | $ 833 | ||
Interest rate (as a percent) | 4.625% | 4.625% | 4.625% | |
4.875% Senior Notes, due November 2026 | Senior Notes | ||||
Debt and Financing Obligations | ||||
Long-term debt | $ 833 | $ 833 | ||
Interest rate (as a percent) | 4.875% | 4.875% | 4.875% | |
4.875% senior notes, due May 2028 | Senior Notes | ||||
Debt and Financing Obligations | ||||
Long-term debt | $ 500 | $ 500 | ||
Interest rate (as a percent) | 4.875% | 4.875% | 4.875% | |
Revolving Credit Facility, November 2016 | Secured Debt | Revolving Credit Facility | ||||
Debt and Financing Obligations | ||||
Short-term borrowings | $ 0 | $ 495 | ||
Term Loan Facility, due November 2021 | Secured Debt | ||||
Debt and Financing Obligations | ||||
Long-term debt | 276.6 | |||
Term A-1 loan facility, due June 2024 | Secured Debt | ||||
Debt and Financing Obligations | ||||
Long-term debt | 273.8 | 288.7 | ||
Term A-2 loan facility, due April 2025 | Secured Debt | ||||
Debt and Financing Obligations | ||||
Long-term debt | 312.8 | 325 | ||
Other credit facilities | Line of Credit | ||||
Debt and Financing Obligations | ||||
Short-term borrowings | $ 0 | $ 3.7 | ||
Interest rate (as a percent) | 3.915% | 3.56% | ||
Lease financing obligations due on various dates through 2040 | ||||
Debt and Financing Obligations | ||||
Financing obligations | $ 7.3 | $ 13.3 | ||
Lease financing obligations due on various dates through 2040 | Minimum | ||||
Debt and Financing Obligations | ||||
Interest rate (as a percent) | 2.49% | 2.31% | ||
Lease financing obligations due on various dates through 2040 | Maximum | ||||
Debt and Financing Obligations | ||||
Interest rate (as a percent) | 4.10% | 4.10% |
DEBT AND FINANCING OBLIGATION_3
DEBT AND FINANCING OBLIGATIONS - Tabular Disclosure - Current and Noncurrent (Details) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
Debt and Financing Obligations | ||
Total debt and financing obligations | $ 2,759.9 | $ 3,568.3 |
Debt issuance costs | (22.5) | (28.2) |
Short-term borrowings | (498.7) | |
Current portion of long-term debt and financing obligations | (32) | (48.8) |
Long-term debt and financing obligations, excluding current portion | $ 2,705.4 | $ 2,992.6 |
DEBT AND FINANCING OBLIGATION_4
DEBT AND FINANCING OBLIGATIONS - General Information (Details) $ in Millions | Sep. 17, 2020USD ($) | May 12, 2020USD ($) | Apr. 20, 2020USD ($) | Jun. 28, 2019USD ($) | Jul. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Nov. 30, 2016USD ($) | May 30, 2021USD ($) | May 31, 2020USD ($) | May 26, 2019USD ($) |
Debt and Financing Obligations | |||||||||||
Amortization expense | $ 6.1 | $ 6.2 | $ 4.7 | ||||||||
Short-term borrowings | $ 498.7 | ||||||||||
Senior Notes, November 2016 | Senior Notes | |||||||||||
Debt and Financing Obligations | |||||||||||
Change of control, redemption price (as a percent) | 101.00% | ||||||||||
Senior Notes, November 2016 | Senior Notes | Prior to November 1, 2021 | |||||||||||
Debt and Financing Obligations | |||||||||||
Percentage of principal amount redeemed (as a percent) | 100.00% | ||||||||||
4.625% Senior Notes, due November 2024 | Senior Notes | |||||||||||
Debt and Financing Obligations | |||||||||||
Face amount | $ 833 | ||||||||||
Interest rate (as a percent) | 4.625% | 4.625% | 4.625% | ||||||||
Debt instrument, maturity date | Nov. 1, 2024 | ||||||||||
4.625% Senior Notes, due November 2024 | Senior Notes | On or after November 1, 2021 | |||||||||||
Debt and Financing Obligations | |||||||||||
Redemption prices (as a percent) | 102.313% | ||||||||||
4.875% Senior Notes, due November 2026 | Senior Notes | |||||||||||
Debt and Financing Obligations | |||||||||||
Face amount | $ 833 | ||||||||||
Interest rate (as a percent) | 4.875% | 4.875% | 4.875% | ||||||||
Debt instrument, maturity date | Nov. 1, 2026 | ||||||||||
4.875% Senior Notes, due November 2026 | Senior Notes | On or after November 1, 2021 | |||||||||||
Debt and Financing Obligations | |||||||||||
Redemption prices (as a percent) | 102.438% | ||||||||||
Credit Facilities, November 2016 | |||||||||||
Debt and Financing Obligations | |||||||||||
Net leverage ratio | 5 | ||||||||||
Net leverage ratio, February 26, 2022 to maturity | 4.50 | ||||||||||
Interest coverage ratio | 2.75 | ||||||||||
Revolving Credit Facility, November 2016 | Secured Debt | Revolving Credit Facility | |||||||||||
Debt and Financing Obligations | |||||||||||
Face amount | $ 750 | ||||||||||
Available amount | $ 744.6 | ||||||||||
Repayment of debt | $ 395 | $ 100 | |||||||||
Borrowings from revolving credit facility | $ 495 | ||||||||||
Debt instrument, maturity date | Sep. 17, 2023 | ||||||||||
Capitalized for debt issuance costs | $ 2.4 | ||||||||||
Write off of deferred debt issuance cost | 1 | ||||||||||
Short-term borrowings | 0 | $ 495 | |||||||||
Letter of credit outstanding | 5.4 | ||||||||||
Minimum borrowings during the period | 0 | ||||||||||
Maximum borrowings during the period | $ 495 | ||||||||||
Debt instrument, covenant, new borrowings, threshold | $ 600 | ||||||||||
Debt instrument, covenant, new borrowings, percentage of consolidated EBITDA | 75.00% | ||||||||||
Revolving Credit Facility, November 2016 | Secured Debt | Revolving Credit Facility | Minimum | |||||||||||
Debt and Financing Obligations | |||||||||||
Commitment fee for undrawn amount (as a percent) | 0.20% | ||||||||||
Revolving Credit Facility, November 2016 | Secured Debt | Revolving Credit Facility | Minimum | LIBOR | |||||||||||
Debt and Financing Obligations | |||||||||||
Variable interest rate spread (as a percent) | 1.25% | ||||||||||
Revolving Credit Facility, November 2016 | Secured Debt | Revolving Credit Facility | Minimum | Base Rate | |||||||||||
Debt and Financing Obligations | |||||||||||
Variable interest rate spread (as a percent) | 0.25% | ||||||||||
Revolving Credit Facility, November 2016 | Secured Debt | Revolving Credit Facility | Maximum | |||||||||||
Debt and Financing Obligations | |||||||||||
Commitment fee for undrawn amount (as a percent) | 0.40% | ||||||||||
Revolving Credit Facility, November 2016 | Secured Debt | Revolving Credit Facility | Maximum | LIBOR | |||||||||||
Debt and Financing Obligations | |||||||||||
Variable interest rate spread (as a percent) | 2.25% | ||||||||||
Revolving Credit Facility, November 2016 | Secured Debt | Revolving Credit Facility | Maximum | Base Rate | |||||||||||
Debt and Financing Obligations | |||||||||||
Variable interest rate spread (as a percent) | 1.25% | ||||||||||
Revolving Credit Facility, November 2016 | Secured Debt | Revolving Credit Facility | Weighted Average | |||||||||||
Debt and Financing Obligations | |||||||||||
Average interest rate (as a percent) | 1.68% | 2.35% | |||||||||
Term Loan Facility, due November 2021 | Secured Debt | |||||||||||
Debt and Financing Obligations | |||||||||||
Face amount | $ 300 | ||||||||||
Write off of deferred debt issuance cost | $ 1 | $ 1.7 | |||||||||
Repayments of secured debt | $ 271.9 | ||||||||||
4.875% senior notes, due May 2028 | Senior Notes | |||||||||||
Debt and Financing Obligations | |||||||||||
Face amount | $ 500 | ||||||||||
Interest rate (as a percent) | 4.875% | 4.875% | 4.875% | ||||||||
Debt instrument, maturity date | May 15, 2028 | ||||||||||
Capitalized for debt issuance costs | $ 6.2 | ||||||||||
Change of control, redemption price (as a percent) | 101.00% | ||||||||||
4.875% senior notes, due May 2028 | Senior Notes | On or prior to November 15, 2027 | |||||||||||
Debt and Financing Obligations | |||||||||||
Percentage of principal amount redeemed (as a percent) | 100.00% | ||||||||||
4.875% senior notes, due May 2028 | Senior Notes | On or after November 15, 2027 | |||||||||||
Debt and Financing Obligations | |||||||||||
Redemption prices (as a percent) | 100.00% | ||||||||||
Term A-1 loan facility, due June 2024 | Secured Debt | |||||||||||
Debt and Financing Obligations | |||||||||||
Face amount | $ 300 | ||||||||||
Increased amount in borrowing capacity | $ 100 | ||||||||||
Periodic amortization rate (as a percent) | 5.00% | ||||||||||
Average interest rate of term loan facility (as a percent) | 1.77% | 3.33% | |||||||||
Effective average interest rate of term loan facility (as a percent) | 0.95% | 2.52% | |||||||||
Net leverage ratio | 4.50 | ||||||||||
Interest coverage ratio | 2.75 | ||||||||||
Term A-1 loan facility, due June 2024 | Secured Debt | Minimum | LIBOR | |||||||||||
Debt and Financing Obligations | |||||||||||
Variable interest rate spread (as a percent) | 1.625% | ||||||||||
Term A-1 loan facility, due June 2024 | Secured Debt | Minimum | Base Rate | |||||||||||
Debt and Financing Obligations | |||||||||||
Variable interest rate spread (as a percent) | 0.625% | ||||||||||
Term A-1 loan facility, due June 2024 | Secured Debt | Maximum | LIBOR | |||||||||||
Debt and Financing Obligations | |||||||||||
Variable interest rate spread (as a percent) | 2.375% | ||||||||||
Term A-1 loan facility, due June 2024 | Secured Debt | Maximum | Base Rate | |||||||||||
Debt and Financing Obligations | |||||||||||
Variable interest rate spread (as a percent) | 1.375% | ||||||||||
Term A-2 loan facility, due April 2025 | Secured Debt | |||||||||||
Debt and Financing Obligations | |||||||||||
Face amount | $ 325 | ||||||||||
Average interest rate of term loan facility (as a percent) | 2.34% | 2.85% | |||||||||
Effective average interest rate of term loan facility (as a percent) | 1.53% | 2.03% | |||||||||
Net leverage ratio | 4.50 | ||||||||||
Interest coverage ratio | 2.75 | ||||||||||
Debt instrument, amortization (as a percent) | 5.00% | ||||||||||
Term A-2 loan facility, due April 2025 | Secured Debt | Minimum | LIBOR | |||||||||||
Debt and Financing Obligations | |||||||||||
Variable interest rate spread (as a percent) | 2.20% | ||||||||||
Term A-2 loan facility, due April 2025 | Secured Debt | Minimum | Base Rate | |||||||||||
Debt and Financing Obligations | |||||||||||
Variable interest rate spread (as a percent) | 1.20% | ||||||||||
Term A-2 loan facility, due April 2025 | Secured Debt | Maximum | LIBOR | |||||||||||
Debt and Financing Obligations | |||||||||||
Variable interest rate spread (as a percent) | 2.95% | ||||||||||
Term A-2 loan facility, due April 2025 | Secured Debt | Maximum | Base Rate | |||||||||||
Debt and Financing Obligations | |||||||||||
