What changed in this filing

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Item 1. Financial Statements

2021-04-07 compared with 2021-01-07 · 86 added, 87 removed, 326 unchanged (35% of the section changed)

4 unchanged sentences

Thirteen Weeks Ended

Twenty-Six Weeks Ended

Thirty-Nine Weeks Ended

Cost of sales

12 unchanged sentences

Thirteen Weeks Ended

November 29, 2020

November 24, 2019

February 28, 2021

February 23, 2020

Other comprehensive income (loss):

2 unchanged sentences

Comprehensive income

Twenty-Six Weeks Ended

November 29, 2020

November 24, 2019

Thirty-Nine Weeks Ended

February 28, 2021

February 23, 2020

Other comprehensive income (loss):

41 unchanged sentences

(unaudited, dollars in millions, except share data )

Thirteen Weeks Ended November 29, 2020 and November 24, 2019

Thirteen Weeks Ended February 28, 2021 and February 23, 2020

Common Stock,

3 unchanged sentences

Income (Loss)

Balance at August 30, 2020

Balance at November 29, 2020

Dividends declared, $ 0.235 per share

1 unchanged sentence

Stock-settled, stock-based compensation expense

Common stock withheld to cover taxes

Repurchase of common stock and common stock withheld to cover taxes

Comprehensive income

Balance at February 28, 2021

Balance at November 24, 2019

Balance at August 25, 2019

Dividends declared, $ 0.230 per share

3 unchanged sentences

Comprehensive income

Balance at November 24, 2019

Twenty-Six Weeks Ended November 29, 2020 and November 24, 2019

Balance at February 23, 2020

Thirty-Nine Weeks Ended February 28, 2021 and February 23, 2020

Common Stock,

7 unchanged sentences

Stock-settled, stock-based compensation expense

Common stock withheld to cover taxes

Repurchase of common stock and common stock withheld to cover taxes

Comprehensive income

Balance at November 29, 2020

Balance at February 28, 2021

Balance at May 26, 2019

5 unchanged sentences

Comprehensive income

Balance at November 24, 2019

Balance at February 23, 2020

See Condensed Notes to Consolidated Financial Statements.

2 unchanged sentences

(unaudited, dollars in millions)

Twenty-Six Weeks Ended

Thirty-Nine Weeks Ended

Cash flows from operating activities

21 unchanged sentences

Repurchase of common stock and common stock withheld to cover taxes

Payments of debt issuance costs

Proceeds from issuance of debt

13 unchanged sentences

Basis of Presentation

The accompanying unaudited Consolidated Financial Statements present the financial results of Lamb Weston for the thirteen and twenty-six weeks ended November 29, 2020 and November 24, 2019, and have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America.

The accompanying unaudited Consolidated Financial Statements present the financial results of Lamb Weston for the thirteen and thirty-nine weeks ended February 28, 2021 and February 23, 2020, and have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America.

These financial statements include all adjustments that we consider necessary for a fair presentation of such financial statements and consist only of normal recurring adjustments.

The preparation of financial statements involves the use of estimates and accruals.

The inputs into our judgements and estimates consider the economic implications of COVID-19 on our critical accounting estimates and significant accounting policies.

The inputs into our judgements and estimates consider the economic implications of the effects of the COVID-19 pandemic on our critical accounting estimates and significant accounting policies.

The actual results that we experience may differ materially from those estimates.

21 unchanged sentences

Thirteen Weeks Ended

Twenty-Six Weeks Ended

Thirty-Nine Weeks Ended

Basic weighted average common shares outstanding

3 unchanged sentences

(a) Potentially dilutive shares of common stock from employee incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock options and the assumed vesting of outstanding restricted stock units and performance awards.

As of November 29, 2020, an insignificant number of stock-based awards were excluded from the computation of diluted earnings per share because they would be antidilutive.

As of November 24, 2019, we did not have any stock-based awards that were antidilutive.

Income tax expense was $ 31.9 million and $ 42.7 million for the thirteen weeks ended November 29, 2020 and November 24, 2019, respectively;

and $ 59.9 million and $ 79.4 million for the twenty-six weeks ended November 29, 2020 and November 24, 2019, respectively.

