XML 30 R21.htm IDEA: XBRL DOCUMENT
v3.21.4

BUSINESS SEGMENTS AND RELATED INFORMATION | 6 Months Ended
--- | ---
Nov. 28, 2021
Segment Reporting [Abstract] |
BUSINESS SEGMENTS AND RELATED INFORMATION | 15. BUSINESS SEGMENTS AND RELATED INFORMATION We reflect our results of operations in four reporting segments: Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice. 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 principally 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, sauces and a variety of custom-manufactured culinary products packaged for sale to restaurants and other foodservice establishments primarily in the United States. We do not aggregate operating segments when determining our reporting segments. Operating profit for each of the segments is based on net sales less all identifiable operating expenses. General corporate expense, pension and postretirement non-service income, interest expense, net, income taxes, and equity method investment earnings have been excluded from segment operations.
|  | Thirteen Weeks Ended |  |  | Twenty-Six Weeks Ended |
|  | November 28, 2021 |  |  | November 29, 2020 |  |  | November 28, 2021 |  |  | November 29, 2020 |
Net sales |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Grocery & Snacks |  | $ | 1,264.5 |  |  | $ | 1,283.1 |  |  | $ | 2,339.6 |  |  | $ | 2,414.1 |
Refrigerated & Frozen |  |  | 1,285.9 |  |  |  | 1,248.0 |  |  |  | 2,387.7 |  |  |  | 2,378.6 |
International |  |  | 262.2 |  |  |  | 249.8 |  |  |  | 498.8 |  |  |  | 468.8 |
Foodservice |  |  | 246.3 |  |  |  | 214.3 |  |  |  | 486.1 |  |  |  | 412.6 |
Total net sales |  | $ | 3,058.9 |  |  | $ | 2,995.2 |  |  | $ | 5,712.2 |  |  | $ | 5,674.1 |
Operating profit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Grocery & Snacks |  | $ | 249.2 |  |  | $ | 316.1 |  |  | $ | 465.1 |  |  | $ | 599.2 |
Refrigerated & Frozen |  |  | 168.3 |  |  |  | 264.3 |  |  |  | 325.9 |  |  |  | 504.4 |
International |  |  | 37.1 |  |  |  | 39.5 |  |  |  | 71.2 |  |  |  | 78.0 |
Foodservice |  |  | 13.8 |  |  |  | 22.6 |  |  |  | 34.1 |  |  |  | 48.0 |
Total operating profit |  | $ | 468.4 |  |  | $ | 642.5 |  |  | $ | 896.3 |  |  | $ | 1,229.6 |
Equity method investment earnings |  |  | 29.5 |  |  |  | 23.0 |  |  |  | 49.7 |  |  |  | 29.5 |
General corporate expense |  |  | 59.0 |  |  |  | 111.3 |  |  |  | 123.6 |  |  |  | 188.5 |
Pension and postretirement non-service income |  |  | (16.1 | ) |  |  | (13.7 | ) |  |  | (32.2 | ) |  |  | (27.5 | )
Interest expense, net |  |  | 94.9 |  |  |  | 107.7 |  |  |  | 189.1 |  |  |  | 221.4 |
Income tax expense |  |  | 84.2 |  |  |  | 80.7 |  |  |  | 153.9 |  |  |  | 167.4 |
Net income |  | $ | 275.9 |  |  | $ | 379.5 |  |  | $ | 511.6 |  |  | $ | 709.3 |
Less: Net income attributable to noncontrolling interests |  |  | 0.4 |  |  |  | 0.6 |  |  |  | 0.7 |  |  |  | 1.4 |
Net income attributable to Conagra Brands, Inc. |  | $ | 275.5 |  |  | $ | 378.9 |  |  | $ | 510.9 |  |  | $ | 707.9 |
The following table presents further disaggregation of our net sales:
|  | Thirteen Weeks Ended |  |  | Twenty-Six Weeks Ended |
|  | November 28, 2021 |  |  | November 29, 2020 |  |  | November 28, 2021 |  |  | November 29, 2020 |
Frozen |  | $ | 1,073.1 |  |  | $ | 1,020.3 |  |  | $ | 1,993.5 |  |  | $ | 1,938.7 |
Staples |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other shelf-stable |  |  | 724.6 |  |  |  | 791.9 |  |  |  | 1,366.2 |  |  |  | 1,505.8 |
Refrigerated |  |  | 212.8 |  |  |  | 227.7 |  |  |  | 394.2 |  |  |  | 439.9 |
Snacks |  |  | 539.9 |  |  |  | 491.2 |  |  |  | 973.4 |  |  |  | 908.3 |
Foodservice |  |  | 246.3 |  |  |  | 214.3 |  |  |  | 486.1 |  |  |  | 412.6 |
International |  |  | 262.2 |  |  |  | 249.8 |  |  |  | 498.8 |  |  |  | 468.8 |
Total net sales |  | $ | 3,058.9 |  |  | $ | 2,995.2 |  |  | $ | 5,712.2 |  |  | $ | 5,674.1 |
To be consistent with the manner in which we present certain disaggregated net sales information to investors, we have categorized certain net sales of our segments as "Staples", which includes all of our U.S. domestic retail refrigerated products and other shelf-stable grocery products. Management continues to regularly review financial results and make decisions about allocating resources based upon the four reporting segments outlined above. Presentation of Derivative Gains (Losses) from 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 |  |  | Twenty-Six Weeks Ended |
|  | November 28, 2021 |  |  | November 29, 2020 |  |  | November 28, 2021 |  |  | November 29, 2020 |
Gross derivative gains (losses) incurred |  | $ | 7.0 |  |  | $ | 0.1 |  |  | $ | 17.2 |  |  | $ | (3.9 | )
Less: Net derivative gains (losses) allocated to reporting segments |  |  | 8.8 |  |  |  | (3.2 | ) |  |  | 13.8 |  |  |  | (4.7 | )
Net derivative gains (losses) recognized in general corporate expenses |  | $ | (1.8 | ) |  | $ | 3.3 |  |  | $ | 3.4 |  |  | $ | 0.8 |
Net derivative gains (losses) allocated to Grocery & Snacks |  | $ | 4.7 |  |  | $ | (2.6 | ) |  | $ | 7.9 |  |  | $ | (4.4 | )
Net derivative gains (losses) allocated to Refrigerated & Frozen |  |  | 4.6 |  |  |  | (0.9 | ) |  |  | 9.3 |  |  |  | (2.0 | )
Net derivative gains (losses) allocated to International |  |  | (0.7 | ) |  |  | 0.8 |  |  |  | (3.9 | ) |  |  | 2.4 |
Net derivative gains (losses) allocated to Foodservice |  |  | 0.2 |  |  |  | (0.5 | ) |  |  | 0.5 |  |  |  | (0.7 | )
Net derivative gains (losses) included in segment operating profit |  | $ | 8.8 |  |  | $ | (3.2 | ) |  | $ | 13.8 |  |  | $ | (4.7 | )
As of November 28, 2021, 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 $14.9 million. This amount reflected net gains of $14.0 million incurred during the twenty-six weeks ended November 28, 2021 and net gains of $0.9 million incurred prior to fiscal 2022. Based on our forecasts of the timing of recognition of the underlying hedged items, we expect to reclassify to segment operating results gains of $10.7 million in fiscal 2022 and gains of $4.2 million in fiscal 2023 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 over time. 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. Total depreciation expense was $82.2 million and $163.8 million for the second quarter and first half of fiscal 2022, respectively. Total depreciation expense was $82.8 million and $163.1 million for the second quarter and first half of fiscal 2021, respectively. Other Information 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 the second quarter and first half of fiscal 2022 and 2021. Foreign net sales, including sales by domestic segments to customers located outside of the United States, were approximately $263.1 million and $506.4 million in the second quarter and first half of fiscal 2022, respectively. Our foreign net sales during the second quarter and first half of fiscal 2021 were approximately $252.6 million and $477.3 million, respectively. Our long-lived assets located outside of the United States are not significant. Our largest customer, Walmart, Inc. and its affiliates, accounted for approximately 27% and 26% of consolidated net sales in the second quarter and first half of fiscal 2022, respectively, and 25% in both the second quarter and first half of 2021, primarily in the Grocery & Snacks and Refrigerated & Frozen segments. Walmart, Inc. and its affiliates accounted for approximately 31% of consolidated net receivables as of both November 28, 2021 and May 30, 2021. The Kroger Co. and its affiliates accounted for approximately 13% and 11% of consolidated net receivables as of November 28, 2021 and May 30, 2021, respectively.

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

X
- 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration