2017 | 2016 | 2015 | |||||||||
Net derivative gains (losses) incurred | $ | 0.6 | $ | (7.4 | ) | $ | (70.8 | ) | |||
Less: Net derivative gains (losses) allocated to reporting segments | 5.7 | (23.8 | ) | (46.2 | ) | ||||||
Net derivative gains (losses) recognized in general corporate expenses | $ | (5.1 | ) | $ | 16.4 | $ | (24.6 | ) | |||
Net derivative gains (losses) allocated to Grocery & Snacks | $ | 3.4 | $ | (14.4 | ) | $ | (26.7 | ) | |||
Net derivative gains (losses) allocated to Refrigerated & Frozen | 0.8 | (6.2 | ) | (11.8 | ) | ||||||
Net derivative gains (losses) allocated to International | 1.6 | (0.5 | ) | (4.0 | ) | ||||||
Net derivative losses allocated to Foodservice | — | (1.0 | ) | (3.4 | ) | ||||||
Net derivative losses allocated to Commercial | (0.1 | ) | (1.7 | ) | (0.3 | ) | |||||
Net derivative gains (losses) included in segment operating profit | $ | 5.7 | $ | (23.8 | ) | $ | (46.2 | ) |
Pension Benefits | Other Benefits | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Change in Benefit Obligation | |||||||||||||||
Benefit obligation at beginning of year | $ | 3,903.0 | $ | 4,092.2 | $ | 201.7 | $ | 235.4 | |||||||
Service cost | 56.9 | 93.8 | 0.3 | 0.4 | |||||||||||
Interest cost | 116.8 | 159.8 | 4.6 | 7.5 | |||||||||||
Plan participants’ contributions | — | — | 4.7 | 4.8 | |||||||||||
Amendments | 5.5 | 2.0 | — | — | |||||||||||
Actuarial loss (gain) | (51.5 | ) | (18.5 | ) | (32.0 | ) | 0.6 | ||||||||
Plan settlements | (287.5 | ) | — | — | — | ||||||||||
Special termination benefits | 1.5 | 25.6 | — | — | |||||||||||
Curtailments | (18.1 | ) | (18.8 | ) | — | — | |||||||||
Benefits paid | (169.7 | ) | (168.2 | ) | (19.0 | ) | (21.9 | ) | |||||||
Currency | (0.8 | ) | (1.0 | ) | (0.2 | ) | (0.2 | ) | |||||||
Business divestitures | (7.4 | ) | (263.9 | ) | (3.2 | ) | (24.9 | ) | |||||||
Benefit obligation at end of year | $ | 3,548.7 | $ | 3,903.0 | $ | 156.9 | $ | 201.7 | |||||||
Change in Plan Assets | |||||||||||||||
Fair value of plan assets at beginning of year | $ | 2,959.4 | $ | 3,539.0 | $ | 0.1 | $ | 0.1 | |||||||
Actual return on plan assets | 346.1 | (146.2 | ) | — | — | ||||||||||
Employer contributions | 163.0 | 11.9 | 14.2 | 17.1 | |||||||||||
Plan participants’ contributions | — | — | 4.7 | 4.8 | |||||||||||
Plan settlements | (287.5 | ) | — | — | — | ||||||||||
Investment and administrative expenses | (26.7 | ) | (22.0 | ) | — | — | |||||||||
Benefits paid | (169.7 | ) | (168.2 | ) | (19.0 | ) | (21.9 | ) | |||||||
Currency | (1.0 | ) | (1.1 | ) | — | — | |||||||||
Business divestitures | — | (254.0 | ) | — | — | ||||||||||
Fair value of plan assets at end of year | $ | 2,983.6 | $ | 2,959.4 | $ | — | $ | 0.1 |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents | $ | 1.0 | $ | 94.0 | $ | — | $ | 95.0 | ||||||||
Equity securities: | ||||||||||||||||
U.S. equity securities | 494.0 | 13.7 | — | 507.7 | ||||||||||||
International equity securities | 249.9 | 13.2 | — | 263.1 | ||||||||||||
Fixed income securities: | ||||||||||||||||
Government bonds | 51.1 | 224.3 | — | 275.4 | ||||||||||||
Corporate bonds | 4.4 | 279.5 | — | 283.9 | ||||||||||||
Mortgage-backed bonds | 63.3 | 6.2 | — | 69.5 | ||||||||||||
Real estate funds | 9.5 | — | — | 9.5 | ||||||||||||
Multi-strategy hedge funds | — | — | — | — | ||||||||||||
Private equity funds | — | — | — | — | ||||||||||||
Master limited partnerships | 173.5 | — | — | 173.5 | ||||||||||||
Private natural resources funds | — | — | — | — | ||||||||||||
Net receivables for unsettled transactions | 0.7 | — | — | 0.7 | ||||||||||||
Fair value measurement of pension plan assets in the fair value hierarchy | $ | 1,047.4 | $ | 630.9 | $ | — | $ | 1,678.3 | ||||||||
Investments measured at net asset value | 1,305.3 | |||||||||||||||
Total pension plan assets | $ | 2,983.6 |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents | $ | 0.9 | $ | 73.4 | $ | — | $ | 74.3 | ||||||||
Equity securities: | ||||||||||||||||
U.S. equity securities | 453.5 | 13.2 | — | 466.7 | ||||||||||||
International equity securities | 267.5 | 12.5 | — | 280.0 | ||||||||||||
Fixed income securities: | ||||||||||||||||
Government bonds | 43.3 | 228.4 | — | 271.7 | ||||||||||||
Corporate bonds | 23.6 | 226.6 | — | 250.2 | ||||||||||||
Mortgage-backed bonds | 58.1 | 56.3 | — | 114.4 | ||||||||||||
Real estate funds | — | — | — | — | ||||||||||||
Multi-strategy hedge funds | — | — | — | — | ||||||||||||
Private equity funds | — | — | — | — | ||||||||||||
Master limited partnerships | 155.8 | — | — | 155.8 | ||||||||||||
Private natural resources funds | — | — | — | — | ||||||||||||
Net receivables for unsettled transactions | 3.2 | — | — | 3.2 | ||||||||||||
Fair value measurement of pension plan assets in the fair value hierarchy | $ | 1,005.9 | $ | 610.4 | $ | — | $ | 1,616.3 | ||||||||
Investments measured at net asset value | 1,343.1 | |||||||||||||||
Total pension plan assets | $ | 2,959.4 |
2017 | 2016 | 2015 | |||||||||
Long-term debt | $ | 203.6 | $ | 302.9 | $ | 333.0 | |||||
Short-term debt | 0.6 | 1.9 | 2.8 | ||||||||
Interest income | (3.7 | ) | (1.2 | ) | (1.0 | ) | |||||
Interest capitalized | (5.0 | ) | (7.8 | ) | (6.6 | ) | |||||
$ | 195.5 | $ | 295.8 | $ | 328.2 |
2017 | 2016 | 2015 | |||||||||
Shelf-stable | $ | 4,682.4 | $ | 5,256.8 | $ | 5,511.5 | |||||
Temperature-controlled | 3,144.5 | 3,407.3 | 3,522.5 | ||||||||
Total net sales | $ | 7,826.9 | $ | 8,664.1 | $ | 9,034.0 |
2017 | 2016 | 2015 | |||||||||
United States | $ | 883.5 | $ | 136.9 | $ | 592.6 | |||||
Canada | (123.1 | ) | 11.4 | 27.1 | |||||||
Foreign - other | 40.3 | 26.6 | 44.3 | ||||||||
$ | 800.7 | $ | 174.9 | $ | 664.0 |
2017 | 2016 | |||||||
Projected benefit obligation | $ | 3,433.6 | $ | 3,809.5 | ||||
Accumulated benefit obligation | 3,357.1 | 3,734.6 | ||||||
Fair value of plan assets | 2,851.4 | 2,862.9 |
Derivative Assets | Derivative Liabilities | ||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Commodity contracts | Prepaid expenses and other current assets | $ | 2.6 | Other accrued liabilities | $ | 1.4 | |||||
Foreign exchange contracts | Prepaid expenses and other current assets | 0.2 | Other accrued liabilities | 1.1 | |||||||
Other | Prepaid expenses and other current assets | — | Other accrued liabilities | 0.2 | |||||||
Total derivatives not designated as hedging instruments | $ | 2.8 | $ | 2.7 |
Derivative Assets | Derivative Liabilities | ||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Commodity contracts | Prepaid expenses and other current assets | $ | 5.0 | Other accrued liabilities | $ | 2.1 | |||||
Foreign exchange contracts | Prepaid expenses and other current assets | 20.8 | Other accrued liabilities | 0.2 | |||||||
Other | Prepaid expenses and other current assets | — | Other accrued liabilities | 0.3 | |||||||
Total derivatives not designated as hedging instruments | $ | 25.8 | $ | 2.6 |
May 28, 2017 | May 29, 2016 | ||||||
Prepaid expenses and other current assets | $ | 2.3 | $ | 24.1 | |||
Other accrued liabilities | 1.3 | 0.6 |
Derivative Assets | Derivative Liabilities | ||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Commodity contracts | Prepaid expenses and other current assets | $ | 2.6 | Other accrued liabilities | $ | 1.4 | |||||
Foreign exchange contracts | Prepaid expenses and other current assets | 0.2 | Other accrued liabilities | 1.1 | |||||||
Other | Prepaid expenses and other current assets | — | Other accrued liabilities | 0.2 | |||||||
Total derivatives not designated as hedging instruments | $ | 2.8 | $ | 2.7 |
Derivative Assets | Derivative Liabilities | ||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Commodity contracts | Prepaid expenses and other current assets | $ | 5.0 | Other accrued liabilities | $ | 2.1 | |||||
Foreign exchange contracts | Prepaid expenses and other current assets | 20.8 | Other accrued liabilities | 0.2 | |||||||
Other | Prepaid expenses and other current assets | — | Other accrued liabilities | 0.3 | |||||||
Total derivatives not designated as hedging instruments | $ | 25.8 | $ | 2.6 |
For the Fiscal Year Ended May 28, 2017 | ||||||
Derivatives Not Designated as Hedging Instruments | Location in Consolidated Statement of Operations of Gain (Loss) Recognized on Derivatives | Amount of Gain (Loss) Recognized on Derivatives in Consolidated Statement of Operations | ||||
Commodity contracts | Cost of goods sold | $ | 0.9 | |||
Foreign exchange contracts | Cost of goods sold | (0.3 | ) | |||
Foreign exchange contracts | Selling, general and administrative expense | 0.2 | ||||
Total gain from derivative instruments not designated as hedging instruments | $ | 0.8 |
For the Fiscal Year Ended May 29, 2016 | ||||||
Derivatives Not Designated as Hedging Instruments | Location in Consolidated Statement of Operations of Gain (Loss) Recognized on Derivatives | Amount of Gain (Loss) Recognized on Derivatives in Consolidated Statement of Operations | ||||
Commodity contracts | Cost of goods sold | $ | (8.1 | ) | ||
Foreign exchange contracts | Cost of goods sold | 0.7 | ||||
Foreign exchange contracts | Selling, general and administrative expense | 2.9 | ||||
Total loss from derivative instruments not designated as hedging instruments | $ | (4.5 | ) |
For the Fiscal Year Ended May 31, 2015 | ||||||
Derivatives Not Designated as Hedging Instruments | Location in Consolidated Statement of Operations of Gain (Loss) Recognized on Derivatives | Amount of Gain (Loss) Recognized on Derivatives in Consolidated Statement of Operations | ||||
Commodity contracts | Cost of goods sold | $ | (71.0 | ) | ||
Foreign exchange contracts | Cost of goods sold | 0.2 | ||||
Foreign exchange contracts | Selling, general and administrative expense | 10.3 | ||||
Interest rate contracts | Selling, general and administrative expense | (1.4 | ) | |||
Total loss from derivative instruments not designated as hedging instruments | $ | (61.9 | ) |
• | The number of shares of common stock subject to each outstanding stock option was increased and the corresponding exercise price was decreased to maintain the intrinsic value of each outstanding stock option immediately before and after the Spinoff. A comparison of the fair value of the outstanding stock option awards immediately before and after the Spinoff resulted in no incremental expense. |
• | The number of shares of common stock underlying each outstanding restricted stock unit and performance share, and the value of each outstanding cash-settled restricted stock was increased to preserve the intrinsic value of such award immediately prior to the Spinoff. The Company did not record any incremental compensation expense related to the adjustment of these awards. |
2017 | 2016 | 2015 | |||
Expected volatility (%) | 19.15 | 17.88 | 17.45 | ||
Dividend yield (%) | 2.33 | 2.74 | 3.10 | ||
Risk-free interest rates (%) | 1.03 | 1.60 | 1.58 | ||
Expected life of stock option (years) | 4.94 | 4.96 | 4.92 |
Options | Number of Options (in Millions) | Weighted Average Exercise Price | Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (in Millions) | ||||||||
Outstanding at May 29, 2016 | 7.1 | $ | 33.11 | |||||||||
Granted | 1.1 | $ | 48.01 | |||||||||
Exercised | (2.9 | ) | $ | 28.89 | $ | 128.6 | ||||||
Forfeited | (0.9 | ) | $ | 35.62 | ||||||||
Expired | — | $ | — | |||||||||
Conversion for the Spinoff of Lamb Weston | 1.9 | $ | 26.90 | |||||||||
Outstanding at May 28, 2017 | 6.3 | $ | 27.12 | 6.92 | $ | 171.4 | ||||||
Exercisable at May 28, 2017 | 3.8 | $ | 23.77 | 5.84 | $ | 90.8 |
Stock-settled | Cash-settled | ||||||||||||
Share Units | Share Units (in Millions) | Weighted Average Grant-Date Fair Value | Share Units (in Millions) | Weighted Average Grant-Date Fair Value | |||||||||
Nonvested share units at May 29, 2016 | 1.54 | $ | 38.67 | 1.46 | $ | 37.53 | |||||||
Granted | 0.56 | $ | 46.79 | 0.39 | $ | 48.07 | |||||||
Vested/Issued | (0.58 | ) | $ | 35.78 | (0.51 | ) | $ | 36.40 | |||||
Forfeited | (0.39 | ) | $ | 40.44 | (0.46 | ) | $ | 39.41 | |||||
Conversion for the Spinoff of Lamb Weston | 0.43 | $ | 31.27 | 0.33 | $ | 30.48 | |||||||
Nonvested share units at May 28, 2017 | 1.56 | $ | 31.59 | 1.21 | $ | 30.52 |
Performance Shares | Share Units (in Millions) | Weighted Average Grant-Date Fair Value | ||||
Nonvested performance shares at May 29, 2016 | 0.75 | $ | 36.09 | |||
Granted | 0.22 | $ | 46.94 | |||
Adjustments for performance results attained and dividend equivalents | (0.16 | ) | $ | 35.05 | ||
Vested/Issued | (0.06 | ) | $ | 35.05 | ||
Forfeited | (0.15 | ) | $ | 28.32 | ||
Conversion for the Spinoff of Lamb Weston | 0.26 | $ | 29.09 | |||
Nonvested performance shares at May 28, 2017 | 0.86 | $ | 29.23 |
May 28, 2017 | May 29, 2016 | ||||||
Current assets | $ | 35.5 | $ | 39.1 | |||
Noncurrent assets (including goodwill of $77.3 million) | 94.7 | 95.0 |
May 29, 2016 | |||
Spicetec: | |||
Current assets | $ | 43.3 | |
Noncurrent assets (including goodwill of $104.7 million) | 148.3 | ||
Current liabilities | 10.3 | ||
Noncurrent liabilities | 1.2 | ||
JM Swank: | |||
Current assets | $ | 73.7 | |
Noncurrent assets (including goodwill of $53.8 million) | 74.3 | ||
Current liabilities | 44.3 | ||
Noncurrent liabilities | 0.4 |
May 29, 2016 | |||
Cash and cash equivalents | $ | 36.4 | |
Receivables, less allowance for doubtful accounts of $0.5 | 186.5 | ||
Inventories | 498.9 | ||
Prepaid expenses and other current assets | 57.9 | ||
Total current assets of discontinued operations | $ | 779.7 | |
Property, plant and equipment, net | $ | 1,004.1 | |
Goodwill | 133.9 | ||
Brands, trademarks and other intangibles, net | 39.6 | ||
Other assets | 161.7 | ||
Total noncurrent assets of discontinued operations | $ | 1,339.3 | |
Notes payable | $ | 24.9 | |
Current installments of long-term debt | 12.0 | ||
Accounts payable | 238.7 | ||
Accrued payroll | 50.3 | ||
Other accrued liabilities | 83.3 | ||
Total current liabilities of discontinued operations | $ | 409.2 | |
Senior long-term debt, excluding current installments | $ | 36.4 | |
Other noncurrent liabilities | 268.4 | ||
Total noncurrent liabilities of discontinued operations | $ | 304.8 |
2017 | 2016 | 2015 | |||||||||
Net sales | $ | 1,407.9 | $ | 2,975.0 | $ | 2,899.0 | |||||
Income from discontinued operations before income taxes and equity method investment earnings | $ | 172.3 | $ | 474.8 | $ | 415.6 | |||||
Income before income taxes and equity method investment earnings | 172.3 | 474.8 | 415.6 | ||||||||
Income tax expense | 87.5 | 178.9 | 149.3 | ||||||||
Equity method investment earnings | 15.9 | 71.7 | 42.7 | ||||||||
Income from discontinued operations, net of tax | 100.7 | 367.6 | 309.0 | ||||||||
Less: Net income attributable to noncontrolling interests | 6.8 | 9.2 | 9.3 | ||||||||
Net income from discontinued operations attributable to Conagra Brands, Inc. | $ | 93.9 | $ | 358.4 | $ | 299.7 |
May 29, 2016 | |||
Cash and cash equivalents | $ | 36.4 | |
Receivables, less allowance for doubtful accounts of $0.5 | 186.5 | ||
Inventories | 498.9 | ||
Prepaid expenses and other current assets | 57.9 | ||
Total current assets of discontinued operations | $ | 779.7 | |
Property, plant and equipment, net | $ | 1,004.1 | |
Goodwill | 133.9 | ||
Brands, trademarks and other intangibles, net | 39.6 | ||
Other assets | 161.7 | ||
Total noncurrent assets of discontinued operations | $ | 1,339.3 | |
Notes payable | $ | 24.9 | |
Current installments of long-term debt | 12.0 | ||
Accounts payable | 238.7 | ||
Accrued payroll | 50.3 | ||
Other accrued liabilities | 83.3 | ||
Total current liabilities of discontinued operations | $ | 409.2 | |
Senior long-term debt, excluding current installments | $ | 36.4 | |
Other noncurrent liabilities | 268.4 | ||
Total noncurrent liabilities of discontinued operations | $ | 304.8 |
2017 | 2016 | 2015 | |||||||||
Net sales | $ | — | $ | 2,490.6 | $ | 3,895.4 | |||||
Loss on sale of business | $ | (1.6 | ) | $ | — | $ | — | ||||
Long-lived asset impairment charges | — | (1,923.0 | ) | (1,564.6 | ) | ||||||
Income from operations of discontinued operations before income taxes | 3.9 | 168.0 | 68.8 | ||||||||
Income (loss) before income taxes and equity method investment earnings | 2.3 | (1,755.0 | ) | (1,495.8 | ) | ||||||
Income tax benefit | (0.3 | ) | (593.1 | ) | (128.1 | ) | |||||
Income (loss) from discontinued operations, net of tax | $ | 2.6 | $ | (1,161.9 | ) | $ | (1,367.7 | ) |
2015 | |||
Net sales | $ | 16.2 | |
Loss from operations of discontinued operations before income taxes | (9.2 | ) | |
Net gain on sale of businesses | 627.3 | ||
Income before income taxes and equity method investment earnings | 618.1 | ||
Income tax expense | 251.1 | ||
Income from discontinued operations, net of tax | $ | 367.0 |
May 28, 2017 | May 29, 2016 | ||||||
Current assets | $ | 35.5 | $ | 39.1 | |||
Noncurrent assets (including goodwill of $77.3 million) | 94.7 | 95.0 |
May 29, 2016 | |||
Spicetec: | |||
Current assets | $ | 43.3 | |
Noncurrent assets (including goodwill of $104.7 million) | 148.3 | ||
Current liabilities | 10.3 | ||
Noncurrent liabilities | 1.2 | ||
JM Swank: | |||
Current assets | $ | 73.7 | |
Noncurrent assets (including goodwill of $53.8 million) | 74.3 | ||
Current liabilities | 44.3 | ||
Noncurrent liabilities | 0.4 |
2017 | 2016 | 2015 | |||||||||
Net income (loss) available to Conagra Brands, Inc. common stockholders: | |||||||||||
Income from continuing operations attributable to Conagra Brands, Inc. common stockholders | $ | 544.1 | $ | 126.6 | $ | 448.8 | |||||
Income (loss) from discontinued operations, net of tax, attributable to Conagra Brands, Inc. common stockholders | 95.2 | (803.6 | ) | (701.4 | ) | ||||||
Net income (loss) attributable to Conagra Brands, Inc. common stockholders | $ | 639.3 | $ | (677.0 | ) | $ | (252.6 | ) | |||
Less: Increase in redemption value of noncontrolling interests in excess of earnings allocated | 0.8 | 4.8 | 1.7 | ||||||||
Net income (loss) available to Conagra Brands, Inc. common stockholders | $ | 638.5 | $ | (681.8 | ) | $ | (254.3 | ) | |||
Weighted average shares outstanding: | |||||||||||
Basic weighted average shares outstanding | 431.9 | 434.4 | 426.1 | ||||||||
Add: Dilutive effect of stock options, restricted stock unit awards, and other dilutive securities | 4.1 | 4.1 | 5.2 | ||||||||
Diluted weighted average shares outstanding | 436.0 | 438.5 | 431.3 |
2017 | 2016 | 2015 | |||||||||
Net Sales: | |||||||||||
Ardent Mills | $ | 3,180.0 | $ | 3,395.3 | $ | 3,299.2 | |||||
Others | 177.7 | 167.2 | 167.3 | ||||||||
Total net sales | $ | 3,357.7 | $ | 3,562.5 | $ | 3,466.5 | |||||
Gross margin: | |||||||||||
Ardent Mills | $ | 340.3 | $ | 339.2 | $ | 365.3 | |||||
Others | 34.6 | 32.8 | 33.3 | ||||||||
Total gross margin | $ | 374.9 | $ | 372.0 | $ | 398.6 | |||||
Earnings after income taxes: | |||||||||||
Ardent Mills | $ | 152.0 | $ | 142.9 | $ | 173.5 | |||||
Others | 10.1 | 6.4 | 6.1 | ||||||||
Total earnings after income taxes | $ | 162.1 | $ | 149.3 | $ | 179.6 |
May 28, 2017 | May 29, 2016 | ||||||
Ardent Mills: | |||||||
Current assets | $ | 937.2 | $ | 988.4 | |||
Noncurrent assets | 1,694.2 | 1,695.3 | |||||
Current liabilities | 388.9 | 507.7 | |||||
Noncurrent liabilities | 518.0 | 545.0 | |||||
Others: | |||||||
Current assets | $ | 75.5 | $ | 80.8 | |||
Noncurrent assets | 12.2 | 10.5 | |||||
Current liabilities | 44.5 | 51.0 | |||||
Noncurrent liabilities | — | — |
2017 | 2016 | 2015 | |||||||||
Net Sales: | |||||||||||
Ardent Mills | $ | 3,180.0 | $ | 3,395.3 | $ | 3,299.2 | |||||
Others | 177.7 | 167.2 | 167.3 | ||||||||
Total net sales | $ | 3,357.7 | $ | 3,562.5 | $ | 3,466.5 | |||||
Gross margin: | |||||||||||
Ardent Mills | $ | 340.3 | $ | 339.2 | $ | 365.3 | |||||
Others | 34.6 | 32.8 | 33.3 | ||||||||
Total gross margin | $ | 374.9 | $ | 372.0 | $ | 398.6 | |||||
Earnings after income taxes: | |||||||||||
Ardent Mills | $ | 152.0 | $ | 142.9 | $ | 173.5 | |||||
Others | 10.1 | 6.4 | 6.1 | ||||||||
Total earnings after income taxes | $ | 162.1 | $ | 149.3 | $ | 179.6 |
May 28, 2017 | May 29, 2016 | ||||||
Ardent Mills: | |||||||
Current assets | $ | 937.2 | $ | 988.4 | |||
Noncurrent assets | 1,694.2 | 1,695.3 | |||||
Current liabilities | 388.9 | 507.7 | |||||
Noncurrent liabilities | 518.0 | 545.0 | |||||
Others: | |||||||
Current assets | $ | 75.5 | $ | 80.8 | |||
Noncurrent assets | 12.2 | 10.5 | |||||
