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BUSINESS SEGMENTS AND RELATED INFORMATION | 12 Months Ended
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May 29, 2016
Segment Reporting [Abstract] |
BUSINESS SEGMENTS AND RELATED INFORMATION | BUSINESS SEGMENTS AND RELATED INFORMATION We report our operations in two reporting segments: Consumer Foods and Commercial Foods. In the third quarter of fiscal 2016, we completed the sale of substantially all of the operations that were previously reported within the Private Brands segment. The Private Brands operations we sold are classified as held for sale for periods prior to the sale and the results of operations have been classified as discontinued operations for all periods presented. Minor portions of the former Private Brands segment were retained and have been included in the Consumer Foods and Commercial Foods segments for all periods presented. Minor portions of the Consumer Foods and Commercial Foods segments have been classified as discontinued operations as they were included with the sale of the Private Brands operations. The Consumer Foods reporting segment principally includes branded food sold in various retail channels primarily in North America. Our food products are sold in a variety of categories (meals, entrees, condiments, pasta, sides, snacks, and desserts) in various retail channels across frozen, refrigerated, and shelf-stable temperature classes. The Commercial Foods reporting segment includes commercially branded and private label food and ingredients, which are sold primarily to commercial, foodservice, restaurant, food manufacturing, and industrial customers. The segment's primary food items include: frozen potato and sweet potato items and a variety of vegetable, spice, and frozen bakery goods, which are sold under brands such as Lamb Weston® and Spicetec Flavors & Seasonings®. We do not aggregate operating segments when determining our reporting segments. Intersegment sales have been recorded at amounts approximating market. Operating profit for each of the segments is based on net sales less all identifiable operating expenses. General corporate expense, net interest expense, and income taxes have been excluded from segment operations.
| 2016 |  | 2015 |  | 2014
Net sales |  |  |  |  |
Consumer Foods | $ | 7,225.1 |  |  | $ | 7,565.3 |  |  | $ | 7,596.3 |
Commercial Foods | 4,417.8 |  |  | 4,371.7 |  |  | 4,241.9 |
Total net sales | $ | 11,642.9 |  |  | $ | 11,937.0 |  |  | $ | 11,838.2 |
Operating profit |  |  |  |  |
Consumer Foods | $ | 1,087.6 |  |  | $ | 1,068.0 |  |  | $ | 900.5 |
Commercial Foods | 633.2 |  |  | 566.2 |  |  | 533.5 |
Total operating profit | $ | 1,720.8 |  |  | $ | 1,634.2 |  |  | $ | 1,434.0 |
Equity method investment earnings |  |  |  |  |
Consumer Foods | $ | 3.2 |  |  | $ | 3.0 |  |  | $ | 2.8 |
Commercial Foods | 134.6 |  |  | 119.1 |  |  | 29.7 |
Total equity method investment earnings | $ | 137.8 |  |  | $ | 122.1 |  |  | $ | 32.5 |
Operating profit plus equity method investment earnings |  |  |  |  |
Consumer Foods | $ | 1,090.8 |  |  | $ | 1,071.0 |  |  | $ | 903.3 |
Commercial Foods | 767.8 |  |  | 685.3 |  |  | 563.2 |
Total operating profit plus equity method investment earnings | $ | 1,858.6 |  |  | $ | 1,756.3 |  |  | $ | 1,466.5 |
General corporate expenses | $ | 839.4 |  |  | $ | 303.9 |  |  | $ | 285.5 |
Interest expense, net | 297.8 |  |  | 330.0 |  |  | 377.5 |
Income tax expense | 225.4 |  |  | 362.1 |  |  | 178.3 |
Income from continuing operations | $ | 496.0 |  |  | $ | 760.3 |  |  | $ | 625.2 |
Less: Net income attributable to noncontrolling interests | 11.1 |  |  | 11.8 |  |  | 12.0 |
Income from continuing operations attributable to ConAgra Foods, Inc. | $ | 484.9 |  |  | $ | 748.5 |  |  | $ | 613.2 |
Identifiable assets |  |  |  |  |
Consumer Foods | $ | 7,811.3 |  |  | $ | 7,792.7 |  |  | $ | 7,917.4 |
Commercial Foods | 3,770.9 |  |  | 3,678.1 |  |  | 2,954.3 |
Corporate | 1,465.6 |  |  | 632.2 |  |  | 591.2 |
Held for Sale | 342.8 |  |  | 5,334.8 |  |  | 7,778.6 |
Total identifiable assets | $ | 13,390.6 |  |  | $ | 17,437.8 |  |  | $ | 19,241.5 |
Additions to property, plant and equipment |  |  |  |  |
Consumer Foods | $ | 198.8 |  |  | $ | 133.7 |  |  | $ | 183.5 |
Commercial Foods | 151.1 |  |  | 117.4 |  |  | 205.6 |
Corporate | 79.9 |  |  | 100.1 |  |  | 72.0 |
Total additions to property, plant and equipment | $ | 429.8 |  |  | $ | 351.2 |  |  | $ | 461.1 |
Depreciation and amortization |  |  |  |  |
Consumer Foods | $ | 210.4 |  |  | $ | 209.0 |  |  | $ | 191.4 |
Commercial Foods | 102.5 |  |  | 105.3 |  |  | 98.8 |
Corporate | 61.0 |  |  | 66.1 |  |  | 64.4 |
Total depreciation and amortization | $ | 373.9 |  |  | $ | 380.4 |  |  | $ | 354.6 |
Net sales by product type within each segment were:
|  | 2016 |  | 2015 |  | 2014
Net sales |  |  |  |  |  |
Consumer Foods: |  |  |  |  |  |
Grocery |  | $ | 3,382.0 |  |  | $ | 3,503.7 |  |  | $ | 4,182.1 |
Frozen |  | 2,867.4 |  |  | 2,985.5 |  |  | 2,288.1 |
International |  | 874.8 |  |  | 970.8 |  |  | 1,010.7 |
Other Brands |  | 100.9 |  |  | 105.3 |  |  | 115.4 |
Total Consumer Foods |  | $ | 7,225.1 |  |  | $ | 7,565.3 |  |  | $ | 7,596.3 |
Commercial Foods: |  |  |  |  |  |
Specialty Potatoes |  | $ | 2,968.1 |  |  | $ | 2,892.4 |  |  | $ | 2,792.7 |
Foodservice |  | 1,449.7 |  |  | 1,479.3 |  |  | 1,449.2 |
Total Commercial Foods |  | $ | 4,417.8 |  |  | $ | 4,371.7 |  |  | $ | 4,241.9 |
Total net sales |  | $ | 11,642.9 |  |  | $ | 11,937.0 |  |  | $ | 11,838.2 |
Presentation of Derivative Gains (Losses) for Economic Hedges of Forecasted Cash Flows in Segment Results Derivatives used to manage commodity price risk and foreign currency risk are not designated for hedge accounting treatment. We believe these derivatives provide economic hedges of certain forecasted transactions. As such, these derivatives are recognized at fair market value with realized and unrealized gains and losses recognized in general corporate expenses. The gains and losses are subsequently recognized in the operating results of the reporting segments in the period in which the underlying transaction being economically hedged is included in earnings. In the event that management determines a particular derivative entered into as an economic hedge of a forecasted commodity purchase has ceased to function as an economic hedge, we cease recognizing further gains and losses on such derivatives in corporate expense and begin recognizing such gains and losses within segment operating results, immediately. The following table presents the net derivative gains (losses) from economic hedges of forecasted commodity consumption and the foreign currency risk of certain forecasted transactions, under this methodology:
| 2016 |  | 2015 |  | 2014
Net derivative gains (losses) incurred | $ | (12.1 | ) |  | $ | (79.3 | ) |  | $ | 21.2 |
Less: Net derivative losses allocated to reporting segments | (30.2 | ) |  | (46.6 | ) |  | (1.6 | )
Net derivative gains (losses) recognized in general corporate expenses | $ | 18.1 |  |  | $ | (32.7 | ) |  | $ | 22.8 |
Net derivative losses allocated to Consumer Foods | $ | (21.1 | ) |  | $ | (41.9 | ) |  | $ | (5.9 | )
Net derivative gains (losses) allocated to Commercial Foods | (9.1 | ) |  | (4.7 | ) |  | 4.3 |
Net derivative losses included in segment operating profit | $ | (30.2 | ) |  | $ | (46.6 | ) |  | $ | (1.6 | )
As of May 29, 2016, the cumulative amount of net derivative gains from economic hedges that had been recognized in general corporate expenses and not yet allocated to reporting segments was $3.2 million. This amount reflected net gains of $3.6 million incurred during the fiscal year ended May 29, 2016, as well as net losses of $0.4 million incurred prior to fiscal 2016. Based on our forecasts of the timing of recognition of the underlying hedged items, we expect to reclassify to segment operating results gains of $2.4 million in fiscal 2017 and gains of $0.8 million in fiscal 2018 and thereafter. In the second quarter of fiscal 2015, management determined that certain derivatives that had been previously entered into as an economic hedge of forecasted commodity purchases had ceased to function as economic hedges. We recognized $18.9 million and $1.4 million of net derivative losses during fiscal 2015 within the operating results of the Consumer Foods and Commercial Foods segments, respectively, in connection with these derivatives. Management effectively exited these derivative positions in the third quarter of fiscal 2015. Other Information At May 29, 2016, ConAgra Foods and its subsidiaries had approximately 20,900 employees, primarily in the United States. Approximately 36% of our employees are parties to collective bargaining agreements. Of the employees subject to collective bargaining agreements, approximately 31% are parties to collective bargaining agreements scheduled to expire during fiscal 2017. Our operations are principally in the United States. With respect to operations outside of the United States, no single foreign country or geographic region was significant with respect to consolidated operations for fiscal 2016, 2015, and 2014. Foreign net sales, including sales by domestic segments to customers located outside of the United States, were approximately $1.5 billion, $1.6 billion, and $1.7 billion in fiscal 2016, 2015, and 2014, respectively. Our long-lived assets located outside of the United States are not significant. Our largest customer, Wal-Mart Stores, Inc. and its affiliates, accounted for approximately 16%, 16%, and 17% of consolidated net sales for fiscal 2016, 2015, and 2014, respectively, significantly impacting the Consumer Foods segment. Wal-Mart Stores, Inc. and its affiliates accounted for approximately 20% and 16% of consolidated net receivables as of May 29, 2016 and May 31, 2015, respectively, significantly impacting the Consumer Foods segment. We were a party to a supply agreement with an onion processing company where we had guaranteed, under certain conditions, repayment of up to$25.0 million payable under a secured loan (the "Secured Loan") of this onion products supplier to the supplier's lender. During the fourth quarter of fiscal 2012, we received notice from the lender that the supplier had defaulted on the Secured Loan and we exercised our option to purchase the Secured Loan from the lender for $40.8 million, thereby assuming first-priority secured rights to the underlying collateral for the amount of the Secured Loan, and cancelling our guarantee. The supplier filed for bankruptcy during the fourth quarter of fiscal 2012 and during the second quarter of fiscal 2013, we acquired ownership and all rights to the underlying collateral, consisting of agricultural land and an onion processing facility. During the third quarter of fiscal 2013, we recognized an impairment charge of $10.2 million in our Commercial Foods segment to reduce the carrying amount of these assets to their estimated fair value based upon updated appraisals. During the second quarter of fiscal 2014, we recognized an additional impairment charge of $8.9 million in our Commercial Foods segment to reduce the carrying amount of the processing facility to its estimated fair value based upon expected sales proceeds. In the fourth quarter of fiscal 2014, we sold the land and recognized a gain of $5.1 million in our Commercial Foods segment. In the third quarter of fiscal 2015, we sold the processing facility and recognized an immaterial gain in our Commercial Foods segment.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
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