SEGMENTS (Tables)

12 Months Ended

May 28, 2017


	For the Fiscal Years Ended May
(in millions)	2017		2016		2015
Net sales:
Global	$	1,624.8	$	1,549.4	$	1,512.9
Foodservice		1,030.0		946.0		929.0
Retail		384.9		372.1		355.6
Other		128.3		126.3		127.5
Total net sales		3,168.0		2,993.8		2,925.0
Product contribution margin (a):
Global		343.0		296.5		253.7
Foodservice		333.1		254.7		246.0
Retail		78.3		69.6		47.6
Other		9.5		21.0		20.6
Total product contribution margin		763.9		641.8		567.9
Equity method investment earnings (b)		53.3		71.7		42.7
Total product contribution margin plus equity method investment earnings		817.2		713.5		610.6
Other selling, general and administrative expenses (a) (c)		245.6		268.5		186.5
Interest expense, net		61.2		5.9		6.1
Income tax expense		170.2		144.5		140.4
Net income		340.2		294.6		277.6
Less: Income attributable to noncontrolling interests		13.3		9.3		9.3
Net income attributable to Lamb Weston Holdings, Inc.	$	326.9	$	285.3	$	268.3

(a)

Product contribution margin is defined as net sales, less cost of sales and advertising and promotions expenses. Other selling, general and administrative expenses include all selling, general and administrative expenses other than advertising and promotions expenses.

(b)

Fiscal 2016 includes a $17.7 million non-cash gain related to the settlement of a pension plan of our Lamb-Weston/Meijer joint venture.

(c)

Fiscal 2017 includes $26.5 million of pre-tax expenses related to the Separation, primarily related to professional fees, and a $3.1 million non-cash pre-tax gain on assets received during the period.

Fiscal 2016 includes the following pre-tax charges: $5.3 million of expenses related to the Separation, and $59.5 million of non-cash charges reflecting Lamb Weston’s portion of the actuarial losses in excess of 10% of Conagra’s pension liability for Conagra sponsored plans.

Fiscal 2015 includes a $5.1 million non-cash gain on the sale of land received in connection with the bankruptcy of an onion products supplier.