XML 58 R43.htm IDEA: XBRL DOCUMENT
v3.19.2

PRE-TAX INCOME AND INCOME TAXES (Tables) | 12 Months Ended
--- | ---
May 26, 2019
Income Tax Disclosure [Abstract] |
Schedule of Pre-Tax Income from Continuing Operations | Pre-tax income from continuing operations (including equity method investment earnings) consisted of the following:
| 2019 |  | 2018 |  | 2017
United States | $ | 826.6 |  |  | $ | 902.5 |  |  | $ | 883.5 |
Foreign | 72.5 |  |  | 69.6 |  |  | (82.8 | )
| $ | 899.1 |  |  | $ | 972.1 |  |  | $ | 800.7 |
Schedule of the Provision for Income Taxes | The provision for income taxes included the following:
| 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 |
Reconciliation of Income Taxes to the Provision for Income Taxes | Income taxes computed by applying the U.S. Federal statutory rates to income from continuing operations before income taxes are reconciled to the provision for income taxes set forth in the Consolidated Statements of Operations as follows:
| 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 |
Schedule of the Tax Effect of Temporary Differences and Carryforwards | The tax effect of temporary differences and carryforwards that give rise to significant portions of deferred tax assets and liabilities consisted of the following:
| 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 |
Schedule of Change in Unrecognized Tax Benefits | The change in the unrecognized tax benefits for the year ended May 26, 2019 was:
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 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)(1)(i)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=117331294&loc=d3e36027-109320 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration