Cover
Cover - shares | 9 Months Ended | |
Feb. 25, 2024 | Mar. 28, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Feb. 25, 2024 | |
Document Transition Report | false | |
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, $1.00 par value | |
Trading Symbol | LW | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 144,391,021 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001679273 | |
Current Fiscal Year End Date | --05-26 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 25, 2024 | Feb. 26, 2023 | Feb. 25, 2024 | Feb. 26, 2023 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,458.3 | $ 1,253.6 | $ 4,855.7 | $ 3,655.7 |
Cost of sales | 1,054.6 | 855.8 | 3,476.9 | 2,603 |
Gross profit | 403.7 | 397.8 | 1,378.8 | 1,052.7 |
Selling, general and administrative expenses | 179.8 | 131.5 | 526 | 357.6 |
Income from operations | 223.9 | 266.3 | 852.8 | 695.1 |
Interest expense, net | 35.7 | 25.8 | 95.5 | 76.4 |
Income before income taxes and equity method earnings | 188.2 | 240.5 | 757.3 | 618.7 |
Income tax expense | 43.1 | 42.1 | 179.3 | 152.6 |
Equity method investment earnings (loss) | 1 | (23.3) | 17.8 | 44 |
Net income | $ 146.1 | $ 175.1 | $ 595.8 | $ 510.1 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 1.01 | $ 1.22 | $ 4.11 | $ 3.54 |
Diluted (in dollars per share) | $ 1.01 | $ 1.21 | $ 4.09 | $ 3.53 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 144.5 | 144 | 145 | 144 |
Diluted (in shares) | 145.3 | 144.8 | 145.8 | 144.7 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 25, 2024 | Feb. 26, 2023 | Feb. 25, 2024 | Feb. 26, 2023 | |
Pre-Tax Amount | ||||
Net income | $ 189.2 | $ 217.2 | $ 775.1 | $ 662.7 |
Unrealized pension and post-retirement benefit obligations gain (loss) | (0.1) | 0 | (0.5) | 0 |
Unrealized currency translation gains (losses) | (17.1) | 8.4 | 14.2 | (39.4) |
Other | (0.2) | 0.1 | (0.4) | 0.6 |
Comprehensive income | 171.8 | 225.7 | 788.4 | 623.9 |
Tax (Expense) Benefit | ||||
Net income | (43.1) | (42.1) | (179.3) | (152.6) |
Unrealized pension and post-retirement benefit obligations gain (loss) | 0 | 0 | 0.1 | 0 |
Unrealized currency translation gains (losses) | 0.1 | 0.1 | (0.2) | 1.6 |
Other | 0.1 | 0 | 0.1 | (0.1) |
Comprehensive income | (42.9) | (42) | (179.3) | (151.1) |
After-Tax Amount | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 146.1 | 175.1 | 595.8 | 510.1 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax | (0.1) | 0 | (0.4) | 0 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (17) | 8.5 | 14 | (37.8) |
Other | (0.1) | 0.1 | (0.3) | 0.5 |
Comprehensive income | $ 128.9 | $ 183.7 | $ 609.1 | $ 472.8 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Feb. 25, 2024 | May 28, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 62.3 | $ 304.8 |
Receivables, less allowance for doubtful accounts of $1.1 and $2.6 | 736.2 | 724.2 |
Inventories | 1,210 | 932 |
Prepaid expenses and other current assets | 150.6 | 166.2 |
Total current assets | 2,159.1 | 2,127.2 |
Property, plant and equipment, net | 3,406.4 | 2,808 |
Operating lease assets | 135.9 | 146.1 |
Goodwill | 1,056.6 | 1,040.7 |
Intangible assets, net | 106.4 | 110.2 |
Other assets | 381.3 | 287.6 |
Total assets | 7,245.7 | 6,519.8 |
Current liabilities: | ||
Short-term borrowings | 538.4 | 158.5 |
Current portion of long-term debt and financing obligations | 139.1 | 55.3 |
Accounts payable | 684.1 | 636.6 |
Accrued liabilities | 454.4 | 509.8 |
Total current liabilities | 1,816 | 1,360.2 |
Long-term liabilities: | ||
Long-term debt and financing obligations, excluding current portion | 3,175.1 | 3,248.4 |
Deferred income taxes | 254.6 | 252.1 |
Other noncurrent liabilities | 241.8 | 247.8 |
Total long-term liabilities | 3,671.5 | 3,748.3 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock of $1.00 par value, 600,000,000 shares authorized; 150,727,425 and 150,293,511 shares issued | 150.7 | 150.3 |
Treasury stock, at cost, 6,336,439 and 4,627,828 common shares | (480.1) | (314.3) |
Additional distributed capital | (521) | (558.6) |
Retained earnings | 2,622.1 | 2,160.7 |
Accumulated other comprehensive loss | (13.5) | (26.8) |
Total stockholders’ equity | 1,758.2 | 1,411.3 |
Total liabilities and stockholders' equity | $ 7,245.7 | $ 6,519.8 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Feb. 25, 2024 | May 28, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 1.1 | $ 2.6 |
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) | 150,727,425 | 150,293,511 |
Treasury stock, common shares (in shares) | 6,336,439 | 4,627,828 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-in (Distributed) Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at the beginning of the period (in shares) at May. 29, 2022 | 144,071,428 | |||||
Balance as of May 28, 2023 at May. 29, 2022 | $ 360.5 | $ 148 | $ (264.1) | $ (813.3) | $ 1,305.5 | $ (15.6) |
Increase (Decrease) in Stockholders' Equity | ||||||
Dividends declared | (110.8) | (110.8) | ||||
Common stock issued (in shares) | 293,458 | |||||
Common stock issued | 1.7 | $ 0.3 | 1.4 | |||
Stock-settled, stock-based compensation expense | 28 | 28 | ||||
Repurchase of common stock and common stock withheld to cover taxes (in shares) | (613,140) | |||||
Repurchase of common stock and common stock withheld to cover taxes | (45.8) | (45.8) | ||||
Other | 8.4 | 9.9 | (1.5) | |||
Comprehensive income (loss) | 472.8 | 510.1 | (37.3) | |||
Balance at the end of the period (in shares) at Feb. 26, 2023 | 143,751,746 | |||||
Balance as of February 25, 2024 at Feb. 26, 2023 | 714.8 | $ 148.3 | (309.9) | (774) | 1,703.3 | (52.9) |
Balance at the beginning of the period (in shares) at Nov. 27, 2022 | 143,870,309 | |||||
Balance as of May 28, 2023 at Nov. 27, 2022 | 573 | $ 148.3 | (297.5) | (785.5) | 1,569.2 | (61.5) |
Increase (Decrease) in Stockholders' Equity | ||||||
Dividends declared | (40.3) | (40.3) | ||||
Common stock issued (in shares) | 8,059 | |||||
Common stock issued | 0.1 | 0.1 | ||||
Stock-settled, stock-based compensation expense | 10.4 | 10.4 | ||||
Repurchase of common stock and common stock withheld to cover taxes (in shares) | (126,622) | |||||
Repurchase of common stock and common stock withheld to cover taxes | (12.4) | (12.4) | ||||
Other | 0.3 | 1 | (0.7) | |||
Comprehensive income (loss) | 183.7 | 175.1 | 8.6 | |||
Balance at the end of the period (in shares) at Feb. 26, 2023 | 143,751,746 | |||||
Balance as of February 25, 2024 at Feb. 26, 2023 | 714.8 | $ 148.3 | (309.9) | (774) | 1,703.3 | (52.9) |
Balance at the beginning of the period (in shares) at May. 28, 2023 | 145,665,683 | |||||
Balance as of May 28, 2023 at May. 28, 2023 | 1,411.3 | $ 150.3 | (314.3) | (558.6) | 2,160.7 | (26.8) |
Increase (Decrease) in Stockholders' Equity | ||||||
Dividends declared | (133.2) | (133.2) | ||||
Common stock issued (in shares) | 433,914 | |||||
Common stock issued | 0.7 | $ 0.4 | 0.3 | |||
Stock-settled, stock-based compensation expense | 34.4 | 34.4 | ||||
Repurchase of common stock and common stock withheld to cover taxes (in shares) | (1,708,611) | |||||
Repurchase of common stock and common stock withheld to cover taxes | (165.1) | (165.1) | ||||
Other | 1 | (0.7) | 2.9 | (1.2) | ||
Comprehensive income (loss) | 609.1 | 595.8 | 13.3 | |||
Balance at the end of the period (in shares) at Feb. 25, 2024 | 144,390,986 | |||||
Balance as of February 25, 2024 at Feb. 25, 2024 | 1,758.2 | $ 150.7 | (480.1) | (521) | 2,622.1 | (13.5) |
Balance at the beginning of the period (in shares) at Nov. 26, 2023 | 144,368,320 | |||||
Balance as of May 28, 2023 at Nov. 26, 2023 | 1,667.7 | $ 150.7 | (479.4) | (535.9) | 2,528.6 | 3.7 |
Increase (Decrease) in Stockholders' Equity | ||||||
Dividends declared | (52) | (52) | ||||
Common stock issued (in shares) | 32,586 | |||||
Common stock issued | 0.5 | 0.5 | ||||
Stock-settled, stock-based compensation expense | 12.2 | 12.2 | ||||
Repurchase of common stock and common stock withheld to cover taxes (in shares) | (9,920) | |||||
Repurchase of common stock and common stock withheld to cover taxes | (0.8) | (0.8) | ||||
Other | 1.7 | 0.1 | 2.2 | (0.6) | ||
Comprehensive income (loss) | 128.9 | 146.1 | (17.2) | |||
Balance at the end of the period (in shares) at Feb. 25, 2024 | 144,390,986 | |||||
Balance as of February 25, 2024 at Feb. 25, 2024 | $ 1,758.2 | $ 150.7 | $ (480.1) | $ (521) | $ 2,622.1 | $ (13.5) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Feb. 25, 2024 | Feb. 26, 2023 | Feb. 25, 2024 | Feb. 26, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in dollars per share) | $ 0.360 | $ 0.280 | $ 0.920 | $ 0.770 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Feb. 25, 2024 | Feb. 26, 2023 | |
Cash flows from operating activities | ||
Net income | $ 595.8 | $ 510.1 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of intangibles and debt issuance costs | 220 | 153.3 |
Stock-settled, stock-based compensation expense | 34.4 | 28 |
Equity method investment earnings in excess of distributions | (4.8) | (44.3) |
Deferred income taxes | 1.3 | (25.5) |
Foreign currency remeasurement gain | (0.1) | (21.2) |
Other | (2.9) | (22.3) |
Changes in operating assets and liabilities, net of acquisitions: | ||
Receivables | (8.6) | (47.2) |
Inventories | (275) | (254.3) |
Income taxes payable/receivable, net | 36.3 | 13.1 |
Prepaid expenses and other current assets | (5.9) | 5.9 |
Accounts payable | (25.6) | 16.7 |
Accrued liabilities | (83.4) | 22.8 |
Net cash provided by operating activities | 481.5 | 335.1 |
Cash flows from investing activities | ||
Additions to property, plant and equipment | (763.4) | (429.4) |
Additions to other long-term assets | (64.9) | (67.6) |
Acquisition of business, net of cash acquired/ Acquisition of interests in joint ventures, net | (11.2) | (42.3) |
Other | 14.7 | 3.6 |
Net cash used for investing activities | (824.8) | (535.7) |
Cash flows from financing activities | ||
Proceeds from short-term borrowings, net | 379.1 | 0 |
Proceeds from issuance of debt | 50.1 | 510.8 |
Repayments of debt and financing obligations | (42) | (24.6) |
Dividends paid | (122) | (105.8) |
Repurchase of common stock and common stock withheld to cover taxes | (165.1) | (47.2) |
Other | 0 | (1.9) |
Net cash provided by financing activities | 100.1 | 331.3 |
Effect of exchange rate changes on cash and cash equivalents | 0.7 | 19.3 |
Net (decrease) increase in cash and cash equivalents | (242.5) | 150 |
Cash and cash equivalents, beginning of period | 304.8 | 525 |
Cash and cash equivalents, end of period | $ 62.3 | $ 675 |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Feb. 25, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Lamb Weston Holdings, Inc. (“we,” “us,” “our,” the “Company,” or “Lamb Weston”) is a leading global producer, distributor, and marketer of value-added frozen potato products and is headquartered in Eagle, Idaho. Beginning in fiscal 2024, in connection with our recent acquisitions and to align with our expanded global footprint, we began managing our operations in two reportable segments: North America and International. See Note 12, Segments, for additional information on our reportable segments. Basis of Presentation The accompanying unaudited Consolidated Financial Statements present the financial results of Lamb Weston and its consolidated subsidiaries for the thirteen and thirty-nine weeks ended February 25, 2024 and February 26, 2023, and have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America (“U.S.”). These consolidated financial statements are unaudited and include all adjustments that we consider necessary for a fair presentation of such financial statements and consist only of normal recurring adjustments. The preparation of financial statements involves the use of estimates and accruals. The actual results that we experience may differ materially from those estimates. Results for interim periods should not be considered indicative of results for our full fiscal year, which ends the last Sunday in May. These financial statements and related condensed notes should be read together with the consolidated financial statements and notes in our Annual Report on Form 10-K for the fiscal year ended May 28, 2023 (the “Form 10-K”), where we include additional information on our critical accounting estimates, policies, and the methods and assumptions used in our estimates. We filed the Form 10-K with the Securities and Exchange Commission (the “SEC”) on July 25, 2023. Certain amounts from prior period consolidated financial statements have been reclassified to conform with current period presentation. Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. ASU 2023-07 is effective for our Annual Report on Form 10-K for the fiscal year ending May 25, 2025, and subsequent interim periods, with early adoption permitted. We are evaluating the impact of adopting this ASU on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , to enhance transparency and decision usefulness of income tax disclosures, particularly around rate reconciliations and income taxes paid information. ASU 2023-09 is effective for our Annual Report on Form 10-K for the fiscal year ending May 25, 2025, on a prospective basis, with early adoption permitted. We are evaluating the impact of adopting this ASU on our consolidated financial statements and related disclosures. There were no other accounting pronouncements recently issued that had or are expected to have a material impact on our consolidated financial statements. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Feb. 25, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per common share for the periods presented: Thirteen Weeks Ended Thirty-Nine Weeks Ended (in millions, except per share amounts) February 25, February 26, February 25, February 26, Numerator: Net income $ 146.1 $ 175.1 $ 595.8 $ 510.1 Denominator: Basic weighted average common shares outstanding 144.5 144.0 145.0 144.0 Add: Dilutive effect of employee incentive plans (a) 0.8 0.8 0.8 0.7 Diluted weighted average common shares outstanding 145.3 144.8 145.8 144.7 Earnings per share: Basic $ 1.01 $ 1.22 $ 4.11 $ 3.54 Diluted $ 1.01 $ 1.21 $ 4.09 $ 3.53 ___________________________________________ (a) Potential dilutive shares of common stock under 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 February 25, 2024, an insignificant number of stock-based awards were excluded from the computation of diluted earnings per share because they would be antidilutive. As of February 26, 2023, 0.6 million shares of stock-based awards were excluded from the computation of diluted earnings per share because they would be antidilutive. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Feb. 25, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense for the thirteen and thirty-nine weeks ended February 25, 2024 and February 26, 2023 was as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended (in millions) February 25, February 26, February 25, February 26, Income before income taxes and equity method earnings $ 188.2 $ 240.5 $ 757.3 $ 618.7 Equity method investment earnings (loss) 1.0 (23.3) 17.8 44.0 Income tax expense 43.1 42.1 179.3 152.6 Effective tax rate (a) 22.8% 19.4% 23.1% 23.0% ___________________________________________ (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. The effective tax rate varies from the U.S. statutory tax rate of 21% principally due to the impact of U.S. state taxes, foreign taxes and currency, permanent differences, and discrete items. Income Taxes Paid |
INVENTORIES
INVENTORIES | 9 Months Ended |
Feb. 25, 2024 | |
Inventory Disclosure [Abstract] | |
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: (in millions) February 25, May 28, Raw materials and packaging $ 265.2 $ 145.7 Finished goods 855.3 708.3 Supplies and other 89.5 78.0 Inventories $ 1,210.0 $ 932.0 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 9 Months Ended |
Feb. 25, 2024 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT The components of property, plant and equipment were as follows: (in millions) February 25, May 28, Land and land improvements $ 168.7 $ 163.2 Buildings, machinery and equipment 4,001.4 3,576.6 Furniture, fixtures, office equipment and other 120.2 112.0 Construction in progress 1,188.4 832.0 Property, plant and equipment, at cost 5,478.7 4,683.8 Less accumulated depreciation (2,072.3) (1,875.8) Property, plant and equipment, net $ 3,406.4 $ 2,808.0 Depreciation expense was $70.8 million and $48.8 million for the thirteen weeks ended February 25, 2024 and February 26, 2023, respectively; and $203.2 million and $145.8 million for the thirty-nine weeks ended February 25, 2024 and February 26, 2023, respectively. At February 25, 2024 and May 28, 2023, purchases of property, plant and equipment included in accounts payable were $156.9 million and $82.6 million, respectively. |
GOODWILL AND OTHER IDENTIFIABLE
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS | 9 Months Ended |
Feb. 25, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS | GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS The following table presents changes in goodwill balances, by segment, for the thirty-nine weeks ended February 25, 2024: (in millions) North America International Total Balance at May 28, 2023 (a) $ 722.4 $ 318.3 $ 1,040.7 Acquisition — 8.5 8.5 Foreign currency translation adjustment 4.2 3.2 7.4 Balance at February 25, 2024 $ 726.6 $ 330.0 $ 1,056.6 ___________________________________________ (a) As a result of our change in segments, effective May 29, 2023, goodwill was reassigned to the North America and International segments based on relative fair value using a market-based approach. Before and after the reassignment of our goodwill, we completed impairment assessments and concluded there were no indications of impairment in our segments. See Note 12, Segments, for more information related to the change in segments. Other identifiable intangible assets were as follows: February 25, 2024 May 28, 2023 (in millions, except useful lives) Weighted Gross Accumulated Intangible Weighted Gross Accumulated Intangible Non-amortizing intangible assets (a) n/a $ 18.0 $ — $ 18.0 n/a $ 18.0 $ — $ 18.0 Amortizing intangible assets (b) 13 123.2 (34.8) 88.4 14 121.4 (29.2) 92.2 $ 141.2 $ (34.8) $ 106.4 $ 139.4 $ (29.2) $ 110.2 ___________________________________________ (a) Non-amortizing intangible assets represent brands and trademarks. (b) Amortizing intangible assets are principally composed of licensing agreements, brands, and customer relationships. Amortization expense, including developed technology amortization expense, was $7.1 million and $1.4 million for the thirteen weeks ended February 25, 2024 and February 26, 2023, respectively; and $12.4 million and $4.3 million for the thirty-nine weeks ended February 25, 2024 and February 26, 2023, respectively. Foreign intangible assets are affected by foreign currency translation. |
OTHER ASSETS
OTHER ASSETS | 9 Months Ended |
Feb. 25, 2024 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
OTHER ASSETS | OTHER ASSETS The components of other assets were as follows: (in millions) February 25, May 28, Capitalized software costs $ 232.3 $ 175.4 Property, plant and equipment deposits 58.1 30.5 Equity method investments 49.2 43.5 Other 41.7 38.2 Other assets $ 381.3 $ 287.6 |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 9 Months Ended |
Feb. 25, 2024 | |
Payables and Accruals [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES The components of accrued liabilities were as follows: (in millions) February 25, May 28, Compensation and benefits $ 102.8 $ 187.5 Accrued trade promotions 67.1 86.1 Derivative liabilities and payables 52.4 53.9 Dividends payable to shareholders 52.0 40.8 Taxes payable 39.6 21.2 Current portion of operating lease obligations 28.2 28.5 Plant utilities and accruals 21.8 27.2 Accrued interest 20.7 31.1 Other 69.8 33.5 Accrued liabilities $ 454.4 $ 509.8 |
DEBT AND FINANCING OBLIGATIONS
DEBT AND FINANCING OBLIGATIONS | 9 Months Ended |
Feb. 25, 2024 | |
Debt Disclosure [Abstract] | |
DEBT AND FINANCING OBLIGATIONS | DEBT AND FINANCING OBLIGATIONS The components of our debt, including financing obligations, were as follows: (in millions) February 25, 2024 May 28, 2023 Amount Interest Rate Amount Interest Rate Short-term borrowings: U.S. revolving credit facility $ 405.0 6.681 % $ — 7.710 % Euro revolving credit facility 113.6 4.772 149.2 4.230 Other credit facilities 22.2 (a) 11.4 (a) 540.8 160.6 Long-term debt: Term A-1 loan facility, due June 2026 (b) 232.5 7.233 243.8 5.210 Term A-2 loan facility, due April 2025 (b) 268.1 7.233 280.3 5.380 Term A-3 loan facility, due January 2030 (b) 433.1 7.383 450.0 6.850 RMB loan facility, due February 2027 143.1 4.528 94.7 4.600 Euro loan facility, due December 2024 81.2 4.184 80.4 2.010 4.875% senior notes, due May 2028 500.0 4.875 500.0 4.875 4.125% senior notes, due January 2030 970.0 4.125 970.0 4.125 4.375% senior notes, due January 2032 700.0 4.375 700.0 4.375 3,328.0 3,319.2 Financing obligations: Lease financing obligations due on various dates through 2040 6.0 7.7 Total debt and financing obligations 3,874.8 3,487.5 Debt issuance costs and debt discounts (c) (22.2) (25.3) Short-term borrowings, net of debt discounts (538.4) (158.5) Current portion of long-term debt and financing obligations (139.1) (55.3) Long-term debt and financing obligations, excluding current portion $ 3,175.1 $ 3,248.4 ___________________________________________ (a) Other credit facilities consist of several short-term facilities at one of our subsidiaries used for working capital purposes and have various interest rates. (b) The interest rates applicable to the Term A-1, A-2, and A-3 loans do not include anticipated patronage dividends. We have received and expect to continue receiving patronage dividends under all three term loan facilities. (c) Excludes debt issuance costs of $1.9 million and $2.5 million as of February 25, 2024 and May 28, 2023, respectively, related to our U.S. revolving credit facility, which are recorded in “Other assets” on our Consolidated Balance Sheets. As of February 25, 2024, we had $908.8 million of available liquidity under our committed revolving credit facilities in the U.S. and LW EMEA. For the thirty-nine weeks ended February 25, 2024 and February 26, 2023, we paid $151.3 million and $120.6 million of interest on debt, respectively. For more information about our debt and financing obligations, interest rates, and debt covenants, see Note 8, Debt and Financing Obligations, of the Notes to Consolidated Financial Statements in “Part II, Item 8. Financial Statements and Supplementary Data” of the Form 10-K. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Feb. 25, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The fair values of cash equivalents, receivables, accounts payable, and short-term debt approximate their carrying amounts due to their short duration. 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 February 25, 2024 (in millions) Level 1 Level 2 Level 3 Fair Value Derivative assets (a) $ — $ 1.8 $ — $ 1.8 Derivative liabilities (a) — (48.4) — (48.4) Deferred compensation liabilities (b) — (27.2) — (27.2) Fair value, net $ — $ (73.8) $ — $ (73.8) As of May 28, 2023 (in millions) Level 1 Level 2 Level 3 Fair Value Derivative assets (a) $ — $ 3.0 $ — $ 3.0 Derivative liabilities (a) — (46.6) — (46.6) Deferred compensation liabilities (b) — (22.6) — (22.6) Fair value, net $ — $ (66.2) $ — $ (66.2) ___________________________________________ (a) Derivative assets and liabilities included in Level 2 primarily represent commodity swaps, option contracts, interest rate swaps and currency contracts. The fair values of our Level 2 derivative assets were determined using valuation models that use market observable inputs including both forward and spot prices for commodities and foreign currencies. Derivative assets are presented within “Prepaid expenses and other current assets” on our Consolidated Balance Sheets 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. Deferred compensation liabilities are primarily presented within “Other noncurrent liabilities” on our Consolidated Balance Sheets. As of February 25, 2024, we had $2,170.0 million of fixed-rate and $1,698.8 million of variable-rate debt outstanding. Based on current market rates, the fair value of our fixed-rate debt was estimated to be $1,995.9 million as of February 25, 2024. 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. The fair value of our variable-rate term debt approximates the carrying amount and approximates current market prices. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Feb. 25, 2024 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Share Repurchase Program On October 11, 2023, we announced that our Board of Directors increased our share repurchase authorization to an aggregate amount of $500.0 million. The program has no expiration date. During the thirteen weeks ended February 25, 2024, we did not repurchase any shares under the program. During the thirty-nine weeks ended February 25, 2024, we repurchased 1,564,351 shares for an aggregate purchase price of $150.0 million, or a weighted-average price of $95.89 per share. As of February 25, 2024, $450.0 million remained authorized for repurchase under the program. Dividends During the thirty-nine weeks ended February 25, 2024, we paid $122.0 million of cash dividends to our common stockholders. In addition, on March 1, 2024, we paid $52.0 million of cash dividends to common stockholders of record as of the close of business on February 2, 2024. On March 20, 2024, our Board of Directors declared a cash dividend of $0.36 per share of our common stock. This dividend will be paid on May 31, 2024, to common stockholders of record as of the close of business on May 3, 2024. Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss), net of taxes, as of February 25, 2024 were as follows: (in millions) Foreign Pension and Other Accumulated Balance as of May 28, 2023 $ (27.1) $ (0.7) $ 1.0 $ (26.8) Other comprehensive income before reclassifications, net of tax 14.0 (0.4) (0.3) 13.3 Net current-period other comprehensive income 14.0 (0.4) (0.3) 13.3 Balance as of February 25, 2024 $ (13.1) $ (1.1) $ 0.7 $ (13.5) |
