SEGMENTS

9 Months Ended

Feb. 27, 2022

SEGMENTS

SEGMENTS

13.    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.

	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	February 27,		February 28,		February 27,		February 28,
(in millions)	2022		2021		2022		2021
Net sales
Global	$	487.9	$	478.5	$	1,505.8	$	1,401.9
Foodservice		294.5		219.5		929.8		697.3
Retail		143.6		162.5		418.7		457.1
Other		29.0		35.3		91.5		107.1
Total net sales	$	955.0	$	895.8	$	2,945.8	$	2,663.4
Product contribution margin (a)
Global	$	73.0	$	79.3	$	196.5	$	249.8
Foodservice		106.7		70.2		307.5		243.7
Retail		31.6		33.1		67.8		99.0
Other (b)		6.2		8.7		(6.6)		32.4
		217.5		191.3		565.2		624.9
Add: Advertising and promotion expenses (a)		3.5		5.4		12.6		9.1
Gross profit		221.0		196.7		577.8		634.0
Selling, general and administrative expenses		87.2		96.1		269.4		258.1
Income from operations		133.8		100.6		308.4		375.9
Interest expense, net (c)		25.8		29.3		136.1		89.6
Income tax expense		31.1		16.3		49.4		76.2
Equity method investment earnings		29.7		11.1		46.0		42.2
Net income	$	106.6	$	66.1	$	168.9	$	252.3

(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 those expenses are directly associated with segment performance.

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

(c) The thirty-nine weeks ended February 27, 2022, includes a loss on the extinguishment of debt of $53.3 million, which includes an aggregate call premium of $39.6 million related to the redemption of the 2024 Notes and 2026 Notes, and the write-off of $13.7 million of previously unamortized debt issuance costs associated with those notes.