Current liabilities | 44.5 | 51.0 | |||||
Noncurrent liabilities | — | — |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Derivative assets | $ | 2.0 | $ | 0.3 | $ | — | $ | 2.3 | ||||||||
Available-for-sale securities | 3.5 | 3.5 | — | — | 3.5 | |||||||||||
Total assets | $ | 5.5 | $ | 0.3 | $ | — | $ | 5.8 | ||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities | $ | — | $ | 1.3 | $ | — | $ | 1.3 | ||||||||
Deferred compensation liabilities | 47.2 | — | — | 47.2 | ||||||||||||
Total liabilities | $ | 47.2 | $ | 1.3 | $ | — | $ | 48.5 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
Derivative assets | $ | 3.3 | $ | 20.8 | $ | — | $ | 24.1 | |||||||
Available-for-sale securities | 3.0 | — | — | 3.0 | |||||||||||
Total assets | $ | 6.3 | $ | 20.8 | $ | — | $ | 27.1 | |||||||
Liabilities: | |||||||||||||||
Derivative liabilities | $ | — | $ | 0.6 | $ | — | $ | 0.6 | |||||||
Deferred compensation liabilities | 40.0 | — | — | 40.0 | |||||||||||
Total liabilities | $ | 40.0 | $ | 0.6 | $ | — | $ | 40.6 |
Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Total | |||||||||||||||
Balance as of May 31, 2015 | $ | 2,273.1 | $ | 1,028.7 | $ | 458.5 | $ | 568.3 | $ | 4,328.6 | |||||||||
Currency translation | — | 0.2 | (9.9 | ) | — | (9.7 | ) | ||||||||||||
Balance as of May 29, 2016 | $ | 2,273.1 | $ | 1,028.9 | $ | 448.6 | $ | 568.3 | $ | 4,318.9 | |||||||||
Impairment | — | — | (198.9 | ) | — | (198.9 | ) | ||||||||||||
Acquisitions | 166.0 | 8.3 | — | — | 174.3 | ||||||||||||||
Currency translation | — | 0.1 | 3.9 | — | 4.0 | ||||||||||||||
Balance as of May 28, 2017 | $ | 2,439.1 | $ | 1,037.3 | $ | 253.6 | $ | 568.3 | $ | 4,298.3 |
2017 | 2016 | ||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||
Non-amortizing intangible assets | $ | 834.1 | $ | — | $ | 825.3 | $ | — | |||||||
Amortizing intangible assets | 579.9 | 181.1 | 543.9 | 145.9 | |||||||||||
$ | 1,414.0 | $ | 181.1 | $ | 1,369.2 | $ | 145.9 |
2017 | 2016 | 2015 | |||||||||
United States | $ | 883.5 | $ | 136.9 | $ | 592.6 | |||||
Canada | (123.1 | ) | 11.4 | 27.1 | |||||||
Foreign - other | 40.3 | 26.6 | 44.3 | ||||||||
$ | 800.7 | $ | 174.9 | $ | 664.0 |
2017 | 2016 | 2015 | |||||||||
Current | |||||||||||
Federal | $ | 201.5 | $ | 206.5 | $ | 178.3 | |||||
State | 6.7 | 31.0 | 17.8 | ||||||||
Canada | 2.8 | 2.1 | 3.1 | ||||||||
Foreign - other | 3.7 | 6.5 | 15.8 | ||||||||
214.7 | 246.1 | 215.0 | |||||||||
Deferred | |||||||||||
Federal | 62.1 | (161.5 | ) | (1.7 | ) | ||||||
State | (5.3 | ) | (38.9 | ) | 3.8 | ||||||
Canada | (13.2 | ) | (0.8 | ) | 1.8 | ||||||
Foreign - other | (3.6 | ) | 1.5 | (6.2 | ) | ||||||
40.0 | (199.7 | ) | (2.3 | ) | |||||||
$ | 254.7 | $ | 46.4 | $ | 212.7 |
2017 | 2016 | 2015 | |||||||||
Computed U.S. Federal income taxes | $ | 280.2 | $ | 61.2 | $ | 232.4 | |||||
State income taxes, net of U.S. Federal tax impact | 22.4 | (6.4 | ) | 15.0 | |||||||
Tax credits and domestic manufacturing deduction | (19.8 | ) | (16.5 | ) | (21.0 | ) | |||||
Audit adjustments and settlements | (0.9 | ) | (2.1 | ) | — | ||||||
Effect of taxes booked on foreign operations | (6.5 | ) | 1.2 | (8.2 | ) | ||||||
Statute lapses on previously reserved items | (2.3 | ) | (2.3 | ) | (4.4 | ) | |||||
Goodwill and intangible impairments | 104.7 | — | 6.6 | ||||||||
Change in legal structure and other state elections | (7.5 | ) | — | — | |||||||
Stock compensation | (18.8 | ) | — | — | |||||||
Release of valuation allowance on capital loss carryforward | (84.1 | ) | — | — | |||||||
Change in estimate related to tax methods used for certain international sales, federal credits, and state credits | (8.0 | ) | 6.0 | (2.4 | ) | ||||||
Other | (4.7 | ) | 5.3 | (5.3 | ) | ||||||
$ | 254.7 | $ | 46.4 | $ | 212.7 |
May 28, 2017 | May 29, 2016 | ||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||
Property, plant and equipment | $ | — | $ | 216.6 | $ | — | $ | 251.9 | |||||||
Goodwill, trademarks and other intangible assets | — | 623.4 | — | 675.8 | |||||||||||
Accrued expenses | 20.2 | — | 17.1 | — | |||||||||||
Compensation related liabilities | 63.9 | — | 78.4 | — | |||||||||||
Pension and other postretirement benefits | 275.2 | — | 433.6 | — | |||||||||||
Investment in unconsolidated subsidiaries | — | 237.8 | — | 246.7 | |||||||||||
Other liabilities that will give rise to future tax deductions | 117.9 | — | 125.9 | — | |||||||||||
Net capital and operating loss carryforwards | 1,112.5 | — | 1,586.0 | — | |||||||||||
Other | 60.0 | 6.3 | 61.5 | 9.6 | |||||||||||
1,649.7 | 1,084.1 | 2,302.5 | 1,184.0 | ||||||||||||
Less: Valuation allowance | (1,013.4 | ) | — | (1,433.5 | ) | — | |||||||||
Net deferred taxes | $ | 636.3 | $ | 1,084.1 | $ | 869.0 | $ | 1,184.0 |
Beginning balance on May 29, 2016 | $ | 32.6 | |
Increases from positions established during prior periods | 2.1 | ||
Decreases from positions established during prior periods | (3.9 | ) | |
Increases from positions established during the current period | 13.4 | ||
Decreases relating to settlements with taxing authorities | (1.8 | ) | |
Reductions resulting from lapse of applicable statute of limitation | (2.9 | ) | |
Other adjustments to liability | (0.2 | ) | |
Ending balance on May 28, 2017 | $ | 39.3 |
May 28, 2017 | May 29, 2016 | ||||||
Raw materials and packaging | $ | 182.1 | $ | 204.5 | |||
Work in process | 91.9 | 110.3 | |||||
Finished goods | 612.9 | 679.5 | |||||
Supplies and other | 47.3 | 49.8 | |||||
Total | $ | 934.2 | $ | 1,044.1 |
2018 | $ | 40.5 | |
2019 | 32.3 | ||
2020 | 21.0 | ||
2021 | 16.9 | ||
2022 | 13.3 | ||
Later years | 97.3 | ||
$ | 221.3 |
May 28, 2017 | May 29, 2016 | ||||||
4.65% senior debt due January 2043 | $ | 176.7 | $ | 176.7 | |||
6.625% senior debt due August 2039 | 91.4 | 91.4 | |||||
8.25% senior debt due September 2030 | 300.0 | 300.0 | |||||
7.0% senior debt due October 2028 | 382.2 | 382.2 | |||||
6.7% senior debt due August 2027 | 9.2 | 9.2 | |||||
7.125% senior debt due October 2026 | 262.5 | 262.5 | |||||
3.2% senior debt due January 2023 | 837.0 | 837.0 | |||||
3.25% senior debt due September 2022 | 250.0 | 250.0 | |||||
9.75% subordinated debt due March 2021 | 195.9 | 195.9 | |||||
4.95% senior debt due August 2020 | 126.6 | 197.7 | |||||
7.0% senior debt due April 2019 | — | 335.0 | |||||
2.1% senior debt due March 2018 | 70.0 | 225.0 | |||||
1.9% senior debt due January 2018 | 119.6 | 1,000.0 | |||||
5.819% senior debt due June 2017 | — | 475.0 | |||||
LIBOR plus 0.37% senior notes due July 2016 | — | 550.0 | |||||
2.00% to 9.59% lease financing obligations due on various dates through 2033 | 131.2 | 140.9 | |||||
Other indebtedness | 0.2 | 0.3 | |||||
Total face value of debt | 2,952.5 | 5,428.8 | |||||
Unamortized fair value adjustment | 30.8 | 39.8 | |||||
Unamortized discounts | (6.4 | ) | (19.8 | ) | |||
Unamortized debt issuance costs | (10.9 | ) | (14.6 | ) | |||
Adjustment due to hedging activity | 2.2 | 6.6 | |||||
Less current installments | (199.0 | ) | (559.4 | ) | |||
Total long-term debt | $ | 2,769.2 | $ | 4,881.4 |
2018 | $ | 199.2 | |
2019 | 8.6 | ||
2020 | 8.3 | ||
2021 | 331.1 | ||
2022 | 8.8 |
2017 | 2016 | 2015 | |||||||||
Long-term debt | $ | 203.6 | $ | 302.9 | $ | 333.0 | |||||
Short-term debt | 0.6 | 1.9 | 2.8 | ||||||||
Interest income | (3.7 | ) | (1.2 | ) | (1.0 | ) | |||||
Interest capitalized | (5.0 | ) | (7.8 | ) | (6.6 | ) | |||||
$ | 195.5 | $ | 295.8 | $ | 328.2 |
May 28, 2017 | May 29, 2016 | ||||||
Postretirement health care and pension obligations | $ | 709.8 | $ | 1,105.1 | |||
Noncurrent income tax liabilities | 466.5 | 342.0 | |||||
Self-insurance liabilities | 29.0 | 36.3 | |||||
Environmental liabilities (see Note 17) | 54.7 | 47.0 | |||||
Accrued legal settlement costs (see Note 17) | — | 105.9 | |||||
Technology agreement liability (see Note 9) | 56.4 | 69.6 | |||||
Other | 212.4 | 169.8 | |||||
$ | 1,528.8 | $ | 1,875.7 |
Pension Benefits | Other Benefits | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Change in Benefit Obligation | |||||||||||||||
Benefit obligation at beginning of year | $ | 3,903.0 | $ | 4,092.2 | $ | 201.7 | $ | 235.4 | |||||||
Service cost | 56.9 | 93.8 | 0.3 | 0.4 | |||||||||||
Interest cost | 116.8 | 159.8 | 4.6 | 7.5 | |||||||||||
Plan participants’ contributions | — | — | 4.7 | 4.8 | |||||||||||
Amendments | 5.5 | 2.0 | — | — | |||||||||||
Actuarial loss (gain) | (51.5 | ) | (18.5 | ) | (32.0 | ) | 0.6 | ||||||||
Plan settlements | (287.5 | ) | — | — | — | ||||||||||
Special termination benefits | 1.5 | 25.6 | — | — | |||||||||||
Curtailments | (18.1 | ) | (18.8 | ) | — | — | |||||||||
Benefits paid | (169.7 | ) | (168.2 | ) | (19.0 | ) | (21.9 | ) | |||||||
Currency | (0.8 | ) | (1.0 | ) | (0.2 | ) | (0.2 | ) | |||||||
Business divestitures | (7.4 | ) | (263.9 | ) | (3.2 | ) | (24.9 | ) | |||||||
Benefit obligation at end of year | $ | 3,548.7 | $ | 3,903.0 | $ | 156.9 | $ | 201.7 | |||||||
Change in Plan Assets | |||||||||||||||
Fair value of plan assets at beginning of year | $ | 2,959.4 | $ | 3,539.0 | $ | 0.1 | $ | 0.1 | |||||||
Actual return on plan assets | 346.1 | (146.2 | ) | — | — | ||||||||||
Employer contributions | 163.0 | 11.9 | 14.2 | 17.1 | |||||||||||
Plan participants’ contributions | — | — | 4.7 | 4.8 | |||||||||||
Plan settlements | (287.5 | ) | — | — | — | ||||||||||
Investment and administrative expenses | (26.7 | ) | (22.0 | ) | — | — | |||||||||
Benefits paid | (169.7 | ) | (168.2 | ) | (19.0 | ) | (21.9 | ) | |||||||
Currency | (1.0 | ) | (1.1 | ) | — | — | |||||||||
Business divestitures | — | (254.0 | ) | — | — | ||||||||||
Fair value of plan assets at end of year | $ | 2,983.6 | $ | 2,959.4 | $ | — | $ | 0.1 |
Pension Benefits | Other Benefits | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Funded Status | $ | (565.1 | ) | $ | (943.6 | ) | $ | (156.9 | ) | $ | (201.6 | ) | ||||
Amounts Recognized in Consolidated Balance Sheets | ||||||||||||||||
Other assets | $ | 17.1 | $ | 3.0 | $ | — | $ | — | ||||||||
Other accrued liabilities | (10.9 | ) | (10.6 | ) | (18.4 | ) | (21.8 | ) | ||||||||
Other noncurrent liabilities | (571.3 | ) | (936.0 | ) | (138.5 | ) | (179.8 | ) | ||||||||