The effective income tax rate (calculated as the ratio of income tax expense to pre-tax income, inclusive of equity method investment earnings) was 24.8 % and 23.3 % for the thirteen weeks ended November 29, 2020 and November 24, 2019, respectively;

and 24.3 % and 23.7 % for the twenty-six weeks ended November 29, 2020 and November 24, 2019, respectively, in our Consolidated Statements of Earnings.

As of February 28, 2021, we did not have any stock-based awards that were antidilutive.

As of February 23, 2020, an insignificant number of stock-based awards were excluded from the computation of diluted earnings per share because they would be antidilutive.

Income tax expense was $ 16.3 million and $ 35.7 million for the thirteen weeks ended February 28, 2021 and February 23, 2020, respectively;

and $ 76.2 million and $ 115.1 million for the thirty-nine weeks ended February 28, 2021 and February 23, 2020, respectively.

The effective income tax rate (calculated as the ratio of income tax expense to pre-tax income, inclusive of equity method investment earnings) was 19.8 % and 24.3 % for the thirteen weeks ended February 28, 2021 and February 23, 2020, respectively;

and 23.2 % and 23.8 % for the thirty-nine weeks ended February 28, 2021 and February 23, 2020, respectively, in our Consolidated Statements of Earnings.

The lower effective tax rate for the thirteen weeks ended February 28, 2021, as compared to the prior year period, is primarily due to discrete items originating during the quarter and a slightly lower annual effective tax rate.

The effective tax rate varies from the U.S.

2 unchanged sentences

Income Taxes Paid

Income taxes paid, net of refunds were $ 24.0 million and $ 44.4 million during the twenty-six weeks ended November 29, 2020 and November 24, 2019, respectively .

Income taxes paid, net of refunds were $ 44.4 million and $ 81.2 million during the thirty-nine weeks ended February 28, 2021 and February 23, 2020, respectively .

Unrecognized Tax Benefits

17 unchanged sentences

Property, plant and equipment, net

Depreciation expense was $ 45.2 million and $ 43.9 million for the thirteen weeks ended November 29, 2020 and November 24, 2019, respectively;

and $ 90.1 million and $ 86.5 million for the twenty-six weeks ended November 29, 2020 and November 24, 2019, respectively.

At November 29, 2020 and May 31, 2020, purchases of property, plant and equipment included in accounts payable were $ 5.2 million and $ 9.9 million, respectively.

Interest capitalized within construction in progress for the thirteen weeks ended November 29, 2020 and November 24, 2019, was $ 0.5 million and $ 0.7 million, respectively;

and $ 1.0 million and $ 1.2 million for the twenty-six weeks ended November 29, 2020 and November 24, 2019, respectively.

Depreciation expense was $ 44.8 million and $ 44.2 million for the thirteen weeks ended February 28, 2021 and February 23, 2020, respectively;

and $ 134.9 million and $ 130.7 million for the thirty-nine weeks ended February 28, 2021 and February 23, 2020, respectively.

At February 28, 2021 and May 31, 2020, purchases of property, plant and equipment included in accounts payable were $ 11.3 million and $ 9.9 million, respectively.

Interest capitalized within construction in progress for the thirteen weeks ended February 28, 2021 and February 23, 2020, was $ 0.5 million and $ 0.7 million, respectively;

and $ 1.5 million and $ 1.9 million for the thirty-nine weeks ended February 28, 2021 and February 23, 2020, respectively.

INVESTMENTS IN JOINT VENTURES

3 unchanged sentences

We also hold a 50 % interest in Lamb Weston Alimentos Modernos S.A.

(“LWAMSA”), a joint venture with Sociedad Commercial del Plata, which is headquartered in Argentina.

This joint venture manufactures and sells frozen potato products principally in South America.

(“LWAMSA”), a joint venture with Sociedad Commercial del Plata S.A., which 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 our equity method investments, which includes Lamb-Weston/Meijer, Lamb Weston RDO, and LWAMSA at November 29, 2020 and May 31, 2020, was $ 291.4 million and $ 250.2 million, respectively, and are included in “Equity method investments” on our Consolidated Balance Sheets.

For the thirteen weeks ended November 29, 2020 and November 24, 2019, we had sales to our equity method investments of $ 3.9 million and $ 9.3 million, respectively, and payments to our equity method investments of $ 2.2 million and $ 2.8 million, respectively;

and for the twenty-six weeks ended November 29, 2020 and November 24, 2019, we had sales to our equity method investments of $ 6.9 million and $ 16.6 million and payments to our equity method investments of $ 3.3 million and $ 6.0 million, respectively.

Total dividends from our equity method investments were $ 3.9 million and $ 7.8 million for the thirteen weeks ended November 29, 2020 and November 24, 2019, respectively;

and $ 6.6 million and $ 18.0 million for the twenty-six weeks ended November 29, 2020 and November 24, 2019, respectively.

The carrying value of our equity method investments, which includes Lamb-Weston/Meijer, Lamb Weston RDO, and LWAMSA at February 28, 2021 and May 31, 2020, was $ 303.1 million and $ 250.2 million, respectively, and are included in “Equity method investments” on our Consolidated Balance Sheets.

For the thirteen weeks ended February 28, 2021 and February 23, 2020, we had sales to our equity method investments of $ 5.5 million and $ 8.6 million, respectively, and payments to our equity method investments of $ 0.9 million and $ 1.9 million, respectively;

and for the thirty-nine weeks ended February 28, 2021 and February 23, 2020, we had sales to our equity method investments of $ 12.4 million and $ 25.1 million and payments to our equity method investments of $ 4.2 million and $ 7.9 million, respectively.

Total dividends from our equity method investments were $ 5.8 million and $ 10.9 million for the thirteen weeks ended February 28, 2021 and February 23, 2020, respectively;

and $ 12.4 million and $ 28.9 million for the thirty-nine weeks ended February 28, 2021 and February 23, 2020, 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 their portion of the ERP costs in five equal annual payments, plus interest, beginning in the period the system is deployed at Lamb-Weston/Meijer.

As of November 29, 2020, Lamb-Weston/Meijer’s portion of the ERP costs totaled $ 15.4 million.

We had $ 12.3 million and $ 12.0 million of receivables recorded on our Consolidated Balance Sheets as of November 29, 2020 and May 31, 2020, respectively.

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.

As of February 28, 2021, Lamb-Weston/Meijer’s portion of the ERP costs totaled $ 15.8 million.

We had $ 12.6 million and $ 12.0 million of receivables recorded on our Consolidated Balance Sheets as of February 28, 2021 and May 31, 2020, respectively.

Of the $ 12.6 million and $ 12.0 million of receivables, $ 0.2 million and $ 1.8 million were recorded in “Receivables, net” and $ 12.4 million and $ 10.2 million were recorded in “Other assets,” respectively.

We expect the total receivable from Lamb-Weston/Meijer to increase as development and implementation of the ERP system progresses.

In December 2020, Lamb-Weston/Meijer increased its interest in its Russian joint venture from 35.5 % to 74.9 %, and now consolidates that joint venture in its results.

GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS

The following table presents changes in goodwill balances, by segment, during the twenty-six weeks ended November 29, 2020 (dollars in millions):

The following table presents changes in goodwill balances, by segment, during the thirty-nine weeks ended February 28, 2021 (dollars in millions):

Balance at May 31, 2020

Foreign currency translation adjustment

Balance at November 29, 2020

Balance at February 28, 2021

Other identifiable intangible assets were as follows (dollars in millions):

November 29, 2020

February 28, 2021

Non-amortizing intangible assets (a)

3 unchanged sentences

In addition, developed technology is recorded as “Other assets” on our Consolidated Balance Sheet.

Amortization expense was $ 1.4 million and $ 0.8 million for the thirteen weeks ended November 29, 2020 and November 24, 2019, respectively;

and $ 2.1 million and $ 1.3 million for the twenty-six weeks ended November 29, 2020 and November 24, 2019, respectively.

Amortization expense was $ 1.5 million and $ 0.6 million for the thirteen weeks ended February 28, 2021 and February 23, 2020, respectively;

and $ 3.6 million and $ 1.9 million for the thirty-nine weeks ended February 28, 2021 and February 23, 2020, respectively.

Foreign intangible assets are affected by foreign currency translation.

4 unchanged sentences

Dividends payable to shareholders

Accrued interest

Current portion of operating lease liabilities

Income taxes payable

Franchise, property, and sales and use taxes

Accrued interest

Income taxes payable

Accrued liabilities

DEBT AND FINANCING OBLIGATIONS

At November 29, 2020 and May 31, 2020, our debt, including financing obligations was as follows (dollars in millions):

At February 28, 2021 and May 31, 2020, our debt, including financing obligations, was as follows (dollars in millions):

Short-term borrowings:

15 unchanged sentences

Long-term debt and financing obligations, excluding current portion

(a) The interest rates on our lease financing obligations range from 2.49 % to 4.10 % as of November 29, 2020, and 2.31 % to 4.10 % as of May 31, 2020.

(a) The interest rates on our lease financing obligations range from 2.49 % to 4.10 % as of February 28, 2021, and 2.31 % to 4.10 % as of May 31, 2020.

Revolving Credit Facility

On September 17, 2020, we amended our credit agreement, dated as of November 9, 2016 (“Amended Revolving Credit Facility”).

The Amended Revolving Credit Facility, among other things, increased the aggregate principal amount of the revolving credit facility to $ 750.0 million and extended the maturity date to September 17, 2023 .

In addition, we may add incremental term loan facilities, increase commitments and/or add new revolving commitments in an aggregate

principal amount not to exceed the sum of (A) the greater of $ 600.0 million or 75 % of our Consolidated EBITDA (as defined in the Amended Revolving Credit Facility) and (B) an amount based on our consolidated net leverage ratio.

The Amended Revolving Credit Facility, among other things, increased the aggregate principal amount of available revolving credit facility borrowings to $ 750.0 million and extended the maturity date to September 17, 2023 .

In addition, we may add incremental term loan facilities, increase commitments and/or add new revolving commitments

in an aggregate principal amount not to exceed the sum of (A) the greater of $ 600.0 million or 75 % of our Consolidated EBITDA (as defined in the Amended Revolving Credit Facility) and (B) an amount based on our consolidated net leverage ratio.

Borrowings under the Amended Revolving Credit Facility bear interest at LIBOR or the Base Rate (each as defined in the Amended Revolving Credit Facility) plus an applicable rate ranging from 1.25 % to 2.25 % for LIBOR-based loans and from 0.25 % to 1.25 % for Base Rate-based loans, depending upon our consolidated net leverage ratio.

4 unchanged sentences

In connection with the amendment, we capitalized $ 2.4 million of debt issuance costs as “Other assets” on our Consolidated Balance Sheet.

During the thirteen and twenty-six weeks ended November 29, 2020, we recognized $ 1.0 million of expenses, in “Interest expense, net” for the write-off of debt issuance costs related to the payoff of the term loan facility.

At November 29, 2020, we had no borrowings outstanding under the Amended Revolving Credit Facility and $ 745.1 million of availability under the facility, which is net of outstanding letters of credit of $ 4.9 million.

For the twenty-six weeks ended November 29, 2020, borrowings under the facility ranged from zero to $ 495.0 million and the weighted average interest rate for our outstanding borrowings under the facility was 1.68 %.

For the twenty-six weeks ended November 29, 2020 and November 24, 2019, we paid $ 60.5 million and $ 52.6 million of interest on debt, respectively.

During the thirty-nine weeks ended February 28, 2021, we recognized $ 1.0 million of expenses, in “Interest expense, net” for the write-off of debt issuance costs related to the payoff of the term loan facility.

At February 28, 2021, we had no borrowings outstanding under the Amended Revolving Credit Facility and $ 744.6 million of availability under the facility, which is net of outstanding letters of credit of $ 5.4 million.

For the thirty-nine weeks ended February 28, 2021, borrowings under the facility ranged from zero to $ 495.0 million and the weighted average interest rate for our outstanding borrowings under the facility was 1.68 %.