Variable interest rate spread (as a percent) | 1.95% |
DEBT AND FINANCING OBLIGATION_5
DEBT AND FINANCING OBLIGATIONS - Aggregate Minimum Principal Maturities - Tabular Disclosure (Details) $ in Millions | May 30, 2021USD ($) |
Debt | |
2022 | $ 31.3 |
2023 | 31.3 |
2024 | 31.3 |
2025 | 1,325.7 |
Thereafter | 1,333 |
Total | $ 2,752.6 |
DEBT AND FINANCING OBLIGATION_6
DEBT AND FINANCING OBLIGATIONS - Interest Paid (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Debt and Financing Obligations | |||
Interest paid | $ 120.6 | $ 105.7 | $ 107.8 |
DEBT AND FINANCING OBLIGATION_7
DEBT AND FINANCING OBLIGATIONS - Other Credit Facilities (Details) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 498.7 | |
Line of Credit | Other credit facilities | ||
Short-term Debt [Line Items] | ||
Available amount | $ 56.5 | 30.8 |
Short-term borrowings | $ 0 | $ 3.7 |
Interest rate (as a percent) | 3.915% | 3.56% |
LEASES - Lease Term (Details)
LEASES - Lease Term (Details) | May 30, 2021 |
Minimum | |
Operating leases | |
Lessee, Operating Lease, Remaining Lease Term | 1 year |
Finance leases | |
Lessee, Finance Lease, Remaining Lease Term | 1 year |
Maximum | |
Operating leases | |
Lessee, Operating Lease, Remaining Lease Term | 19 years |
Finance leases | |
Lessee, Finance Lease, Remaining Lease Term | 19 years |
LEASES - Lease Costs (Details)
LEASES - Lease Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Lease expense | |||
Operating lease costs | $ 33.2 | $ 29.7 | |
Short-term and variable lease costs | 9 | 5.8 | |
Sublease income | (3.4) | (2.7) | |
Amortization of lease assets | 1.9 | 3.2 | |
Interest on lease liabilities | 0.3 | 0.6 | |
Total lease costs, net | $ 41 | $ 36.6 | $ 24.3 |
LEASES - Assets and Liabilities
LEASES - Assets and Liabilities (Details) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
Assets and liabilities | ||
Operating lease assets | $ 141.7 | $ 167 |
Finance lease assets | $ 5.4 | $ 11.3 |
Finance lease assets, consolidated balance sheet | Property, plant and equipment, net | Property, plant and equipment, net |
Total leased assets | $ 147.1 | $ 178.3 |
Operating lease obligations, current | $ 29.1 | $ 28.4 |
Operating lease obligations, current, consolidated balance sheet | Accrued liabilities | Accrued liabilities |
Operating lease obligations, noncurrent | $ 120.3 | $ 144.6 |
Operating lease obligations, noncurrent, consolidated balance sheet | Other noncurrent liabilities | Other noncurrent liabilities |
Finance lease obligations, current | $ 0.7 | $ 2.8 |
Finance lease obligations, current, consolidated balance sheet | Current portion of long-term debt and financing obligations | Current portion of long-term debt and financing obligations |
Finance lease obligations, noncurrent | $ 6.6 | $ 10.5 |
Finance lease obligations, noncurrent, consolidated balance sheet | Long-term debt and financing obligations, excluding current portion | Long-term debt and financing obligations, excluding current portion |
Total lease liability | $ 156.7 | $ 186.3 |
LEASES - Accumulated Amortizati
LEASES - Accumulated Amortization (Details) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
Finance leases | ||
Finance lease, right-of-use asset, accumulated amortization | $ 4.7 | $ 12.2 |
LEASES - Modified Finance Lease
LEASES - Modified Finance Leases (Details) $ in Millions | 12 Months Ended |
May 30, 2021USD ($) | |
Finance leases | |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization, Lease Modification, Increase (Decrease) | $ (4.3) |
Finance leases | |
Finance Lease, Liability, Lease Modification, Increase (Decrease) | $ (4.3) |
LEASES - Operating Leases - Mat
LEASES - Operating Leases - Maturities of Lease Liabilities (Details) $ in Millions | May 30, 2021USD ($) |
Operating Leases | |
2022 | $ 31.7 |
2023 | 21.8 |
2024 | 20.7 |
2025 | 18.6 |
2026 | 15.2 |
Thereafter | 62.7 |
Total lease payments | $ 170.7 |
LEASES - Operating Leases - Dis
LEASES - Operating Leases - Discount to Present Value (Details) $ in Millions | May 30, 2021USD ($) |
Operating leases | |
Total lease payments | $ 170.7 |
Less: Interest | (21.3) |
Present value of lease obligations | $ 149.4 |
LEASES - Finance Leases - Matur
LEASES - Finance Leases - Maturities of Lease Liabilities (Details) $ in Millions | May 30, 2021USD ($) |
Finance leases | |
2022 | $ 0.9 |
2023 | 1 |
2024 | 1 |
2025 | 0.9 |
2026 | 0.8 |
Thereafter | 4.5 |
Total lease payments | $ 9.1 |
LEASES - Finance Leases - Disco
LEASES - Finance Leases - Discount to Present Value (Details) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
Finance leases | ||
Total lease payments | $ 9.1 | |
Less: Interest | (1.8) | |
Present value of lease obligations | $ 7.3 | $ 13.3 |
LEASES - Weighted-average Remai
LEASES - Weighted-average Remaining Lease Term and Discount Rate (Details) | May 30, 2021 |
LEASES | |
Weighted-average remaining lease term (years), operating leases | 7 years 10 months 24 days |
Weighted-average discount rate, operating leases (as a percent) | 3.40% |
Weighted-average remaining lease term (years), finance leases | 13 years 10 months 24 days |
Weighted-average discount rate, finance leases (as a percent) | 3.20% |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
May 30, 2021 | May 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Cash used for operating activities | $ 30.9 | $ 26.8 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Cash used for financing activities | 1.7 | 2.6 |
Noncash investing and financing activities: | ||
Asset obtained in exchange for new operating lease obligations | $ 5.2 | 41.4 |
Assets obtained in exchange for new finance lease obligations | $ 2.2 |
EMPLOYEE BENEFIT PLANS AND OT_3
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS - Other Plans - Defined Contribution Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS | |||
Matching percentage (as a percent) | 100.00% | ||
Employee's contribution election (as a percent) | 6.00% | ||
Employee compensation (as a percent) | 3.00% | ||
Plan matching contribution, vesting period | 5 years | ||
Plan matching contribution, vesting percentage (as a percent) | 20.00% | ||
Plan matching contribution | $ 28.8 | $ 28.7 | $ 21.3 |
EMPLOYEE BENEFIT PLANS AND OT_4
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS - Other Plans - Deferred Compensation Savings Plan (Details) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS | ||
Liabilities under deferred compensation plan | $ 23.5 | $ 18 |
EMPLOYEE BENEFIT PLANS AND OT_5
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS - Change in Benefit Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Pension Plans | |||
Change in Benefit Obligation | |||
Benefit obligation at beginning of year | $ 37.3 | $ 27.4 | |
Service cost | 3 | 3.1 | $ 6 |
Interest cost | 1.2 | 1.1 | 0.8 |
Benefits paid | (0.5) | (0.3) | |
Plan settlements | (0.4) | ||
Actuarial (gain) loss | 0.5 | 6.4 | |
Benefit obligation at fiscal year-end | 41.5 | 37.3 | 27.4 |
Accumulated benefit obligation portion of above | 41.5 | 37.3 | |
Post-Retirement Plan | |||
Change in Benefit Obligation | |||
Benefit obligation at beginning of year | 6.5 | 7.3 | |
Interest cost | 0.1 | 0.2 | 0.3 |
Participant contributions | 0.3 | 0.2 | |
Benefits paid | (0.2) | (0.3) | |
Actuarial (gain) loss | (0.2) | (0.9) | |
Benefit obligation at fiscal year-end | $ 6.5 | $ 6.5 | $ 7.3 |
EMPLOYEE BENEFIT PLANS AND OT_6
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS - Changes in Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
May 30, 2021 | May 31, 2020 | |
Pension Plans | ||
Change in Plan Assets | ||
Fair value of plan assets at beginning of year | $ 27.2 | $ 17.1 |
Actual return on plan assets | (2) | 6.6 |
Company contributions | 3.4 | 3.8 |
Benefits paid | (0.5) | (0.3) |
Fair value of plan assets at end of year | 28.1 | 27.2 |
Post-Retirement Plan | ||
Change in Plan Assets | ||
Company contributions | 0.1 | |
Participants contributions | 0.3 | 0.2 |
Benefits paid | (0.2) | $ (0.3) |
Other | $ (0.1) |
EMPLOYEE BENEFIT PLANS AND OT_7
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS - Underfunded Status (Details) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
Pension Plans | ||
Funded Status | ||
Underfunded status | $ (13.4) | $ (10.1) |
Post-Retirement Plan | ||
Funded Status | ||
Underfunded status | $ (6.5) | $ (6.5) |
EMPLOYEE BENEFIT PLANS AND OT_8
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS - Condensed Combined and Consolidated Balance Sheets (Details) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
Pension Plans | ||
Amounts Recognized on Consolidated Balance Sheets | ||
Other noncurrent liabilities | $ (13.4) | $ (10.1) |
Accrued obligation recognized | (13.4) | (10.1) |
Amounts Recognized in Accumulated Other Comprehensive Income Loss (Pre-tax) | ||
Actuarial loss | 7.7 | 4.4 |
Total | 7.7 | 4.4 |
Post-Retirement Plan | ||
Amounts Recognized on Consolidated Balance Sheets | ||
Accrued liabilities | (0.3) | (0.2) |
Other noncurrent liabilities | (6.2) | (6.3) |
Accrued obligation recognized | (6.5) | (6.5) |
Amounts Recognized in Accumulated Other Comprehensive Income Loss (Pre-tax) | ||
Actuarial loss | 0.7 | 1.1 |
Total | $ 0.7 | $ 1.1 |
EMPLOYEE BENEFIT PLANS AND OT_9
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS - Payment from Pension Plan Assets (Details) $ in Millions | 12 Months Ended |
May 31, 2020USD ($) | |
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS | |
Payment for settlement from Rabbi trust plan assets | $ 0.4 |
EMPLOYEE BENEFIT PLANS AND O_10
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Pension Plans | |||
Components of net periodic benefit cost for our pension and postretirement benefit plans | |||
Service cost | $ 3 | $ 3.1 | $ 6 |
Interest cost | 1.2 | 1.1 | 0.8 |
Expected return on plan assets | (0.8) | (0.9) | (0.9) |
Actuarial loss | 0.1 | 0.2 | |
Net periodic benefit cost | 3.5 | 3.5 | 5.9 |
Post-Retirement Plan | |||
Components of net periodic benefit cost for our pension and postretirement benefit plans | |||
Interest cost | 0.1 | 0.2 | 0.3 |
Actuarial loss | 0.2 | 0.6 | 0.7 |
Net periodic benefit cost | $ 0.3 | $ 0.8 | $ 1 |
EMPLOYEE BENEFIT PLANS AND O_11
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS - Changes in Plan Assets and Benefit Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Pension Plans | |||
Components of other comprehensive income (loss) | |||
Actuarial (gain) loss | $ 3.4 | $ 0.6 | $ 3.3 |
Amortization of actuarial gain (loss) | (0.1) | (0.2) | |
Total recognized in other comprehensive loss (income) | 3.3 | 0.4 | 3.3 |
Post-Retirement Plan | |||
Components of other comprehensive income (loss) | |||
Actuarial (gain) loss | (0.2) | (1) | |
Amortization of actuarial gain (loss) | (0.2) | (0.6) | (0.7) |
Total recognized in other comprehensive loss (income) | $ (0.4) | $ (1.6) | $ (0.7) |
EMPLOYEE BENEFIT PLANS AND O_12
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS - Components of Net Periodic Benefit Cost and Other Comprehensive (Income) Loss - Tabular Disclosure (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Pension Plans | |||
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS | |||
Net periodic benefit cost | $ 3.5 | $ 3.5 | $ 5.9 |
Total recognized in other comprehensive loss (income) | 3.3 | 0.4 | 3.3 |
Total recognized in net periodic benefit cost and other comprehensive loss (income) (pre-tax) | 6.8 | 3.9 | 9.2 |
Post-Retirement Plan | |||
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS | |||
Net periodic benefit cost | 0.3 | 0.8 | 1 |
Total recognized in other comprehensive loss (income) | (0.4) | (1.6) | (0.7) |
Total recognized in net periodic benefit cost and other comprehensive loss (income) (pre-tax) | $ (0.1) | $ (0.8) | $ 0.3 |
EMPLOYEE BENEFIT PLANS AND O_13
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS - Components of Net Periodic Benefit Cost and Other Comprehensive (Income) Loss - Additional Information (Details) | 12 Months Ended |
May 30, 2021 | |
Pension Plans | Minimum | |
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS | |
Average remaining service period | 7 years |
Pension Plans | Maximum | |
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS | |
Average remaining service period | 10 years |
Post-Retirement Plan | |
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS | |
Average remaining service period | 2 years |
EMPLOYEE BENEFIT PLANS AND O_14
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS - Actuarial Assumptions (Details) | 12 Months Ended | |||
May 29, 2022 | May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Pension Plans | ||||
Weighted-Average Assumptions Used to Determine Benefit Obligations: | ||||
Discount rate (as percent) | 3.11% | 3.14% | 4.01% | |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost: | ||||
Discount rate (as percent) | 3.14% | 4.01% | 4.25% | |
Long-term rate of return on plan assets (as percent) | 2.90% | 5.12% | 5.30% | |
Pension Plans | Forecast | ||||
Weighted-Average Assumptions Used to Determine Benefit Obligations: | ||||
Discount rate (as percent) | 3.11% | |||
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost: | ||||
Long-term rate of return on plan assets (as percent) | 4.00% | |||
Post-Retirement Plan | ||||
Weighted-Average Assumptions Used to Determine Benefit Obligations: | ||||
Discount rate (as percent) | 2.82% | 2.85% | 3.81% | |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost: | ||||
Discount rate (as percent) | 2.85% | 3.81% | 4.18% | |
Post-Retirement Plan | Forecast | ||||
Weighted-Average Assumptions Used to Determine Benefit Obligations: | ||||
Discount rate (as percent) | 2.82% |
EMPLOYEE BENEFIT PLANS AND O_15
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS - Health Care Cost Trend Rate Assumptions (Details) | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Health Care Cost Trend Rate Assumptions | |||
Health care cost trend rate assumed for next year (as a percent) | 6.19% | 6.75% | 7.31% |
Ultimate health care cost trend rate (as a percent) | 4.50% | 4.50% | 4.50% |
Year that the rate reaches the ultimate trend rate | 2024 | 2024 | 2024 |
EMPLOYEE BENEFIT PLANS AND O_16
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS - Fair Value Measurements of Plan Assets - Investment Policy (Details) - Pension Plans | May 30, 2021 |
Equity securities | |
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS | |
Target investment allocation (as a percent) | 30.00% |
Debt securities | |
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS | |
Target investment allocation (as a percent) | 70.00% |
EMPLOYEE BENEFIT PLANS AND O_17
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS - Fair Value Measurements of Plan Assets - Tabular Disclosure (Details) - Pension Plans - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 | May 26, 2019 |
Pension plan assets | |||
Pension plan assets | $ 28.1 | $ 27.2 | $ 17.1 |
Level 1 | |||
Pension plan assets | |||
Pension plan assets | 19.7 | 19.2 | |
Level 2 | |||
Pension plan assets | |||
Pension plan assets | 8.4 | 8 | |
Cash and cash equivalents | |||
Pension plan assets | |||
Pension plan assets | 0.4 | ||
Cash and cash equivalents | Level 1 | |||
Pension plan assets | |||
Pension plan assets | 0.4 | ||
U.S. equity securities | |||
Pension plan assets | |||
Pension plan assets | 4.7 | 4.1 | |
U.S. equity securities | Level 2 | |||
Pension plan assets | |||
Pension plan assets | 4.7 | 4.1 | |
International equity securities | |||
Pension plan assets | |||
Pension plan assets | 3.7 | 3.9 | |
International equity securities | Level 2 | |||
Pension plan assets | |||
Pension plan assets | 3.7 | 3.9 | |
US treasury securities | |||
Pension plan assets | |||
Pension plan assets | 19.3 | 19.2 | |
US treasury securities | Level 1 | |||
Pension plan assets | |||
Pension plan assets | $ 19.3 | $ 19.2 |
EMPLOYEE BENEFIT PLANS AND O_18
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS - Fair Value Measurements of Plan Assets - Redeemable Notice (Details) | 12 Months Ended |
May 30, 2021 | |
Pension Plans | Equity securities | |
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS | |
Redeemable notice period for certain funds | 30 days |
EMPLOYEE BENEFIT PLANS AND O_19
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS - Funding and Cash Flows - Contributions (Details) - Qualified Plan $ in Millions | 12 Months Ended |
May 30, 2021USD ($) | |
Contributions | |
Employer contributions | $ 3.4 |
Employer contributions, fiscal year 2022 | $ 2 |
Defined benefit plan, type | Pension Plans |
EMPLOYEE BENEFIT PLANS AND O_20
EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS - Funding and Cash Flows - Estimated Benefit Payments (Details) $ in Millions | May 30, 2021USD ($) |
Pension Plans | |
Estimated benefit payments | |
2022 | $ 0.5 |
2023 | 0.7 |
2024 | 0.9 |
2025 | 1 |
2026 | 1.2 |
2027-2031 | 8.7 |
Post-Retirement Plan | |
Estimated benefit payments | |
2022 | 0.2 |
2023 | 0.3 |
2024 | 0.3 |
2025 | 0.4 |
2026 | 0.4 |
2027-2031 | $ 2.1 |
STOCK-BASED COMPENSATION - Gene
STOCK-BASED COMPENSATION - General Information (Details) shares in Millions | May 30, 2021shares |
STOCK-BASED COMPENSATION | |
Available for future grant (in shares) | 7.4 |
Shares authorized under our equity incentive plans (in shares) | 10 |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Stock Unit and Performance-based Restricted Stock Unit - General Information (Details) | 12 Months Ended |
May 30, 2021 | |
Stock-based Compensation | |
Performance period | 3 years |
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Employee | |
Stock-based Compensation | |
Vesting period | 3 years |
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Nonemployee | |
Stock-based Compensation | |
Vesting period | 1 year |
Performance shares | |
Stock-based Compensation | |
Awards earned rate, low end of range (as a percent) | 0.00% |
Awards earned rate, high end of range (as a percent) | 200.00% |
STOCK-BASED COMPENSATION - Re_2
STOCK-BASED COMPENSATION - Restricted Stock Unit and Performance-based Restricted Stock Unit - Activity (Details) | 12 Months Ended |
May 30, 2021$ / sharesshares | |
Restricted Stock Units (RSUs) | |
Shares | |
Outstanding at beginning of the period (in shares) | shares | 662,205 |
Granted (in shares) | shares | 298,040 |
Vested (in shares) | shares | (253,912) |
Forfeited/expired/cancelled (in shares) | shares | (31,031) |
Outstanding at end of the period (in shares) | shares | 675,302 |
Weighted-Average Grant-Date Fair Value | |
Outstanding at beginning of the period (in dollars per share) | $ / shares | $ 60.28 |
Granted (in dollars per share) | $ / shares | 62.61 |
Vested (in dollars per share) | $ / shares | 46.42 |
Forfeited/expired/cancelled (in dollars per share) | $ / shares | 64.32 |
Outstanding at end of the period (in dollars per share) | $ / shares | $ 66.34 |
Performance shares | |
Shares | |
Outstanding at beginning of the period (in shares) | shares | 444,457 |
Granted (in shares) | shares | 107,451 |
Vested (in shares) | shares | (198,436) |
Forfeited/expired/cancelled (in shares) | shares | (18,027) |
Outstanding at end of the period (in shares) | shares | 335,445 |
Weighted-Average Grant-Date Fair Value | |
Outstanding at beginning of the period (in dollars per share) | $ / shares | $ 57.96 |
Granted (in dollars per share) | $ / shares | 63.93 |
Vested (in dollars per share) | $ / shares | 44.83 |
Forfeited/expired/cancelled (in dollars per share) | $ / shares | 69.37 |
Outstanding at end of the period (in dollars per share) | $ / shares | $ 67.02 |
STOCK-BASED COMPENSATION - Re_3
STOCK-BASED COMPENSATION - Restricted Stock Unit and Performance-based Restricted Stock Unit - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Stock-based Compensation | |||
Aggregate fair value of awards vested | $ 29.3 | $ 24.9 | $ 24.7 |
STOCK-BASED COMPENSATION - Comp
STOCK-BASED COMPENSATION - Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Compensation expense | |||
Total compensation expense | $ 20.6 | $ 23.8 | $ 22.1 |
Income tax benefit | (3.7) | (4.6) | (4.4) |
Total compensation expense, net of tax benefit | $ 16.9 | $ 19.2 | $ 17.7 |
STOCK-BASED COMPENSATION - Unre
STOCK-BASED COMPENSATION - Unrecognized Compensation Expense (Details) $ in Millions | 12 Months Ended |
May 30, 2021USD ($) | |
Unrecognized compensation expense, net of estimated forfeitures | |
Unrecognized compensation expense | $ 26.8 |
Remaining weighted average recognition period | 1 year 9 months 18 days |
Restricted Stock Units (RSUs) | |
Unrecognized compensation expense, net of estimated forfeitures | |
Unrecognized compensation expense | $ 18 |
Remaining weighted average recognition period | 1 year 9 months 18 days |
Performance shares | |
Unrecognized compensation expense, net of estimated forfeitures | |
Unrecognized compensation expense | $ 8.8 |
Remaining weighted average recognition period | 1 year 7 months 6 days |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value Hierarchy (Details) - USD ($) $ in Millions | May 30, 2021 | May 31, 2020 |
Liabilities: | ||
Deferred compensation liabilities | $ 23.5 | $ 18 |
Recurring | ||
Assets: | ||
Pension plan assets | 28.1 | 27.2 |
Deferred compensation assets | 0.1 | |
Derivative assets | 15.3 | |
Total assets | 43.4 | 27.3 |
Liabilities: | ||
Derivative liabilities | 4.7 | |
Deferred compensation liabilities | 23.5 | 18 |
Total liabilities | 23.5 | 22.7 |
Recurring | Level 1 | ||
Assets: | ||
Pension plan assets | 19.7 | 19.2 |
Deferred compensation assets | 0.1 | |
Total assets | 19.7 | 19.3 |
Recurring | Level 2 | ||
Assets: | ||
Pension plan assets | 8.4 | 8 |
Derivative assets | 15.3 | |
Total assets | 23.7 | 8 |
Liabilities: | ||
Derivative liabilities | 4.7 | |
Deferred compensation liabilities | 23.5 | 18 |
Total liabilities | $ 23.5 | $ 22.7 |
FAIR VALUE MEASUREMENTS - Debt
FAIR VALUE MEASUREMENTS - Debt Outstanding (Details) $ in Millions | May 30, 2021USD ($) |
Carrying Value | Fixed rate debt | |
Fair Value Measurements | |
Debt | $ 2,166 |
Carrying Value | Variable rate debt | |
Fair Value Measurements | |
Debt | 586.6 |
Level 2 | Fair Value | Fixed rate debt | |
Fair Value Measurements | |
Debt | $ 2,277.7 |
STOCKHOLDERS' EQUITY - Common a
STOCKHOLDERS' EQUITY - Common and Preferred Stock (Details) | May 30, 2021Voteshares | May 31, 2020shares |
STOCKHOLDERS' EQUITY | ||
Common stock, authorized shares (in shares) | 600,000,000 | 600,000,000 |
Preferred stock, authorized shares | 60,000,000 | 60,000,000 |
Common stock, outstanding shares | 146,191,864 | |
Number of votes that each share holder is entitled | Vote | 1 | |
Preferred stock, issued shares | 0 | |
Preferred stock, outstanding shares | 0 |
STOCKHOLDERS' EQUITY - Share Re
STOCKHOLDERS' EQUITY - Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
May 30, 2021 | Dec. 20, 2018 | |
Share Repurchase Program | ||
Authorization to repurchase common stock not to exceed | $ 250 | |
Number of shares repurchased (in shares) | 328,918 | |
Treasury stock value | $ 25.7 | |
Remaining amount authorized of share repurchase program | $ 169.6 | |
Weighted Average | ||
Share Repurchase Program | ||
Shares purchased, weighted-average price (in dollars per share) | $ 78.19 |
STOCKHOLDERS' EQUITY - Dividend
STOCKHOLDERS' EQUITY - Dividends Paid (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Dividends | |||
Dividends paid | $ 135.3 | $ 121.3 | $ 113.3 |
STOCKHOLDERS' EQUITY - Divide_2
STOCKHOLDERS' EQUITY - Dividends Declared (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||
Aug. 29, 2021 | May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Dividends | ||||
Dividends declared (in dollars per share) | $ 0.235 | $ 0.9300 | $ 0.8600 | $ 0.7825 |
Dividends declared per common share, declared date | Jul. 22, 2021 | |||
Dividends declared per common share, payable date | Sep. 3, 2021 | |||
Dividends declared per common share, record date | Aug. 6, 2021 |
STOCKHOLDERS' EQUITY - Changes
STOCKHOLDERS' EQUITY - Changes in AOCI (Details) $ in Millions | 12 Months Ended |
May 30, 2021USD ($) | |
Changes in AOCI: | |
Balance at the beginning of the period | $ 240 |
Balance at the end of the period | 480.6 |
Accumulated Other Comprehensive Income (Loss) | |
Changes in AOCI: | |
Balance at the beginning of the period | (40.5) |
Other comprehensive income before reclassifications, net of tax | 69.8 |
Amounts reclassified out of AOCI, net of tax | 0.2 |
Net current-period other comprehensive income (loss) | 70 |
Balance at the end of the period | 29.5 |
Foreign Currency Translation Gains (Losses) | |
Changes in AOCI: | |
Balance at the beginning of the period | (36.3) |
Other comprehensive income before reclassifications, net of tax | 72.3 |
Net current-period other comprehensive income (loss) | 72.3 |
Balance at the end of the period | 36 |
Pension and Post-Retirement Benefits | |
Changes in AOCI: | |
Balance at the beginning of the period | (4.2) |
Other comprehensive income before reclassifications, net of tax | (2.5) |
Amounts reclassified out of AOCI, net of tax | 0.2 |
Net current-period other comprehensive income (loss) | (2.3) |
Balance at the end of the period | $ (6.5) |
SEGMENTS - General Information
SEGMENTS - General Information (Details) - segment | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Segments | |||
Number of operating segments | 4 | 4 | 4 |
Number of reportable segments | 4 | 4 | 4 |
SEGMENTS - Tabular Disclosure (
SEGMENTS - Tabular Disclosure (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Segment information | |||
Net sales | $ 3,670.9 | $ 3,792.4 | $ 3,756.5 |
Product contribution margin | 814.2 | 872.2 | 971.1 |
Advertising and promotion expenses | 17.8 | 23 | 32.4 |
Gross profit | 832 | 895.2 | 1,003.5 |
Selling, general and administrative expenses | 357.2 | 338.3 | 335.1 |
Income from operations | 474.8 | 556.9 | 668.4 |
Interest expense, net | 118.3 | 108 | 107.1 |
Income tax expense | 90.5 | 112.3 | 133.6 |
Equity method investment earnings | 51.8 | 29.3 | 59.5 |
Net income | 317.8 | 365.9 | 487.2 |
Less: Income attributable to noncontrolling interests | 8.6 | ||
Net income attributable to Lamb Weston Holdings, Inc. | 317.8 | 365.9 | 478.6 |
Global | |||
Segment information | |||
Net sales | 1,911.5 | 1,973.6 | 1,961.5 |
Product contribution margin | 306.2 | 374.5 | 446.3 |
Foodservice | |||
Segment information | |||
Net sales | 1,017.3 | 1,069.1 | 1,156.1 |
Product contribution margin | 340 | 356 | 402.4 |
Retail | |||
Segment information | |||
Net sales | 603.4 | 595.5 | 498.3 |
Product contribution margin | 120.2 | 117.6 | 98.8 |
Other | |||
Segment information | |||
Net sales | 138.7 | 154.2 | 140.6 |
Product contribution margin | $ 47.8 | $ 24.1 | $ 23.6 |
SEGMENTS - Tax Act (Details)
SEGMENTS - Tax Act (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
May 26, 2019USD ($)$ / shares | |
SEGMENTS | |
Expense (benefit) from impact of remeasuring net US corporate tax rate | $ | $ (27.2) |
Per share change from impact of remeasuring net US corporate tax rate (in dollars per share) | $ / shares | $ 0.19 |
Benefit related to change in tax rate | $ | $ 24.8 |
Per share change related to change in tax rate (in dollars per share) | $ / shares | $ 0.17 |
Benefit relating to lower U.S. corporate tax rate | $ | $ 2.4 |
Per share change from benefit relating to lower U.S. corporate tax rate (in dollars per share) | $ / shares | $ 0.02 |
SEGMENTS - Variable Interest En
SEGMENTS - Variable Interest Entity - Consolidated - Acquisition - Ownership Interest (Details) - Lamb Weston BSW, LLC | Nov. 02, 2018 |
Ownership interest acquired | |
Ownership interest acquired (as a percent) | 50.01% |
Ownership interest after completion of the acquisition | |
Ownership interest after completion of the acquisition (as a percent) | 100.00% |
SEGMENTS - Concentrations (Deta
SEGMENTS - Concentrations (Details) | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Revenue from Contract with Customer Benchmark | Customer Concentration Risk | McDonald's Corporation | |||
Segments | |||
Concentration risk (as a percent) | 11.00% | 10.00% | 10.00% |
SEGMENTS - Other Information -
SEGMENTS - Other Information - Net Sales by Product (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Revenue | |||
Net sales | $ 3,670.9 | $ 3,792.4 | $ 3,756.5 |
Other | |||
Revenue | |||
Net sales | 138.7 | 154.2 | 140.6 |
Vegetable product | Other | |||
Revenue | |||
Net sales | 91.3 | 104.9 | 88.5 |
Byproduct | Other | |||
Revenue | |||
Net sales | 36.1 | 36.4 | 40.2 |
Dairy product | Other | |||
Revenue | |||
Net sales | $ 11.3 | $ 12.9 | $ 11.9 |
SEGMENTS - Other Information _2
SEGMENTS - Other Information - Net Sales by Geographical Area (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Revenue | |||
Net sales | $ 3,670.9 | $ 3,792.4 | $ 3,756.5 |
Non-US | |||
Revenue | |||
Net sales | $ 700.2 | $ 776.4 | $ 742.7 |
SEGMENTS - Labor (Details)
SEGMENTS - Labor (Details) | 12 Months Ended |
May 30, 2021employee | |
Segments | |
Number of employees | 7,800 |
Workforce Subject to Collective Bargaining Arrangements | Labor Force Concentration Risk | |
Segments | |
Concentration risk (as a percent) | 27.00% |
Workforce Subject to Collective Bargaining Arrangements Expiring within One Year | Labor Force Concentration Risk | |
Segments | |
Concentration risk (as a percent) | 55.00% |
Non-US | |
Segments | |
Number of employees | 800 |
COMMITMENTS, CONTINGENCIES, G_2
COMMITMENTS, CONTINGENCIES, GUARANTEES AND LEGAL PROCEEDINGS - Capital Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | |
May 30, 2021 | May 31, 2020 | |
Capital Addition Purchase Commitments | ||
Long-term Purchase Commitment [Line Items] | ||
Purchase commitment amount | $ 75 | $ 36.5 |
COMMITMENTS, CONTINGENCIES, G_3
COMMITMENTS, CONTINGENCIES, GUARANTEES AND LEGAL PROCEEDINGS - Purchase Supply Agreements (Details) - Inventories - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
COMMITMENTS, CONTINGENCIES, GUARANTEES AND LEGAL PROCEEDINGS | |||
Purchase supply agreement amount | $ 139.8 | $ 142.7 | $ 152 |
Advances | $ 23.9 | $ 31.9 |
COMMITMENTS, CONTINGENCIES, G_4
COMMITMENTS, CONTINGENCIES, GUARANTEES AND LEGAL PROCEEDINGS - Guarantees (Details) $ in Millions | May 30, 2021USD ($) |
Guarantee of Indebtedness of Others | |
COMMITMENTS, CONTINGENCIES, GUARANTEES AND LEGAL PROCEEDINGS | |
Guarantee amount | $ 35.6 |
SCHEDULE II Valuation and Qua_2
SCHEDULE II Valuation and Qualifying Accounts (Details) - Valuation Allowance of Deferred Tax Assets - USD ($) $ in Millions | 12 Months Ended | ||
May 30, 2021 | May 31, 2020 | May 26, 2019 | |
Valuation and Qualifying Accounts | |||
Valuation Allowances and Reserves, Balance, Beginning Balance | $ 54.5 | $ 64.6 | $ 62 |
Additions Charged to Costs, Expenses and Equity | 3.7 | ||
Deductions from Reserves | 1.4 | 10.1 | 1.1 |
Valuation Allowances and Reserves, Balance, Ending Balance | $ 53.1 | $ 54.5 | $ 64.6 |