16. SEGMENTS

We have four operating segments, each of which is a reportable segment: Global, Foodservice, Retail, and Other. Our chief operating decision maker receives periodic management reports under this structure that generally focus on the nature and scope of our customers’ businesses, which enables operating decisions, performance assessment, and resource allocation decisions at the segment level. The reportable segments are each managed by a general manager and supported by a cross functional team assigned to support the segment. We measure our segments’ product contribution margin, which is defined as net sales, less cost of sales and advertising and promotion expenses and excludes general corporate expenses, interest, and taxes. See Note 13, Segments, of the Notes to Combined and Consolidated Financial Statements in "Part II, Item 8. Financial Statements and Supplementary Data" of the Form 10-K for more information. Additionally, see Note 2, Revenue from Contracts with Customers, for more information on the impact the adoption of ASC 606 had on segment net sales.


	Thirteen Weeks Ended
	August 26,		August 27,
(in millions)	2018		2017
Net sales:
Global	$	466.8	$	413.9
Foodservice		297.8		279.4
Retail		116.2		92.0
Other		34.1		32.2
Total net sales		914.9		817.5
Product contribution margin (a):
Global		94.5		74.4
Foodservice		102.0		90.8
Retail		22.7		16.5
Other		5.0		11.2
Total product contribution margin		224.2		192.9
Other selling, general and administrative expenses (a) (b)		71.6		55.3
Income from operations		152.6		137.6
Interest expense, net		26.8		25.2
Income tax expense (c)		34.3		44.1
Equity method investment earnings (d)		19.9		20.0
Net income		111.4		88.3
Less: Income attributable to noncontrolling interests		3.6		4.9
Net income attributable to Lamb Weston Holdings, Inc.	$	107.8	$	83.4

(a)

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

(b)

The thirteen weeks ended August 27, 2017 includes $2.2 million of pre-tax expenses related to the Separation. The expenses related primarily to professional fees and other employee-related costs.

Lamb Weston’s largest customer, McDonald’s Corporation, accounted for approximately 10% and 11% of consolidated “Net sales” for the thirteen weeks ended August 26, 2018 and August 27, 2017, respectively. Accounts receivable from another customer accounted for 10% and 12% of our consolidated accounts receivable as of August 26, 2018 and May 27, 2018, respectively.