BUSINESS SEGMENTS AND RELATED INFORMATION

12 Months Ended

May 26, 2024

BUSINESS SEGMENTS AND RELATED INFORMATION

BUSINESS SEGMENTS AND RELATED INFORMATION

20. BUSINESS SEGMENTS AND RELATED INFORMATION

We reflect our results of operations in four reporting segments: Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice.

The Grocery & Snacks reporting segment principally includes branded, shelf-stable food products sold in various retail channels in the United States.

The Refrigerated & Frozen reporting segment includes branded, temperature-controlled food products sold in various retail channels in the United States.

The International reporting segment principally includes branded food products, in various temperature states, sold in various retail and foodservice channels outside of the United States.

The Foodservice reporting segment includes branded and customized food products, including meals, entrees, sauces, and a variety of custom-manufactured culinary products packaged for sale to restaurants and other foodservice establishments primarily in the United States.

We do not aggregate operating segments when determining our reporting segments.

Operating profit for each of the segments is based on net sales less all identifiable operating expenses. General corporate expense, pension and postretirement non-service income, interest expense, net, income taxes, and equity method investment earnings have been excluded from segment operations.

	2024		2023		2022
Net sales
Grocery & Snacks	$	4,958.7	$	4,981.9	$	4,697.4
Refrigerated & Frozen		4,865.5		5,156.2		4,859.3
International		1,078.3		1,002.5		970.8
Foodservice		1,148.4		1,136.4		1,008.4
Total net sales	$	12,050.9	$	12,277.0	$	11,535.9
Operating profit (loss)
Grocery & Snacks	$	1,012.4	$	1,002.8	$	859.5
Refrigerated & Frozen		(92.5)		255.0		561.1
International		97.9		121.4		106.7
Foodservice		157.2		85.0		60.3
Total operating profit	$	1,175.0	$	1,464.2	$	1,587.6
Equity method investment earnings		177.6		212.0		145.3
General corporate expenses		322.2		388.9		241.6
Pension and postretirement non-service income		10.3		24.2		67.3
Interest expense, net		430.5		409.6		379.9
Income tax expense		262.5		218.7		290.5
Net income	$	347.7	$	683.2	$	888.2
Less: Net income attributable to noncontrolling interests		0.5		(0.4)		—
Net income attributable to Conagra Brands, Inc.	$	347.2	$	683.6	$	888.2

The following table presents further disaggregation of our net sales:

	2024		2023		2022
Frozen	$	4,061.2	$	4,288.1	$	4,091.1
Staples
Other shelf-stable		2,834.1		2,851.9		2,729.5
Refrigerated		804.3		868.1		768.2
Snacks		2,124.6		2,130.0		1,967.9
International		1,078.3		1,002.5		970.8
Foodservice		1,148.4		1,136.4		1,008.4
Total net sales	$	12,050.9	$	12,277.0	$	11,535.9

To be consistent with how we present certain disaggregated net sales information to investors, we have categorized certain net sales of our segments as “Staples”, which includes all of our U.S. domestic retail refrigerated products and other shelf-stable grocery products. Management continues to regularly review financial results and make decisions about allocating resources based upon the four reporting segments outlined above.

Assets by Segment

The majority of our manufacturing assets are shared across multiple reporting segments. Output from these facilities used by each reporting segment can change over time. Also, working capital balances are not tracked by reporting segment. Therefore, it is impracticable to allocate those assets to the reporting segments, as well as disclose total assets by segment. Total depreciation expense for fiscal 2024, 2023, and 2022 was $347.3 million, $313.1 million, and $316.1 million, respectively.

Other Information

Our operations are principally in the United States. With respect to operations outside of the United States, no single foreign country or geographic region was significant with respect to consolidated operations for fiscal 2024, 2023, and 2022. Foreign net sales, including sales by domestic segments to customers located outside of the United States, were approximately $1.11 billion, $1.04 billion, and $1.00 billion in fiscal 2024, 2023, and 2022, respectively. Our long-lived assets located outside of the United States are not significant.

Our largest customer, Walmart, Inc. and its affiliates, accounted for approximately 28% of consolidated net sales for fiscal 2024 and 2023, and 27% for fiscal 2022, significantly impacting the Grocery & Snacks and Refrigerated & Frozen segments.

Walmart, Inc. and its affiliates accounted for approximately 32% and 29% of consolidated net receivables as of May 26, 2024 and May 28, 2023, respectively.