2019 | 2018 | 2017 | |||||||||
Net derivative gains (losses) incurred | $ | (3.6 | ) | $ | (0.9 | ) | $ | 0.6 | |||
Less: Net derivative gains (losses) allocated to reporting segments | (1.8 | ) | (7.1 | ) | 5.7 | ||||||
Net derivative gains (losses) recognized in general corporate expenses | $ | (1.8 | ) | $ | 6.2 | $ | (5.1 | ) | |||
Net derivative gains (losses) allocated to Grocery & Snacks | $ | (2.1 | ) | $ | 0.2 | $ | 3.4 | ||||
Net derivative gains (losses) allocated to Refrigerated & Frozen | (1.1 | ) | (0.3 | ) | 0.8 | ||||||
Net derivative gains (losses) allocated to International | 2.8 | (6.9 | ) | 1.6 | |||||||
Net derivative losses allocated to Foodservice | (0.6 | ) | (0.1 | ) | — | ||||||
Net derivative losses allocated to Pinnacle Foods | (0.8 | ) | — | — | |||||||
Net derivative losses allocated to Commercial | — | — | (0.1 | ) | |||||||
Net derivative gains (losses) included in segment operating profit | $ | (1.8 | ) | $ | (7.1 | ) | $ | 5.7 |
Pension Benefits | Other Benefits | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Change in Benefit Obligation | |||||||||||||||
Benefit obligation at beginning of year | $ | 3,423.6 | $ | 3,548.7 | $ | 119.3 | $ | 156.9 | |||||||
Service cost | 10.9 | 42.8 | 0.1 | 0.2 | |||||||||||
Interest cost | 132.6 | 111.1 | 3.8 | 3.9 | |||||||||||
Plan participants' contributions | — | — | 2.5 | 4.7 | |||||||||||
Amendments | 1.4 | 0.6 | (0.8 | ) | (17.2 | ) | |||||||||
Actuarial loss (gain) | 150.1 | (9.4 | ) | (24.3 | ) | (13.2 | ) | ||||||||
Plan settlements | — | (10.2 | ) | (0.5 | ) | — | |||||||||
Curtailments | — | (79.5 | ) | (0.6 | ) | — | |||||||||
Benefits paid | (191.2 | ) | (181.3 | ) | (9.8 | ) | (16.2 | ) | |||||||
Currency | (0.6 | ) | 0.8 | (0.2 | ) | 0.2 | |||||||||
Business acquisitions and divestitures | 206.4 | — | 1.7 | — | |||||||||||
Benefit obligation at end of year | $ | 3,733.2 | $ | 3,423.6 | $ | 91.2 | $ | 119.3 | |||||||
Change in Plan Assets | |||||||||||||||
Fair value of plan assets at beginning of year | $ | 3,355.1 | $ | 2,983.6 | $ | 3.7 | $ | — | |||||||
Actual return on plan assets | 252.2 | 249.6 | 0.2 | 3.7 | |||||||||||
Employer contributions | 14.7 | 312.6 | 7.3 | 11.5 | |||||||||||
Plan participants' contributions | — | — | 2.5 | 4.7 | |||||||||||
Plan settlements | — | (10.2 | ) | (0.5 | ) | — | |||||||||
Benefits paid | (191.2 | ) | (181.3 | ) | (9.8 | ) | (16.2 | ) | |||||||
Currency | (0.6 | ) | 0.8 | — | — | ||||||||||
Business acquisitions and divestitures | 171.3 | — | — | ||||||||||||
Fair value of plan assets at end of year | $ | 3,601.5 | $ | 3,355.1 | $ | 3.4 | $ | 3.7 |
2019 | 2018 | 2017 | |||||||||
Long-term debt | $ | 385.9 | $ | 161.2 | $ | 203.6 | |||||
Short-term debt | 15.0 | 4.8 | 0.6 | ||||||||
Interest income | (6.8 | ) | (3.8 | ) | (3.7 | ) | |||||
Interest capitalized | (2.7 | ) | (3.5 | ) | (5.0 | ) | |||||
$ | 391.4 | $ | 158.7 | $ | 195.5 |
2019 | 2018 | 2017 | |||||||||
Snacks | $ | 1,363.4 | $ | 1,199.0 | $ | 1,046.7 | |||||
Other shelf-stable | 2,567.1 | 2,088.0 | 2,162.1 | ||||||||
Frozen | 2,968.4 | 2,014.8 | 1,886.1 | ||||||||
Refrigerated | 788.0 | 738.2 | 766.5 | ||||||||
International | 846.2 | 843.5 | 816.0 | ||||||||
Foodservice | 1,005.3 | 1,054.8 | 1,078.4 | ||||||||
Commercial | — | — | 71.1 | ||||||||
Total net sales | $ | 9,538.4 | $ | 7,938.3 | $ | 7,826.9 |
2019 | 2018 | |||||||
Projected benefit obligation | $ | 964.3 | $ | 951.1 | ||||
Accumulated benefit obligation | 963.7 | 950.1 | ||||||
Fair value of plan assets | 771.4 | 779.5 |
Derivative Assets | Derivative Liabilities | ||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Commodity contracts | Prepaid expenses and other current assets | $ | 4.9 | Other accrued liabilities | $ | 0.9 | |||||
Foreign exchange contracts | Prepaid expenses and other current assets | 1.4 | Other accrued liabilities | 0.9 | |||||||
Other | Prepaid expenses and other current assets | 0.1 | Other accrued liabilities | — | |||||||
Total derivatives not designated as hedging instruments | $ | 6.4 | $ | 1.8 |
Derivative Assets | Derivative Liabilities | ||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Commodity contracts | Prepaid expenses and other current assets | $ | 3.7 | Other accrued liabilities | $ | 0.4 | |||||
Foreign exchange contracts | Prepaid expenses and other current assets | 2.1 | Other accrued liabilities | — | |||||||
Other | Prepaid expenses and other current assets | — | Other accrued liabilities | 0.1 | |||||||
Total derivatives not designated as hedging instruments | $ | 5.8 | $ | 0.5 |
Balance at Beginning of Period | Additions Charged to Costs and Expenses | Other | Deductions from Reserves | Balance at Close of Period | |||||||||||||
Year ended May 26, 2019 | $ | 1.7 | 0.6 | 1.6 | (1) | 0.6 | (2) | $ | 3.3 | ||||||||
Year ended May 27, 2018 | $ | 2.9 | 0.8 | — | 2.0 | (2) | $ | 1.7 | |||||||||
Year ended May 28, 2017 | $ | 3.0 | 1.0 | — | 1.1 | (2) | $ | 2.9 |
(1) | Primarily relates to the acquisition of Pinnacle. |
(2) | Bad debts charged off and adjustments to previous reserves, less recoveries. |
2019 | 2018 | ||||||
Pro forma net sales | $ | 10,788.1 | $ | 11,034.2 | |||
Pro forma net income from continuing operations attributable to Conagra Brands, Inc. | $ | 803.8 | $ | 1,089.7 |
October 26, 2018 | |||
Cash and cash equivalents | $ | 47.2 | |
Receivables | 202.8 | ||
Inventories | 653.7 | ||
Prepaid expenses and other current assets | 14.9 | ||
Property, plant and equipment | 721.2 | ||
Goodwill | 7,015.9 | ||
Brands, trademarks and other intangibles | 3,519.5 | ||
Other assets | 24.3 | ||
Current liabilities | (605.5 | ) | |
Senior long-term debt, excluding current installments | (2,671.3 | ) | |
Noncurrent deferred tax liabilities | (814.1 | ) | |
Other noncurrent liabilities | (74.6 | ) | |
Total assets acquired and liabilities assumed | $ | 8,034.0 |
2019 | 2018 | ||||||
Pro forma net sales | $ | 10,788.1 | $ | 11,034.2 | |||
Pro forma net income from continuing operations attributable to Conagra Brands, Inc. | $ | 803.8 | $ | 1,089.7 |
• | Acquisition related costs incurred by the Company of $62.7 million during fiscal 2019 were excluded and assumed to have been incurred at the beginning of fiscal 2018. Acquisition related costs incurred by Pinnacle of $66.8 million during fiscal 2019 were excluded from the pro forma results. |
• | Non-recurring expense of $53.0 million for fiscal 2019 related to the fair value adjustment to acquisition-date inventory estimated to have been sold was removed and $54.1 million of expense was included in the results for fiscal 2018. |
• | Non-recurring expense of $45.7 million for fiscal 2019 related to securing bridge financing for the acquisition were excluded and assumed to have been incurred at the beginning of fiscal 2018. |
May 26, 2019 | May 27, 2018 | ||||||
Prepaid expenses and other current assets | $ | 5.9 | $ | 4.4 | |||
Other accrued liabilities | 1.4 | 0.1 |
Derivative Assets | Derivative Liabilities | ||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Commodity contracts | Prepaid expenses and other current assets | $ | 4.9 | Other accrued liabilities | $ | 0.9 | |||||
Foreign exchange contracts | Prepaid expenses and other current assets | 1.4 | Other accrued liabilities | 0.9 | |||||||
Other | Prepaid expenses and other current assets | 0.1 | Other accrued liabilities | — | |||||||
Total derivatives not designated as hedging instruments | $ | 6.4 | $ | 1.8 |
Derivative Assets | Derivative Liabilities | ||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Commodity contracts | Prepaid expenses and other current assets | $ | 3.7 | Other accrued liabilities | $ | 0.4 | |||||
Foreign exchange contracts | Prepaid expenses and other current assets | 2.1 | Other accrued liabilities | — | |||||||
Other | Prepaid expenses and other current assets | — | Other accrued liabilities | 0.1 | |||||||
Total derivatives not designated as hedging instruments | $ | 5.8 | $ | 0.5 |
For the Fiscal Year Ended May 26, 2019 | ||||||
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 | $ | (5.3 | ) | ||
Foreign exchange contracts | Cost of goods sold | 1.7 | ||||
Total loss from derivative instruments not designated as hedging instruments | $ | (3.6 | ) |
For the Fiscal Year Ended May 27, 2018 | ||||||
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 | $ | 3.0 | |||
Foreign exchange contracts | Cost of goods sold | (3.9 | ) | |||
Foreign exchange contracts | Selling, general and administrative expense | 0.3 | ||||
Total loss from derivative instruments not designated as hedging instruments | $ | (0.6 | ) |
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 |
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 27, 2018 | 1.78 | $ | 34.20 | 0.71 | $ | 34.58 | |||||||
Granted | 0.89 | $ | 35.43 | 1.95 | $ | 36.37 | |||||||
Vested/Issued | (0.72 | ) | $ | 33.29 | (1.64 | ) | $ | 35.55 | |||||
Forfeited | (0.14 | ) | $ | 35.08 | (0.05 | ) | $ | 36.07 | |||||
Nonvested share units at May 26, 2019 | 1.81 | $ | 34.89 | 0.97 | $ | 36.20 |
