PENSION AND OTHER POST-RETIREMENT BENEFITS (Tables)

12 Months Ended

May 28, 2017

EMPLOYEE BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFITS

Schedule of funded status and amounts recognized in our Condensed Combined and Consolidated Balance Sheets

We recognize the unfunded status of these plans on the Consolidated Balance Sheets, and we recognize changes in funded status in the year changes occur through the Consolidated Statements of Comprehensive Income (dollars in millions):

	For the Fiscal Years Ended
	May 28, 2017
	Pension Plan		Post-Retirement Plan
Change in Benefit Obligation
Benefit obligation at beginning of year	$	—	$	—
Net transfer from Conagra		7.4		3.2
Service cost		4.4		—
Interest cost		0.1		0.1
Participant contributions		—		—
Actuarial gain		(1.8)		(0.8)
Benefit obligation at fiscal year-end	$	10.1	$	2.5
Accumulated benefit obligation	$	10.1	$	2.5
Change in Plan Assets
Fair value of plan assets at beginning of year	$	—	$	—
Company contributions		4.5		—
Fair value of plan assets at end of year	$	4.5	$	—
Unfunded status	$	(5.6)	$	(2.5)
Amounts Recognized in Combined and Consolidated Balance Sheets
Other noncurrent liabilities	$	(5.6)	$	(2.5)
Amounts Recognized in Accumulated Other Comprehensive Loss (Pre-tax)
Actuarial net gain	$	1.0	$	0.8
Prior service benefit		—		(0.2)
Total	$	1.0	$	0.6

Schedule of components of net periodic benefit cost for our pension and postretirement benefit plans

For the period after the Separation Date, the components of net periodic benefit cost were as follows (dollars in millions):

	Pension Plan
Service cost	$	4.4
Interest cost		0.1
Expected return on plan assets		—
Net periodic benefit cost	$	4.5

Summary of components of other comprehensive income (loss) were as follow

For the period after the Separation Date, the components of other comprehensive income (loss) were as follows (dollars in millions):

	For the Fiscal Years Ended
	May 28, 2017
	Pension Plan		Post-Retirement Plan
Actuarial net gain	$	1.0	$	0.8
Amortization of prior service benefit		—		(0.2)
Total recognized in other comprehensive income (loss)	$	1.0	$	0.6

Schedule of actuarial assumptions used in determining the benefit obligations and net periodic pension cost for our defined benefit and postretirement plans

	For the Fiscal Years Ended
	May 28, 2017
	Pension Plan		Post-Retirement Plan
Weighted-Average Assumptions Used to Determine Benefit Obligations at May 28, 2017:
Discount rate		4.33%		3.50%
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost at May 28, 2017:
Discount rate		3.81%		3.18%
Long-term rate of return on plan assets		7.50%		N/A

Schedule of health care cost trend rate assumption

	2017
Health care cost trend rate (Pre65/Post65)		9.0/6.5%
Ultimate health care cost trend rate		4.5%
Year that the rate reaches the ultimate trend rate		2024

Schedule of Expected Benefit Payments

The following are estimated benefit payments to be paid to current plan participants by year (dollars in millions). Qualified pension benefit payments are paid from plan assets, while nonqualified pension benefit payments are paid by the Company.

	Pension Plan		Post-Retirement Plan
2018	$	0.1	$	0.0
2019		0.1		0.1
2020		0.2		0.1
2021		0.4		0.2
2022		0.6		0.2
Succeeding 5 years		7.1		1.1

Schedule of Pension costs incurred included in the Condensed Combined and Consolidated statements of earnings

Allocated pension costs (benefits) incurred by Conagra prior to November 9, 2016 and pension costs recognized after the Separation Date are included in the Combined and Consolidated Statements of Earnings as follows (dollars in millions):

	For the Fiscal Years Ended May
	2017		2016		2015
Cost of sales (a)	$	9.6	$	12.0	$	11.3
Selling, general and administrative expenses (a)		(5.5)		53.9		(5.4)
Total	$	4.1	$	65.9	$	5.9

(a) Pension service costs are allocated to operations as reflected in cost of sales above. Expected returns on pension assets and interest costs are reflected in “Selling, general and administrative expenses” in the Combined and Consolidated Statements of Earnings. Fiscal 2016 includes $59.5 million of charges reflecting Lamb Weston’s portion of the actuarial losses in excess of 10% of Conagra’s pension liability for Conagra sponsored plans.