Net Amount Recognized | $ | (565.1 | ) | $ | (943.6 | ) | $ | (156.9 | ) | $ | (201.6 | ) | ||||
Amounts Recognized in Accumulated Other Comprehensive (Income) Loss (Pre-tax) | ||||||||||||||||
Actuarial net loss (gain) | $ | 174.2 | $ | 373.0 | $ | (9.0 | ) | $ | 23.9 | |||||||
Net prior service cost (benefit) | 16.0 | 13.4 | (4.6 | ) | (11.6 | ) | ||||||||||
Total | $ | 190.2 | $ | 386.4 | $ | (13.6 | ) | $ | 12.3 | |||||||
Weighted-Average Actuarial Assumptions Used to Determine Benefit Obligations at May 28, 2017 and May 29, 2016 | ||||||||||||||||
Discount rate | 3.90 | % | 3.83 | % | 3.33 | % | 3.18 | % | ||||||||
Long-term rate of compensation increase | 3.63 | % | 3.66 | % | N/A | N/A |
2017 | 2016 | |||||||
Projected benefit obligation | $ | 3,433.6 | $ | 3,809.5 | ||||
Accumulated benefit obligation | 3,357.1 | 3,734.6 | ||||||
Fair value of plan assets | 2,851.4 | 2,862.9 |
Pension Benefits | Other Benefits | ||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||
Service cost | $ | 56.9 | $ | 93.8 | $ | 88.5 | $ | 0.3 | $ | 0.4 | $ | 0.6 | |||||||||||
Interest cost | 116.8 | 159.8 | 161.3 | 4.6 | 7.5 | 9.9 | |||||||||||||||||
Expected return on plan assets | (207.4 | ) | (259.9 | ) | (267.9 | ) | — | — | — | ||||||||||||||
Amortization of prior service cost (benefit) | 2.6 | 2.7 | 3.7 | (6.6 | ) | (7.8 | ) | (7.9 | ) | ||||||||||||||
Special termination benefits | 1.5 | 25.6 | 6.9 | — | — | — | |||||||||||||||||
Recognized net actuarial loss | 1.2 | 348.5 | 6.9 | 0.5 | 0.1 | 3.5 | |||||||||||||||||
Settlement loss | 13.8 | — | — | — | — | — | |||||||||||||||||
Curtailment loss | 1.7 | 0.3 | 1.5 | — | — | — | |||||||||||||||||
Benefit cost — Company plans | (12.9 | ) | 370.8 | 0.9 | (1.2 | ) | 0.2 | 6.1 | |||||||||||||||
Pension benefit cost — multi-employer plans | 12.0 | 42.9 | 12.4 | — | — | — | |||||||||||||||||
Total benefit cost | $ | (0.9 | ) | $ | 413.7 | $ | 13.3 | $ | (1.2 | ) | $ | 0.2 | $ | 6.1 |
Pension Benefits | Other Benefits | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net actuarial gain (loss) | $ | 183.1 | $ | (390.5 | ) | $ | 32.4 | $ | (8.0 | ) | ||||||
Amendments | (5.5 | ) | (2.0 | ) | (0.4 | ) | (5.6 | ) | ||||||||
Amortization of prior service cost (benefit) | 2.9 | 2.7 | (6.6 | ) | (7.8 | ) | ||||||||||
Settlement loss | 13.8 | — | — | — | ||||||||||||
Recognized net actuarial loss | 1.2 | 348.5 | 0.5 | 0.1 | ||||||||||||
Net amount recognized | $ | 195.5 | $ | (41.3 | ) | $ | 25.9 | $ | (21.3 | ) |
Pension Benefits | Other Benefits | |||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||
Discount rate | 3.83 | % | 4.10 | % | 4.15 | % | 3.18 | % | 3.50 | % | 3.65 | % | ||||||
Long-term rate of return on plan assets | 7.50 | % | 7.75 | % | 7.75 | % | N/A | N/A | N/A | |||||||||
Long-term rate of compensation increase | 3.66 | % | 3.70 | % | 4.25 | % | N/A | N/A | N/A |
Pension Benefits | Other Benefits | |||||||
Prior service cost (benefit) | $ | 2.9 | $ | (3.4 | ) |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents | $ | 1.0 | $ | 94.0 | $ | — | $ | 95.0 | ||||||||
Equity securities: | ||||||||||||||||
U.S. equity securities | 494.0 | 13.7 | — | 507.7 | ||||||||||||
International equity securities | 249.9 | 13.2 | — | 263.1 | ||||||||||||
Fixed income securities: | ||||||||||||||||
Government bonds | 51.1 | 224.3 | — | 275.4 | ||||||||||||
Corporate bonds | 4.4 | 279.5 | — | 283.9 | ||||||||||||
Mortgage-backed bonds | 63.3 | 6.2 | — | 69.5 | ||||||||||||
Real estate funds | 9.5 | — | — | 9.5 | ||||||||||||
Multi-strategy hedge funds | — | — | — | — | ||||||||||||
Private equity funds | — | — | — | — | ||||||||||||
Master limited partnerships | 173.5 | — | — | 173.5 | ||||||||||||
Private natural resources funds | — | — | — | — | ||||||||||||
Net receivables for unsettled transactions | 0.7 | — | — | 0.7 | ||||||||||||
Fair value measurement of pension plan assets in the fair value hierarchy | $ | 1,047.4 | $ | 630.9 | $ | — | $ | 1,678.3 | ||||||||
Investments measured at net asset value | 1,305.3 | |||||||||||||||
Total pension plan assets | $ | 2,983.6 |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents | $ | 0.9 | $ | 73.4 | $ | — | $ | 74.3 | ||||||||
Equity securities: | ||||||||||||||||
U.S. equity securities | 453.5 | 13.2 | — | 466.7 | ||||||||||||
International equity securities | 267.5 | 12.5 | — | 280.0 | ||||||||||||
Fixed income securities: | ||||||||||||||||
Government bonds | 43.3 | 228.4 | — | 271.7 | ||||||||||||
Corporate bonds | 23.6 | 226.6 | — | 250.2 | ||||||||||||
Mortgage-backed bonds | 58.1 | 56.3 | — | 114.4 | ||||||||||||
Real estate funds | — | — | — | — | ||||||||||||
Multi-strategy hedge funds | — | — | — | — | ||||||||||||
Private equity funds | — | — | — | — | ||||||||||||
Master limited partnerships | 155.8 | — | — | 155.8 | ||||||||||||
Private natural resources funds | — | — | — | — | ||||||||||||
Net receivables for unsettled transactions | 3.2 | — | — | 3.2 | ||||||||||||
Fair value measurement of pension plan assets in the fair value hierarchy | $ | 1,005.9 | $ | 610.4 | $ | — | $ | 1,616.3 | ||||||||
Investments measured at net asset value | 1,343.1 | |||||||||||||||
Total pension plan assets | $ | 2,959.4 |
May 28, 2017 | May 29, 2016 | Target Allocation | ||||||
Equity securities | 39 | % | 36 | % | 25% - 45% | |||
Debt securities | 25 | % | 22 | % | 14% - 24% | |||
Real estate funds | 11 | % | 14 | % | 1% - 19% | |||
Multi-strategy hedge funds | 11 | % | 16 | % | 5% - 25% | |||
Private equity | 4 | % | 3 | % | 3% - 13% | |||
Other | 10 | % | 9 | % | 3% - 30% | |||
Total | 100 | % | 100 | % |
Assumed Health Care Cost Trend Rates at: | May 28, 2017 | May 29, 2016 | ||||
Initial health care cost trend rate | 8.44 | % | 9.0 | % | ||
Ultimate health care cost trend rate | 4.5 | % | 4.5 | % | ||
Year that the rate reaches the ultimate trend rate | 2024 | 2024 |
One Percent Increase | One Percent Decrease | |||||||
Effect on total service and interest cost | $ | 0.4 | $ | (0.3 | ) | |||
Effect on postretirement benefit obligation | 8.1 | (7.3 | ) |
Pension Benefits | Health Care and Life Insurance Benefits | |||||||
2018 | $ | 196.3 | $ | 18.7 | ||||
2019 | 190.3 | 17.4 | ||||||
2020 | 192.0 | 16.1 | ||||||
2021 | 194.8 | 14.9 | ||||||
2022 | 196.9 | 13.7 | ||||||
Succeeding 5 years | 1,016.8 | 52.3 |
a. | Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. |
b. | If a participating employer ceases to contribute to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. |
c. | If the Company ceases to have an obligation to contribute to a multiemployer plan in which it had been a contributing employer, it may be required to pay to the plan an amount based on the underfunded status of the plan and on the history of the Company’s participation in the plan prior to the cessation of its obligation to contribute. The amount that an employer that has ceased to have an obligation to contribute to a multiemployer plan is required to pay to the plan is referred to as a withdrawal liability. |
• | The “EIN / PN” column provides the Employer Identification Number and the three-digit plan number assigned to a plan by the Internal Revenue Service. |
• | The most recent Pension Protection Act Zone Status available for 2016 and 2015 is for plan years that ended in calendar years 2016 and 2015, respectively. The zone status is based on information provided to the Company by each plan. A plan in the “red” zone has been determined to be in “critical status”, based on criteria established under the Internal Revenue Code (“Code”), and is generally less than 65% funded. A plan in the “yellow” zone has been determined to be in “endangered status”, based on criteria established under the Code, and is generally less than 80% funded. A plan in the “green” zone has been determined to be neither in “critical status” nor in “endangered status”, and is generally at least 80% funded. |
• | The “FIP/RP Status Pending/Implemented” column indicates whether a Funding Improvement Plan, as required under the Code to be adopted by plans in the “yellow” zone, or a Rehabilitation Plan, as required under the Code to be adopted by plans in the “red” zone, is pending or has been implemented by the plan as of the end of the plan year that ended in calendar year 2016. |
• | Contributions by the Company are the amounts contributed in the Company’s fiscal periods ending in the specified year. |
• | The “Surcharge Imposed” column indicates whether the Company contribution rate for its fiscal year that ended on May 28, 2017 included an amount in addition to the contribution rate specified in the applicable collective bargaining agreement, as imposed by a plan in “critical status”, in accordance with the requirements of the Code. |
• | The last column lists the expiration dates of the collective bargaining agreements pursuant to which the Company contributes to the plans. |
Pension Protection Act Zone Status | FIP / RP Status Pending / Implemented | Contributions by the Company (millions) | Expiration Dates of Collective Bargaining Agreements | ||||||||||
Pension Fund | EIN / PN | 2016 | 2015 | FY17 | FY16 | FY15 | Surcharge Imposed | ||||||
Bakery and Confectionary Union and Industry International Pension Plan | 52-6118572 / 001 | Red, Critical and Declining | Red | RP Implemented | $ | 1.8 | $ | 3.1 | $3.7 | No | 2/28/2020 | ||
Central States, Southeast and Southwest Areas Pension Fund | 36-6044243 / 001 | Red, Critical and Declining | Red | RP Implemented | 1.8 | 1.9 | 2.0 | No | 5/31/2020 | ||||
National Conference of Fireman & Oilers National Pension Fund | 52-6085445 / 003 | Yellow | Yellow | FIP Implemented | — | — | 0.6 | No | withdrew in 2015 | ||||
Western Conference of Teamsters Pension Plan | 91-6145047 / 001 | Green | Green | N/A | 4.0 | 5.4 | 4.9 | No | 06/30/2018 | ||||
Other Plans | 0.4 | 0.7 | 0.8 | ||||||||||
Total Contributions | $ | 8.0 | $11.1 | $12.0 |
Land improvements | 1 - 40 years | |
Buildings | 15 - 40 years | |
Machinery and equipment | 3 - 20 years | |
Furniture, fixtures, office equipment and other | 5 - 15 years |
Land improvements | 1 - 40 years | |
Buildings | 15 - 40 years | |
Machinery and equipment | 3 - 20 years | |
Furniture, fixtures, office equipment and other | 5 - 15 years |
2017 | 2016 | ||||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||||||||||||
Net sales | $ | 1,895.6 | $ | 2,088.4 | $ | 1,981.2 | $ | 1,861.7 | $ | 2,053.0 | $ | 2,358.8 | $ | 2,199.3 | $ | 2,053.0 | |||||||||||||||
Gross profit | 544.6 | 647.5 | 621.0 | 529.0 | 561.3 | 668.0 | 619.8 | 580.1 | |||||||||||||||||||||||
Income (loss) from continuing operations, net of tax | 98.6 | 114.3 | 179.5 | 153.6 | 93.6 | 80.1 | 71.4 | (116.6 | ) | ||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | 91.4 | 11.6 | 0.7 | (1.7 | ) | (1,246.0 | ) | 79.2 | 134.9 | 237.5 | |||||||||||||||||||||
Net income (loss) attributable to Conagra Brands, Inc. | 186.2 | 122.1 | 179.7 | 151.3 | (1,154.1 | ) | 154.9 | 204.6 | 117.6 | ||||||||||||||||||||||
Earnings per share (1): | |||||||||||||||||||||||||||||||
Basic earnings per share: | |||||||||||||||||||||||||||||||
Net income (loss) attributable to Conagra Brands, Inc. common stockholders | $ | 0.42 | $ | 0.28 | $ | 0.42 | $ | 0.36 | $ | (2.68 | ) | $ | 0.36 | $ | 0.46 | $ | 0.27 | ||||||||||||||
Diluted earnings per share: | |||||||||||||||||||||||||||||||
Net income (loss) attributable to Conagra Brands, Inc. common stockholders | $ | 0.42 | $ | 0.28 | $ | 0.41 | $ | 0.36 | $ | (2.65 | ) | $ | 0.35 | $ | 0.46 | $ | 0.27 | ||||||||||||||
Dividends declared per common share (3) | $ | 0.25 | $ | 0.25 | $ | 0.20 | $ | 0.20 | $ | 0.25 | $ | 0.25 | $ | 0.25 | $ | 0.25 | |||||||||||||||
Share price (2): | |||||||||||||||||||||||||||||||
High | $ | 48.39 | $ | 48.68 | $ | 41.16 | $ | 41.50 | $ | 45.49 | $ | 42.75 | $ | 42.70 | $ | 46.43 | |||||||||||||||
Low | 45.70 | 34.30 | 36.47 | 37.29 | 37.42 | 38.84 | 38.70 | 42.06 |
(1) | Basic and diluted earnings per share are calculated independently for each of the quarters presented. Accordingly, the sum of the quarterly earnings per share amounts may not agree with the total year. |
(2) | Historical market prices do not reflect any adjustment for the impact of the Lamb Weston Spinoff. |
(3) | Per share dividend declared in the third quarter and fourth quarter of fiscal 2017 includes impact of the Lamb Weston Spinoff. |
Affected Line Item in the Consolidated Statement of Operations1 | |||||||||||||
2017 | 2016 | 2015 | |||||||||||
Net derivative adjustment, net of tax: | |||||||||||||
Cash flow hedges | $ | (0.2 | ) | $ | (2.1 | ) | $ | (0.5 | ) | Interest expense, net | |||
(0.2 | ) | (2.1 | ) | (0.5 | ) | Total before tax | |||||||
0.1 | 0.8 | 0.2 | Income tax expense | ||||||||||
$ | (0.1 | ) | $ | (1.3 | ) | $ | (0.3 | ) | Net of tax | ||||
Amortization of pension and postretirement healthcare liabilities: | |||||||||||||
Net prior service benefit | $ | (3.9 | ) | $ | (5.1 | ) | $ | (4.2 | ) | Selling, general and administrative expenses | |||
Divestiture of Private Brands | — | (4.3 | ) | — | Income (loss) from discontinued operations, net of tax | ||||||||
Pension settlement of equity method investment | — | (5.2 | ) | — | Equity method investment earnings | ||||||||
Pension settlement | 13.8 | — | — | Selling, general and administrative expenses | |||||||||
Net actuarial loss | 0.5 | 0.1 | 3.5 | Selling, general and administrative expenses | |||||||||
Curtailment | — | — | 1.5 | Cost of goods sold | |||||||||
10.4 | (14.5 | ) | 0.8 | Total before tax | |||||||||
(4.0 | ) | 4.9 | (0.3 | ) | Income tax expense (benefit) | ||||||||
$ | 6.4 | $ | (9.6 | ) | $ | 0.5 | Net of tax | ||||||
Currency translation losses | $ | — | $ | 73.4 | $ | — | Income (loss) from discontinued operations, net of tax | ||||||
— | 73.4 | — | Total before tax | ||||||||||
— | — | — | Income tax expense | ||||||||||
$ | — | $ | 73.4 | $ | — | Net of tax |
Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Corporate | Total | ||||||||||||||||||
Pension costs | $ | 32.9 | $ | 1.5 | $ | — | $ | — | $ | — | $ | 34.4 | |||||||||||
Accelerated depreciation | 38.9 | 18.6 | — | — | 1.2 | 58.7 | |||||||||||||||||
Other cost of goods sold | 6.0 | 2.1 | — | — | — | 8.1 | |||||||||||||||||
Total cost of goods sold | 77.8 | 22.2 | — | — | 1.2 | 101.2 | |||||||||||||||||
Severance and related costs, net | 24.9 | 10.3 | 2.5 | 7.9 | 102.1 | 147.7 | |||||||||||||||||
Fixed asset impairment (net of gains on disposal) | 7.3 | 6.9 | — | — | 6.8 | 21.0 | |||||||||||||||||
Accelerated depreciation | — | — | — | — | 4.1 | 4.1 | |||||||||||||||||
Contract/lease cancellation expenses | 0.8 | 0.6 | 0.6 | — | 72.6 | 74.6 | |||||||||||||||||
Consulting/professional fees | 1.0 | 0.4 | 0.1 | — | 52.7 | 54.2 | |||||||||||||||||
Other selling, general and administrative expenses | 13.5 | 3.2 | — | — | 26.7 | 43.4 | |||||||||||||||||
Total selling, general and administrative expenses | 47.5 | 21.4 | 3.2 | 7.9 | 265.0 | 345.0 | |||||||||||||||||
Consolidated total | $ | 125.3 | $ | 43.6 | $ | 3.2 | $ | 7.9 | $ | 266.2 | $ | 446.2 |
Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Corporate | Total | ||||||||||||||||||
Pension costs | $ | 3.1 | $ | — | $ | — | $ | — | $ | — | $ | 3.1 | |||||||||||
Accelerated depreciation | 9.6 | 1.2 | — | — | — | 10.8 | |||||||||||||||||
Other cost of goods sold | 3.1 | 0.2 | — | — | — | 3.3 | |||||||||||||||||
Total cost of goods sold | 15.8 | 1.4 | — | — | — | 17.2 | |||||||||||||||||
Severance and related costs, net | 3.3 | (0.2 | ) | 0.3 | 1.8 | 5.1 | 10.3 | ||||||||||||||||
Fixed asset impairment (net of gains on disposal) | 0.1 | 3.3 | — | — | 6.0 | 9.4 | |||||||||||||||||
Accelerated depreciation | — | — | — | — | 1.3 | 1.3 | |||||||||||||||||
Contract/lease cancellation expenses | — | 0.1 | 0.6 | — | 9.6 | 10.3 | |||||||||||||||||
Consulting/professional fees | 0.3 | — | — | — | 0.4 | 0.7 | |||||||||||||||||
Other selling, general and administrative expenses | 5.8 | 1.6 | — | — | 7.0 | 14.4 | |||||||||||||||||
Total selling, general and administrative expenses | 9.5 | 4.8 | 0.9 | 1.8 | 29.4 | 46.4 | |||||||||||||||||
Consolidated total | $ | 25.3 | $ | 6.2 | $ | 0.9 | $ | 1.8 | $ | 29.4 | $ | 63.6 |
Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Corporate | Total | ||||||||||||||||||
Pension costs | $ | 32.9 | $ | 1.5 | $ | — | $ | — | $ | — | $ | 34.4 | |||||||||||
Accelerated depreciation | 31.0 | 18.6 | — | — | 1.2 | 50.8 | |||||||||||||||||
Other cost of goods sold | 5.0 | 2.1 | — | — | — | 7.1 | |||||||||||||||||
Total cost of goods sold | 68.9 | 22.2 | — | — | 1.2 | 92.3 | |||||||||||||||||
Severance and related costs, net | 23.9 | 10.3 | 2.5 | 7.9 | 101.5 | 146.1 | |||||||||||||||||
Fixed asset impairment (net of gains on disposal) | 7.3 | 6.9 | — | — | 6.8 | 21.0 | |||||||||||||||||
Accelerated depreciation | — | — | — | — | 2.6 | 2.6 | |||||||||||||||||
Contract/lease cancellation expenses | 0.8 | 0.6 | 0.6 | — | 71.3 | 73.3 | |||||||||||||||||
Consulting/professional fees | 0.9 | 0.4 | 0.1 | — | 51.2 | 52.6 | |||||||||||||||||
Other selling, general and administrative expenses | 11.2 | 3.2 | — | — | 20.0 | 34.4 | |||||||||||||||||
Total selling, general and administrative expenses | 44.1 | 21.4 | 3.2 | 7.9 | 253.4 | 330.0 | |||||||||||||||||
Consolidated total | $ | 113.0 | $ | 43.6 | $ | 3.2 | $ | 7.9 | $ | 254.6 | $ | 422.3 |
Balance at May 29, 2016 | Costs Incurred and Charged to Expense | Costs Paid or Otherwise Settled | Changes in Estimates | Balance at May 28, 2017 | |||||||||||||||
Pension costs | $ | 40.7 | $ | 1.1 | $ | (12.0 | ) | $ | 2.0 | $ | 31.8 | ||||||||
Severance and related costs | 47.2 | 12.2 | (43.7 | ) | (1.9 | ) | 13.8 | ||||||||||||
Consulting/professional fees | 4.7 | 0.9 | (4.8 | ) | (0.2 | ) | 0.6 | ||||||||||||
Contract/lease cancellation | 6.3 | 14.5 | (7.5 | ) | (1.7 | ) | 11.6 | ||||||||||||
Other costs | 0.5 | 14.5 | (13.1 | ) | — | 1.9 | |||||||||||||
Total | $ | 99.4 | $ | 43.2 | $ | (81.1 | ) | $ | (1.8 | ) | $ | 59.7 |
2017 | 2016 | 2015 | |||||||||
Currency translation losses, net of reclassification adjustments 1 | $ | (98.6 | ) | $ | (95.2 | ) | $ | (113.9 | ) | ||
Derivative adjustments, net of reclassification adjustments | (1.1 | ) | (0.4 | ) | 0.9 | ||||||
Unrealized losses on available-for-sale securities | (0.3 | ) | (0.6 | ) | (0.7 | ) | |||||
Pension and post-employment benefit obligations, net of reclassification adjustments 1 | (112.9 | ) | (248.3 | ) | (215.8 | ) | |||||
Accumulated other comprehensive loss | $ | (212.9 | ) | $ | (344.5 | ) | $ | (329.5 | ) |
2017 | 2016 | ||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||
Non-amortizing intangible assets | $ | 834.1 | $ | — | $ | 825.3 | $ | — | |||||||
Amortizing intangible assets | 579.9 | 181.1 | 543.9 | 145.9 | |||||||||||
$ | 1,414.0 | $ | 181.1 | $ | 1,369.2 | $ | 145.9 |
May 28, 2017 | May 29, 2016 | Target Allocation | ||||||
Equity securities | 39 | % | 36 | % | 25% - 45% | |||
Debt securities | 25 | % | 22 | % | 14% - 24% | |||
Real estate funds | 11 | % | 14 | % | 1% - 19% | |||
Multi-strategy hedge funds | 11 | % | 16 | % | 5% - 25% | |||
Private equity | 4 | % | 3 | % | 3% - 13% | |||
Other | 10 | % | 9 | % | 3% - 30% | |||
Total | 100 | % | 100 | % |
Pension Benefits | Other Benefits | |||||||
Prior service cost (benefit) | $ | 2.9 | $ | (3.4 | ) |
Pension Benefits | Other Benefits | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net actuarial gain (loss) | $ | 183.1 | $ | (390.5 | ) | $ | 32.4 | $ | (8.0 | ) | ||||||
Amendments | (5.5 | ) | (2.0 | ) | (0.4 | ) | (5.6 | ) | ||||||||
Amortization of prior service cost (benefit) | 2.9 | 2.7 | (6.6 | ) | (7.8 | ) | ||||||||||
Settlement loss | 13.8 | — | — | — | ||||||||||||
Recognized net actuarial loss | 1.2 | 348.5 | 0.5 | 0.1 | ||||||||||||
Net amount recognized | $ | 195.5 | $ | (41.3 | ) | $ | 25.9 | $ | (21.3 | ) |
Pension Benefits | Other Benefits | |||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||
Discount rate | 3.83 | % | 4.10 | % | 4.15 | % | 3.18 | % | 3.50 | % | 3.65 | % | ||||||
Long-term rate of return on plan assets | 7.50 | % | 7.75 | % | 7.75 | % | N/A | N/A | N/A | |||||||||
Long-term rate of compensation increase | 3.66 | % | 3.70 | % | 4.25 | % | N/A | N/A | N/A |
2017 | 2016 | 2015 | |||||||||
Current | |||||||||||
Federal | $ | 201.5 | $ | 206.5 | $ | 178.3 | |||||
State | 6.7 | 31.0 | 17.8 | ||||||||
Canada | 2.8 | 2.1 | 3.1 | ||||||||
Foreign - other | 3.7 | 6.5 | 15.8 | ||||||||
214.7 | 246.1 | 215.0 | |||||||||
Deferred | |||||||||||
Federal | 62.1 | (161.5 | ) | (1.7 | ) | ||||||
State | (5.3 | ) | (38.9 | ) | 3.8 | ||||||
Canada | (13.2 | ) | (0.8 | ) | 1.8 | ||||||
Foreign - other | (3.6 | ) | 1.5 | (6.2 | ) | ||||||
40.0 | (199.7 | ) | (2.3 | ) | |||||||
$ | 254.7 | $ | 46.4 | $ | 212.7 |
May 28, 2017 | May 29, 2016 | ||||||
4.65% senior debt due January 2043 | $ | 176.7 | $ | 176.7 | |||
6.625% senior debt due August 2039 | 91.4 | 91.4 | |||||
8.25% senior debt due September 2030 | 300.0 | 300.0 | |||||
7.0% senior debt due October 2028 | 382.2 | 382.2 | |||||
6.7% senior debt due August 2027 | 9.2 | 9.2 | |||||
7.125% senior debt due October 2026 | 262.5 | 262.5 | |||||
3.2% senior debt due January 2023 | 837.0 | 837.0 | |||||
3.25% senior debt due September 2022 | 250.0 | 250.0 | |||||
9.75% subordinated debt due March 2021 | 195.9 | 195.9 | |||||
4.95% senior debt due August 2020 | 126.6 | 197.7 | |||||
7.0% senior debt due April 2019 | — | 335.0 | |||||
2.1% senior debt due March 2018 | 70.0 | 225.0 | |||||
1.9% senior debt due January 2018 | 119.6 | 1,000.0 | |||||
5.819% senior debt due June 2017 | — | 475.0 | |||||
LIBOR plus 0.37% senior notes due July 2016 | — | 550.0 | |||||
2.00% to 9.59% lease financing obligations due on various dates through 2033 | 131.2 | 140.9 | |||||
Other indebtedness | 0.2 | 0.3 | |||||
Total face value of debt | 2,952.5 | 5,428.8 | |||||
Unamortized fair value adjustment | 30.8 | 39.8 | |||||
Unamortized discounts | (6.4 | ) | (19.8 | ) | |||
Unamortized debt issuance costs | (10.9 | ) | (14.6 | ) | |||
Adjustment due to hedging activity | 2.2 | 6.6 | |||||
Less current installments | (199.0 | ) | (559.4 | ) | |||
Total long-term debt | $ | 2,769.2 | $ | 4,881.4 |
May 28, 2017 | May 29, 2016 | ||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||
Property, plant and equipment | $ | — | $ | 216.6 | $ | — | $ | 251.9 | |||||||
Goodwill, trademarks and other intangible assets | — | 623.4 | — | 675.8 | |||||||||||
Accrued expenses | 20.2 | — | 17.1 | — | |||||||||||
Compensation related liabilities | 63.9 | — | 78.4 | — | |||||||||||
Pension and other postretirement benefits | 275.2 | — | 433.6 | — | |||||||||||
Investment in unconsolidated subsidiaries | — | 237.8 | — | 246.7 | |||||||||||
Other liabilities that will give rise to future tax deductions | 117.9 | — | 125.9 | — | |||||||||||
Net capital and operating loss carryforwards | 1,112.5 | — | 1,586.0 | — | |||||||||||
Other | 60.0 | 6.3 | 61.5 | 9.6 | |||||||||||
1,649.7 | 1,084.1 | 2,302.5 | 1,184.0 | ||||||||||||
Less: Valuation allowance | (1,013.4 | ) | — | (1,433.5 | ) | — | |||||||||
Net deferred taxes | $ | 636.3 | $ | 1,084.1 | $ | 869.0 | $ | 1,184.0 |
Pension Benefits | Other Benefits | ||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||
Service cost | $ | 56.9 | $ | 93.8 | $ | 88.5 | $ | 0.3 | $ | 0.4 | $ | 0.6 | |||||||||||
Interest cost | 116.8 | 159.8 | 161.3 | 4.6 | 7.5 | 9.9 | |||||||||||||||||
Expected return on plan assets | (207.4 | ) | (259.9 | ) | (267.9 | ) | — | — | — | ||||||||||||||
Amortization of prior service cost (benefit) | 2.6 | 2.7 | 3.7 | (6.6 | ) | (7.8 | ) | (7.9 | ) | ||||||||||||||
Special termination benefits | 1.5 | 25.6 | 6.9 | — | — | — | |||||||||||||||||
Recognized net actuarial loss | 1.2 | 348.5 | 6.9 | 0.5 | 0.1 | 3.5 | |||||||||||||||||
Settlement loss | 13.8 | — | — | — | — | — | |||||||||||||||||
Curtailment loss | 1.7 | 0.3 | 1.5 | — | — | — | |||||||||||||||||
Benefit cost — Company plans | (12.9 | ) | 370.8 | 0.9 | (1.2 | ) | 0.2 | 6.1 | |||||||||||||||
Pension benefit cost — multi-employer plans | 12.0 | 42.9 | 12.4 | — | — | — | |||||||||||||||||
Total benefit cost | $ | (0.9 | ) | $ | 413.7 | $ | 13.3 | $ | (1.2 | ) | $ | 0.2 | $ | 6.1 |
For the Fiscal Year Ended May 28, 2017 | ||||||
Derivatives Not Designated as Hedging Instruments | Location in Consolidated Statement of Operations of Gain (Loss) Recognized on Derivatives | Amount of Gain (Loss) Recognized on Derivatives in Consolidated Statement of Operations | ||||
Commodity contracts | Cost of goods sold | $ | 0.9 | |||
Foreign exchange contracts | Cost of goods sold | (0.3 | ) | |||
Foreign exchange contracts | Selling, general and administrative expense | 0.2 | ||||
Total gain from derivative instruments not designated as hedging instruments | $ | 0.8 |
For the Fiscal Year Ended May 29, 2016 | ||||||
Derivatives Not Designated as Hedging Instruments | Location in Consolidated Statement of Operations of Gain (Loss) Recognized on Derivatives | Amount of Gain (Loss) Recognized on Derivatives in Consolidated Statement of Operations | ||||
Commodity contracts | Cost of goods sold | $ | (8.1 | ) | ||
Foreign exchange contracts | Cost of goods sold | 0.7 | ||||
Foreign exchange contracts | Selling, general and administrative expense | 2.9 | ||||
Total loss from derivative instruments not designated as hedging instruments | $ | (4.5 | ) |
For the Fiscal Year Ended May 31, 2015 | ||||||
Derivatives Not Designated as Hedging Instruments | Location in Consolidated Statement of Operations of Gain (Loss) Recognized on Derivatives | Amount of Gain (Loss) Recognized on Derivatives in Consolidated Statement of Operations | ||||
Commodity contracts | Cost of goods sold | $ | (71.0 | ) | ||
Foreign exchange contracts | Cost of goods sold | 0.2 | ||||
Foreign exchange contracts | Selling, general and administrative expense | 10.3 | ||||
Interest rate contracts | Selling, general and administrative expense | (1.4 | ) | |||
Total loss from derivative instruments not designated as hedging instruments | $ | (61.9 | ) |
May 28, 2017 | May 29, 2016 | ||||||
Prepaid expenses and other current assets | $ | 2.3 | $ | 24.1 | |||
Other accrued liabilities | 1.3 | 0.6 |
2015 | |||
Net sales | $ | 16.2 | |
Loss from operations of discontinued operations before income taxes | (9.2 | ) | |
Net gain on sale of businesses | 627.3 | ||
Income before income taxes and equity method investment earnings | 618.1 | ||
Income tax expense | 251.1 | ||
Income from discontinued operations, net of tax | $ | 367.0 |
2017 | 2016 | 2015 | |||||||||
Net sales | $ | 1,407.9 | $ | 2,975.0 | $ | 2,899.0 | |||||
Income from discontinued operations before income taxes and equity method investment earnings | $ | 172.3 | $ | 474.8 | $ | 415.6 | |||||
Income before income taxes and equity method investment earnings | 172.3 | 474.8 | 415.6 | ||||||||
Income tax expense | 87.5 | 178.9 | 149.3 | ||||||||
Equity method investment earnings | 15.9 | 71.7 | 42.7 | ||||||||
Income from discontinued operations, net of tax | 100.7 | 367.6 | 309.0 | ||||||||
Less: Net income attributable to noncontrolling interests | 6.8 | 9.2 | 9.3 | ||||||||
Net income from discontinued operations attributable to Conagra Brands, Inc. | $ | 93.9 | $ | 358.4 | $ | 299.7 |
2017 | 2016 | 2015 | |||||||||
Net sales | $ | — | $ | 2,490.6 | $ | 3,895.4 | |||||
Loss on sale of business | $ | (1.6 | ) | $ | — | $ | — | ||||
Long-lived asset impairment charges | — | (1,923.0 | ) | (1,564.6 | ) | ||||||
Income from operations of discontinued operations before income taxes | 3.9 | 168.0 | 68.8 | ||||||||
Income (loss) before income taxes and equity method investment earnings | 2.3 | (1,755.0 | ) | (1,495.8 | ) | ||||||
Income tax benefit | (0.3 | ) | (593.1 | ) | (128.1 | ) | |||||
Income (loss) from discontinued operations, net of tax | $ | 2.6 | $ | (1,161.9 | ) | $ | (1,367.7 | ) |
2017 | 2016 | 2015 | |||||||||
Net income (loss) available to Conagra Brands, Inc. common stockholders: | |||||||||||
Income from continuing operations attributable to Conagra Brands, Inc. common stockholders | $ | 544.1 | $ | 126.6 | $ | 448.8 | |||||
Income (loss) from discontinued operations, net of tax, attributable to Conagra Brands, Inc. common stockholders | 95.2 | (803.6 | ) | (701.4 | ) | ||||||
Net income (loss) attributable to Conagra Brands, Inc. common stockholders | $ | 639.3 | $ | (677.0 | ) | $ | (252.6 | ) | |||
Less: Increase in redemption value of noncontrolling interests in excess of earnings allocated | 0.8 | 4.8 | 1.7 | ||||||||
Net income (loss) available to Conagra Brands, Inc. common stockholders | $ | 638.5 | $ | (681.8 | ) | $ | (254.3 | ) | |||
Weighted average shares outstanding: | |||||||||||
Basic weighted average shares outstanding | 431.9 | 434.4 | 426.1 | ||||||||
Add: Dilutive effect of stock options, restricted stock unit awards, and other dilutive securities | 4.1 | 4.1 | 5.2 | ||||||||
Diluted weighted average shares outstanding | 436.0 | 438.5 | 431.3 |
One Percent Increase | One Percent Decrease | |||||||
Effect on total service and interest cost | $ | 0.4 | $ | (0.3 | ) | |||
Effect on postretirement benefit obligation | 8.1 | (7.3 | ) |
2017 | 2016 | 2015 | |||||||||
Computed U.S. Federal income taxes | $ | 280.2 | $ | 61.2 | $ | 232.4 | |||||
State income taxes, net of U.S. Federal tax impact | 22.4 | (6.4 | ) | 15.0 | |||||||
Tax credits and domestic manufacturing deduction | (19.8 | ) | (16.5 | ) | (21.0 | ) | |||||
Audit adjustments and settlements | (0.9 | ) | (2.1 | ) | — | ||||||
Effect of taxes booked on foreign operations | (6.5 | ) | 1.2 | (8.2 | ) | ||||||
Statute lapses on previously reserved items | (2.3 | ) | (2.3 | ) | (4.4 | ) | |||||
Goodwill and intangible impairments | 104.7 | — | 6.6 | ||||||||
Change in legal structure and other state elections | (7.5 | ) | — | — | |||||||
Stock compensation | (18.8 | ) | — | — | |||||||
Release of valuation allowance on capital loss carryforward | (84.1 | ) | — | — | |||||||
Change in estimate related to tax methods used for certain international sales, federal credits, and state credits | (8.0 | ) | 6.0 | (2.4 | ) | ||||||
Other | (4.7 | ) | 5.3 | (5.3 | ) | ||||||
$ | 254.7 | $ | 46.4 | $ | 212.7 |
Pension Benefits | Health Care and Life Insurance Benefits | |||||||
2018 | $ | 196.3 | $ | 18.7 | ||||
2019 | 190.3 | 17.4 | ||||||
2020 | 192.0 | 16.1 | ||||||
2021 | 194.8 | 14.9 | ||||||
2022 | 196.9 | 13.7 | ||||||
Succeeding 5 years | 1,016.8 | 52.3 |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Derivative assets | $ | 2.0 | $ | 0.3 | $ | — | $ | 2.3 | ||||||||
Available-for-sale securities | 3.5 | 3.5 | — | — | 3.5 | |||||||||||
Total assets | $ | 5.5 | $ | 0.3 | $ | — | $ | 5.8 | ||||||||
Liabilities: | ||||||||||||||||
Derivative liabilities | $ | — | $ | 1.3 | $ | — | $ | 1.3 | ||||||||
Deferred compensation liabilities | 47.2 | — | — | 47.2 | ||||||||||||
Total liabilities | $ | 47.2 | $ | 1.3 | $ | — | $ | 48.5 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
Derivative assets | $ | 3.3 | $ | 20.8 | $ | — | $ | 24.1 | |||||||
Available-for-sale securities | 3.0 | — | — | 3.0 | |||||||||||
Total assets | $ | 6.3 | $ | 20.8 | $ | — | $ | 27.1 | |||||||
Liabilities: | |||||||||||||||
Derivative liabilities | $ | — | $ | 0.6 | $ | — | $ | 0.6 | |||||||
Deferred compensation liabilities | 40.0 | — | — | 40.0 | |||||||||||
Total liabilities | $ | 40.0 | $ | 0.6 | $ | — | $ | 40.6 |
2018 | $ | 40.5 | |
2019 | 32.3 | ||
2020 | 21.0 | ||
2021 | 16.9 | ||
2022 | 13.3 | ||
Later years | 97.3 | ||
$ | 221.3 |
Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Total | |||||||||||||||
Balance as of May 31, 2015 | $ | 2,273.1 | $ | 1,028.7 | $ | 458.5 | $ | 568.3 | $ | 4,328.6 | |||||||||
Currency translation | — | 0.2 | (9.9 | ) | — | (9.7 | ) | ||||||||||||
Balance as of May 29, 2016 | $ | 2,273.1 | $ | 1,028.9 | $ | 448.6 | $ | 568.3 | $ | 4,318.9 | |||||||||
Impairment | — | — | (198.9 | ) | — | (198.9 | ) | ||||||||||||
Acquisitions | 166.0 | 8.3 | — | — | 174.3 | ||||||||||||||
Currency translation | — | 0.1 | 3.9 | — | 4.0 | ||||||||||||||
Balance as of May 28, 2017 | $ | 2,439.1 | $ | 1,037.3 | $ | 253.6 | $ | 568.3 | $ | 4,298.3 |
Assumed Health Care Cost Trend Rates at: | May 28, 2017 | May 29, 2016 | ||||
Initial health care cost trend rate | 8.44 | % | 9.0 | % | ||
Ultimate health care cost trend rate | 4.5 | % | 4.5 | % | ||
Year that the rate reaches the ultimate trend rate | 2024 | 2024 |
May 28, 2017 | May 29, 2016 | ||||||
Raw materials and packaging | $ | 182.1 | $ | 204.5 | |||
Work in process | 91.9 | 110.3 | |||||
Finished goods | 612.9 | 679.5 | |||||
Supplies and other | 47.3 | 49.8 | |||||
Total | $ | 934.2 | $ | 1,044.1 |
2018 | $ | 199.2 | |
2019 | 8.6 | ||
2020 | 8.3 | ||
2021 | 331.1 | ||
2022 | 8.8 |
Pension Protection Act Zone Status | FIP / RP Status Pending / Implemented | Contributions by the Company (millions) | Expiration Dates of Collective Bargaining Agreements | ||||||||||
Pension Fund | EIN / PN | 2016 | 2015 | FY17 | FY16 | FY15 | Surcharge Imposed | ||||||
Bakery and Confectionary Union and Industry International Pension Plan | 52-6118572 / 001 | Red, Critical and Declining | Red | RP Implemented | $ | 1.8 | $ | 3.1 | $3.7 | No | 2/28/2020 | ||
Central States, Southeast and Southwest Areas Pension Fund | 36-6044243 / 001 | Red, Critical and Declining | Red | RP Implemented | 1.8 | 1.9 | 2.0 | No | 5/31/2020 | ||||
National Conference of Fireman & Oilers National Pension Fund | 52-6085445 / 003 | Yellow | Yellow | FIP Implemented | — | — | 0.6 | No | withdrew in 2015 | ||||
Western Conference of Teamsters Pension Plan | 91-6145047 / 001 | Green | Green | N/A | 4.0 | 5.4 | 4.9 | No | 06/30/2018 | ||||
Other Plans | 0.4 | 0.7 | 0.8 | ||||||||||
Total Contributions | $ | 8.0 | $11.1 | $12.0 |
Pension Benefits | Other Benefits | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Funded Status | $ | (565.1 | ) | $ | (943.6 | ) | $ | (156.9 | ) | $ | (201.6 | ) | ||||
Amounts Recognized in Consolidated Balance Sheets | ||||||||||||||||
Other assets | $ | 17.1 | $ | 3.0 | $ | — | $ | — | ||||||||
Other accrued liabilities | (10.9 | ) | (10.6 | ) | (18.4 | ) | (21.8 | ) | ||||||||
Other noncurrent liabilities | (571.3 | ) | (936.0 | ) | (138.5 | ) | (179.8 | ) | ||||||||
Net Amount Recognized | $ | (565.1 | ) | $ | (943.6 | ) | $ | (156.9 | ) | $ | (201.6 | ) | ||||
Amounts Recognized in Accumulated Other Comprehensive (Income) Loss (Pre-tax) | ||||||||||||||||
Actuarial net loss (gain) | $ | 174.2 | $ | 373.0 | $ | (9.0 | ) | $ | 23.9 | |||||||
Net prior service cost (benefit) | 16.0 | 13.4 | (4.6 | ) | (11.6 | ) | ||||||||||
Total | $ | 190.2 | $ | 386.4 | $ | (13.6 | ) | $ | 12.3 | |||||||
Weighted-Average Actuarial Assumptions Used to Determine Benefit Obligations at May 28, 2017 and May 29, 2016 | ||||||||||||||||
Discount rate | 3.90 | % | 3.83 | % | 3.33 | % | 3.18 | % | ||||||||
Long-term rate of compensation increase | 3.63 | % | 3.66 | % | N/A | N/A |
Performance Shares | Share Units (in Millions) | Weighted Average Grant-Date Fair Value | ||||
Nonvested performance shares at May 29, 2016 | 0.75 | $ | 36.09 | |||
Granted | 0.22 | $ | 46.94 | |||
Adjustments for performance results attained and dividend equivalents | (0.16 | ) | $ | 35.05 | ||
Vested/Issued | (0.06 | ) | $ | 35.05 | ||
Forfeited | (0.15 | ) | $ | 28.32 | ||
Conversion for the Spinoff of Lamb Weston | 0.26 | $ | 29.09 | |||
Nonvested performance shares at May 28, 2017 | 0.86 | $ | 29.23 |
Stock-settled | Cash-settled | ||||||||||||
Share Units | Share Units (in Millions) | Weighted Average Grant-Date Fair Value | Share Units (in Millions) | Weighted Average Grant-Date Fair Value | |||||||||
Nonvested share units at May 29, 2016 | 1.54 | $ | 38.67 | 1.46 | $ | 37.53 | |||||||
Granted | 0.56 | $ | 46.79 | 0.39 | $ | 48.07 | |||||||
Vested/Issued | (0.58 | ) | $ | 35.78 | (0.51 | ) | $ | 36.40 | |||||
Forfeited | (0.39 | ) | $ | 40.44 | (0.46 | ) | $ | 39.41 | |||||
Conversion for the Spinoff of Lamb Weston | 0.43 | $ | 31.27 | 0.33 | $ | 30.48 | |||||||
Nonvested share units at May 28, 2017 | 1.56 | $ | 31.59 | 1.21 | $ | 30.52 |
May 28, 2017 | May 29, 2016 | ||||||
Postretirement health care and pension obligations | $ | 709.8 | $ | 1,105.1 | |||
Noncurrent income tax liabilities | 466.5 | 342.0 | |||||
Self-insurance liabilities | 29.0 | 36.3 | |||||
Environmental liabilities (see Note 17) | 54.7 | 47.0 | |||||
Accrued legal settlement costs (see Note 17) | — | 105.9 | |||||
Technology agreement liability (see Note 9) | 56.4 | 69.6 | |||||
Other | 212.4 | 169.8 | |||||
$ | 1,528.8 | $ | 1,875.7 |
2017 | 2016 | ||||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||||||||||||
Net sales | $ | 1,895.6 | $ | 2,088.4 | $ | 1,981.2 | $ | 1,861.7 | $ | 2,053.0 | $ | 2,358.8 | $ | 2,199.3 | $ | 2,053.0 | |||||||||||||||
Gross profit | 544.6 | 647.5 | 621.0 | 529.0 | 561.3 | 668.0 | 619.8 | 580.1 | |||||||||||||||||||||||
Income (loss) from continuing operations, net of tax | 98.6 | 114.3 | 179.5 | 153.6 | 93.6 | 80.1 | 71.4 | (116.6 | ) | ||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | 91.4 | 11.6 | 0.7 | (1.7 | ) | (1,246.0 | ) | 79.2 | 134.9 | 237.5 | |||||||||||||||||||||
Net income (loss) attributable to Conagra Brands, Inc. | 186.2 | 122.1 | 179.7 | 151.3 | (1,154.1 | ) | 154.9 | 204.6 | 117.6 | ||||||||||||||||||||||
Earnings per share (1): | |||||||||||||||||||||||||||||||
Basic earnings per share: | |||||||||||||||||||||||||||||||
Net income (loss) attributable to Conagra Brands, Inc. common stockholders | $ | 0.42 | $ | 0.28 | $ | 0.42 | $ | 0.36 | $ | (2.68 | ) | $ | 0.36 | $ | 0.46 | $ | 0.27 | ||||||||||||||
Diluted earnings per share: | |||||||||||||||||||||||||||||||
Net income (loss) attributable to Conagra Brands, Inc. common stockholders | $ | 0.42 | $ | 0.28 | $ | 0.41 | $ | 0.36 | $ | (2.65 | ) | $ | 0.35 | $ | 0.46 | $ | 0.27 | ||||||||||||||
Dividends declared per common share (3) | $ | 0.25 | $ | 0.25 | $ | 0.20 | $ | 0.20 | $ | 0.25 | $ | 0.25 | $ | 0.25 | $ | 0.25 | |||||||||||||||
Share price (2): | |||||||||||||||||||||||||||||||
High | $ | 48.39 | $ | 48.68 | $ | 41.16 | $ | 41.50 | $ | 45.49 | $ | 42.75 | $ | 42.70 | $ | 46.43 | |||||||||||||||
Low | 45.70 | 34.30 | 36.47 | 37.29 | 37.42 | 38.84 | 38.70 | 42.06 |
(1) | Basic and diluted earnings per share are calculated independently for each of the quarters presented. Accordingly, the sum of the quarterly earnings per share amounts may not agree with the total year. |
(2) | Historical market prices do not reflect any adjustment for the impact of the Lamb Weston Spinoff. |
(3) | Per share dividend declared in the third quarter and fourth quarter of fiscal 2017 includes impact of the Lamb Weston Spinoff. |
Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Corporate | Total | ||||||||||||||||||
Pension costs | $ | 32.9 | $ | 1.5 | $ | — | $ | — | $ | — | $ | 34.4 | |||||||||||
Accelerated depreciation | 38.9 | 18.6 | — | — | 1.2 | 58.7 | |||||||||||||||||
Other cost of goods sold | 6.0 | 2.1 | — | — | — | 8.1 | |||||||||||||||||
Total cost of goods sold | 77.8 | 22.2 | — | — | 1.2 | 101.2 | |||||||||||||||||
Severance and related costs, net | 24.9 | 10.3 | 2.5 | 7.9 | 102.1 | 147.7 | |||||||||||||||||
Fixed asset impairment (net of gains on disposal) | 7.3 | 6.9 | — | — | 6.8 | 21.0 | |||||||||||||||||
Accelerated depreciation | — | — | — | — | 4.1 | 4.1 | |||||||||||||||||
Contract/lease cancellation expenses | 0.8 | 0.6 | 0.6 | — | 72.6 | 74.6 | |||||||||||||||||
Consulting/professional fees | 1.0 | 0.4 | 0.1 | — | 52.7 | 54.2 | |||||||||||||||||
Other selling, general and administrative expenses | 13.5 | 3.2 | — | — | 26.7 | 43.4 | |||||||||||||||||
Total selling, general and administrative expenses | 47.5 | 21.4 | 3.2 | 7.9 | 265.0 | 345.0 | |||||||||||||||||
Consolidated total | $ | 125.3 | $ | 43.6 | $ | 3.2 | $ | 7.9 | $ | 266.2 | $ | 446.2 |
Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Corporate | Total | ||||||||||||||||||
Pension costs | $ | 3.1 | $ | — | $ | — | $ | — | $ | — | $ | 3.1 | |||||||||||
Accelerated depreciation | 9.6 | 1.2 | — | — | — | 10.8 | |||||||||||||||||
Other cost of goods sold | 3.1 | 0.2 | — | — | — | 3.3 | |||||||||||||||||
Total cost of goods sold | 15.8 | 1.4 | — | — | — | 17.2 | |||||||||||||||||
Severance and related costs, net | 3.3 | (0.2 | ) | 0.3 | 1.8 | 5.1 | 10.3 | ||||||||||||||||
Fixed asset impairment (net of gains on disposal) | 0.1 | 3.3 | — | — | 6.0 | 9.4 | |||||||||||||||||
Accelerated depreciation | — | — | — | — | 1.3 | 1.3 | |||||||||||||||||
Contract/lease cancellation expenses | — | 0.1 | 0.6 | — | 9.6 | 10.3 | |||||||||||||||||
Consulting/professional fees | 0.3 | — | — | — | 0.4 | 0.7 | |||||||||||||||||
Other selling, general and administrative expenses | 5.8 | 1.6 | — | — | 7.0 | 14.4 | |||||||||||||||||
Total selling, general and administrative expenses | 9.5 | 4.8 | 0.9 | 1.8 | 29.4 | 46.4 | |||||||||||||||||
Consolidated total | $ | 25.3 | $ | 6.2 | $ | 0.9 | $ | 1.8 | $ | 29.4 | $ | 63.6 |
Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Corporate | Total | ||||||||||||||||||
Pension costs | $ | 32.9 | $ | 1.5 | $ | — | $ | — | $ | — | $ | 34.4 | |||||||||||
Accelerated depreciation | 31.0 | 18.6 | — | — | 1.2 | 50.8 | |||||||||||||||||
Other cost of goods sold | 5.0 | 2.1 | — | — | — | 7.1 | |||||||||||||||||
Total cost of goods sold | 68.9 | 22.2 | — | — | 1.2 | 92.3 | |||||||||||||||||
Severance and related costs, net | 23.9 | 10.3 | 2.5 | 7.9 | 101.5 | 146.1 | |||||||||||||||||
Fixed asset impairment (net of gains on disposal) | 7.3 | 6.9 | — | — | 6.8 | 21.0 | |||||||||||||||||
Accelerated depreciation | — | — | — | — | 2.6 | 2.6 | |||||||||||||||||
Contract/lease cancellation expenses | 0.8 | 0.6 | 0.6 | — | 71.3 | 73.3 | |||||||||||||||||
Consulting/professional fees | 0.9 | 0.4 | 0.1 | — | 51.2 | 52.6 | |||||||||||||||||
Other selling, general and administrative expenses | 11.2 | 3.2 | — | — | 20.0 | 34.4 | |||||||||||||||||
Total selling, general and administrative expenses | 44.1 | 21.4 | 3.2 | 7.9 | 253.4 | 330.0 | |||||||||||||||||
Consolidated total | $ | 113.0 | $ | 43.6 | $ | 3.2 | $ | 7.9 | $ | 254.6 | $ | 422.3 |
Balance at May 29, 2016 | Costs Incurred and Charged to Expense | Costs Paid or Otherwise Settled | Changes in Estimates | Balance at May 28, 2017 | |||||||||||||||
Pension costs | $ | 40.7 | $ | 1.1 | $ | (12.0 | ) | $ | 2.0 | $ | 31.8 | ||||||||
Severance and related costs | 47.2 | 12.2 | (43.7 | ) | (1.9 | ) | 13.8 | ||||||||||||
Consulting/professional fees | 4.7 | 0.9 | (4.8 | ) | (0.2 | ) | 0.6 | ||||||||||||
Contract/lease cancellation | 6.3 | 14.5 | (7.5 | ) | (1.7 | ) | 11.6 | ||||||||||||
Other costs | 0.5 | 14.5 | (13.1 | ) | — | 1.9 | |||||||||||||
Total | $ | 99.4 | $ | 43.2 | $ | (81.1 | ) | $ | (1.8 | ) | $ | 59.7 |
2017 | 2016 | 2015 | |||||||||
Net sales | |||||||||||
Grocery & Snacks | $ | 3,208.8 | $ | 3,377.1 | $ | 3,509.9 | |||||
Refrigerated & Frozen | 2,652.7 | 2,867.8 | 2,986.6 | ||||||||
International | 816.0 | 846.6 | 942.7 | ||||||||
Foodservice | 1,078.3 | 1,104.5 | 1,120.1 | ||||||||
Commercial | 71.1 | 468.1 | 474.7 | ||||||||
Total net sales | $ | 7,826.9 | $ | 8,664.1 | $ | 9,034.0 | |||||
Operating profit | |||||||||||
Grocery & Snacks | $ | 653.7 | $ | 592.9 | $ | 589.9 | |||||
Refrigerated & Frozen | 445.8 | 420.4 | 376.3 | ||||||||
International | (168.9 | ) | 66.7 | 90.3 | |||||||
Foodservice | 105.1 | 97.7 | 109.4 | ||||||||
Commercial | 202.6 | 45.4 | 43.5 | ||||||||
Total operating profit | $ | 1,238.3 | $ | 1,223.1 | $ | 1,209.4 | |||||
Equity method investment earnings | 71.2 | 66.1 | 79.4 | ||||||||
General corporate expenses | 313.3 | 818.5 | 296.6 | ||||||||
Interest expense, net | 195.5 | 295.8 | 328.2 | ||||||||
Income tax expense | 254.7 | 46.4 | 212.7 | ||||||||
Income from continuing operations | $ | 546.0 | $ | 128.5 | $ | 451.3 | |||||
Less: Net income attributable to noncontrolling interests of continuing operations | 1.9 | 1.9 | 2.5 | ||||||||
Income from continuing operations attributable to Conagra Brands, Inc. | $ | 544.1 | $ | 126.6 | $ | 448.8 |
Options | Number of Options (in Millions) | Weighted Average Exercise Price | Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (in Millions) | ||||||||
Outstanding at May 29, 2016 | 7.1 | $ | 33.11 | |||||||||
Granted | 1.1 | $ | 48.01 | |||||||||
Exercised | (2.9 | ) | $ | 28.89 | $ | 128.6 | ||||||
Forfeited | (0.9 | ) | $ | 35.62 | ||||||||
Expired | — | $ | — | |||||||||
Conversion for the Spinoff of Lamb Weston | 1.9 | $ | 26.90 | |||||||||
Outstanding at May 28, 2017 | 6.3 | $ | 27.12 | 6.92 | $ | 171.4 | ||||||
Exercisable at May 28, 2017 | 3.8 | $ | 23.77 | 5.84 | $ | 90.8 |
2017 | 2016 | 2015 | |||
Expected volatility (%) | 19.15 | 17.88 | 17.45 | ||
Dividend yield (%) | 2.33 | 2.74 | 3.10 | ||
Risk-free interest rates (%) | 1.03 | 1.60 | 1.58 | ||
Expected life of stock option (years) | 4.94 | 4.96 | 4.92 |
Beginning balance on May 29, 2016 | $ | 32.6 | |
Increases from positions established during prior periods | 2.1 | ||
Decreases from positions established during prior periods | (3.9 | ) | |
Increases from positions established during the current period | 13.4 | ||
Decreases relating to settlements with taxing authorities | (1.8 | ) | |
Reductions resulting from lapse of applicable statute of limitation | (2.9 | ) | |
Other adjustments to liability | (0.2 | ) | |
Ending balance on May 28, 2017 | $ | 39.3 |
Description | Balance at Beginning of Period | Additions Charged to Costs and Expenses | Other | Deductions from Reserves | Balance at Close of Period | ||||||||||||
Year ended May 28,2017 | |||||||||||||||||
Allowance for doubtful receivables | $ | 3.2 | 1.0 | — | 1.1 | (2) | $ | 3.1 | |||||||||
Year ended May 29,2016 | |||||||||||||||||
Allowance for doubtful receivables | $ | 3.0 | 1.1 | (0.1 | ) | (1) | 0.8 | (2) | $ | 3.2 | |||||||
Year ended May 31, 2015 | |||||||||||||||||
Allowance for doubtful receivables | $ | 2.2 | 2.0 | (0.1 | ) | (1) | 1.1 | (2) | $ | 3.0 |
(1) | Primarily translation incurred during fiscal 2016 and 2015. |
(2) | Bad debts charged off and adjustments to previous reserves, less recoveries. |
2017 | 2016 | 2015 | |||||||||
Net sales | |||||||||||
Grocery & Snacks | $ | 3,208.8 | $ | 3,377.1 | $ | 3,509.9 | |||||
Refrigerated & Frozen | 2,652.7 | 2,867.8 | 2,986.6 | ||||||||
International | 816.0 | 846.6 | 942.7 | ||||||||
Foodservice | 1,078.3 | 1,104.5 | 1,120.1 | ||||||||
Commercial | 71.1 | 468.1 | 474.7 | ||||||||
Total net sales | $ | 7,826.9 | $ | 8,664.1 | $ | 9,034.0 | |||||
Operating profit | |||||||||||
Grocery & Snacks | $ | 653.7 | $ | 592.9 | $ | 589.9 | |||||
Refrigerated & Frozen | 445.8 | 420.4 | 376.3 | ||||||||
International | (168.9 | ) | 66.7 | 90.3 | |||||||
Foodservice | 105.1 | 97.7 | 109.4 | ||||||||
Commercial | 202.6 | 45.4 | 43.5 | ||||||||
Total operating profit | $ | 1,238.3 | $ | 1,223.1 | $ | 1,209.4 | |||||
Equity method investment earnings | 71.2 | 66.1 | 79.4 | ||||||||
General corporate expenses | 313.3 | 818.5 | 296.6 | ||||||||
Interest expense, net | 195.5 | 295.8 | 328.2 | ||||||||
Income tax expense | 254.7 | 46.4 | 212.7 | ||||||||
Income from continuing operations | $ | 546.0 | $ | 128.5 | $ | 451.3 | |||||
Less: Net income attributable to noncontrolling interests of continuing operations | 1.9 | 1.9 | 2.5 | ||||||||
Income from continuing operations attributable to Conagra Brands, Inc. | $ | 544.1 | $ | 126.6 | $ | 448.8 |
2017 | 2016 | 2015 | |||||||||
Shelf-stable | $ | 4,682.4 | $ | 5,256.8 | $ | 5,511.5 | |||||
Temperature-controlled | 3,144.5 | 3,407.3 | 3,522.5 | ||||||||
Total net sales | $ | 7,826.9 | $ | 8,664.1 | $ | 9,034.0 |
2017 | 2016 | 2015 | |||||||||
Net derivative gains (losses) incurred | $ | 0.6 | $ | (7.4 | ) | $ | (70.8 | ) | |||
Less: Net derivative gains (losses) allocated to reporting segments | 5.7 | (23.8 | ) | (46.2 | ) | ||||||
Net derivative gains (losses) recognized in general corporate expenses | $ | (5.1 | ) | $ | 16.4 | $ | (24.6 | ) | |||
Net derivative gains (losses) allocated to Grocery & Snacks | $ | 3.4 | $ | (14.4 | ) | $ | (26.7 | ) | |||
Net derivative gains (losses) allocated to Refrigerated & Frozen | 0.8 | (6.2 | ) | (11.8 | ) | ||||||
Net derivative gains (losses) allocated to International | 1.6 | (0.5 | ) | (4.0 | ) | ||||||
Net derivative losses allocated to Foodservice | — | (1.0 | ) | (3.4 | ) | ||||||
Net derivative losses allocated to Commercial | (0.1 | ) | (1.7 | ) | (0.3 | ) | |||||
Net derivative gains (losses) included in segment operating profit | $ | 5.7 | $ | (23.8 | ) | $ | (46.2 | ) |
Land improvements | 1 - 40 years | |
Buildings | 15 - 40 years | |
Machinery and equipment | 3 - 20 years | |
Furniture, fixtures, office equipment and other | 5 - 15 years |
2017 | 2016 | 2015 | |||||||||
Currency translation losses, net of reclassification adjustments 1 | $ | (98.6 | ) | $ | (95.2 | ) | $ | (113.9 | ) | ||
Derivative adjustments, net of reclassification adjustments | (1.1 | ) | (0.4 | ) | 0.9 | ||||||
Unrealized losses on available-for-sale securities | (0.3 | ) | (0.6 | ) | (0.7 | ) | |||||
Pension and post-employment benefit obligations, net of reclassification adjustments 1 | (112.9 | ) | (248.3 | ) | (215.8 | ) | |||||
Accumulated other comprehensive loss | $ | (212.9 | ) | $ | (344.5 | ) | $ | (329.5 | ) |
Affected Line Item in the Consolidated Statement of Operations1 | |||||||||||||
2017 | 2016 | 2015 | |||||||||||
Net derivative adjustment, net of tax: | |||||||||||||
Cash flow hedges | $ | (0.2 | ) | $ | (2.1 | ) | $ | (0.5 | ) | Interest expense, net | |||
(0.2 | ) | (2.1 | ) | (0.5 | ) | Total before tax | |||||||
0.1 | 0.8 | 0.2 | Income tax expense | ||||||||||
$ | (0.1 | ) | $ | (1.3 | ) | $ | (0.3 | ) | Net of tax | ||||
Amortization of pension and postretirement healthcare liabilities: | |||||||||||||
Net prior service benefit | $ | (3.9 | ) | $ | (5.1 | ) | $ | (4.2 | ) | Selling, general and administrative expenses | |||
Divestiture of Private Brands | — | (4.3 | ) | — | Income (loss) from discontinued operations, net of tax | ||||||||
Pension settlement of equity method investment | — | (5.2 | ) | — | Equity method investment earnings | ||||||||
Pension settlement | 13.8 | — | — | Selling, general and administrative expenses | |||||||||
Net actuarial loss | 0.5 | 0.1 | 3.5 | Selling, general and administrative expenses | |||||||||
Curtailment | — | — | 1.5 | Cost of goods sold | |||||||||
10.4 | (14.5 | ) | 0.8 | Total before tax | |||||||||
(4.0 | ) | 4.9 | (0.3 | ) | Income tax expense (benefit) | ||||||||
$ | 6.4 | $ | (9.6 | ) | $ | 0.5 | Net of tax | ||||||
Currency translation losses | $ | — | $ | 73.4 | $ | — | Income (loss) from discontinued operations, net of tax | ||||||
— | 73.4 | — | Total before tax | ||||||||||
— | — | — | Income tax expense | ||||||||||
$ | — | $ | 73.4 | $ | — | Net of tax |