Term A-1 and A-2 Loan Facilities

On September 23, 2020, in connection with the Amended Revolving Credit Facility, we amended the credit agreement, dated as of June 28, 2019, relating to our Term A-1 and A-2 Loan Facilities (“Term Loan Facilities”), to, among other things, modify the Term Loan Facilities to make conforming changes to the affirmative and negative covenants under the Term Loan Facilities.

The financial covenants under the Term Loan Facilities remain unchanged, requiring a consolidated net leverage ratio no greater than 4.50 to 1.00 and an interest coverage ratio no less than 2.75 to 1.00 .

The financial covenants under the Term Loan Facilities remain unchanged, requiring us to maintain a consolidated net leverage ratio no greater than 4.50 to 1.00 and an interest coverage ratio no less than 2.75 to 1.00 .

For the thirty-nine weeks ended February 28, 2021 and February 23, 2020, we paid $ 65.2 million and $ 58.0 million of interest on debt, respectively.

STOCK-BASED COMPENSATION

1 unchanged sentence

The Committee, in its discretion, authorizes grants of restricted stock units (“RSUs”), performance awards payable upon the attainment of specified performance goals (“Performance Shares”), dividend equivalents, and other stock-based awards.

During the twenty-six weeks ended November 29, 2020, we granted 0.3 million and 0.1 million RSUs and Performance Shares, respectively, at an average grant date fair value of $ 61.62 .

As of November 29, 2020, 7.4 million shares were available for future grant under the plan.

During the thirty-nine weeks ended February 28, 2021, we granted 0.3 million and 0.1 million RSUs and Performance Shares, respectively, at an average grant date fair value of $ 62.46 .

As of February 28, 2021, 7.4 million shares were available for future grant under the plan.

Our stock-based compensation expense is recorded in “Selling, general and administrative expenses.” Compensation expense for stock-based awards recognized in the Consolidated Statements of Earnings, net of forfeitures, was as follows (dollars in millions):

Thirteen Weeks Ended

Twenty-Six Weeks Ended

Thirty-Nine Weeks Ended

Stock-settled RSUs

8 unchanged sentences

(b) Income tax benefit represents the marginal tax rate, excluding non-deductible compensation.

Based on estimates at November 29, 2020, total unrecognized compensation expense related to stock-based awards was as follows (dollars in millions):

Based on estimates at February 28, 2021, total unrecognized compensation expense related to stock-based awards was as follows (dollars in millions):

Period (in years)

8 unchanged sentences

The following table presents our financial assets and liabilities measured at fair value on a recurring basis based upon the level within the fair value hierarchy in which the fair value measurements fall (dollars in millions):

As of November 29, 2020

Deferred compensation assets

As of February 28, 2021

Derivative assets (a)

7 unchanged sentences

(a) Derivative assets and liabilities included in Level 2 primarily represent commodity swap and option contracts.

The fair values of our Level 2 derivative assets and liabilities were determined using valuation models that use market observable inputs including interest rate curves and both forward and spot prices for commodities.

The fair values of our Level 2 derivative assets and liabilities were determined using valuation models that use market observable inputs including both forward and spot prices for commodities.

Derivative assets are presented within “Prepaid expenses and other current assets” and derivative liabilities are presented within “Accrued liabilities” on our Consolidated Balance Sheets.

(b) The fair values of our Level 2 deferred compensation liabilities were valued using third-party valuations, which are based on the net asset values of mutual funds in our retirement plans.

2 unchanged sentences

Cost and equity investments are measured at fair value on a non-recurring basis.

At November 29, 2020, we had $ 2,166.0 million of fixed-rate and $ 602.2 million of variable-rate debt outstanding.

Based on current market rates, the fair value of our fixed-rate debt at November 29, 2020, was estimated to be $ 2,297.6 million.

At February 28, 2021, we had $ 2,166.0 million of fixed-rate and $ 594.4 million of variable-rate debt outstanding.

Based on current market rates, the fair value of our fixed-rate debt at February 28, 2021, was estimated to be $ 2,278.4 million.

Any differences between the book value and fair value are due to the difference between the period-end market interest rate and the stated rate of our fixed-rate debt.

2 unchanged sentences

Share Repurchase Program

In December 2018, our Board of Directors authorized a program, with no expiration date, to repurchase shares of our common stock in an amount not to exceed $ 250.0 million in the aggregate, on an opportunistic basis.

During the thirteen and twenty-six weeks ended November 29, 2020, we did not repurchase any shares.

As of November 29, 2020, $ 195.3 million remained authorized for repurchase under the program.

During the twenty-six weeks ended November 29, 2020, we paid $ 67.2 million of dividends to common stockholders.

On December 4, 2020, we paid $ 33.7 million of dividends to stockholders of record as of the close of business on November 6, 2020.

On December 17, 2020 , our Board of Directors declared a dividend of $ 0.235 per share of common stock.

The dividend will be paid on March 5, 2021 , to stockholders of record as of the close of business on February 5, 2021 .

In December 2018, our Board of Directors authorized a program, with no expiration date, to repurchase shares of our common stock in an amount not to exceed $ 250.0 million in the aggregate.

During the thirteen and thirty-nine weeks ended February 28, 2021, we repurchased 164,678 shares for $ 12.7 million, or a weighted-average price of $ 77.04 per share.

As of February 28, 2021, $ 182.6 million remained authorized for repurchase under the program.

During the thirty-nine weeks ended February 28, 2021, we paid $ 100.9 million of dividends to common stockholders.

On March 5, 2021, we paid $ 34.4 million of dividends to stockholders of record as of the close of business on February 5, 2021.

On March 25, 2021 , our Board of Directors declared a dividend of $ 0.235 per share of common stock.

The dividend will be paid on June 4, 2021 , to stockholders of record as of the close of business on May 7, 2021 .

Accumulated Other Comprehensive Income (Loss) (“AOCI”)

Changes in AOCI, net of taxes, as of November 29, 2020 were as follows (dollars in millions).

Changes in AOCI, net of taxes, as of February 28, 2021 were as follows (dollars in millions):

Post-Retirement

6 unchanged sentences

Net current-period other comprehensive income (loss)

Balance as of November 29, 2020

Balance as of February 28, 2021

We have four operating segments, each of which is a reportable segment:

1 unchanged sentence

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.

The reportable segments are each managed by a general manager and supported by a cross functional team assigned to support the segment (dollars in millions).

Thirteen Weeks Ended

Twenty-Six Weeks Ended

(in millions)

Thirty-Nine Weeks Ended

Total net sales

8 unchanged sentences

In an attempt to minimize the transmission of COVID-19, significant social and economic restrictions, including restrictions on dine-in purchases and the imposition of stay-at-home orders, were imposed in the United States and in our international markets.

These restrictions had a negative impact on our sales, costs, earnings of our joint ventures, and therefore our net income.

These restrictions had a negative impact on our sales, costs, and earnings of our joint ventures, resulting in a negative impact on our net income.

The increase in our costs, and the costs of our joint ventures, related to factory utilization and production inefficiencies, manufacturing and operational disruptions directly attributable to the pandemic, as well as incremental warehousing and transportation costs, and costs to enhance employee safety measures, including purchases of safety and health screening equipment, retaining sales employees, and expensing certain capitalized manufacturing facility expansion projects that were stopped.

(b) 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.

Product contribution margin includes advertising and promotion expenses because those expenses are directly associated with segment performance.

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

Lamb Weston’s largest customer, McDonald’s Corporation, accounted for approximately 11 %of consolidated “Net sales” for both the thirteen and twenty-six weeks ended November 29, 2020;

and 10 % for both the thirteen and twenty-six weeks ended November 24, 2019.

No customer accounted for more than 10% of our consolidated accounts receivable as of November 29, 2020 or May 31, 2020.

Lamb Weston’s largest customer, McDonald’s Corporation, accounted for approximately 12 %of consolidated “Net sales” for both the thirteen and thirty-nine weeks ended February 28, 2021;

and 10 % for both the thirteen and thirty-nine weeks ended February 23, 2020.

No customer accounted for more than 10% of our consolidated accounts receivable as of February 28, 2021 or May 31, 2020.

COMMITMENTS, CONTINGENCIES, GUARANTEES AND LEGAL PROCEEDINGS

9 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements