EQUITY METHOD INVESTMENTS	9 Months Ended
Feb. 27, 2022
EQUITY METHOD INVESTMENTS
EQUITY METHOD INVESTMENTS	6. EQUITY METHOD INVESTMENTS We hold a 50% ownership interest in Lamb-Weston/Meijer v.o.f. (“Lamb-Weston/Meijer”), a joint venture with Meijer Frozen Foods B.V., that is headquartered in the Netherlands and manufactures and sells frozen potato products principally in Europe, Russia, and the Middle East. We hold a 50% ownership interest in Lamb-Weston/RDO Frozen (“Lamb Weston RDO”), a potato processing joint venture based in the United States. We also hold a 50% ownership interest in Lamb Weston Alimentos Modernos S.A. (“LWAMSA”), a joint venture with Sociedad Comercial del Plata S.A., that is headquartered in Argentina. LWAMSA manufactures and sells frozen potato products, principally in South America. These investments are accounted for using equity method accounting. The carrying value of these investments at February 27, 2022 and May 30, 2021, was $312.8 million and $310.2 million, respectively, and are included in “Equity method investments” on our Consolidated Balance Sheets. Lamb-Weston/Meijer has a 74.9% ownership interest in a joint venture located in Russia that manufactures and sells frozen potato products. In March 2022, as a result of Russia’s invasion of Ukraine, the joint venture paused construction of its previously announced capacity expansion and began winding down production of Lamb Weston branded products. In addition, Lamb-Weston/Meijer ceased shipping products into Russia. While the joint venture continues to produce and sell food for domestic consumption, the current sanctions imposed by governments in the United States, United Kingdom, and European Union against Russia, as well as additional steps taken by the joint venture’s customers, suppliers, or other stakeholders, may disrupt the plant’s ability to operate in the future. Through the thirty-nine weeks ended February 27, 2022, approximately 2% of our net income was attributable to business conducted through Lamb-Weston/Meijer’s joint venture, and the portion of our Lamb-Weston/Meijer interest related to its operations in Russia was approximately $55 million as of February 27, 2022. For the thirteen weeks ended February 27, 2022 and February 28, 2021, we had sales to our equity method investments of $4.3 million and $5.5 million, respectively, and purchases from our equity method investments of $6.0 million and $0.9 million, respectively. For the thirty-nine weeks ended February 27, 2022 and February 28, 2021, we had sales to our equity method investments of $12.5 million and $12.4 million, respectively, and purchases from our equity method investments of $13.2 million and $4.2 million, respectively. Total dividends received from our equity method investments were $5.0 million and $5.8 million for the thirteen weeks ended February 27, 2022 and February 28, 2021, respectively; and $19.2 million and $12.4 million for the thirty-nine weeks ended February 27, 2022 and February 28, 2021, respectively. We have an agreement to share the costs of our global enterprise resource planning (“ERP”) system and related software and services with Lamb-Weston/Meijer. Under the terms of the agreement, Lamb-Weston/Meijer will pay us for the majority of its portion of the ERP costs in five equal annual payments, plus interest, beginning in the period the system is deployed at Lamb-Weston/Meijer. At February 27, 2022 and May 30, 2021, Lamb-Weston/Meijer’s portion of the ERP costs was $19.6 million and $16.8 million, respectively. Related to this project, we had $16.5 million and $13.2 million of receivables recorded in “Other assets” on our Consolidated Balance Sheets at February 27, 2022 and May 30, 2021, respectively. We expect the total receivable from Lamb-Weston/Meijer to increase as development and implementation of the ERP system progresses.

EQUITY METHOD INVESTMENTS

9 Months Ended

Feb. 27, 2022

6. EQUITY METHOD INVESTMENTS

We hold a 50% ownership interest in Lamb-Weston/Meijer v.o.f. (“Lamb-Weston/Meijer”), a joint venture with Meijer Frozen Foods B.V., that is headquartered in the Netherlands and manufactures and sells frozen potato products principally in Europe, Russia, and the Middle East. We hold a 50% ownership interest in Lamb-Weston/RDO Frozen (“Lamb Weston RDO”), a potato processing joint venture based in the United States. We also hold a 50% ownership interest in Lamb Weston Alimentos Modernos S.A. (“LWAMSA”), a joint venture with Sociedad Comercial del Plata S.A., that is headquartered in Argentina. LWAMSA manufactures and sells frozen potato products, principally in South America. These investments are accounted for using equity method accounting. The carrying value of these investments at February 27, 2022 and May 30, 2021, was $312.8 million and $310.2 million, respectively, and are included in “Equity method investments” on our Consolidated Balance Sheets.

Lamb-Weston/Meijer has a 74.9% ownership interest in a joint venture located in Russia that manufactures and sells frozen potato products. In March 2022, as a result of Russia’s invasion of Ukraine, the joint venture paused construction of its previously announced capacity expansion and began winding down production of Lamb Weston branded products. In addition, Lamb-Weston/Meijer ceased shipping products into Russia. While the joint venture continues to produce and sell food for domestic consumption, the current sanctions imposed by governments in the United States, United Kingdom, and European Union against Russia, as well as additional steps taken by the joint venture’s customers, suppliers, or other stakeholders, may disrupt the plant’s ability to operate in the future. Through the thirty-nine weeks ended February 27, 2022, approximately 2% of our net income was attributable to business conducted through Lamb-Weston/Meijer’s joint venture, and the portion of our Lamb-Weston/Meijer interest related to its operations in Russia was approximately $55 million as of February 27, 2022.

For the thirteen weeks ended February 27, 2022 and February 28, 2021, we had sales to our equity method investments of $4.3 million and $5.5 million, respectively, and purchases from our equity method investments of $6.0 million and $0.9 million, respectively. For the thirty-nine weeks ended February 27, 2022 and February 28, 2021, we had sales to our equity method investments of $12.5 million and $12.4 million, respectively, and purchases from our equity method investments of $13.2 million and $4.2 million, respectively. Total dividends received from our equity method investments were $5.0 million and $5.8 million for the thirteen weeks ended February 27, 2022 and February 28, 2021, respectively; and $19.2 million and $12.4 million for the thirty-nine weeks ended February 27, 2022 and February 28, 2021, respectively.

We have an agreement to share the costs of our global enterprise resource planning (“ERP”) system and related software and services with Lamb-Weston/Meijer. Under the terms of the agreement, Lamb-Weston/Meijer will pay us for the majority of its portion of the ERP costs in five equal annual payments, plus interest, beginning in the period the system is deployed at Lamb-Weston/Meijer. At February 27, 2022 and May 30, 2021, Lamb-Weston/Meijer’s portion of the ERP costs was $19.6 million and $16.8 million, respectively. Related to this project, we had $16.5 million and $13.2 million of receivables recorded in “Other assets” on our Consolidated Balance Sheets at February 27, 2022 and May 30, 2021, respectively. We expect the total receivable from Lamb-Weston/Meijer to increase as development and implementation of the ERP system progresses.