SEGMENTS
SEGMENTS | 9 Months Ended |
Feb. 25, 2024 | |
Segment Reporting [Abstract] | |
SEGMENTS | SEGMENTS Effective May 29, 2023, to align with our expanded global footprint following the completion of our acquisition of the remaining 50% equity interest in Lamb-Weston/Meijer v.o.f., our former European joint venture (“LW EMEA”), management, including our chief executive officer (who is our chief operating decision maker), began managing operations in two business segments based on management’s change to the way it monitors performance, aligns strategies, and allocates resources. As a result of this change, we now have two operating segments, each of which is a reportable segment: North America and International. Our chief operating decision maker receives periodic management reports under this structure, which, as discussed above, informs operating decisions, performance assessment, and resource allocation decisions at the segment level. These reportable segments are each managed by a general manager and supported by a cross functional team assigned to support the segment. Thirteen Weeks Ended Thirty-Nine Weeks Ended (in millions) February 25, 2024 (a) February 26, February 25, 2024 (a) February 26, Segment net sales North America $ 947.5 $ 1,070.8 $ 3,250.0 $ 3,088.9 International (b) 510.8 182.8 1,605.7 566.8 $ 1,458.3 $ 1,253.6 $ 4,855.7 $ 3,655.7 Thirteen Weeks Ended Thirty-Nine Weeks Ended (in millions) February 25, 2024 (a)(d) February 26, February 25, 2024 (a)(d) February 26, Segment Adjusted EBITDA North America $ 285.9 $ 333.0 $ 986.6 $ 864.4 International (b) 101.7 54.1 291.5 147.4 Total Reportable Segments Adjusted EBITDA 387.6 387.1 1,278.1 1,011.8 Unallocated corporate costs (c) (44.0) (34.9) (144.7) (96.1) Depreciation and amortization (e) 80.0 59.5 222.0 176.9 Unrealized derivative losses 27.3 5.1 1.6 8.7 Unconsolidated joint venture unrealized derivative losses — 47.1 — 32.7 Foreign currency exchange losses 9.0 1.8 7.3 4.2 Items impacting comparability: Inventory step-up from acquisition — — 20.7 — Integration and acquisition-related items, net 2.4 (4.3) 11.2 (30.8) Gain on acquisition of interest in joint ventures (f) — — — (15.1) Interest expense, net 35.7 25.8 95.5 76.4 Income before income taxes 189.2 217.2 775.1 662.7 Income tax expense 43.1 42.1 179.3 152.6 Net income $ 146.1 $ 175.1 $ 595.8 $ 510.1 ___________________________________________ (a) During the thirteen and thirty-nine weeks ended February 25, 2024, we transitioned certain central systems and functions, including order to cash, produce to deliver, source to pay, and inventory management, among others in North America, to a new enterprise resource planning system. After the transition, we experienced reduced visibility into finished goods inventories at our distribution centers, resulting in a higher-than-expected effect on customer order fulfillment rates. By the end of the quarter, we restored the visibility into our finished goods inventories and customer order fulfillment rates to pre-transition levels. (b) We acquired the remaining interest in LW EMEA in the fourth quarter of fiscal 2023. Accordingly, LW EMEA’s adjusted EBITDA is reported in the International segment for the thirteen and thirty-nine weeks ended February 25, 2024, whereas in the same period in the prior year, our 50% equity interest in LW EMEA was recorded using equity method accounting. As a result, only 50% of LW EMEA’s adjusted EBITDA is reported in the International segment for the thirteen and thirty-nine weeks ended February 26, 2023. (c) Unallocated corporate costs included costs related to corporate support staff and support services, foreign exchange gains and losses and unrealized mark-to-market derivative gains and losses. Support services include, but are not limited to, our administrative, information technology, human resources, finance, and accounting functions that are not specifically allocated to the segments. Unallocated corporate costs for the thirteen and thirty-nine weeks ended February 25, 2024 included unallocated corporate costs of LW EMEA, whereas in the same period in the prior year, our portion of LW EMEA’s unallocated corporate costs were recorded in “Equity method investment earnings” in the Consolidated Statements of Earnings in the International segment. (d) The thirteen weeks ended February 25, 2024 included a $25.0 million charge ($19.0 million after-tax, or $0.13 per share) related to a write-off of excess raw potatoes. The total charge to the reporting segments was as follows: $22.7 million to the North America segment and $2.3 million to the International segment. The thirty-nine weeks ended February 25, 2024 included a $95.9 million charge ($72.9 million after-tax, or $0.50 per share) related to a write-off of excess raw potatoes. The total charge to the reporting segments was as follows: $86.0 million to the North America segment and $9.9 million to the International segment. (e) Depreciation and amortization included interest expense, income tax expense, and depreciation and amortization from equity method investments of $2.1 million and $9.3 million for the thirteen weeks ended February 25, 2024 and February 26, 2023, respectively; and $6.4 million and $26.9 million for the thirty-nine weeks ended February 25, 2024 and February 26, 2023, respectively. (f) The thirty-nine weeks ended February 26, 2023 included a $15.1 million (before and after-tax) gain recognized in connection with our acquisition of an additional 40% equity interest in Lamb Weston Alimentos Modernos S.A. (“LWAMSA”) in July 2022. This gain related to remeasuring our previously held 50% equity interest in LWAMSA to fair value, recorded in “Equity method investment earnings” in the Consolidated Statements of Earnings, and is excluded from the financial results of our International segment. |
COMMITMENTS, CONTINGENCIES, GUA
COMMITMENTS, CONTINGENCIES, GUARANTEES AND LEGAL PROCEEDINGS | 9 Months Ended |
Feb. 25, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES, GUARANTEES AND LEGAL PROCEEDINGS | COMMITMENTS, CONTINGENCIES, GUARANTEES AND LEGAL PROCEEDINGS We have financial commitments and obligations that arise in the ordinary course of our business. These include long-term debt, lease obligations, purchase commitments for goods and services, and legal proceedings. There have been no material changes to the commitments, contingencies, guarantees and legal proceedings disclosed in Note 14, Commitments, Contingencies, Guarantees, and Legal Proceedings, of the Notes to Consolidated Financial Statements in “Part II, Item 8. Financial Statements and Supplementary Data” of the Form 10-K. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 25, 2024 | Feb. 26, 2023 | Feb. 25, 2024 | Feb. 26, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 146.1 | $ 175.1 | $ 595.8 | $ 510.1 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Feb. 25, 2024 shares | Feb. 25, 2024 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On January 11, 2024, Sharon Miller, our President, North America, adopted a trading plan intended to satisfy Rule 10b5-1(c) under the Exchange Act to sell up to 8,713 shares of Lamb Weston common stock between April 12, 2024 and December 31, 2024, subject to certain conditions. | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Sharon Miller [Member] | ||
Trading Arrangements, by Individual | ||
Name | Sharon Miller | |
Title | President, North America | |
Rule 10b5-1 Arrangement Adopted | false | |
Adoption Date | January 11, 2024 | |
Arrangement Duration | 355 days | |
Aggregate Available | 8,713 | 8,713 |
NATURE OF OPERATIONS AND SUMM_2
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Feb. 25, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Consolidated Financial Statements present the financial results of Lamb Weston and its consolidated subsidiaries for the thirteen and thirty-nine weeks ended February 25, 2024 and February 26, 2023, and have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America (“U.S.”). These consolidated financial statements are unaudited and include all adjustments that we consider necessary for a fair presentation of such financial statements and consist only of normal recurring adjustments. The preparation of financial statements involves the use of estimates and accruals. The actual results that we experience may differ materially from those estimates. Results for interim periods should not be considered indicative of results for our full fiscal year, which ends the last Sunday in May. These financial statements and related condensed notes should be read together with the consolidated financial statements and notes in our Annual Report on Form 10-K for the fiscal year ended May 28, 2023 (the “Form 10-K”), where we include additional information on our critical accounting estimates, policies, and the methods and assumptions used in our estimates. We filed the Form 10-K with the Securities and Exchange Commission (the “SEC”) on July 25, 2023. Certain amounts from prior period consolidated financial statements have been reclassified to conform with current period presentation. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. ASU 2023-07 is effective for our Annual Report on Form 10-K for the fiscal year ending May 25, 2025, and subsequent interim periods, with early adoption permitted. We are evaluating the impact of adopting this ASU on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , to enhance transparency and decision usefulness of income tax disclosures, particularly around rate reconciliations and income taxes paid information. ASU 2023-09 is effective for our Annual Report on Form 10-K for the fiscal year ending May 25, 2025, on a prospective basis, with early adoption permitted. We are evaluating the impact of adopting this ASU on our consolidated financial statements and related disclosures. There were no other accounting pronouncements recently issued that had or are expected to have a material impact on our consolidated financial statements. |
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. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Feb. 25, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per common share | The following table sets forth the computation of basic and diluted earnings per common share for the periods presented: Thirteen Weeks Ended Thirty-Nine Weeks Ended (in millions, except per share amounts) February 25, February 26, February 25, February 26, Numerator: Net income $ 146.1 $ 175.1 $ 595.8 $ 510.1 Denominator: Basic weighted average common shares outstanding 144.5 144.0 145.0 144.0 Add: Dilutive effect of employee incentive plans (a) 0.8 0.8 0.8 0.7 Diluted weighted average common shares outstanding 145.3 144.8 145.8 144.7 Earnings per share: Basic $ 1.01 $ 1.22 $ 4.11 $ 3.54 Diluted $ 1.01 $ 1.21 $ 4.09 $ 3.53 ___________________________________________ (a) Potential dilutive shares of common stock under 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 February 25, 2024, an insignificant number of stock-based awards were excluded from the computation of diluted earnings per share because they would be antidilutive. As of February 26, 2023, 0.6 million shares 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) | 9 Months Ended |
Feb. 25, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense | Income tax expense for the thirteen and thirty-nine weeks ended February 25, 2024 and February 26, 2023 was as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended (in millions) February 25, February 26, February 25, February 26, Income before income taxes and equity method earnings $ 188.2 $ 240.5 $ 757.3 $ 618.7 Equity method investment earnings (loss) 1.0 (23.3) 17.8 44.0 Income tax expense 43.1 42.1 179.3 152.6 Effective tax rate (a) 22.8% 19.4% 23.1% 23.0% ___________________________________________ (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. The effective tax rate varies from the U.S. statutory tax rate of 21% principally due to the impact of U.S. state taxes, foreign taxes and currency, permanent differences, and discrete items. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Feb. 25, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of components of inventories | The components of inventories were as follows: (in millions) February 25, May 28, Raw materials and packaging $ 265.2 $ 145.7 Finished goods 855.3 708.3 Supplies and other 89.5 78.0 Inventories $ 1,210.0 $ 932.0 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 9 Months Ended |
Feb. 25, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | The components of property, plant and equipment were as follows: (in millions) February 25, May 28, Land and land improvements $ 168.7 $ 163.2 Buildings, machinery and equipment 4,001.4 3,576.6 Furniture, fixtures, office equipment and other 120.2 112.0 Construction in progress 1,188.4 832.0 Property, plant and equipment, at cost 5,478.7 4,683.8 Less accumulated depreciation (2,072.3) (1,875.8) Property, plant and equipment, net $ 3,406.4 $ 2,808.0 |
GOODWILL AND OTHER IDENTIFIAB_2
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Feb. 25, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amount of goodwill | The following table presents changes in goodwill balances, by segment, for the thirty-nine weeks ended February 25, 2024: (in millions) North America International Total Balance at May 28, 2023 (a) $ 722.4 $ 318.3 $ 1,040.7 Acquisition — 8.5 8.5 Foreign currency translation adjustment 4.2 3.2 7.4 Balance at February 25, 2024 $ 726.6 $ 330.0 $ 1,056.6 ___________________________________________ (a) |
Schedule of other identifiable intangible assets, non-amortizing intangible assets | Other identifiable intangible assets were as follows: February 25, 2024 May 28, 2023 (in millions, except useful lives) Weighted Gross Accumulated Intangible Weighted Gross Accumulated Intangible Non-amortizing intangible assets (a) n/a $ 18.0 $ — $ 18.0 n/a $ 18.0 $ — $ 18.0 Amortizing intangible assets (b) 13 123.2 (34.8) 88.4 14 121.4 (29.2) 92.2 $ 141.2 $ (34.8) $ 106.4 $ 139.4 $ (29.2) $ 110.2 ___________________________________________ (a) Non-amortizing intangible assets represent brands and trademarks. (b) Amortizing intangible assets are principally composed of licensing agreements, brands, and customer relationships. Amortization expense, including developed technology amortization expense, was $7.1 million and $1.4 million for the thirteen weeks ended February 25, 2024 and February 26, 2023, respectively; and $12.4 million and $4.3 million for the thirty-nine weeks ended February 25, 2024 and February 26, 2023, respectively. Foreign intangible assets are affected by foreign currency translation. |
Schedule of other identifiable intangible assets, amortizing intangible assets | Other identifiable intangible assets were as follows: February 25, 2024 May 28, 2023 (in millions, except useful lives) Weighted Gross Accumulated Intangible Weighted Gross Accumulated Intangible Non-amortizing intangible assets (a) n/a $ 18.0 $ — $ 18.0 n/a $ 18.0 $ — $ 18.0 Amortizing intangible assets (b) 13 123.2 (34.8) 88.4 14 121.4 (29.2) 92.2 $ 141.2 $ (34.8) $ 106.4 $ 139.4 $ (29.2) $ 110.2 ___________________________________________ (a) Non-amortizing intangible assets represent brands and trademarks. (b) Amortizing intangible assets are principally composed of licensing agreements, brands, and customer relationships. Amortization expense, including developed technology amortization expense, was $7.1 million and $1.4 million for the thirteen weeks ended February 25, 2024 and February 26, 2023, respectively; and $12.4 million and $4.3 million for the thirty-nine weeks ended February 25, 2024 and February 26, 2023, respectively. Foreign intangible assets are affected by foreign currency translation. |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 9 Months Ended |
Feb. 25, 2024 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
Schedule of components of other assets | The components of other assets were as follows: (in millions) February 25, May 28, Capitalized software costs $ 232.3 $ 175.4 Property, plant and equipment deposits 58.1 30.5 Equity method investments 49.2 43.5 Other 41.7 38.2 Other assets $ 381.3 $ 287.6 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 9 Months Ended |
Feb. 25, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of components of accrued liabilities | The components of accrued liabilities were as follows: (in millions) February 25, May 28, Compensation and benefits $ 102.8 $ 187.5 Accrued trade promotions 67.1 86.1 Derivative liabilities and payables 52.4 53.9 Dividends payable to shareholders 52.0 40.8 Taxes payable 39.6 21.2 Current portion of operating lease obligations 28.2 28.5 Plant utilities and accruals 21.8 27.2 Accrued interest 20.7 31.1 Other 69.8 33.5 Accrued liabilities $ 454.4 $ 509.8 |
DEBT AND FINANCING OBLIGATIONS
DEBT AND FINANCING OBLIGATIONS (Tables) | 9 Months Ended |
Feb. 25, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of debt, including financing obligations | The components of our debt, including financing obligations, were as follows: (in millions) February 25, 2024 May 28, 2023 Amount Interest Rate Amount Interest Rate Short-term borrowings: U.S. revolving credit facility $ 405.0 6.681 % $ — 7.710 % Euro revolving credit facility 113.6 4.772 149.2 4.230 Other credit facilities 22.2 (a) 11.4 (a) 540.8 160.6 Long-term debt: Term A-1 loan facility, due June 2026 (b) 232.5 7.233 243.8 5.210 Term A-2 loan facility, due April 2025 (b) 268.1 7.233 280.3 5.380 Term A-3 loan facility, due January 2030 (b) 433.1 7.383 450.0 6.850 RMB loan facility, due February 2027 143.1 4.528 94.7 4.600 Euro loan facility, due December 2024 81.2 4.184 80.4 2.010 4.875% senior notes, due May 2028 500.0 4.875 500.0 4.875 4.125% senior notes, due January 2030 970.0 4.125 970.0 4.125 4.375% senior notes, due January 2032 700.0 4.375 700.0 4.375 3,328.0 3,319.2 Financing obligations: Lease financing obligations due on various dates through 2040 6.0 7.7 Total debt and financing obligations 3,874.8 3,487.5 Debt issuance costs and debt discounts (c) (22.2) (25.3) Short-term borrowings, net of debt discounts (538.4) (158.5) Current portion of long-term debt and financing obligations (139.1) (55.3) Long-term debt and financing obligations, excluding current portion $ 3,175.1 $ 3,248.4 ___________________________________________ (a) Other credit facilities consist of several short-term facilities at one of our subsidiaries used for working capital purposes and have various interest rates. (b) The interest rates applicable to the Term A-1, A-2, and A-3 loans do not include anticipated patronage dividends. We have received and expect to continue receiving patronage dividends under all three term loan facilities. (c) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Feb. 25, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets and liabilities measured at fair value on recurring basis | 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 February 25, 2024 (in millions) Level 1 Level 2 Level 3 Fair Value Derivative assets (a) $ — $ 1.8 $ — $ 1.8 Derivative liabilities (a) — (48.4) — (48.4) Deferred compensation liabilities (b) — (27.2) — (27.2) Fair value, net $ — $ (73.8) $ — $ (73.8) As of May 28, 2023 (in millions) Level 1 Level 2 Level 3 Fair Value Derivative assets (a) $ — $ 3.0 $ — $ 3.0 Derivative liabilities (a) — (46.6) — (46.6) Deferred compensation liabilities (b) — (22.6) — (22.6) Fair value, net $ — $ (66.2) $ — $ (66.2) ___________________________________________ (a) Derivative assets and liabilities included in Level 2 primarily represent commodity swaps, option contracts, interest rate swaps and currency contracts. The fair values of our Level 2 derivative assets were determined using valuation models that use market observable inputs including both forward and spot prices for commodities and foreign currencies. Derivative assets are presented within “Prepaid expenses and other current assets” on our Consolidated Balance Sheets 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. Deferred compensation liabilities are primarily presented within “Other noncurrent liabilities” on our Consolidated Balance Sheets. |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Feb. 25, 2024 | |
Stockholders' Equity Note [Abstract] | |
Schedule of changes in AOCI, net of tax | Changes in accumulated other comprehensive income (loss), net of taxes, as of February 25, 2024 were as follows: (in millions) Foreign Pension and Other Accumulated Balance as of May 28, 2023 $ (27.1) $ (0.7) $ 1.0 $ (26.8) Other comprehensive income before reclassifications, net of tax 14.0 (0.4) (0.3) 13.3 Net current-period other comprehensive income 14.0 (0.4) (0.3) 13.3 Balance as of February 25, 2024 $ (13.1) $ (1.1) $ 0.7 $ (13.5) |
SEGMENTS (Tables)
SEGMENTS (Tables) | 9 Months Ended |
Feb. 25, 2024 | |
Segment Reporting [Abstract] | |
Schedule of segment net sales | Thirteen Weeks Ended Thirty-Nine Weeks Ended (in millions) February 25, 2024 (a) February 26, February 25, 2024 (a) February 26, Segment net sales North America $ 947.5 $ 1,070.8 $ 3,250.0 $ 3,088.9 International (b) 510.8 182.8 1,605.7 566.8 $ 1,458.3 $ 1,253.6 $ 4,855.7 $ 3,655.7 |
Schedule of the reconciliation of adjusted EBITDA to net income | Thirteen Weeks Ended Thirty-Nine Weeks Ended (in millions) February 25, 2024 (a)(d) February 26, February 25, 2024 (a)(d) February 26, Segment Adjusted EBITDA North America $ 285.9 $ 333.0 $ 986.6 $ 864.4 International (b) 101.7 54.1 291.5 147.4 Total Reportable Segments Adjusted EBITDA 387.6 387.1 1,278.1 1,011.8 Unallocated corporate costs (c) (44.0) (34.9) (144.7) (96.1) Depreciation and amortization (e) 80.0 59.5 222.0 176.9 Unrealized derivative losses 27.3 5.1 1.6 8.7 Unconsolidated joint venture unrealized derivative losses — 47.1 — 32.7 Foreign currency exchange losses 9.0 1.8 7.3 4.2 Items impacting comparability: Inventory step-up from acquisition — — 20.7 — Integration and acquisition-related items, net 2.4 (4.3) 11.2 (30.8) Gain on acquisition of interest in joint ventures (f) — — — (15.1) Interest expense, net 35.7 25.8 95.5 76.4 Income before income taxes 189.2 217.2 775.1 662.7 Income tax expense 43.1 42.1 179.3 152.6 Net income $ 146.1 $ 175.1 $ 595.8 $ 510.1 ___________________________________________ (a) During the thirteen and thirty-nine weeks ended February 25, 2024, we transitioned certain central systems and functions, including order to cash, produce to deliver, source to pay, and inventory management, among others in North America, to a new enterprise resource planning system. After the transition, we experienced reduced visibility into finished goods inventories at our distribution centers, resulting in a higher-than-expected effect on customer order fulfillment rates. By the end of the quarter, we restored the visibility into our finished goods inventories and customer order fulfillment rates to pre-transition levels. (b) We acquired the remaining interest in LW EMEA in the fourth quarter of fiscal 2023. Accordingly, LW EMEA’s adjusted EBITDA is reported in the International segment for the thirteen and thirty-nine weeks ended February 25, 2024, whereas in the same period in the prior year, our 50% equity interest in LW EMEA was recorded using equity method accounting. As a result, only 50% of LW EMEA’s adjusted EBITDA is reported in the International segment for the thirteen and thirty-nine weeks ended February 26, 2023. (c) Unallocated corporate costs included costs related to corporate support staff and support services, foreign exchange gains and losses and unrealized mark-to-market derivative gains and losses. Support services include, but are not limited to, our administrative, information technology, human resources, finance, and accounting functions that are not specifically allocated to the segments. Unallocated corporate costs for the thirteen and thirty-nine weeks ended February 25, 2024 included unallocated corporate costs of LW EMEA, whereas in the same period in the prior year, our portion of LW EMEA’s unallocated corporate costs were recorded in “Equity method investment earnings” in the Consolidated Statements of Earnings in the International segment. (d) The thirteen weeks ended February 25, 2024 included a $25.0 million charge ($19.0 million after-tax, or $0.13 per share) related to a write-off of excess raw potatoes. The total charge to the reporting segments was as follows: $22.7 million to the North America segment and $2.3 million to the International segment. The thirty-nine weeks ended February 25, 2024 included a $95.9 million charge ($72.9 million after-tax, or $0.50 per share) related to a write-off of excess raw potatoes. The total charge to the reporting segments was as follows: $86.0 million to the North America segment and $9.9 million to the International segment. (e) Depreciation and amortization included interest expense, income tax expense, and depreciation and amortization from equity method investments of $2.1 million and $9.3 million for the thirteen weeks ended February 25, 2024 and February 26, 2023, respectively; and $6.4 million and $26.9 million for the thirty-nine weeks ended February 25, 2024 and February 26, 2023, respectively. (f) The thirty-nine weeks ended February 26, 2023 included a $15.1 million (before and after-tax) gain recognized in connection with our acquisition of an additional 40% equity interest in Lamb Weston Alimentos Modernos S.A. (“LWAMSA”) in July 2022. This gain related to remeasuring our previously held 50% equity interest in LWAMSA to fair value, recorded in “Equity method investment earnings” in the Consolidated Statements of Earnings, and is excluded from the financial results of our International segment. |
NATURE OF OPERATIONS AND SUMM_3
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Segments (Details) - segment | 3 Months Ended | 9 Months Ended |
Feb. 25, 2024 | Feb. 25, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of reportable segments | 2 | 2 |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 25, 2024 | Feb. 26, 2023 | Feb. 25, 2024 | Feb. 26, 2023 | |
Numerator: | ||||
Net income, basic | $ 146.1 | $ 175.1 | $ 595.8 | $ 510.1 |
Net income, diluted | $ 146.1 | $ 175.1 | $ 595.8 | $ 510.1 |
Denominator: | ||||
Basic weighted average common shares outstanding (in shares) | 144.5 | 144 | 145 | 144 |
Add: Dilutive effect of employee incentive plans (in shares) | 0.8 | 0.8 | 0.8 | 0.7 |
Diluted weighted average common shares outstanding (in shares) | 145.3 | 144.8 | 145.8 | 144.7 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 1.01 | $ 1.22 | $ 4.11 | $ 3.54 |
Diluted (in dollars per share) | $ 1.01 | $ 1.21 | $ 4.09 | $ 3.53 |
Antidilutive securities (in shares) | 0.6 |
INCOME TAXES - General Informat
INCOME TAXES - General Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 25, 2024 | Feb. 26, 2023 | Feb. 25, 2024 | Feb. 26, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Income before income taxes and equity method earnings | $ 188.2 | $ 240.5 | $ 757.3 | $ 618.7 |
Equity method investment earnings (loss) | 1 | (23.3) | 17.8 | 44 |
Income tax expense | $ 43.1 | $ 42.1 | $ 179.3 | $ 152.6 |
Effective tax rate (as a percent) | 22.80% | 19.40% | 23.10% | 23% |
INCOME TAXES - Income Taxes Pai
INCOME TAXES - Income Taxes Paid (Details) - USD ($) $ in Millions | 9 Months Ended | |
Feb. 25, 2024 | Feb. 26, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income taxes paid, net of refunds | $ 140.4 | $ 168.5 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Feb. 25, 2024 | May 28, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials and packaging | $ 265.2 | $ 145.7 |
Finished goods | 855.3 | 708.3 |
Supplies and other | 89.5 | 78 |
Inventories | $ 1,210 | $ 932 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Components (Details) - USD ($) $ in Millions | Feb. 25, 2024 | May 28, 2023 |
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | $ 5,478.7 | $ 4,683.8 |
Less accumulated depreciation | (2,072.3) | (1,875.8) |
Property, plant and equipment, net | 3,406.4 | 2,808 |
Land and land improvements | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | 168.7 | 163.2 |
Buildings, machinery and equipment | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | 4,001.4 | 3,576.6 |
Furniture, fixtures, office equipment and other | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | 120.2 | 112 |
Construction in progress | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | $ 1,188.4 | $ 832 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Feb. 25, 2024 | Feb. 26, 2023 | Feb. 25, 2024 | Feb. 26, 2023 | May 28, 2023 | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation expense | $ 70.8 | $ 48.8 | $ 203.2 | $ 145.8 | |
Purchases of property, plant and equipment included in accounts payable | 156.9 | $ 82.6 | |||
Construction in progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Interest capitalized | $ 13.8 | $ 5.8 | $ 37.3 | $ 11.9 |
GOODWILL AND OTHER IDENTIFIAB_3
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS - Carrying Amount of Goodwill (Details) $ in Millions | 9 Months Ended |
Feb. 25, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Balance at May 28, 2023 | $ 1,040.7 |
Acquisition | 8.5 |
Foreign currency translation adjustment | 7.4 |
Balance at February 25, 2024 | 1,056.6 |
North America | |
Goodwill [Roll Forward] | |
Balance at May 28, 2023 | 722.4 |
Acquisition | 0 |
Foreign currency translation adjustment | 4.2 |
Balance at February 25, 2024 | 726.6 |
International | |
Goodwill [Roll Forward] | |
Balance at May 28, 2023 | 318.3 |
Acquisition | 8.5 |
Foreign currency translation adjustment | 3.2 |
Balance at February 25, 2024 | $ 330 |
GOODWILL AND OTHER IDENTIFIAB_4
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Feb. 25, 2024 | Feb. 26, 2023 | Feb. 25, 2024 | Feb. 26, 2023 | May 28, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Weighted Average Useful Life (in years) | 13 years | 13 years | 14 years | ||
Non-amortizing intangible assets | $ 18 | $ 18 | $ 18 | ||
Amortizing intangible assets, gross | 123.2 | 123.2 | 121.4 | ||
Accumulated amortization | (34.8) | (34.8) | (29.2) | ||
Other identifiable intangible assets, gross | 141.2 | 141.2 | 139.4 | ||
Amortizing intangible assets, net | 88.4 | 88.4 | 92.2 | ||
Other identifiable intangible assets, net | 106.4 | 106.4 | $ 110.2 | ||
Amortization expense | $ 7.1 | $ 1.4 | $ 12.4 | $ 4.3 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Millions | Feb. 25, 2024 | May 28, 2023 |
Other Assets, Noncurrent Disclosure [Abstract] | ||
Capitalized software costs | $ 232.3 | $ 175.4 |
Property, plant and equipment deposits | 58.1 | 30.5 |
Equity method investments | 49.2 | 43.5 |
Other | 41.7 | 38.2 |
Other assets | $ 381.3 | $ 287.6 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Millions | Feb. 25, 2024 | May 28, 2023 |
Payables and Accruals [Abstract] | ||
Compensation and benefits | $ 102.8 | $ 187.5 |
Accrued trade promotions | 67.1 | 86.1 |
Derivative liabilities and payables | 52.4 | 53.9 |
Dividends payable to shareholders | 52 | 40.8 |
Taxes payable | 39.6 | 21.2 |
Current portion of operating lease obligations | 28.2 | 28.5 |
Plant utilities and accruals | 21.8 | 27.2 |
Accrued interest | 20.7 | 31.1 |
Other | 69.8 | 33.5 |
Accrued liabilities | $ 454.4 | $ 509.8 |
DEBT AND FINANCING OBLIGATION_2
DEBT AND FINANCING OBLIGATIONS - Summary (Details) - USD ($) $ in Millions | Feb. 25, 2024 | May 28, 2023 |
Debt and Financing Obligations | ||
Short-term borrowings | $ 540.8 | $ 160.6 |
Long-term debt | 3,328 | 3,319.2 |
Financing obligations | 6 | 7.7 |
Total debt and financing obligations | 3,874.8 | 3,487.5 |
Debt issuance costs and debt discounts | (22.2) | (25.3) |
Short-term borrowings, net of debt discounts | (538.4) | (158.5) |
Current portion of long-term debt and financing obligations | (139.1) | (55.3) |
Long-term debt and financing obligations, excluding current portion | $ 3,175.1 | $ 3,248.4 |
U.S. revolving credit facility | Secured Debt | Revolving Credit Facility | ||
Debt and Financing Obligations | ||
Interest rate (as a percent) | 6.681% | 7.71% |
Short-term borrowings | $ 405 | $ 0 |
Debt issuance costs, line of credit arrangements, net | $ 1.9 | $ 2.5 |
Euro revolving credit facility | Secured Debt | Revolving Credit Facility | ||
Debt and Financing Obligations | ||
Interest rate (as a percent) | 4.772% | 4.23% |
Short-term borrowings | $ 113.6 | $ 149.2 |
Other credit facilities | Line of Credit | ||
Debt and Financing Obligations | ||
Short-term borrowings | $ 22.2 | $ 11.4 |
Term A-1 loan facility, due June 2026 | Secured Debt | ||
Debt and Financing Obligations | ||
Interest rate (as a percent) | 7.233% | 5.21% |
Long-term debt | $ 232.5 | $ 243.8 |
Term A-2 loan facility, due April 2025 | Secured Debt | ||
Debt and Financing Obligations | ||
Interest rate (as a percent) | 7.233% | 5.38% |
Long-term debt | $ 268.1 | $ 280.3 |
Term A-3 loan facility, due January 2030 | Secured Debt | ||
Debt and Financing Obligations | ||
Interest rate (as a percent) | 7.383% | 6.85% |
Long-term debt | $ 433.1 | $ 450 |
RMB loan facility, due February 2027 | Term Loan | ||
Debt and Financing Obligations | ||
Interest rate (as a percent) | 4.528% | 4.60% |
Long-term debt | $ 143.1 | $ 94.7 |
Euro loan facility, due December 2024 | Term Loan | ||
Debt and Financing Obligations | ||
Interest rate (as a percent) | 4.184% | 2.01% |
Long-term debt | $ 81.2 | $ 80.4 |
4.875% senior notes, due May 2028 | Senior Notes | ||
Debt and Financing Obligations | ||
Interest rate (as a percent) | 4.875% | 4.875% |
Long-term debt | $ 500 | $ 500 |
4.125% senior notes, due January 2030 | Senior Notes | ||
Debt and Financing Obligations | ||
Interest rate (as a percent) | 4.125% | 4.125% |
Long-term debt | $ 970 | $ 970 |
4.375% senior notes, due January 2032 | Senior Notes | ||
Debt and Financing Obligations | ||
Interest rate (as a percent) | 4.375% | 4.375% |
Long-term debt | $ 700 | $ 700 |
DEBT AND FINANCING OBLIGATION_3
DEBT AND FINANCING OBLIGATIONS - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Feb. 25, 2024 | Feb. 26, 2023 | |
Debt Disclosure [Abstract] | ||
Available amount under committed revolving credit facilities | $ 908.8 | |
Interest paid | $ 151.3 | $ 120.6 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value Hierarchy (Details) - USD ($) $ in Millions | Feb. 25, 2024 | May 28, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Statement of Financial Position | Prepaid Expense and Other Assets, Current | Prepaid Expense and Other Assets, Current |
Derivative Liability, Statement of Financial Position | Accrued Liabilities, Current | Accrued Liabilities, Current |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 1.8 | $ 3 |
Derivative liabilities | (48.4) | (46.6) |
Deferred compensation liabilities | (27.2) | (22.6) |
Fair value, net | (73.8) | (66.2) |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Deferred compensation liabilities | 0 | 0 |
Fair value, net | 0 | 0 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1.8 | 3 |
Derivative liabilities | (48.4) | (46.6) |
Deferred compensation liabilities | (27.2) | (22.6) |
Fair value, net | (73.8) | (66.2) |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Deferred compensation liabilities | 0 | 0 |
Fair value, net | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Debt
FAIR VALUE MEASUREMENTS - Debt Outstanding (Details) $ in Millions | Feb. 25, 2024 USD ($) |
Carrying Value | Fixed Rate Debt | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Debt | $ 2,170 |
Carrying Value | Variable Rate Debt | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Debt | 1,698.8 |
Level 2 | Fair Value | Fixed Rate Debt | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Debt | $ 1,995.9 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Mar. 20, 2024 | Dec. 01, 2023 | Feb. 25, 2024 | Feb. 26, 2023 | Feb. 25, 2024 | Feb. 26, 2023 | Oct. 11, 2023 | |
Share Repurchase Program | |||||||
Authorization to repurchase common stock not to exceed | $ 500 | ||||||
Number of shares repurchased (in shares) | 0 | 1,564,351 | |||||
Treasury stock value | $ 150 | ||||||
Remaining amount authorized of share repurchase program | $ 450 | 450 | |||||
Dividends paid | $ 52 | $ 122 | $ 105.8 | ||||
Dividends declared (in dollars per share) | $ 0.360 | $ 0.280 | $ 0.920 | $ 0.770 | |||
Subsequent Event | |||||||
Share Repurchase Program | |||||||
Dividends declared (in dollars per share) | $ 0.36 | ||||||
Weighted Average | |||||||
Share Repurchase Program | |||||||
Shares purchased, weighted-average price (in dollars per share) | $ 95.89 |
STOCKHOLDERS' EQUITY - Accumula
STOCKHOLDERS' EQUITY - Accumulated Other Comprehensive Income (Loss) (Details) $ in Millions | 9 Months Ended |
Feb. 25, 2024 USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of May 28, 2023 | $ 1,411.3 |
Other comprehensive income before reclassifications, net of tax | 13.3 |
Net current-period other comprehensive income | 13.3 |
Balance as of February 25, 2024 | 1,758.2 |
Accumulated Other Comprehensive Income (Loss) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of May 28, 2023 | (26.8) |
Balance as of February 25, 2024 | (13.5) |
Foreign Currency Translation Gain (Loss) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of May 28, 2023 | (27.1) |
Other comprehensive income before reclassifications, net of tax | 14 |
Net current-period other comprehensive income | 14 |
Balance as of February 25, 2024 | (13.1) |
Pension and Post-Retirement Benefits | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of May 28, 2023 | (0.7) |
Other comprehensive income before reclassifications, net of tax | (0.4) |
Net current-period other comprehensive income | (0.4) |
Balance as of February 25, 2024 | (1.1) |
Other | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of May 28, 2023 | 1 |
Other comprehensive income before reclassifications, net of tax | (0.3) |
Net current-period other comprehensive income | (0.3) |
Balance as of February 25, 2024 | $ 0.7 |
SEGMENTS - Narrative (Details)
SEGMENTS - Narrative (Details) - segment | 3 Months Ended | 9 Months Ended | |
Feb. 25, 2024 | Feb. 25, 2024 | Feb. 28, 2023 | |
Business Combination, Description | |||
Number of reportable segments | 2 | 2 | |
Number of operating segments | 2 | ||
Lamb-Weston Meijer v.o.f. ("LW EMEA") | |||
Business Combination, Description | |||
Business acquisition, percentage of voting interests acquired (as a percent) | 50% |
SEGMENTS - Net Sales (Details)
SEGMENTS - Net Sales (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 25, 2024 | Feb. 26, 2023 | Feb. 25, 2024 | Feb. 26, 2023 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net sales | $ 1,458.3 | $ 1,253.6 | $ 4,855.7 | $ 3,655.7 |
North America | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net sales | 947.5 | 1,070.8 | 3,250 | 3,088.9 |
International | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net sales | $ 510.8 | $ 182.8 | $ 1,605.7 | $ 566.8 |
SEGMENTS - Reconciliation (Deta
SEGMENTS - Reconciliation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Feb. 25, 2024 | Feb. 26, 2023 | Feb. 25, 2024 | Feb. 26, 2023 | Jul. 05, 2022 | May 29, 2022 | |
Segment Adjusted EBITDA | ||||||
Depreciation and amortization | $ 80 | $ 59.5 | $ 222 | $ 176.9 | ||
Unrealized derivative losses | 27.3 | 5.1 | 1.6 | 8.7 | ||
Unconsolidated joint venture unrealized derivative losses | 0 | 47.1 | 0 | 32.7 | ||
Foreign currency exchange losses | 9 | 1.8 | 7.3 | 4.2 | ||
Inventory step-up from acquisition | 0 | 0 | 20.7 | 0 | ||
Integration and acquisition-related items, net | 2.4 | (4.3) | 11.2 | (30.8) | ||
Gain on acquisition of interest in joint ventures | 0 | 0 | 0 | (15.1) | ||
Interest expense, net | 35.7 | 25.8 | 95.5 | 76.4 | ||
Income before income taxes | 189.2 | 217.2 | 775.1 | 662.7 | ||
Income tax expense | 43.1 | 42.1 | 179.3 | 152.6 | ||
Net income | 146.1 | 175.1 | 595.8 | 510.1 | ||
Write-off of excess raw potatoes | 25 | 95.9 | ||||
Write-off of excess raw potatoes, after tax | $ 19 | $ 72.9 | ||||
Inventory Write-down, after Tax, Per Share Increase (Decrease) | $ (0.13) | $ 0.50 | ||||
Interest expense, income tax expense, and depreciation and amortization from equity method investments | $ 2.1 | 9.3 | $ 6.4 | 26.9 | ||
Business combination, step acquisition, equity interest in acquiree, remeasurement gain (loss), after tax | 15.1 | |||||
Lamb Weston Alimentos Modernos S.A. ("LWAMSA") | ||||||
Segment Adjusted EBITDA | ||||||
Business acquisition, percentage of voting interests acquired (as a percent) | 40% | |||||
Lamb-Weston Meijer v.o.f. ("LW EMEA") | ||||||
Segment Adjusted EBITDA | ||||||
Equity method investment, ownership interest (as a percent) | 50% | |||||
Lamb Weston Alimentos Modernos S.A. ("LWAMSA") | ||||||
Segment Adjusted EBITDA | ||||||
Equity method investment, ownership interest (as a percent) | 50% | |||||
North America | ||||||
Segment Adjusted EBITDA | ||||||
Write-off of excess raw potatoes | 22.7 | 86 | ||||
International | ||||||
Segment Adjusted EBITDA | ||||||
Write-off of excess raw potatoes | 2.3 | 9.9 | ||||
Operating Segments | ||||||
Segment Adjusted EBITDA | ||||||
Adjusted EBITDA | 387.6 | 387.1 | 1,278.1 | 1,011.8 | ||
Operating Segments | North America | ||||||
Segment Adjusted EBITDA | ||||||
Adjusted EBITDA | 285.9 | 333 | 986.6 | 864.4 | ||
Operating Segments | International | ||||||
Segment Adjusted EBITDA | ||||||
Adjusted EBITDA | 101.7 | 54.1 | 291.5 | 147.4 | ||
Corporate, Non-Segment | ||||||
Segment Adjusted EBITDA | ||||||
Adjusted EBITDA | $ (44) | $ (34.9) | $ (144.7) | $ (96.1) |