SEGMENTS (Tables)

9 Months Ended

Feb. 23, 2020


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	February 23,		February 24,		February 23,		February 24,
(in millions)	2020		2019		2020		2019
Net sales
Global	$	487.1	$	498.2	$	1,544.3	$	1,434.9
Foodservice		283.0		265.5		893.3		843.0
Retail		132.2		129.0		393.6		369.1
Other		35.0		34.1		114.3		106.1
Total net sales		937.3		926.8		2,945.5		2,753.1
Product contribution margin (a)
Global		109.3		128.8		341.0		335.6
Foodservice		99.8		94.8		313.5		294.2
Retail		28.8		29.1		86.2		77.8
Other (b)		5.9		11.8		26.0		24.0
		243.8		264.5		766.7		731.6
Advertising and promotion expenses (a)		6.6		8.9		17.4		21.4
Gross profit		250.4		273.4		784.1		753.0
Selling, general and administrative expenses		87.9		79.6		258.1		232.6
Income from operations		162.5		193.8		526.0		520.4
Interest expense, net		25.2		27.0		78.8		80.0
Income tax expense		35.7		39.6		115.1		107.9
Equity method investment earnings (c)		9.8		14.2		35.4		44.3
Net income		111.4		141.4		367.5		376.8
Less: Income attributable to noncontrolling interests (d)		—		—		—		8.6
Net income attributable to Lamb Weston Holdings, Inc.	$	111.4	$	141.4	$	367.5	$	368.2

(a)

Product contribution margin represents net sales less cost of sales and advertising and promotion expenses. Product contribution margin includes advertising and promotion expenses because the amounts are directly associated with segment performance; it excludes general corporate expenses and interest expense because management believes these amounts are not directly associated with segment performance.

(b)	The Other segment primarily includes our vegetable and dairy businesses and unrealized mark-to-market adjustments associated with commodity hedging contracts.

(c)	The thirteen and thirty-nine weeks ended February 23, 2020, both include a $2.6 million loss related to the withdrawal from a multiemployer pension plan by Lamb Weston RDO.

(d)	In November 2018, we entered into an agreement to acquire the remaining 50.01% interest in Lamb Weston BSW. Our Consolidated Statements of Earnings includes 100% of Lamb Weston BSW’s earnings beginning November 2, 2018.