Performance Shares | Share Units (in Millions) | Weighted Average Grant-Date Fair Value | ||||
Nonvested performance shares at May 27, 2018 | 1.00 | $ | 33.40 | |||
Granted | 0.45 | $ | 35.96 | |||
Adjustments for performance results attained and dividend equivalents | 0.18 | $ | 31.03 | |||
Vested/Issued | (0.43 | ) | $ | 31.03 | ||
Forfeited | (0.05 | ) | $ | 34.54 | ||
Nonvested performance shares at May 26, 2019 | 1.15 | $ | 34.89 |
2017 | |
Expected volatility (%) | 19.15 |
Dividend yield (%) | 2.33 |
Risk-free interest rates (%) | 1.03 |
Expected life of stock option (years) | 4.94 |
Options | Number of Options (in Millions) | Weighted Average Exercise Price | Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (in Millions) | ||||||||
Outstanding at May 27, 2018 | 5.1 | $ | 28.11 | |||||||||
Exercised | (0.6 | ) | $ | 20.75 | $ | 7.9 | ||||||
Expired | (0.1 | ) | $ | 29.84 | ||||||||
Outstanding at May 26, 2019 | 4.4 | $ | 29.00 | 5.47 | $ | 9.9 | ||||||
Exercisable at May 26, 2019 | 4.1 | $ | 28.38 | 5.32 | $ | 9.9 |
Stock Appreciation Rights | Number of Options (in Millions) | Weighted Average Exercise Price | Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (in Millions) | ||||||||
Granted | 2.3 | $ | 27.09 | |||||||||
Exercised | (0.1 | ) | $ | 24.79 | $ | 0.1 | ||||||
Expired | (1.8 | ) | $ | 26.92 | ||||||||
Outstanding at May 26, 2019 | 0.4 | $ | 28.13 | 0.16 | $ | 0.6 | ||||||
Exercisable at May 26, 2019 | 0.4 | $ | 28.13 | 0.16 | $ | 0.6 |
May 27, 2018 | |||
Current assets | $ | 37.7 | |
Noncurrent assets (including goodwill of $74.5 million) | 101.0 |
May 27, 2018 | |||
Current assets | $ | 23.5 | |
Noncurrent assets (including goodwill of $15.1 million) | 43.3 | ||
Current liabilities | 13.9 | ||
Noncurrent liabilities | 4.4 |
May 27, 2018 | |||
Current assets | $ | 6.1 | |
Noncurrent assets (including goodwill of $5.8 million) | 11.5 |
2019 | 2018 | 2017 | |||||||||
Net sales | $ | — | $ | — | $ | 1,407.9 | |||||
Income (loss) from discontinued operations before income taxes and equity method investment earnings | $ | — | $ | (0.3 | ) | $ | 172.3 | ||||
Income (loss) before income taxes and equity method investment earnings | — | (0.3 | ) | 172.3 | |||||||
Income tax expense (benefit) | 2.8 | (14.6 | ) | 87.5 | |||||||
Equity method investment earnings | — | — | 15.9 | ||||||||
Income (loss) from discontinued operations, net of tax | (2.8 | ) | 14.3 | 100.7 | |||||||
Less: Net income attributable to noncontrolling interests | — | — | 6.8 | ||||||||
Net income (loss) from discontinued operations attributable to Conagra Brands, Inc. | $ | (2.8 | ) | $ | 14.3 | $ | 93.9 |
2019 | 2018 | 2017 | |||||||||
Loss on sale of business | $ | — | $ | — | $ | (1.6 | ) | ||||
Income from discontinued operations before income taxes and equity method investment earnings | 0.9 | 0.4 | 3.9 | ||||||||
Income before income taxes and equity method investment earnings | 0.9 | 0.4 | 2.3 | ||||||||
Income tax expense (benefit) | — | 0.5 | (0.3 | ) | |||||||
Income (loss) from discontinued operations, net of tax | $ | 0.9 | $ | (0.1 | ) | $ | 2.6 |
May 27, 2018 | |||
Current assets | $ | 6.1 | |
Noncurrent assets (including goodwill of $5.8 million) | 11.5 |
May 27, 2018 | |||
Current assets | $ | 37.7 | |
Noncurrent assets (including goodwill of $74.5 million) | 101.0 |
May 27, 2018 | |||
Current assets | $ | 23.5 | |
Noncurrent assets (including goodwill of $15.1 million) | 43.3 | ||
Current liabilities | 13.9 | ||
Noncurrent liabilities | 4.4 |
2019 | 2018 | 2017 | |||||||||
Net income available to Conagra Brands, Inc. common stockholders: | |||||||||||
Income from continuing operations attributable to Conagra Brands, Inc. common stockholders | $ | 680.2 | $ | 794.1 | $ | 544.1 | |||||
Income (loss) from discontinued operations, net of tax, attributable to Conagra Brands, Inc. common stockholders | (1.9 | ) | 14.3 | 95.2 | |||||||
Net income attributable to Conagra Brands, Inc. common stockholders | $ | 678.3 | $ | 808.4 | $ | 639.3 | |||||
Less: Increase in redemption value of noncontrolling interests in excess of earnings allocated | — | — | 0.8 | ||||||||
Net income available to Conagra Brands, Inc. common stockholders | $ | 678.3 | $ | 808.4 | $ | 638.5 | |||||
Weighted average shares outstanding: | |||||||||||
Basic weighted average shares outstanding | 444.0 | 403.9 | 431.9 | ||||||||
Add: Dilutive effect of stock options, restricted stock unit awards, and other dilutive securities | 1.6 | 3.5 | 4.1 | ||||||||
Diluted weighted average shares outstanding | 445.6 | 407.4 | 436.0 |
2019 | 2018 | 2017 | |||||||||
Net Sales: | |||||||||||
Ardent Mills | $ | 3,476.0 | $ | 3,344.1 | $ | 3,180.0 | |||||
Others | 195.4 | 198.8 | 177.7 | ||||||||
Total net sales | $ | 3,671.4 | $ | 3,542.9 | $ | 3,357.7 | |||||
Gross margin: | |||||||||||
Ardent Mills | $ | 281.9 | $ | 386.5 | $ | 340.3 | |||||
Others | 45.5 | 34.8 | 34.6 | ||||||||
Total gross margin | $ | 327.4 | $ | 421.3 | $ | 374.9 | |||||
Earnings after income taxes: | |||||||||||
Ardent Mills | $ | 151.9 | $ | 197.0 | $ | 152.0 | |||||
Others | 18.1 | 10.1 | 10.1 | ||||||||
Total earnings after income taxes | $ | 170.0 | $ | 207.1 | $ | 162.1 |
May 26, 2019 | May 27, 2018 | ||||||
Ardent Mills: | |||||||
Current assets | $ | 952.6 | $ | 974.6 | |||
Noncurrent assets | 1,669.8 | 1,675.7 | |||||
Current liabilities | 361.2 | 355.6 | |||||
Noncurrent liabilities | 496.9 | 510.9 | |||||
Others: | |||||||
Current assets | $ | 89.2 | $ | 76.4 | |||
Noncurrent assets | 19.0 | 15.5 | |||||
Current liabilities | 43.4 | 37.5 | |||||
Noncurrent liabilities | 0.7 | 0.1 |
2019 | 2018 | 2017 | |||||||||
Net Sales: | |||||||||||
Ardent Mills | $ | 3,476.0 | $ | 3,344.1 | $ | 3,180.0 | |||||
Others | 195.4 | 198.8 | 177.7 | ||||||||
Total net sales | $ | 3,671.4 | $ | 3,542.9 | $ | 3,357.7 | |||||
Gross margin: | |||||||||||
Ardent Mills | $ | 281.9 | $ | 386.5 | $ | 340.3 | |||||
Others | 45.5 | 34.8 | 34.6 | ||||||||
Total gross margin | $ | 327.4 | $ | 421.3 | $ | 374.9 | |||||
Earnings after income taxes: | |||||||||||
Ardent Mills | $ | 151.9 | $ | 197.0 | $ | 152.0 | |||||
Others | 18.1 | 10.1 | 10.1 | ||||||||
Total earnings after income taxes | $ | 170.0 | $ | 207.1 | $ | 162.1 |
May 26, 2019 | May 27, 2018 | ||||||
Ardent Mills: | |||||||
Current assets | $ | 952.6 | $ | 974.6 | |||
Noncurrent assets | 1,669.8 | 1,675.7 | |||||
Current liabilities | 361.2 | 355.6 | |||||
Noncurrent liabilities | 496.9 | 510.9 | |||||
Others: | |||||||
Current assets | $ | 89.2 | $ | 76.4 | |||
Noncurrent assets | 19.0 | 15.5 | |||||
Current liabilities | 43.4 | 37.5 | |||||
Noncurrent liabilities | 0.7 | 0.1 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
Derivative assets | $ | 3.0 | $ | 2.9 | $ | — | $ | 5.9 | |||||||
Marketable securities | 15.7 | — | — | 15.7 | |||||||||||
Deferred compensation assets | 10.7 | — | — | 10.7 | |||||||||||
Total assets | $ | 29.4 | $ | 2.9 | $ | — | $ | 32.3 | |||||||
Liabilities: | |||||||||||||||
Derivative liabilities | $ | — | $ | 1.4 | $ | — | $ | 1.4 | |||||||
Deferred compensation liabilities | 70.4 | — | — | 70.4 | |||||||||||
Total liabilities | $ | 70.4 | $ | 1.4 | $ | — | $ | 71.8 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
Derivative assets | $ | 1.7 | $ | 2.7 | $ | — | $ | 4.4 | |||||||
Marketable securities | 4.8 | — | — | 4.8 | |||||||||||
Total assets | $ | 6.5 | $ | 2.7 | $ | — | $ | 9.2 | |||||||
Liabilities: | |||||||||||||||
Derivative liabilities | $ | — | $ | 0.1 | $ | — | $ | 0.1 | |||||||
Deferred compensation liabilities | 51.6 | — | — | 51.6 | |||||||||||
Total liabilities | $ | 51.6 | $ | 0.1 | $ | — | $ | 51.7 |
Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Pinnacle Foods | Total | ||||||||||||||||||
Balance as of May 28, 2017 | $ | 2,439.1 | $ | 1,022.8 | $ | 247.8 | $ | 571.1 | $ | — | $ | 4,280.8 | |||||||||||
Acquisitions | 155.2 | 57.8 | — | — | — | 213.0 | |||||||||||||||||
Purchase accounting adjustments | (1.5 | ) | — | — | — | — | (1.5 | ) | |||||||||||||||
Currency translation | — | — | (4.9 | ) | — | — | (4.9 | ) | |||||||||||||||
Balance as of May 27, 2018 | $ | 2,592.8 | $ | 1,080.6 | $ | 242.9 | $ | 571.1 | $ | — | $ | 4,487.4 | |||||||||||
Acquisitions | — | — | — | — | 7,015.9 | 7,015.9 | |||||||||||||||||
Purchase accounting adjustments | 1.5 | — | — | — | — | 1.5 | |||||||||||||||||
Currency translation | — | — | (2.4 | ) | — | (2.8 | ) | (5.2 | ) | ||||||||||||||
Balance as of May 26, 2019 | $ | 2,594.3 | $ | 1,080.6 | $ | 240.5 | $ | 571.1 | $ | 7,013.1 | $ | 11,499.6 |
2019 | 2018 | ||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||
Non-amortizing intangible assets | $ | 3,678.0 | $ | — | $ | 918.3 | $ | — | |||||||
Amortizing intangible assets | 1,244.2 | 260.8 | 576.6 | 212.1 | |||||||||||
$ | 4,922.2 | $ | 260.8 | $ | 1,494.9 | $ | 212.1 |
2019 | 2018 | 2017 | |||||||||
United States | $ | 826.6 | $ | 902.5 | $ | 883.5 | |||||
Foreign | 72.5 | 69.6 | (82.8 | ) | |||||||
$ | 899.1 | $ | 972.1 | $ | 800.7 |
2019 | 2018 | 2017 | |||||||||
Current | |||||||||||
Federal | $ | 125.4 | $ | 153.1 | $ | 201.5 | |||||
State | 22.6 | 17.8 | 6.7 | ||||||||
Foreign | 21.6 | 32.5 | 6.5 | ||||||||
169.6 | 203.4 | 214.7 | |||||||||
Deferred | |||||||||||
Federal | 40.1 | (43.7 | ) | 62.1 | |||||||
State | 19.0 | 17.4 | (5.3 | ) | |||||||
Foreign | (9.9 | ) | (2.5 | ) | (16.8 | ) | |||||
49.2 | (28.8 | ) | 40.0 | ||||||||
$ | 218.8 | $ | 174.6 | $ | 254.7 |
2019 | 2018 | 2017 | |||||||||
Computed U.S. Federal income taxes | $ | 188.8 | $ | 285.3 | $ | 280.2 | |||||
State income taxes, net of U.S. Federal tax impact | 34.1 | 18.0 | 22.4 | ||||||||
Remeasurement of U.S. deferred taxes | — | (241.6 | ) | — | |||||||
Transition tax on foreign earnings | (4.6 | ) | 19.8 | — | |||||||
Tax credits and domestic manufacturing deduction | (5.6 | ) | (20.6 | ) | (19.8 | ) | |||||
Federal rate differential on legal reserve | — | 12.6 | — | ||||||||
Goodwill and intangible impairments | 12.5 | — | 104.7 | ||||||||
Stock compensation | (2.1 | ) | (5.7 | ) | (18.8 | ) | |||||
Legal entity reorganization | 16.9 | — | — | ||||||||
State tax impact of combining Pinnacle business | (12.0 | ) | — | — | |||||||
Change of valuation allowance on capital loss carryforward | (32.2 | ) | 78.6 | (84.1 | ) | ||||||
Change in estimate related to tax methods used for certain international sales, federal credits, and state credits | — | — | (8.0 | ) | |||||||
Other | 23.0 | 28.2 | (21.9 | ) | |||||||
$ | 218.8 | $ | 174.6 | $ | 254.7 |
May 26, 2019 | May 27, 2018 | ||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||
Property, plant and equipment | $ | — | $ | 240.7 | $ | — | $ | 141.0 | |||||||
Inventory | 15.2 | — | 2.6 | — | |||||||||||
Goodwill, trademarks and other intangible assets | — | 1,187.0 | — | 406.2 | |||||||||||
Accrued expenses | 11.8 | — | 15.5 | — | |||||||||||
Compensation related liabilities | 35.9 | — | 34.1 | — | |||||||||||
Pension and other postretirement benefits | 54.6 | — | 45.8 | — | |||||||||||
Investment in unconsolidated subsidiaries | — | 185.4 | — | 165.8 | |||||||||||
Other liabilities that will give rise to future tax deductions | 123.5 | — | 109.7 | — | |||||||||||
Net capital and operating loss carryforwards | 766.5 | — | 762.5 | — | |||||||||||
Federal credits | 18.0 | — | 3.5 | — | |||||||||||
Other | 37.6 | 24.0 | 23.6 | 9.5 | |||||||||||
1,063.1 | 1,637.1 | 997.3 | 722.5 | ||||||||||||
Less: Valuation allowance | (738.1 | ) | — | (739.6 | ) | — | |||||||||
Net deferred taxes | $ | 325.0 | $ | 1,637.1 | $ | 257.7 | $ | 722.5 |
Beginning balance on May 27, 2018 | $ | 32.5 | |
Acquired business positions | 10.6 | ||
Increases from positions established during prior periods | 7.7 | ||
Decreases from positions established during prior periods | (3.4 | ) | |
Increases from positions established during the current period | 4.2 | ||
Decreases relating to settlements with taxing authorities | (5.2 | ) | |
Reductions resulting from lapse of applicable statute of limitation | (3.3 | ) | |
Other adjustments to liability | 1.0 | ||
Ending balance on May 26, 2019 | $ | 44.1 |
May 26, 2019 | May 27, 2018 | ||||||
Raw materials and packaging | $ | 276.5 | $ | 202.9 | |||
Work in process | 126.9 | 91.8 | |||||
Finished goods | 1,099.1 | 647.8 | |||||
Supplies and other | 69.2 | 46.2 | |||||
Total | $ | 1,571.7 | $ | 988.7 |
2020 | $ | 52.1 | |
2021 | 48.4 | ||
2022 | 38.0 | ||
2023 | 34.1 | ||
2024 | 25.6 | ||
Later years | 114.4 | ||
$ | 312.6 |
May 26, 2019 | May 27, 2018 | ||||||
5.4% senior debt due November 2048 | $ | 1,000.0 | $ | — | |||
4.65% senior debt due January 2043 | 176.7 | 176.7 | |||||
6.625% senior debt due August 2039 | 91.4 | 91.4 | |||||
5.3% senior debt due November 2038 | 1,000.0 | — | |||||
8.25% senior debt due September 2030 | 300.0 | 300.0 | |||||
4.85% senior debt due November 2028 | 1,300.0 | — | |||||
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 | |||||
4.6% senior debt due November 2025 | 1,000.0 | — | |||||
4.3% senior debt due May 2024 | 1,000.0 | — | |||||
LIBOR plus 1.50% term loan due October 2023 | 200.0 | — | |||||
3.2% senior debt due January 2023 | 837.0 | 837.0 | |||||
3.25% senior debt due September 2022 | 250.0 | 250.0 | |||||
LIBOR plus 1.375% term loan due October 2021 | 200.0 | — | |||||
3.8% senior debt due October 2021 | 1,200.0 | — | |||||
9.75% subordinated debt due March 2021 | 195.9 | 195.9 | |||||
LIBOR plus 0.75% senior debt due October 2020 | 525.0 | — | |||||
LIBOR plus 0.50% senior debt due October 2020 | 500.0 | 500.0 | |||||
4.95% senior debt due August 2020 | 126.6 | 126.6 | |||||
LIBOR plus 0.75% term loan due February 2019 | — | 300.0 | |||||
2.00% to 9.59% lease financing obligations due on various dates through 2033 | 165.4 | 94.7 | |||||
Other indebtedness | 0.1 | 0.2 | |||||
Total face value of debt | 10,722.0 | 3,526.4 | |||||
Unamortized fair value adjustment | 24.5 | 27.6 | |||||
Unamortized discounts | (19.0 | ) | (5.8 | ) | |||
Unamortized debt issuance costs | (52.1 | ) | (11.3 | ) | |||
Adjustment due to hedging activity | 0.9 | 1.6 | |||||
Less current installments | (20.6 | ) | (307.0 | ) | |||
Total long-term debt | $ | 10,655.7 | $ | 3,231.5 |
2020 | $ | 20.6 | |
2021 | 1,368.2 | ||
2022 | 1,420.4 | ||
2023 | 1,103.4 | ||
2024 | 1,213.0 |
2019 | 2018 | 2017 | |||||||||
Long-term debt | $ | 385.9 | $ | 161.2 | $ | 203.6 | |||||
Short-term debt | 15.0 | 4.8 | 0.6 | ||||||||
Interest income | (6.8 | ) | (3.8 | ) | (3.7 | ) | |||||
Interest capitalized | (2.7 | ) | (3.5 | ) | (5.0 | ) | |||||
$ | 391.4 | $ | 158.7 | $ | 195.5 |
As Reported | Adjustments | Balances without Adoption of Topic 606 | |||||||||||||||
Current assets | |||||||||||||||||
Receivables, less allowance for doubtful accounts | $ | 831.7 | $ | 8.7 | $ | 840.4 | |||||||||||
Inventories | 1,571.7 | (3.1 | ) | 1,568.6 | |||||||||||||
Prepaid expenses and other current assets | 93.8 | (16.6 | ) | 77.2 | |||||||||||||
Current liabilities | |||||||||||||||||
Other accrued liabilities | 691.6 | (1.1 | ) | 690.5 | |||||||||||||
Other noncurrent liabilities | 1,951.8 | (2.5 | ) | 1,949.3 |
Fiscal 2019 | |||||||||||||||||
As Reported | Adjustments | Balances without Adoption of Topic 606 | |||||||||||||||
Net sales | $ | 9,538.4 | $ | 15.5 | $ | 9,553.9 | |||||||||||
Cost of goods sold | 6,885.4 | 24.5 | 6,909.9 | ||||||||||||||
Income from continuing operations before income taxes and equity method investment earnings | 823.3 | (9.0 | ) | 814.3 |
2018 | 2017 | ||||||||||
Reclassified from Cost of goods sold | $ | — | $ | 1.7 | |||||||
Reclassified from Selling, general and administrative expense | 80.4 | 53.5 | |||||||||
Reclassified to Pension and postretirement non-service income | $ | 80.4 | $ | 55.2 |
May 26, 2019 | May 27, 2018 | ||||||
Postretirement health care and pension obligations | $ | 262.5 | $ | 261.7 | |||
Noncurrent income tax liabilities | 1,349.0 | 487.3 | |||||
Self-insurance liabilities | 42.9 | 27.1 | |||||
Environmental liabilities (see Note 17) | 56.8 | 56.0 | |||||
Technology agreement liability | 28.7 | 42.7 | |||||
Other | 211.9 | 186.0 | |||||
$ | 1,951.8 | $ | 1,060.8 |
Pension Benefits | Other Benefits | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Change in Benefit Obligation | |||||||||||||||
Benefit obligation at beginning of year | $ | 3,423.6 | $ | 3,548.7 | $ | 119.3 | $ | 156.9 | |||||||
Service cost | 10.9 | 42.8 | 0.1 | 0.2 | |||||||||||
Interest cost | 132.6 | 111.1 | 3.8 | 3.9 | |||||||||||
Plan participants' contributions | — | — | 2.5 | 4.7 | |||||||||||
Amendments | 1.4 | 0.6 | (0.8 | ) | (17.2 | ) | |||||||||
Actuarial loss (gain) | 150.1 | (9.4 | ) | (24.3 | ) | (13.2 | ) | ||||||||
Plan settlements | — | (10.2 | ) | (0.5 | ) | — | |||||||||
Curtailments | — | (79.5 | ) | (0.6 | ) | — | |||||||||
Benefits paid | (191.2 | ) | (181.3 | ) | (9.8 | ) | (16.2 | ) | |||||||
Currency | (0.6 | ) | 0.8 | (0.2 | ) | 0.2 | |||||||||
Business acquisitions and divestitures | 206.4 | — | 1.7 | — | |||||||||||
Benefit obligation at end of year | $ | 3,733.2 | $ | 3,423.6 | $ | 91.2 | $ | 119.3 | |||||||
Change in Plan Assets | |||||||||||||||
Fair value of plan assets at beginning of year | $ | 3,355.1 | $ | 2,983.6 | $ | 3.7 | $ | — | |||||||
Actual return on plan assets | 252.2 | 249.6 | 0.2 | 3.7 | |||||||||||
Employer contributions | 14.7 | 312.6 | 7.3 | 11.5 | |||||||||||
Plan participants' contributions | — | — | 2.5 | 4.7 | |||||||||||
Plan settlements | — | (10.2 | ) | (0.5 | ) | — | |||||||||
Benefits paid | (191.2 | ) | (181.3 | ) | (9.8 | ) | (16.2 | ) | |||||||
Currency | (0.6 | ) | 0.8 | — | — | ||||||||||
Business acquisitions and divestitures | 171.3 | — | — | ||||||||||||
Fair value of plan assets at end of year | $ | 3,601.5 | $ | 3,355.1 | $ | 3.4 | $ | 3.7 |
Pension Benefits | Other Benefits | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Funded Status | $ | (131.7 | ) | $ | (68.5 | ) | $ | (87.8 | ) | $ | (115.6 | ) | ||||
Amounts Recognized in Consolidated Balance Sheets | ||||||||||||||||
Other assets | $ | 61.2 | $ | 103.0 | $ | 2.8 | $ | 2.6 | ||||||||
Other accrued liabilities | (10.2 | ) | (11.8 | ) | (10.8 | ) | (16.2 | ) | ||||||||
Other noncurrent liabilities | (182.7 | ) | (159.7 | ) | (79.8 | ) | (102.0 | ) | ||||||||
Net Amount Recognized | $ | (131.7 | ) | $ | (68.5 | ) | $ | (87.8 | ) | $ | (115.6 | ) | ||||
Amounts Recognized in Accumulated Other Comprehensive (Income) Loss (Pre-tax) | ||||||||||||||||
Actuarial net loss (gain) | $ | 115.8 | $ | 48.8 | $ | (47.8 | ) | $ | (25.8 | ) | ||||||
Net prior service cost (benefit) | 12.1 | 13.8 | (17.1 | ) | (18.4 | ) | ||||||||||
Total | $ | 127.9 | $ | 62.6 | $ | (64.9 | ) | $ | (44.2 | ) | ||||||
Weighted-Average Actuarial Assumptions Used to Determine Benefit Obligations at May 26, 2019 and May 27, 2018 | ||||||||||||||||
Discount rate | 3.88 | % | 4.14 | % | 3.48 | % | 3.81 | % | ||||||||
Long-term rate of compensation increase | N/A | N/A | N/A | N/A |
2019 | 2018 | |||||||
Projected benefit obligation | $ | 964.3 | $ | 951.1 | ||||
Accumulated benefit obligation | 963.7 | 950.1 | ||||||
Fair value of plan assets | 771.4 | 779.5 |
Pension Benefits | Other Benefits | ||||||||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | 2017 | ||||||||||||||||||
Service cost | $ | 10.9 | $ | 42.8 | $ | 56.9 | $ | 0.1 | $ | 0.2 | $ | 0.3 | |||||||||||
Interest cost | 132.6 | 111.1 | 116.8 | 3.8 | 3.9 | 4.6 | |||||||||||||||||
Expected return on plan assets | (174.4 | ) | (218.3 | ) | (207.4 | ) | — | — | — | ||||||||||||||
Amortization of prior service cost (benefit) | 3.1 | 2.9 | 2.6 | (2.2 | ) | (3.4 | ) | (6.6 | ) | ||||||||||||||
Special termination benefits | — | — | 1.5 | — | — | — | |||||||||||||||||
Recognized net actuarial loss (gain) | 5.1 | 3.4 | 1.2 | (1.4 | ) | — | 0.5 | ||||||||||||||||
Settlement loss (gain) | — | 1.3 | 13.8 | (1.0 | ) | — | — | ||||||||||||||||
Curtailment loss (gain) | — | 0.7 | 1.7 | (0.6 | ) | — | — | ||||||||||||||||
Benefit cost — Company plans | (22.7 | ) | (56.1 | ) | (12.9 | ) | (1.3 | ) | 0.7 | (1.2 | ) | ||||||||||||
Pension benefit cost — multi-employer plans | 6.3 | 7.1 | 12.0 | — | — | — | |||||||||||||||||
Total benefit (income) cost | $ | (16.4 | ) | $ | (49.0 | ) | $ | (0.9 | ) | $ | (1.3 | ) | $ | 0.7 | $ | (1.2 | ) |
Pension Benefits | Other Benefits | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net actuarial gain (loss) | $ | (72.1 | ) | $ | 120.0 | $ | 25.1 | $ | 16.8 | |||||||
Amendments | (1.4 | ) | (0.6 | ) | 0.8 | 17.2 | ||||||||||
Amortization of prior service cost (benefit) | 3.1 | 2.9 | (2.2 | ) | (3.4 | ) | ||||||||||
Settlement and curtailment loss (gain) | — | 2.0 | (1.6 | ) | — | |||||||||||
Recognized net actuarial loss (gain) | 5.1 | 3.4 | (1.4 | ) | — | |||||||||||
Net amount recognized | $ | (65.3 | ) | $ | 127.7 | $ | 20.7 | $ | 30.6 |
Pension Benefits | Other Benefits | |||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||||||||||||
Discount rate | 4.15 | % | 3.90 | % | 3.83 | % | 3.81 | % | 3.33 | % | 3.18 | % | ||||||
Long-term rate of return on plan assets | 5.17 | % | 7.50 | % | 7.50 | % | N/A | N/A | N/A | |||||||||
Long-term rate of compensation increase | 3.63 | % | 3.63 | % | 3.66 | % | N/A | N/A | N/A |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents | $ | 0.7 | $ | 77.7 | $ | — | $ | 78.4 | ||||||||
Equity securities: | ||||||||||||||||
U.S. equity securities | 56.3 | 91.8 | — | 148.1 | ||||||||||||
International equity securities | 87.8 | 0.4 | — | 88.2 | ||||||||||||
Fixed income securities: | ||||||||||||||||
Government bonds | — | 748.3 | — | 748.3 | ||||||||||||
Corporate bonds | — | 2,255.5 | — | 2,255.5 | ||||||||||||
Mortgage-backed bonds | — | 31.1 | — | 31.1 | ||||||||||||
Real estate funds | 0.4 | — | — | 0.4 | ||||||||||||
Net receivables for unsettled transactions | 5.6 | — | — | 5.6 | ||||||||||||
Fair value measurement of pension plan assets in the fair value hierarchy | $ | 150.8 | $ | 3,204.8 | $ | — | $ | 3,355.6 | ||||||||
Investments measured at net asset value | 245.9 | |||||||||||||||
Total pension plan assets | $ | 3,601.5 |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents | $ | 1.0 | $ | 65.0 | $ | — | $ | 66.0 | ||||||||
Equity securities: | ||||||||||||||||
U.S. equity securities | 319.8 | 124.0 | — | 443.8 | ||||||||||||
International equity securities | 256.5 | 1.0 | — | 257.5 | ||||||||||||
Fixed income securities: | ||||||||||||||||
Government bonds | — | 1,854.8 | — | 1,854.8 | ||||||||||||
Corporate bonds | — | 4.7 | — | 4.7 | ||||||||||||
Mortgage-backed bonds | — | 9.3 | — | 9.3 | ||||||||||||
Real estate funds | 7.7 | — | — | 7.7 | ||||||||||||
Master limited partnerships | 0.4 | — | — | 0.4 | ||||||||||||
Net receivables for unsettled transactions | 10.9 | — | — | 10.9 | ||||||||||||
Fair value measurement of pension plan assets in the fair value hierarchy | $ | 596.3 | $ | 2,058.8 | $ | — | $ | 2,655.1 | ||||||||
Investments measured at net asset value | 700.0 | |||||||||||||||
Total pension plan assets | $ | 3,355.1 |
May 26, 2019 | May 27, 2018 | |||||
Equity securities | 7 | % | 21 | % | ||
Debt securities | 85 | % | 58 | % | ||
Real estate funds | 1 | % | 10 | % | ||
Multi-strategy hedge funds | — | % | 4 | % | ||
Private equity | 3 | % | 4 | % | ||
Other | 4 | % | 3 | % | ||
Total | 100 | % | 100 | % |
Assumed Health Care Cost Trend Rates at: | May 26, 2019 | May 27, 2018 | ||||
Initial health care cost trend rate | 7.20 | % | 7.87 | % | ||
Ultimate health care cost trend rate | 4.5 | % | 4.5 | % | ||
Year that the rate reaches the ultimate trend rate | 2024 | 2024 |
Pension Benefits | Health Care and Life Insurance Benefits | |||||||
2020 | $ | 200.7 | $ | 10.9 | ||||
2021 | 201.3 | 10.1 | ||||||
2022 | 203.9 | 9.3 | ||||||
2023 | 207.1 | 8.5 | ||||||
2024 | 210.0 | 7.8 | ||||||
Succeeding 5 years | 1,074.8 | 30.2 |
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 2018 and 2017 is for plan years that ended in calendar years 2018 and 2017, 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 2018. |
• | 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 26, 2019 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 | 2018 | 2017 | FY19 | FY18 | FY17 | Surcharge Imposed | ||||||
Bakery and Confectionary Union and Industry International Pension Plan | 52-6118572 / 001 | Red, Critical and Declining | Red, Critical and Declining | RP Implemented | $ | 0.1 | $ | 1.5 | $1.8 | No | 2/29/2020 | ||
Central States, Southeast and Southwest Areas Pension Fund | 36-6044243 / 001 | Red, Critical and Declining | Red | RP Implemented | 1.8 | 1.8 | 1.8 | No | 5/31/2020 | ||||
Western Conference of Teamsters Pension Plan | 91-6145047 / 001 | Green | Green | N/A | 3.2 | 2.8 | 4.0 | No | 06/30/2021 | ||||
Other Plans | 0.9 | 0.4 | 0.4 | ||||||||||
Total Contributions | $ | 6.0 | $6.5 | $8.0 |
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 |
2019 | 2018 | ||||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||||||||||||
Net sales | $ | 1,834.4 | $ | 2,383.7 | $ | 2,707.1 | $ | 2,613.2 | $ | 1,804.2 | $ | 2,173.4 | $ | 1,994.5 | $ | 1,966.2 | |||||||||||||||
Gross profit | 515.5 | 677.2 | 752.3 | 708.0 | 519.0 | 658.3 | 598.8 | 575.4 | |||||||||||||||||||||||
Income from continuing operations, net of tax | 178.2 | 134.3 | 242.6 | 125.2 | 153.6 | 224.1 | 349.2 | 70.6 | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | — | (1.9 | ) | — | — | (0.3 | ) | 0.4 | 14.5 | (0.3 | ) | ||||||||||||||||||||
Net income attributable to Conagra Brands, Inc. | 178.2 | 131.6 | 242.0 | 126.5 | 152.5 | 223.5 | 362.8 | 69.6 | |||||||||||||||||||||||
Earnings per share (1): | |||||||||||||||||||||||||||||||
Basic earnings per share: | |||||||||||||||||||||||||||||||
Net income attributable to Conagra Brands, Inc. common stockholders | $ | 0.45 | $ | 0.31 | $ | 0.50 | $ | 0.26 | $ | 0.37 | $ | 0.55 | $ | 0.91 | $ | 0.18 | |||||||||||||||
Diluted earnings per share: | |||||||||||||||||||||||||||||||
Net income attributable to Conagra Brands, Inc. common stockholders | $ | 0.45 | $ | 0.31 | $ | 0.50 | $ | 0.26 | $ | 0.36 | $ | 0.54 | $ | 0.90 | $ | 0.18 | |||||||||||||||
Dividends declared per common share | $ | 0.2125 | $ | 0.2125 | $ | 0.2125 | $ | 0.2125 | $ | 0.2125 | $ | 0.2125 | $ | 0.2125 | $ | 0.2125 | |||||||||||||||
Share price: | |||||||||||||||||||||||||||||||
High | $ | 38.94 | $ | 38.25 | $ | 32.60 | $ | 31.28 | $ | 39.95 | $ | 35.87 | $ | 38.50 | $ | 38.29 | |||||||||||||||
Low | 34.64 | 32.42 | 20.85 | 22.37 | 33.07 | 32.43 | 35.47 | 35.34 |
(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. |
Affected Line Item in the Consolidated Statement of Operations1 | |||||||||||||
2019 | 2018 | 2017 | |||||||||||
Net derivative adjustment, net of tax: | |||||||||||||
Cash flow hedges | $ | (1.9 | ) | $ | 0.1 | $ | (0.2 | ) | Interest expense, net | ||||
(1.9 | ) | 0.1 | (0.2 | ) | Total before tax | ||||||||
0.5 | — | 0.1 | Income tax expense | ||||||||||
$ | (1.4 | ) | $ | 0.1 | $ | (0.1 | ) | Net of tax | |||||
Amortization of pension and postretirement healthcare liabilities: | |||||||||||||
Net prior service cost (benefit) | $ | 0.9 | $ | (0.4 | ) | $ | (3.9 | ) | Pension and postretirement non-service income | ||||
Pension settlement | — | 1.3 | 13.8 | Pension and postretirement non-service income | |||||||||
Postretirement healthcare settlement | (1.0 | ) | — | — | Pension and postretirement non-service income | ||||||||
Net actuarial loss (gain) | (1.4 | ) | — | 0.5 | Pension and postretirement non-service income | ||||||||
(1.5 | ) | 0.9 | 10.4 | Total before tax | |||||||||
0.4 | (0.2 | ) | (4.0 | ) | Income tax expense | ||||||||
$ | (1.1 | ) | $ | 0.7 | $ | 6.4 | Net of tax | ||||||
Currency translation losses | $ | 10.4 | $ | — | $ | — | Selling, general and administrative expenses | ||||||
10.4 | — | — | Total before tax | ||||||||||
— | — | — | Income tax expense | ||||||||||
$ | 10.4 | $ | — | $ | — | Net of tax |
International | Pinnacle Foods | Corporate | Total | ||||||||||||
Other cost of goods sold | $ | — | $ | 5.7 | $ | — | $ | 5.7 | |||||||
Total cost of goods sold | — | 5.7 | — | 5.7 | |||||||||||
Severance and related costs | 0.7 | 0.6 | 116.8 | 118.1 | |||||||||||
Accelerated depreciation | — | — | 6.1 | 6.1 | |||||||||||
Contract/lease termination | — | 0.8 | 19.8 | 20.6 | |||||||||||
Consulting/professional fees | 0.2 | — | 96.1 | 96.3 | |||||||||||
Other selling, general and administrative expenses | 0.1 | — | 13.2 | 13.3 | |||||||||||
Total selling, general and administrative expenses | 1.0 | 1.4 | 252.0 | 254.4 | |||||||||||
Consolidated total | $ | 1.0 | $ | 7.1 | $ | 252.0 | $ | 260.1 |
International | Pinnacle Foods | Corporate | Total | ||||||||||||
Other cost of goods sold | $ | — | $ | 3.7 | $ | — | $ | 3.7 | |||||||
Total cost of goods sold | — | 3.7 | — | 3.7 | |||||||||||
Severance and related costs | 0.7 | 0.6 | 110.8 | 112.1 | |||||||||||
Accelerated depreciation | — | — | 4.7 | 4.7 | |||||||||||
Contract/lease termination | — | 0.8 | 0.3 | 1.1 | |||||||||||
Consulting/professional fees | 0.2 | — | 38.1 | 38.3 | |||||||||||
Other selling, general and administrative expenses | 0.1 | — | 8.2 | 8.3 | |||||||||||
Total selling, general and administrative expenses | 1.0 | 1.4 | 162.1 | 164.5 | |||||||||||
Consolidated total | $ | 1.0 | $ | 5.1 | $ | 162.1 | $ | 168.2 |
Balance at May 27, 2018 | Costs Incurred and Charged to Expense | Costs Paid or Otherwise Settled | Changes in Estimates | Balance at May 26, 2019 | |||||||||||||||
Severance and related costs | $ | — | $ | 121.2 | $ | (35.2 | ) | $ | (9.1 | ) | $ | 76.9 | |||||||
Contract/lease termination | — | 1.1 | (0.1 | ) | — | 1.0 | |||||||||||||
Consulting/professional fees | — | 38.3 | (19.9 | ) | — | 18.4 | |||||||||||||
Other costs | — | 12.0 | (10.8 | ) | — | 1.2 | |||||||||||||
Total | $ | — | $ | 172.6 | $ | (66.0 | ) | $ | (9.1 | ) | $ | 97.5 |
2019 | 2018 | 2017 | |||||||||
Currency translation losses, net of reclassification adjustments | $ | (90.9 | ) | $ | (94.7 | ) | $ | (98.6 | ) | ||
Derivative adjustments, net of reclassification adjustments | 34.0 | 1.0 | (1.1 | ) | |||||||
Unrealized gains (losses) on available-for-sale securities | — | 0.6 | (0.3 | ) | |||||||
Pension and post-employment benefit obligations, net of reclassification adjustments | (53.4 | ) | (17.4 | ) | (112.9 | ) | |||||
Accumulated other comprehensive loss 1 | $ | (110.3 | ) | $ | (110.5 | ) | $ | (212.9 | ) |
2019 | 2018 | ||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||
Non-amortizing intangible assets | $ | 3,678.0 | $ | — | $ | 918.3 | $ | — | |||||||
Amortizing intangible assets | 1,244.2 | 260.8 | 576.6 | 212.1 | |||||||||||
$ | 4,922.2 | $ | 260.8 | $ | 1,494.9 | $ | 212.1 |
May 26, 2019 | May 27, 2018 | |||||
Equity securities | 7 | % | 21 | % | ||
Debt securities | 85 | % | 58 | % | ||
Real estate funds | 1 | % | 10 | % | ||
Multi-strategy hedge funds | — | % | 4 | % | ||
Private equity | 3 | % | 4 | % | ||
Other | 4 | % | 3 | % | ||
Total | 100 | % | 100 | % |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents | $ | 0.7 | $ | 77.7 | $ | — | $ | 78.4 | ||||||||
Equity securities: | ||||||||||||||||
U.S. equity securities | 56.3 | 91.8 | — | 148.1 | ||||||||||||
International equity securities | 87.8 | 0.4 | — | 88.2 | ||||||||||||
Fixed income securities: | ||||||||||||||||
Government bonds | — | 748.3 | — | 748.3 | ||||||||||||
Corporate bonds | — | 2,255.5 | — | 2,255.5 | ||||||||||||
Mortgage-backed bonds | — | 31.1 | — | 31.1 | ||||||||||||
Real estate funds | 0.4 | — | — | 0.4 | ||||||||||||
Net receivables for unsettled transactions | 5.6 | — | — | 5.6 | ||||||||||||
Fair value measurement of pension plan assets in the fair value hierarchy | $ | 150.8 | $ | 3,204.8 | $ | — | $ | 3,355.6 | ||||||||
Investments measured at net asset value | 245.9 | |||||||||||||||
Total pension plan assets | $ | 3,601.5 |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents | $ | 1.0 | $ | 65.0 | $ | — | $ | 66.0 | ||||||||
Equity securities: | ||||||||||||||||
U.S. equity securities | 319.8 | 124.0 | — | 443.8 | ||||||||||||
International equity securities | 256.5 | 1.0 | — | 257.5 | ||||||||||||
Fixed income securities: | ||||||||||||||||
Government bonds | — | 1,854.8 | — | 1,854.8 | ||||||||||||
Corporate bonds | — | 4.7 | — | 4.7 | ||||||||||||
Mortgage-backed bonds | — | 9.3 | — | 9.3 | ||||||||||||
Real estate funds | 7.7 | — | — | 7.7 | ||||||||||||
Master limited partnerships | 0.4 | — | — | 0.4 | ||||||||||||
Net receivables for unsettled transactions | 10.9 | — | — | 10.9 | ||||||||||||
Fair value measurement of pension plan assets in the fair value hierarchy | $ | 596.3 | $ | 2,058.8 | $ | — | $ | 2,655.1 | ||||||||
Investments measured at net asset value | 700.0 | |||||||||||||||
Total pension plan assets | $ | 3,355.1 |
Pension Benefits | Other Benefits | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net actuarial gain (loss) | $ | (72.1 | ) | $ | 120.0 | $ | 25.1 | $ | 16.8 | |||||||
Amendments | (1.4 | ) | (0.6 | ) | 0.8 | 17.2 | ||||||||||
Amortization of prior service cost (benefit) | 3.1 | 2.9 | (2.2 | ) | (3.4 | ) | ||||||||||
Settlement and curtailment loss (gain) | — | 2.0 | (1.6 | ) | — | |||||||||||
Recognized net actuarial loss (gain) | 5.1 | 3.4 | (1.4 | ) | — | |||||||||||
Net amount recognized | $ | (65.3 | ) | $ | 127.7 | $ | 20.7 | $ | 30.6 |
Pension Benefits | Other Benefits | |||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||||||||||||
Discount rate | 4.15 | % | 3.90 | % | 3.83 | % | 3.81 | % | 3.33 | % | 3.18 | % | ||||||
Long-term rate of return on plan assets | 5.17 | % | 7.50 | % | 7.50 | % | N/A | N/A | N/A | |||||||||
Long-term rate of compensation increase | 3.63 | % | 3.63 | % | 3.66 | % | N/A | N/A | N/A |
2019 | 2018 | 2017 | |||||||||
Current | |||||||||||
Federal | $ | 125.4 | $ | 153.1 | $ | 201.5 | |||||
State | 22.6 | 17.8 | 6.7 | ||||||||
Foreign | 21.6 | 32.5 | 6.5 | ||||||||
169.6 | 203.4 | 214.7 | |||||||||
Deferred | |||||||||||
Federal | 40.1 | (43.7 | ) | 62.1 | |||||||
State | 19.0 | 17.4 | (5.3 | ) | |||||||
Foreign | (9.9 | ) | (2.5 | ) | (16.8 | ) | |||||
49.2 | (28.8 | ) | 40.0 | ||||||||
$ | 218.8 | $ | 174.6 | $ | 254.7 |
May 26, 2019 | May 27, 2018 | ||||||
5.4% senior debt due November 2048 | $ | 1,000.0 | $ | — | |||
4.65% senior debt due January 2043 | 176.7 | 176.7 | |||||
6.625% senior debt due August 2039 | 91.4 | 91.4 | |||||
5.3% senior debt due November 2038 | 1,000.0 | — | |||||
8.25% senior debt due September 2030 | 300.0 | 300.0 | |||||
4.85% senior debt due November 2028 | 1,300.0 | — | |||||
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 | |||||
4.6% senior debt due November 2025 | 1,000.0 | — | |||||
4.3% senior debt due May 2024 | 1,000.0 | — | |||||
LIBOR plus 1.50% term loan due October 2023 | 200.0 | — | |||||
3.2% senior debt due January 2023 | 837.0 | 837.0 | |||||
3.25% senior debt due September 2022 | 250.0 | 250.0 | |||||
LIBOR plus 1.375% term loan due October 2021 | 200.0 | — | |||||
3.8% senior debt due October 2021 | 1,200.0 | — | |||||
9.75% subordinated debt due March 2021 | 195.9 | 195.9 | |||||
LIBOR plus 0.75% senior debt due October 2020 | 525.0 | — | |||||
LIBOR plus 0.50% senior debt due October 2020 | 500.0 | 500.0 | |||||
4.95% senior debt due August 2020 | 126.6 | 126.6 | |||||
LIBOR plus 0.75% term loan due February 2019 | — | 300.0 | |||||
2.00% to 9.59% lease financing obligations due on various dates through 2033 | 165.4 | 94.7 | |||||
Other indebtedness | 0.1 | 0.2 | |||||
Total face value of debt | 10,722.0 | 3,526.4 | |||||
Unamortized fair value adjustment | 24.5 | 27.6 | |||||
Unamortized discounts | (19.0 | ) | (5.8 | ) | |||
Unamortized debt issuance costs | (52.1 | ) | (11.3 | ) | |||
Adjustment due to hedging activity | 0.9 | 1.6 | |||||
Less current installments | (20.6 | ) | (307.0 | ) | |||
Total long-term debt | $ | 10,655.7 | $ | 3,231.5 |
May 26, 2019 | May 27, 2018 | ||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||
Property, plant and equipment | $ | — | $ | 240.7 | $ | — | $ | 141.0 | |||||||
Inventory | 15.2 | — | 2.6 | — | |||||||||||
Goodwill, trademarks and other intangible assets | — | 1,187.0 | — | 406.2 | |||||||||||
Accrued expenses | 11.8 | — | 15.5 | — | |||||||||||
Compensation related liabilities | 35.9 | — | 34.1 | — | |||||||||||
Pension and other postretirement benefits | 54.6 | — | 45.8 | — | |||||||||||
Investment in unconsolidated subsidiaries | — | 185.4 | — | 165.8 | |||||||||||
Other liabilities that will give rise to future tax deductions | 123.5 | — | 109.7 | — | |||||||||||
Net capital and operating loss carryforwards | 766.5 | — | 762.5 | — | |||||||||||
Federal credits | 18.0 | — | 3.5 | — | |||||||||||
Other | 37.6 | 24.0 | 23.6 | 9.5 | |||||||||||
1,063.1 | 1,637.1 | 997.3 | 722.5 | ||||||||||||
Less: Valuation allowance | (738.1 | ) | — | (739.6 | ) | — | |||||||||
Net deferred taxes | $ | 325.0 | $ | 1,637.1 | $ | 257.7 | $ | 722.5 |
Pension Benefits | Other Benefits | ||||||||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | 2017 | ||||||||||||||||||
Service cost | $ | 10.9 | $ | 42.8 | $ | 56.9 | $ | 0.1 | $ | 0.2 | $ | 0.3 | |||||||||||
Interest cost | 132.6 | 111.1 | 116.8 | 3.8 | 3.9 | 4.6 | |||||||||||||||||
Expected return on plan assets | (174.4 | ) | (218.3 | ) | (207.4 | ) | — | — | — | ||||||||||||||
Amortization of prior service cost (benefit) | 3.1 | 2.9 | 2.6 | (2.2 | ) | (3.4 | ) | (6.6 | ) | ||||||||||||||
Special termination benefits | — | — | 1.5 | — | — | — | |||||||||||||||||
Recognized net actuarial loss (gain) | 5.1 | 3.4 | 1.2 | (1.4 | ) | — | 0.5 | ||||||||||||||||
Settlement loss (gain) | — | 1.3 | 13.8 | (1.0 | ) | — | — | ||||||||||||||||
Curtailment loss (gain) | — | 0.7 | 1.7 | (0.6 | ) | — | — | ||||||||||||||||
Benefit cost — Company plans | (22.7 | ) | (56.1 | ) | (12.9 | ) | (1.3 | ) | 0.7 | (1.2 | ) | ||||||||||||
Pension benefit cost — multi-employer plans | 6.3 | 7.1 | 12.0 | — | — | — | |||||||||||||||||
Total benefit (income) cost | $ | (16.4 | ) | $ | (49.0 | ) | $ | (0.9 | ) | $ | (1.3 | ) | $ | 0.7 | $ | (1.2 | ) |
For the Fiscal Year Ended May 26, 2019 | ||||||
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 | $ | (5.3 | ) | ||
Foreign exchange contracts | Cost of goods sold | 1.7 | ||||
Total loss from derivative instruments not designated as hedging instruments | $ | (3.6 | ) |
For the Fiscal Year Ended May 27, 2018 | ||||||
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 | $ | 3.0 | |||
Foreign exchange contracts | Cost of goods sold | (3.9 | ) | |||
Foreign exchange contracts | Selling, general and administrative expense | 0.3 | ||||
Total loss from derivative instruments not designated as hedging instruments | $ | (0.6 | ) |
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 |
May 26, 2019 | May 27, 2018 | ||||||
Prepaid expenses and other current assets | $ | 5.9 | $ | 4.4 | |||
Other accrued liabilities | 1.4 | 0.1 |
2019 | 2018 | 2017 | |||||||||
Net sales | $ | — | $ | — | $ | 1,407.9 | |||||
Income (loss) from discontinued operations before income taxes and equity method investment earnings | $ | — | $ | (0.3 | ) | $ | 172.3 | ||||
Income (loss) before income taxes and equity method investment earnings | — | (0.3 | ) | 172.3 | |||||||
Income tax expense (benefit) | 2.8 | (14.6 | ) | 87.5 | |||||||
Equity method investment earnings | — | — | 15.9 | ||||||||
Income (loss) from discontinued operations, net of tax | (2.8 | ) | 14.3 | 100.7 | |||||||
Less: Net income attributable to noncontrolling interests | — | — | 6.8 | ||||||||
Net income (loss) from discontinued operations attributable to Conagra Brands, Inc. | $ | (2.8 | ) | $ | 14.3 | $ | 93.9 |
2019 | 2018 | 2017 | |||||||||
Loss on sale of business | $ | — | $ | — | $ | (1.6 | ) | ||||
Income from discontinued operations before income taxes and equity method investment earnings | 0.9 | 0.4 | 3.9 | ||||||||
Income before income taxes and equity method investment earnings | 0.9 | 0.4 | 2.3 | ||||||||
Income tax expense (benefit) | — | 0.5 | (0.3 | ) | |||||||
Income (loss) from discontinued operations, net of tax | $ | 0.9 | $ | (0.1 | ) | $ | 2.6 |
2019 | 2018 | 2017 | |||||||||
Net income available to Conagra Brands, Inc. common stockholders: | |||||||||||
Income from continuing operations attributable to Conagra Brands, Inc. common stockholders | $ | 680.2 | $ | 794.1 | $ | 544.1 | |||||
Income (loss) from discontinued operations, net of tax, attributable to Conagra Brands, Inc. common stockholders | (1.9 | ) | 14.3 | 95.2 | |||||||
Net income attributable to Conagra Brands, Inc. common stockholders | $ | 678.3 | $ | 808.4 | $ | 639.3 | |||||
Less: Increase in redemption value of noncontrolling interests in excess of earnings allocated | — | — | 0.8 | ||||||||
Net income available to Conagra Brands, Inc. common stockholders | $ | 678.3 | $ | 808.4 | $ | 638.5 | |||||
Weighted average shares outstanding: | |||||||||||
Basic weighted average shares outstanding | 444.0 | 403.9 | 431.9 | ||||||||
Add: Dilutive effect of stock options, restricted stock unit awards, and other dilutive securities | 1.6 | 3.5 | 4.1 | ||||||||
Diluted weighted average shares outstanding | 445.6 | 407.4 | 436.0 |
2019 | 2018 | 2017 | |||||||||
Computed U.S. Federal income taxes | $ | 188.8 | $ | 285.3 | $ | 280.2 | |||||
State income taxes, net of U.S. Federal tax impact | 34.1 | 18.0 | 22.4 | ||||||||
Remeasurement of U.S. deferred taxes | — | (241.6 | ) | — | |||||||
Transition tax on foreign earnings | (4.6 | ) | 19.8 | — | |||||||
Tax credits and domestic manufacturing deduction | (5.6 | ) | (20.6 | ) | (19.8 | ) | |||||
Federal rate differential on legal reserve | — | 12.6 | — | ||||||||
Goodwill and intangible impairments | 12.5 | — | 104.7 | ||||||||
Stock compensation | (2.1 | ) | (5.7 | ) | (18.8 | ) | |||||
Legal entity reorganization | 16.9 | — | — | ||||||||
State tax impact of combining Pinnacle business | (12.0 | ) | — | — | |||||||
Change of valuation allowance on capital loss carryforward | (32.2 | ) | 78.6 | (84.1 | ) | ||||||
Change in estimate related to tax methods used for certain international sales, federal credits, and state credits | — | — | (8.0 | ) | |||||||
Other | 23.0 | 28.2 | (21.9 | ) | |||||||
$ | 218.8 | $ | 174.6 | $ | 254.7 |
Pension Benefits | Health Care and Life Insurance Benefits | |||||||
2020 | $ | 200.7 | $ | 10.9 | ||||
2021 | 201.3 | 10.1 | ||||||
2022 | 203.9 | 9.3 | ||||||
2023 | 207.1 | 8.5 | ||||||
2024 | 210.0 | 7.8 | ||||||
Succeeding 5 years | 1,074.8 | 30.2 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
Derivative assets | $ | 3.0 | $ | 2.9 | $ | — | $ | 5.9 | |||||||
Marketable securities | 15.7 | — | — | 15.7 | |||||||||||
Deferred compensation assets | 10.7 | — | — | 10.7 | |||||||||||
Total assets | $ | 29.4 | $ | 2.9 | $ | — | $ | 32.3 | |||||||
Liabilities: | |||||||||||||||
Derivative liabilities | $ | — | $ | 1.4 | $ | — | $ | 1.4 | |||||||
Deferred compensation liabilities | 70.4 | — | — | 70.4 | |||||||||||
Total liabilities | $ | 70.4 | $ | 1.4 | $ | — | $ | 71.8 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
Derivative assets | $ | 1.7 | $ | 2.7 | $ | — | $ | 4.4 | |||||||
Marketable securities | 4.8 | — | — | 4.8 | |||||||||||
Total assets | $ | 6.5 | $ | 2.7 | $ | — | $ | 9.2 | |||||||
Liabilities: | |||||||||||||||
Derivative liabilities | $ | — | $ | 0.1 | $ | — | $ | 0.1 | |||||||
Deferred compensation liabilities | 51.6 | — | — | 51.6 | |||||||||||
Total liabilities | $ | 51.6 | $ | 0.1 | $ | — | $ | 51.7 |
2020 | $ | 52.1 | |
2021 | 48.4 | ||
2022 | 38.0 | ||
2023 | 34.1 | ||
2024 | 25.6 | ||
Later years | 114.4 | ||
$ | 312.6 |
Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Pinnacle Foods | Total | ||||||||||||||||||
Balance as of May 28, 2017 | $ | 2,439.1 | $ | 1,022.8 | $ | 247.8 | $ | 571.1 | $ | — | $ | 4,280.8 | |||||||||||
Acquisitions | 155.2 | 57.8 | — | — | — | 213.0 | |||||||||||||||||
Purchase accounting adjustments | (1.5 | ) | — | — | — | — | (1.5 | ) | |||||||||||||||
Currency translation | — | — | (4.9 | ) | — | — | (4.9 | ) | |||||||||||||||
Balance as of May 27, 2018 | $ | 2,592.8 | $ | 1,080.6 | $ | 242.9 | $ | 571.1 | $ | — | $ | 4,487.4 | |||||||||||
Acquisitions | — | — | — | — | 7,015.9 | 7,015.9 | |||||||||||||||||
Purchase accounting adjustments | 1.5 | — | — | — | — | 1.5 | |||||||||||||||||
Currency translation | — | — | (2.4 | ) | — | (2.8 | ) | (5.2 | ) | ||||||||||||||
Balance as of May 26, 2019 | $ | 2,594.3 | $ | 1,080.6 | $ | 240.5 | $ | 571.1 | $ | 7,013.1 | $ | 11,499.6 |
Assumed Health Care Cost Trend Rates at: | May 26, 2019 | May 27, 2018 | ||||
Initial health care cost trend rate | 7.20 | % | 7.87 | % | ||
Ultimate health care cost trend rate | 4.5 | % | 4.5 | % | ||
Year that the rate reaches the ultimate trend rate | 2024 | 2024 |
2019 | 2018 | 2017 | |||||||||
United States | $ | 826.6 | $ | 902.5 | $ | 883.5 | |||||
Foreign | 72.5 | 69.6 | (82.8 | ) | |||||||
$ | 899.1 | $ | 972.1 | $ | 800.7 |
May 26, 2019 | May 27, 2018 | ||||||
Raw materials and packaging | $ | 276.5 | $ | 202.9 | |||
Work in process | 126.9 | 91.8 | |||||
Finished goods | 1,099.1 | 647.8 | |||||
Supplies and other | 69.2 | 46.2 | |||||
Total | $ | 1,571.7 | $ | 988.7 |
2020 | $ | 20.6 | |
2021 | 1,368.2 | ||
2022 | 1,420.4 | ||
2023 | 1,103.4 | ||
2024 | 1,213.0 |
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 | 2018 | 2017 | FY19 | FY18 | FY17 | Surcharge Imposed | ||||||
Bakery and Confectionary Union and Industry International Pension Plan | 52-6118572 / 001 | Red, Critical and Declining | Red, Critical and Declining | RP Implemented | $ | 0.1 | $ | 1.5 | $1.8 | No | 2/29/2020 | ||
Central States, Southeast and Southwest Areas Pension Fund | 36-6044243 / 001 | Red, Critical and Declining | Red | RP Implemented | 1.8 | 1.8 | 1.8 | No | 5/31/2020 | ||||
Western Conference of Teamsters Pension Plan | 91-6145047 / 001 | Green | Green | N/A | 3.2 | 2.8 | 4.0 | No | 06/30/2021 | ||||
Other Plans | 0.9 | 0.4 | 0.4 | ||||||||||
Total Contributions | $ | 6.0 | $6.5 | $8.0 |
Pension Benefits | Other Benefits | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Funded Status | $ | (131.7 | ) | $ | (68.5 | ) | $ | (87.8 | ) | $ | (115.6 | ) | ||||
Amounts Recognized in Consolidated Balance Sheets | ||||||||||||||||
Other assets | $ | 61.2 | $ | 103.0 | $ | 2.8 | $ | 2.6 | ||||||||
Other accrued liabilities | (10.2 | ) | (11.8 | ) | (10.8 | ) | (16.2 | ) | ||||||||
Other noncurrent liabilities | (182.7 | ) | (159.7 | ) | (79.8 | ) | (102.0 | ) | ||||||||
Net Amount Recognized | $ | (131.7 | ) | $ | (68.5 | ) | $ | (87.8 | ) | $ | (115.6 | ) | ||||
Amounts Recognized in Accumulated Other Comprehensive (Income) Loss (Pre-tax) | ||||||||||||||||
Actuarial net loss (gain) | $ | 115.8 | $ | 48.8 | $ | (47.8 | ) | $ | (25.8 | ) | ||||||
Net prior service cost (benefit) | 12.1 | 13.8 | (17.1 | ) | (18.4 | ) | ||||||||||
Total | $ | 127.9 | $ | 62.6 | $ | (64.9 | ) | $ | (44.2 | ) | ||||||
Weighted-Average Actuarial Assumptions Used to Determine Benefit Obligations at May 26, 2019 and May 27, 2018 | ||||||||||||||||
Discount rate | 3.88 | % | 4.14 | % | 3.48 | % | 3.81 | % | ||||||||
Long-term rate of compensation increase | N/A | N/A | N/A | N/A |
As Reported | Adjustments | Balances without Adoption of Topic 606 | |||||||||||||||
Current assets | |||||||||||||||||
Receivables, less allowance for doubtful accounts | $ | 831.7 | $ | 8.7 | $ | 840.4 | |||||||||||
Inventories | 1,571.7 | (3.1 | ) | 1,568.6 | |||||||||||||
Prepaid expenses and other current assets | 93.8 | (16.6 | ) | 77.2 | |||||||||||||
Current liabilities | |||||||||||||||||
Other accrued liabilities | 691.6 | (1.1 | ) | 690.5 | |||||||||||||
Other noncurrent liabilities | 1,951.8 | (2.5 | ) | 1,949.3 |
Fiscal 2019 | |||||||||||||||||
As Reported | Adjustments | Balances without Adoption of Topic 606 | |||||||||||||||
Net sales | $ | 9,538.4 | $ | 15.5 | $ | 9,553.9 | |||||||||||
Cost of goods sold | 6,885.4 | 24.5 | 6,909.9 | ||||||||||||||
Income from continuing operations before income taxes and equity method investment earnings | 823.3 | (9.0 | ) | 814.3 |
2018 | 2017 | ||||||||||
Reclassified from Cost of goods sold | $ | — | $ | 1.7 | |||||||
Reclassified from Selling, general and administrative expense | 80.4 | 53.5 | |||||||||
Reclassified to Pension and postretirement non-service income | $ | 80.4 | $ | 55.2 |
Performance Shares | Share Units (in Millions) | Weighted Average Grant-Date Fair Value | ||||
Nonvested performance shares at May 27, 2018 | 1.00 | $ | 33.40 | |||
Granted | 0.45 | $ | 35.96 | |||
Adjustments for performance results attained and dividend equivalents | 0.18 | $ | 31.03 | |||
Vested/Issued | (0.43 | ) | $ | 31.03 | ||
Forfeited | (0.05 | ) | $ | 34.54 | ||
Nonvested performance shares at May 26, 2019 | 1.15 | $ | 34.89 |
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 27, 2018 | 1.78 | $ | 34.20 | 0.71 | $ | 34.58 | |||||||
Granted | 0.89 | $ | 35.43 | 1.95 | $ | 36.37 | |||||||
Vested/Issued | (0.72 | ) | $ | 33.29 | (1.64 | ) | $ | 35.55 | |||||
Forfeited | (0.14 | ) | $ | 35.08 | (0.05 | ) | $ | 36.07 | |||||
Nonvested share units at May 26, 2019 | 1.81 | $ | 34.89 | 0.97 | $ | 36.20 |
May 26, 2019 | May 27, 2018 | ||||||
Postretirement health care and pension obligations | $ | 262.5 | $ | 261.7 | |||
Noncurrent income tax liabilities | 1,349.0 | 487.3 | |||||
Self-insurance liabilities | 42.9 | 27.1 | |||||
Environmental liabilities (see Note 17) | 56.8 | 56.0 | |||||
Technology agreement liability | 28.7 | 42.7 | |||||
Other | 211.9 | 186.0 | |||||
$ | 1,951.8 | $ | 1,060.8 |
2019 | 2018 | ||||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||||||||||||
Net sales | $ | 1,834.4 | $ | 2,383.7 | $ | 2,707.1 | $ | 2,613.2 | $ | 1,804.2 | $ | 2,173.4 | $ | 1,994.5 | $ | 1,966.2 | |||||||||||||||
Gross profit | 515.5 | 677.2 | 752.3 | 708.0 | 519.0 | 658.3 | 598.8 | 575.4 | |||||||||||||||||||||||
Income from continuing operations, net of tax | 178.2 | 134.3 | 242.6 | 125.2 | 153.6 | 224.1 | 349.2 | 70.6 | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | — | (1.9 | ) | — | — | (0.3 | ) | 0.4 | 14.5 | (0.3 | ) | ||||||||||||||||||||
Net income attributable to Conagra Brands, Inc. | 178.2 | 131.6 | 242.0 | 126.5 | 152.5 | 223.5 | 362.8 | 69.6 | |||||||||||||||||||||||
Earnings per share (1): | |||||||||||||||||||||||||||||||
Basic earnings per share: | |||||||||||||||||||||||||||||||
Net income attributable to Conagra Brands, Inc. common stockholders | $ | 0.45 | $ | 0.31 | $ | 0.50 | $ | 0.26 | $ | 0.37 | $ | 0.55 | $ | 0.91 | $ | 0.18 | |||||||||||||||
Diluted earnings per share: | |||||||||||||||||||||||||||||||
Net income attributable to Conagra Brands, Inc. common stockholders | $ | 0.45 | $ | 0.31 | $ | 0.50 | $ | 0.26 | $ | 0.36 | $ | 0.54 | $ | 0.90 | $ | 0.18 | |||||||||||||||
Dividends declared per common share | $ | 0.2125 | $ | 0.2125 | $ | 0.2125 | $ | 0.2125 | $ | 0.2125 | $ | 0.2125 | $ | 0.2125 | $ | 0.2125 | |||||||||||||||
Share price: | |||||||||||||||||||||||||||||||
High | $ | 38.94 | $ | 38.25 | $ | 32.60 | $ | 31.28 | $ | 39.95 | $ | 35.87 | $ | 38.50 | $ | 38.29 | |||||||||||||||
Low | 34.64 | 32.42 | 20.85 | 22.37 | 33.07 | 32.43 | 35.47 | 35.34 |
(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. |
October 26, 2018 | |||
Cash and cash equivalents | $ | 47.2 | |
Receivables | 202.8 | ||
Inventories | 653.7 | ||
Prepaid expenses and other current assets | 14.9 | ||
Property, plant and equipment | 721.2 | ||
Goodwill | 7,015.9 | ||
Brands, trademarks and other intangibles | 3,519.5 | ||
Other assets | 24.3 | ||
Current liabilities | (605.5 | ) | |
Senior long-term debt, excluding current installments | (2,671.3 | ) | |
Noncurrent deferred tax liabilities | (814.1 | ) | |
Other noncurrent liabilities | (74.6 | ) | |
Total assets acquired and liabilities assumed | $ | 8,034.0 |
International | Pinnacle Foods | Corporate | Total | ||||||||||||
Other cost of goods sold | $ | — | $ | 5.7 | $ | — | $ | 5.7 | |||||||
Total cost of goods sold | — | 5.7 | — | 5.7 | |||||||||||
Severance and related costs | 0.7 | 0.6 | 116.8 | 118.1 | |||||||||||
Accelerated depreciation | — | — | 6.1 | 6.1 | |||||||||||
Contract/lease termination | — | 0.8 | 19.8 | 20.6 | |||||||||||
Consulting/professional fees | 0.2 | — | 96.1 | 96.3 | |||||||||||
Other selling, general and administrative expenses | 0.1 | — | 13.2 | 13.3 | |||||||||||
Total selling, general and administrative expenses | 1.0 | 1.4 | 252.0 | 254.4 | |||||||||||
Consolidated total | $ | 1.0 | $ | 7.1 | $ | 252.0 | $ | 260.1 |
International | Pinnacle Foods | Corporate | Total | ||||||||||||
Other cost of goods sold | $ | — | $ | 3.7 | $ | — | $ | 3.7 | |||||||
Total cost of goods sold | — | 3.7 | — | 3.7 | |||||||||||
Severance and related costs | 0.7 | 0.6 | 110.8 | 112.1 | |||||||||||
Accelerated depreciation | — | — | 4.7 | 4.7 | |||||||||||
Contract/lease termination | — | 0.8 | 0.3 | 1.1 | |||||||||||
Consulting/professional fees | 0.2 | — | 38.1 | 38.3 | |||||||||||
Other selling, general and administrative expenses | 0.1 | — | 8.2 | 8.3 | |||||||||||
Total selling, general and administrative expenses | 1.0 | 1.4 | 162.1 | 164.5 | |||||||||||
Consolidated total | $ | 1.0 | $ | 5.1 | $ | 162.1 | $ | 168.2 |
Balance at May 27, 2018 | Costs Incurred and Charged to Expense | Costs Paid or Otherwise Settled | Changes in Estimates | Balance at May 26, 2019 | |||||||||||||||
Severance and related costs | $ | — | $ | 121.2 | $ | (35.2 | ) | $ | (9.1 | ) | $ | 76.9 | |||||||
Contract/lease termination | — | 1.1 | (0.1 | ) | — | 1.0 | |||||||||||||
Consulting/professional fees | — | 38.3 | (19.9 | ) | — | 18.4 | |||||||||||||
Other costs | — | 12.0 | (10.8 | ) | — | 1.2 | |||||||||||||
Total | $ | — | $ | 172.6 | $ | (66.0 | ) | $ | (9.1 | ) | $ | 97.5 |
2019 | 2018 | 2017 | |||||||||
Net sales | |||||||||||
Grocery & Snacks | $ | 3,279.2 | $ | 3,287.0 | $ | 3,208.8 | |||||
Refrigerated & Frozen | 2,804.0 | 2,753.0 | 2,652.7 | ||||||||
International | 793.4 | 843.5 | 816.0 | ||||||||
Foodservice | 934.2 | 1,054.8 | 1,078.3 | ||||||||
Pinnacle Foods | 1,727.6 | — | — | ||||||||
Commercial | — | — | 71.1 | ||||||||
Total net sales | $ | 9,538.4 | $ | 7,938.3 | $ | 7,826.9 | |||||
Operating profit | |||||||||||
Grocery & Snacks | $ | 689.2 | $ | 724.8 | $ | 655.4 | |||||
Refrigerated & Frozen | 502.2 | 479.4 | 445.8 | ||||||||
International | 94.5 | 86.5 | (168.9 | ) | |||||||
Foodservice | 117.7 | 121.8 | 105.1 | ||||||||
Pinnacle Foods | 238.2 | — | — | ||||||||
Commercial | — | — | 202.6 | ||||||||
Total operating profit | $ | 1,641.8 | $ | 1,412.5 | $ | 1,240.0 | |||||
Equity method investment earnings | 75.8 | 97.3 | 71.2 | ||||||||
General corporate expenses | 462.2 | 459.4 | 370.2 | ||||||||
Pension and postretirement non-service income | 35.1 | 80.4 | 55.2 | ||||||||
Interest expense, net | 391.4 | 158.7 | 195.5 | ||||||||
Income tax expense | 218.8 | 174.6 | 254.7 | ||||||||
Income from continuing operations | $ | 680.3 | $ | 797.5 | $ | 546.0 | |||||
Less: Net income attributable to noncontrolling interests of continuing operations | 0.1 | 3.4 | 1.9 | ||||||||
Income from continuing operations attributable to Conagra Brands, Inc. | $ | 680.2 | $ | 794.1 | $ | 544.1 |
Stock Appreciation Rights | Number of Options (in Millions) | Weighted Average Exercise Price | Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (in Millions) | ||||||||
Granted | 2.3 | $ | 27.09 | |||||||||
Exercised | (0.1 | ) | $ | 24.79 | $ | 0.1 | ||||||
Expired | (1.8 | ) | $ | 26.92 | ||||||||
Outstanding at May 26, 2019 | 0.4 | $ | 28.13 | 0.16 | $ | 0.6 | ||||||
Exercisable at May 26, 2019 | 0.4 | $ | 28.13 | 0.16 | $ | 0.6 |
Options | Number of Options (in Millions) | Weighted Average Exercise Price | Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (in Millions) | ||||||||
Outstanding at May 27, 2018 | 5.1 | $ | 28.11 | |||||||||
Exercised | (0.6 | ) | $ | 20.75 | $ | 7.9 | ||||||
Expired | (0.1 | ) | $ | 29.84 | ||||||||
Outstanding at May 26, 2019 | 4.4 | $ | 29.00 | 5.47 | $ | 9.9 | ||||||
Exercisable at May 26, 2019 | 4.1 | $ | 28.38 | 5.32 | $ | 9.9 |
2017 | |
Expected volatility (%) | 19.15 |
Dividend yield (%) | 2.33 |
Risk-free interest rates (%) | 1.03 |
Expected life of stock option (years) | 4.94 |
Beginning balance on May 27, 2018 | $ | 32.5 | |
Acquired business positions | 10.6 | ||
Increases from positions established during prior periods | 7.7 | ||
Decreases from positions established during prior periods | (3.4 | ) | |
Increases from positions established during the current period | 4.2 | ||
Decreases relating to settlements with taxing authorities | (5.2 | ) | |
Reductions resulting from lapse of applicable statute of limitation | (3.3 | ) | |
Other adjustments to liability | 1.0 | ||
Ending balance on May 26, 2019 | $ | 44.1 |
2019 | 2018 | 2017 | |||||||||
Net sales | |||||||||||
Grocery & Snacks | $ | 3,279.2 | $ | 3,287.0 | $ | 3,208.8 | |||||
Refrigerated & Frozen | 2,804.0 | 2,753.0 | 2,652.7 | ||||||||
International | 793.4 | 843.5 | 816.0 | ||||||||
Foodservice | 934.2 | 1,054.8 | 1,078.3 | ||||||||
Pinnacle Foods | 1,727.6 | — | — | ||||||||
Commercial | — | — | 71.1 | ||||||||
Total net sales | $ | 9,538.4 | $ | 7,938.3 | $ | 7,826.9 | |||||
Operating profit | |||||||||||
Grocery & Snacks | $ | 689.2 | $ | 724.8 | $ | 655.4 | |||||
Refrigerated & Frozen | 502.2 | 479.4 | 445.8 | ||||||||
International | 94.5 | 86.5 | (168.9 | ) | |||||||
Foodservice | 117.7 | 121.8 | 105.1 | ||||||||
Pinnacle Foods | 238.2 | — | — | ||||||||
Commercial | — | — | 202.6 | ||||||||
Total operating profit | $ | 1,641.8 | $ | 1,412.5 | $ | 1,240.0 | |||||
Equity method investment earnings | 75.8 | 97.3 | 71.2 | ||||||||
General corporate expenses | 462.2 | 459.4 | 370.2 | ||||||||
Pension and postretirement non-service income | 35.1 | 80.4 | 55.2 | ||||||||
Interest expense, net | 391.4 | 158.7 | 195.5 | ||||||||
Income tax expense | 218.8 | 174.6 | 254.7 | ||||||||
Income from continuing operations | $ | 680.3 | $ | 797.5 | $ | 546.0 | |||||
Less: Net income attributable to noncontrolling interests of continuing operations | 0.1 | 3.4 | 1.9 | ||||||||
Income from continuing operations attributable to Conagra Brands, Inc. | $ | 680.2 | $ | 794.1 | $ | 544.1 |
2019 | 2018 | 2017 | |||||||||
Snacks | $ | 1,363.4 | $ | 1,199.0 | $ | 1,046.7 | |||||
Other shelf-stable | 2,567.1 | 2,088.0 | 2,162.1 | ||||||||
Frozen | 2,968.4 | 2,014.8 | 1,886.1 | ||||||||
Refrigerated | 788.0 | 738.2 | 766.5 | ||||||||
International | 846.2 | 843.5 | 816.0 | ||||||||
Foodservice | 1,005.3 | 1,054.8 | 1,078.4 | ||||||||
Commercial | — | — | 71.1 | ||||||||
Total net sales | $ | 9,538.4 | $ | 7,938.3 | $ | 7,826.9 |
2019 | 2018 | 2017 | |||||||||
Net derivative gains (losses) incurred | $ | (3.6 | ) | $ | (0.9 | ) | $ | 0.6 | |||
Less: Net derivative gains (losses) allocated to reporting segments | (1.8 | ) | (7.1 | ) | 5.7 | ||||||
Net derivative gains (losses) recognized in general corporate expenses | $ | (1.8 | ) | $ | 6.2 | $ | (5.1 | ) | |||
Net derivative gains (losses) allocated to Grocery & Snacks | $ | (2.1 | ) | $ | 0.2 | $ | 3.4 | ||||
Net derivative gains (losses) allocated to Refrigerated & Frozen | (1.1 | ) | (0.3 | ) | 0.8 | ||||||
Net derivative gains (losses) allocated to International | 2.8 | (6.9 | ) | 1.6 | |||||||
Net derivative losses allocated to Foodservice | (0.6 | ) | (0.1 | ) | — | ||||||
Net derivative losses allocated to Pinnacle Foods | (0.8 | ) | — | — | |||||||
Net derivative losses allocated to Commercial | — | — | (0.1 | ) | |||||||
Net derivative gains (losses) included in segment operating profit | $ | (1.8 | ) | $ | (7.1 | ) | $ | 5.7 |
Balance at Beginning of Period | Additions Charged to Costs and Expenses | Other | Deductions from Reserves | Balance at Close of Period | |||||||||||||
Year ended May 26, 2019 | $ | 1.7 | 0.6 | 1.6 | (1) | 0.6 | (2) | $ | 3.3 | ||||||||
Year ended May 27, 2018 | $ | 2.9 | 0.8 | — | 2.0 | (2) | $ | 1.7 | |||||||||
Year ended May 28, 2017 | $ | 3.0 | 1.0 | — | 1.1 | (2) | $ | 2.9 |
(1) | Primarily relates to the acquisition of Pinnacle. |
(2) | Bad debts charged off and adjustments to previous reserves, less recoveries. |
Land improvements | 1 - 40 years | |
Buildings | 15 - 40 years | |
Machinery and equipment | 3 - 20 years | |
Furniture, fixtures, office equipment and other | 5 - 15 years |
2019 | 2018 | 2017 | |||||||||
Currency translation losses, net of reclassification adjustments | $ | (90.9 | ) | $ | (94.7 | ) | $ | (98.6 | ) | ||
Derivative adjustments, net of reclassification adjustments | 34.0 | 1.0 | (1.1 | ) | |||||||
Unrealized gains (losses) on available-for-sale securities | — | 0.6 | (0.3 | ) | |||||||
Pension and post-employment benefit obligations, net of reclassification adjustments | (53.4 | ) | (17.4 | ) | (112.9 | ) | |||||
Accumulated other comprehensive loss 1 | $ | (110.3 | ) | $ | (110.5 | ) | $ | (212.9 | ) |
Affected Line Item in the Consolidated Statement of Operations1 | |||||||||||||
2019 | 2018 | 2017 | |||||||||||
Net derivative adjustment, net of tax: | |||||||||||||
Cash flow hedges | $ | (1.9 | ) | $ | 0.1 | $ | (0.2 | ) | Interest expense, net | ||||
(1.9 | ) | 0.1 | (0.2 | ) | Total before tax | ||||||||
0.5 | — | 0.1 | Income tax expense | ||||||||||
$ | (1.4 | ) | $ | 0.1 | $ | (0.1 | ) | Net of tax | |||||
Amortization of pension and postretirement healthcare liabilities: | |||||||||||||
Net prior service cost (benefit) | $ | 0.9 | $ | (0.4 | ) | $ | (3.9 | ) | Pension and postretirement non-service income | ||||
Pension settlement | — | 1.3 | 13.8 | Pension and postretirement non-service income | |||||||||
Postretirement healthcare settlement | (1.0 | ) | — | — | Pension and postretirement non-service income | ||||||||
Net actuarial loss (gain) | (1.4 | ) | — | 0.5 | Pension and postretirement non-service income | ||||||||
(1.5 | ) | 0.9 | 10.4 | Total before tax | |||||||||
0.4 | (0.2 | ) | (4.0 | ) | Income tax expense | ||||||||
$ | (1.1 | ) | $ | 0.7 | $ | 6.4 | Net of tax | ||||||
Currency translation losses | $ | 10.4 | $ | — | $ | — | Selling, general and administrative expenses | ||||||
10.4 | — | — | Total before tax | ||||||||||
— | — | — | Income tax expense | ||||||||||
$ | 10.4 | $ | — | $ | — | Net of tax |
As Reported | Adjustments | Balances without Adoption of Topic 606 | |||||||||||||||
Current assets | |||||||||||||||||
Receivables, less allowance for doubtful accounts | $ | 831.7 | $ | 8.7 | $ | 840.4 | |||||||||||
Inventories | 1,571.7 | (3.1 | ) | 1,568.6 | |||||||||||||
Prepaid expenses and other current assets | 93.8 | (16.6 | ) | 77.2 | |||||||||||||
Current liabilities | |||||||||||||||||
Other accrued liabilities | 691.6 | (1.1 | ) | 690.5 | |||||||||||||
Other noncurrent liabilities | 1,951.8 | (2.5 | ) | 1,949.3 |
Fiscal 2019 | |||||||||||||||||
As Reported | Adjustments | Balances without Adoption of Topic 606 | |||||||||||||||
Net sales | $ | 9,538.4 | $ | 15.5 | $ | 9,553.9 | |||||||||||
Cost of goods sold | 6,885.4 | 24.5 | 6,909.9 | ||||||||||||||
Income from continuing operations before income taxes and equity method investment earnings | 823.3 | (9.0 | ) | 814.3 |
2018 | 2017 | ||||||||||
Reclassified from Cost of goods sold | $ | — | $ | 1.7 | |||||||
Reclassified from Selling, general and administrative expense | 80.4 | 53.5 | |||||||||
Reclassified to Pension and postretirement non-service income | $ | 80.4 | $ | 55.2 |