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BUSINESS SEGMENTS AND RELATED INFORMATION | 3 Months Ended
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Aug. 28, 2016
Segment Reporting [Abstract] |
BUSINESS SEGMENTS AND RELATED INFORMATION | BUSINESS SEGMENTS AND RELATED INFORMATION In the first quarter of fiscal 2017, in anticipation of the Lamb Weston spinoff transaction and other organizational changes, we reorganized our reporting segments. We now reflect our results of operations in five reporting segments: Grocery & Snacks, Refrigerated & Frozen, International, Foodservice, and Commercial. Prior periods have been reclassified to conform to the revised segment presentation. The Grocery & Snacks reporting segment principally includes branded, shelf-stable food products sold in various retail channels in the United States. The Refrigerated & Frozen reporting segment includes branded, temperature controlled food products sold in various retail channels in the United States. The International reporting segment principally includes branded, food products, in various temperature states, sold in various retail and foodservice channels outside of the United States. The Foodservice reporting segment includes branded and customized food products, including meals, entrees, prepared potatoes, sauces and a variety of custom-manufactured culinary products packaged for sale to restaurants and other foodservice establishments in the United States. The Commercial reporting segment includes commercially branded and private label food and ingredients, which are sold primarily to commercial, restaurant, foodservice, food manufacturing, and industrial customers. The segment's primary food items included: frozen potato and sweet potato items and a variety of vegetable, and spices, which were sold under brands such as Lamb Weston® and Spicetec Flavors & Seasonings®. The Spicetec and JM Swank businesses were sold in the first quarter of fiscal 2017. 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.
| Thirteen weeks ended
| August 28, 2016 |  | August 30, 2015
Net sales |  |  |
Grocery & Snacks | $ | 757.2 |  |  | $ | 800.5 |
Refrigerated & Frozen | 604.6 |  |  | 657.6 |
International | 194.7 |  |  | 206.4 |
Foodservice | 268.0 |  |  | 270.6 |
Commercial | 843.0 |  |  | 859.8 |
Total net sales | $ | 2,667.5 |  |  | $ | 2,794.9 |
Operating profit |  |  |
Grocery & Snacks | $ | 180.5 |  |  | $ | 139.5 |
Refrigerated & Frozen | 92.2 |  |  | 81.1 |
International | (149.2 | ) |  | 16.5 |
Foodservice | 21.7 |  |  | 26.1 |
Commercial | 346.4 |  |  | 111.8 |
Total operating profit | $ | 491.6 |  |  | $ | 375.0 |
Equity method investment earnings | 23.6 |  |  | 37.0 |
General corporate expense | 49.0 |  |  | 79.3 |
Interest expense, net | 59.0 |  |  | 80.3 |
Income tax expense | 218.7 |  |  | 85.0 |
Income from continuing operations | $ | 188.5 |  |  | $ | 167.4 |
Less: Net income attributable to noncontrolling interests | 3.8 |  |  | 1.7 |
Income from continuing operations attributable to ConAgra Foods, Inc. | $ | 184.7 |  |  | $ | 165.7 |
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:
| Thirteen weeks ended
| August 28, 2016 |  | August 30, 2015
Net derivative gains (losses) incurred | $ | 0.2 |  |  | $ | (9.3 | )
Less: Net derivative losses allocated to reporting segments | (0.8 | ) |  | (7.1 | )
Net derivative gains (losses) recognized in general corporate expenses | $ | 1.0 |  |  | $ | (2.2 | )
Net derivative losses allocated to Grocery & Snacks | $ | (0.5 | ) |  | $ | (4.2 | )
Net derivative losses allocated to Refrigerated & Frozen | (0.2 | ) |  | (1.6 | )
Net derivative gains allocated to International Foods | 0.1 |  |  | — |
Net derivative losses allocated to Foodservice | (0.3 | ) |  | (0.6 | )
Net derivative gains (losses) allocated to Commercial | 0.1 |  |  | (0.7 | )
Net derivative losses included in segment operating profit | $ | (0.8 | ) |  | $ | (7.1 | )
As of August 28, 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 $4.2 million. This amount reflected net gains of $1.4 million incurred during the thirteen weeks ended August 28, 2016, as well as net gains of $2.8 million incurred prior to fiscal 2017. Based on our forecasts of the timing of recognition of the underlying hedged items, we expect to reclassify to segment operating results gains of $4.5 million in fiscal 2017 and losses of $0.3 million in fiscal 2018 and thereafter. Assets by Segment The majority of our manufacturing assets are shared across multiple reporting segments. Output from these facilities used by each reporting segment can change from fiscal year to fiscal year. Also, working capital balances are not tracked by reporting segment. Therefore, it is impracticable to allocate those assets to the reporting segments, as well as disclose total assets by segment. Other Information Our largest customer, Wal-Mart Stores, Inc. and its affiliates, accounted for 18% of consolidated net sales in both the first quarter of fiscal 2017 and 2016, primarily in the Grocery & Snacks and Refrigerated & Frozen segments. Wal-Mart Stores, Inc. and its affiliates accounted for approximately 20% of consolidated net receivables as of both August 28, 2016 and May 29, 2016, primarily in the Grocery & Snacks and Refrigerated & Frozen segments. Spinoff of the Lamb Weston Business On November 18, 2015, we announced our plans to separate ConAgra Foods, Inc. into two public companies, Conagra Brands and Lamb Weston. The transaction, expected to be structured as a spinoff of the Lamb Weston business to the shareholders of ConAgra Foods in the fall of calendar 2016, is expected to be tax free to the Company and its shareholders. In addition, we expect the Lamb Weston operations will be presented as discontinued operations upon the completion of the spinoff.

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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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&loc=d3e8906-108599 + Details
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