Item 1. Financial Statements
ITEM 1. FINANCIAL STATEMENTS (Unaudited)
Lamb Weston Holdings, Inc.
Consolidated Statements of Earnings
(unaudited, in millions, except per share amounts)
Thirteen Weeks Ended Twenty-Six Weeks Ended
November 23,
2025 November 24,
2024 November 23,
2025 November 24,
2024
Net sales $ 1,618.1 $ 1,600.9 $ 3,277.3 $ 3,255.0
Cost of sales 1,293.8 1,323.1 2,610.6 2,621.2
Gross profit 324.3 277.8 666.7 633.8
Selling, general and administrative expenses 171.0 184.7 324.6 328.6
Restructuring expense 14.1 74.6 46.4 74.6
Income from operations 139.2 18.5 295.7 230.6
Interest expense, net 44.3 43.3 88.0 88.5
Income (loss) before income taxes and equity method earnings 94.9 ( 24.8 ) 207.7 142.1
Income tax expense 36.0 13.4 83.9 64.2
Equity method investment earnings 3.2 2.1 2.6 13.4
Net income (loss) $ 62.1 $ ( 36.1 ) $ 126.4 $ 91.3
Earnings per share:
Basic $ 0.45 $ ( 0.25 ) $ 0.91 $ 0.64
Diluted $ 0.44 $ ( 0.25 ) $ 0.90 $ 0.64
Weighted average common shares outstanding:
Basic 139.4 142.8 139.4 143.2
Diluted 139.6 143.2 139.7 143.7
See Condensed Notes to Consolidated Financial Statements.
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Lamb Weston Holdings, Inc.
Consolidated Statements of Comprehensive Income
(unaudited, dollars in millions)
Thirteen weeks ended
November 23, 2025 Thirteen weeks ended
November 24, 2024
Pre-Tax
Amount Tax
(Expense)
Benefit After-Tax
Amount Pre-Tax
Amount Tax
(Expense)
Benefit After-Tax
Amount
Net income (loss) $ 98.1 $ ( 36.0 ) $ 62.1 $ ( 22.7 ) $ ( 13.4 ) $ ( 36.1 )
Other comprehensive income (loss):
Unrealized pension and post-retirement benefit obligations loss ( 0.1 ) — ( 0.1 ) — — —
Unrealized currency translation losses ( 19.4 ) — ( 19.4 ) ( 117.8 ) 1.1 ( 116.7 )
Other — — — ( 0.1 ) — ( 0.1 )
Comprehensive income (loss) $ 78.6 $ ( 36.0 ) $ 42.6 $ ( 140.6 ) $ ( 12.3 ) $ ( 152.9 )
Twenty-Six Weeks Ended
November 23, 2025 Twenty-Six Weeks Ended
November 24, 2024
Pre-Tax
Amount Tax
(Expense)
Benefit After-Tax
Amount Pre-Tax
Amount Tax
(Expense)
Benefit After-Tax
Amount
Net income $ 210.3 $ ( 83.9 ) $ 126.4 $ 155.5 $ ( 64.2 ) $ 91.3
Other comprehensive income (loss):
Unrealized pension and post-retirement benefit obligations gain (loss) 6.2 ( 1.0 ) 5.2 ( 0.2 ) — ( 0.2 )
Unrealized currency translation gains (losses) 21.9 — 21.9 ( 61.2 ) 0.5 ( 60.7 )
Other — — — ( 0.3 ) 0.1 ( 0.2 )
Comprehensive income $ 238.4 $ ( 84.9 ) $ 153.5 $ 93.8 $ ( 63.6 ) $ 30.2
See Condensed Notes to Consolidated Financial Statements.
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Lamb Weston Holdings, Inc.
Consolidated Balance Sheets
(unaudited, dollars in millions, except share data)
November 23, 2025 May 25, 2025
ASSETS
Current assets:
Cash and cash equivalents $ 82.7 $ 70.7
Receivables, net of allowances of $ 1.0 and $ 0.9
742.2 781.6
Inventories 1,117.8 1,035.4
Prepaid expenses and other current assets 68.3 145.0
Total current assets 2,011.0 2,032.7
Property, plant and equipment, net 3,652.9 3,687.9
Operating lease assets 118.2 113.2
Goodwill 1,099.5 1,090.2
Intangible assets, net 110.9 114.0
Other assets 338.5 354.6
Total assets $ 7,331.0 $ 7,392.6
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term borrowings $ 187.0 $ 370.8
Current portion of long-term debt and financing obligations 82.7 77.8
Accounts payable 709.2 616.4
Accrued liabilities 424.2 411.0
Total current liabilities 1,403.1 1,476.0
Long-term liabilities:
Long-term debt and financing obligations, excluding current portion 3,648.9 3,682.8
Deferred income taxes 273.3 253.5
Other noncurrent liabilities 251.3 242.6
Total long-term liabilities 4,173.5 4,178.9
Commitments and contingencies
Stockholders’ equity:
Common stock of $ 1.00 par value, 600,000,000 shares authorized; 152,006,164 and 151,390,267 shares issued
152.0 151.4
Treasury stock, at cost, 13,126,699 and 12,152,507 common shares
( 897.4 ) ( 838.0 )
Additional distributed capital ( 453.7 ) ( 479.1 )
Retained earnings 2,871.9 2,848.9
Accumulated other comprehensive income 81.6 54.5
Total stockholders’ equity 1,754.4 1,737.7
Total liabilities and stockholders’ equity $ 7,331.0 $ 7,392.6
See Condensed Notes to Consolidated Financial Statements.
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Lamb Weston Holdings, Inc.
Consolidated Statements of Stockholders’ Equity
(unaudited, dollars in millions, except share and per share data)
Thirteen Weeks Ended November 23, 2025 and November 24, 2024
Common Stock,
net of Treasury
Shares Common
Stock
Amount Treasury
Stock
Amount Additional
Paid-in
(Distributed)
Capital Retained
Earnings Accumulated
Other
Comprehensive
Income (Loss) Total
Stockholders’
Equity
Balance at August 24, 2025 139,335,411 $ 151.8 $ ( 856.7 ) $ ( 468.2 ) $ 2,861.8 $ 101.1 $ 1,789.8
Dividends declared, $ 0.37 per share
— — — — ( 51.4 ) — ( 51.4 )
Common stock issued 173,322 0.2 — 4.3 — — 4.5
Stock-settled, stock-based compensation expense — — — 9.5 — — 9.5
Repurchase of common stock and common stock withheld to cover taxes ( 629,268 ) — ( 40.4 ) — — — ( 40.4 )
Other — — ( 0.3 ) 0.7 ( 0.6 ) — ( 0.2 )
Comprehensive income (loss) — — — — 62.1 ( 19.5 ) 42.6
Balance at November 23, 2025 138,879,465 $ 152.0 $ ( 897.4 ) $ ( 453.7 ) $ 2,871.9 $ 81.6 $ 1,754.4
Balance at August 25, 2024 142,595,357 $ 151.3 $ ( 633.7 ) $ ( 499.0 ) $ 2,775.3 $ 42.8 $ 1,836.7
Dividends declared, $ 0.36 per share
— — — — ( 51.3 ) — ( 51.3 )
Common stock issued 54,070 — — — — — —
Stock-settled, stock-based compensation expense — — — 12.3 — — 12.3
Repurchase of common stock and common stock withheld to cover taxes ( 8,791 ) — ( 0.7 ) — — — ( 0.7 )
Other — — — ( 10.6 ) ( 0.7 ) — ( 11.3 )
Comprehensive loss — — — — ( 36.1 ) ( 116.8 ) ( 152.9 )
Balance at November 24, 2024 142,640,636 $ 151.3 $ ( 634.4 ) $ ( 497.3 ) $ 2,687.2 $ ( 74.0 ) $ 1,632.8
Twenty-Six weeks ended November 23, 2025 and November 24, 2024
Common Stock,
net of Treasury
Shares Common
Stock
Amount Treasury
Stock
Amount Additional
Paid-in
(Distributed)
Capital Retained
Earnings Accumulated
Other
Comprehensive
Income (Loss) Total
Stockholders’
Equity
Balance at May 25, 2025 139,237,760 $ 151.4 $ ( 838.0 ) $ ( 479.1 ) $ 2,848.9 $ 54.5 $ 1,737.7
Dividends declared, $ 0.74 per share
— — — — ( 103.0 ) — ( 103.0 )
Common stock issued 615,897 0.6 — 3.9 — — 4.5
Stock-settled, stock-based compensation expense — — — 20.1 — — 20.1
Repurchase of common stock and common stock withheld to cover taxes ( 974,192 ) — ( 59.1 ) — — — ( 59.1 )
Other — — ( 0.3 ) 1.4 ( 0.4 ) — 0.7
Comprehensive income — — — — 126.4 27.1 153.5
Balance at November 23, 2025 138,879,465 $ 152.0 $ ( 897.4 ) $ ( 453.7 ) $ 2,871.9 $ 81.6 $ 1,754.4
Balance at May 26, 2024 143,666,656 $ 150.7 $ ( 540.9 ) $ ( 508.9 ) $ 2,699.8 $ ( 12.9 ) $ 1,787.8
Dividends declared, $ 0.72 per share
— — — — ( 102.9 ) — ( 102.9 )
Common stock issued 574,564 0.6 — ( 0.6 ) — — —
Stock-settled, stock-based compensation expense — — — 21.8 — — 21.8
Repurchase of common stock and common stock withheld to cover taxes ( 1,600,584 ) — ( 92.9 ) — — — ( 92.9 )
Other — — ( 0.6 ) ( 9.6 ) ( 1.0 ) — ( 11.2 )
Comprehensive income (loss) — — — — 91.3 ( 61.1 ) 30.2
Balance at November 24, 2024 142,640,636 $ 151.3 $ ( 634.4 ) $ ( 497.3 ) $ 2,687.2 $ ( 74.0 ) $ 1,632.8
See Condensed Notes to Consolidated Financial Statements.
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Lamb Weston Holdings, Inc.
Consolidated Statements of Cash Flows
(unaudited, dollars in millions)
Twenty-Six Weeks Ended
November 23,
2025 November 24,
2024
Cash flows from operating activities
Net income $ 126.4 $ 91.3
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles and debt issuance costs 191.5 211.0
Stock-settled, stock-based compensation expense 20.1 21.9
Equity method investment (earnings) loss, net of distributions ( 2.8 ) 11.5
Deferred income taxes 19.0 1.4
Pension expense, net of contributions 14.2 1.2
Blue chip swap transaction gains — ( 19.9 )
Other 11.8 14.4
Changes in operating assets and liabilities:
Receivables 43.8 39.0
Inventories ( 79.5 ) ( 198.2 )
Income taxes payable/receivable, net ( 6.5 ) ( 25.1 )
Prepaid expenses and other current assets 67.5 75.2
Accounts payable 117.3 216.8
Accrued liabilities 7.6 ( 11.2 )
Net cash provided by operating activities $ 530.4 $ 429.3
Cash flows from investing activities
Additions to property, plant and equipment ( 155.0 ) ( 474.6 )
Additions to other long-term assets ( 0.7 ) ( 31.7 )
Proceeds from sale of property, plant and equipment 14.7 1.5
Proceeds from blue chip swap transactions, net of purchases — 19.9
Other 3.7 —
Net cash used for investing activities $ ( 137.3 ) $ ( 484.9 )
Cash flows from financing activities
Proceeds from short-term borrowings 374.8 811.6
Repayments of short-term borrowings ( 562.4 ) ( 813.8 )
Proceeds from issuance of debt — 520.2
Repayments of debt and financing obligations ( 35.7 ) ( 245.4 )
Dividends paid ( 103.3 ) ( 103.3 )
Repurchase of common stock and common stock withheld to cover taxes ( 59.1 ) ( 92.8 )
Other 3.9 ( 13.2 )
Net cash (used for) provided by financing activities $ ( 381.8 ) $ 63.3
Effect of exchange rate changes on cash and cash equivalents 0.7 ( 0.1 )
Net increase in cash and cash equivalents 12.0 7.6
Cash and cash equivalents, beginning of period 70.7 71.4
Cash and cash equivalents, end of period $ 82.7 $ 79.0
See Condensed Notes to Consolidated Financial Statements.
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Lamb Weston Holdings, Inc.
Condensed Notes to Consolidated Financial Statements
(Unaudited)
1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Lamb Weston Holdings, Inc. (“we,” “us,” “our,” the “Company,” or “Lamb Weston”) is a leading global producer, distributor, and marketer of value-added frozen potato products; headquartered in Eagle, Idaho. We have two reportable segments: North America and International. See Note 13, Segments, for additional information on our reportable segments.
Basis of Presentation
The accompanying unaudited Consolidated Financial Statements present the financial results of Lamb Weston and its consolidated subsidiaries for the thirteen and twenty-six weeks ended November 23, 2025 and November 24, 2024, and have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America (“U.S.”).
These consolidated financial statements are unaudited and 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 actual results that we experience may differ materially from those estimates. Results for interim periods should not be considered indicative of results for our full fiscal year, which ends the last Sunday in May.
These financial statements and related condensed notes should be read together with the consolidated financial statements and notes in our Annual Report on Form 10-K for the fiscal year ended May 25, 2025 (the “Form 10-K”), where we include additional information on our critical accounting estimates, policies, and the methods and assumptions used in our estimates. We filed the Form 10-K with the Securities and Exchange Commission (the “SEC”) on July 23, 2025.
Certain amounts from prior period consolidated financial statements have been reclassified to conform with current period presentation. These reclassifications had no financial impact on previously reported net income, cash flows, or stockholders’ equity.
Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , to enhance transparency and decision usefulness of income tax disclosures, particularly around rate reconciliations and income taxes paid information. ASU 2023-09 is effective for our Annual Report on Form 10-K for the fiscal year ending May 31, 2026, on a prospective basis, with early adoption permitted. We adopted this guidance as of May 26, 2025, and will update disclosures within our fiscal 2026 Annual Report on Form 10-K.
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) , which requires companies to provide more detailed information of certain income statement expenses within the footnotes to the financial statements. ASU 2024-03 is effective for our Annual Report on Form 10-K for the fiscal year ending May 28, 2028, and for our quarterly reports beginning fiscal year 2029, on a prospective basis, with early adoption permitted. We are evaluating the impact of adopting this ASU on our consolidated financial statements and related disclosures.
In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal - Use Software (Subtopic 350-40): Targeted Improvements to Accounting for Internal-Use Software. This guidance provides criteria that must be met for entities to capitalize software development costs and factors to consider if there is significant uncertainty associated with the development activities of software. This guidance is effective for our annual reporting periods beginning with fiscal 2029 and interim periods within that fiscal year. Early adoption is permitted. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and related disclosures.
There were no other accounting pronouncements recently issued that had or are expected to have a material impact on our consolidated financial statements.
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2. EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted earnings per common share for the periods presented:
Thirteen Weeks Ended Twenty-Six Weeks Ended
(in millions, except per share amounts) November 23,
2025 November 24,
2024 November 23,
2025 November 24,
2024
Numerator:
Net income (loss) $ 62.1 $ ( 36.1 ) $ 126.4 $ 91.3
Denominator:
Basic weighted average common shares outstanding 139.4 142.8 139.4 143.2
Add: Dilutive effect of employee incentive plans (a) 0.2 0.4 0.3 0.5
Diluted weighted average common shares outstanding 139.6 143.2 139.7 143.7
Earnings per share:
Basic $ 0.45 $ ( 0.25 ) $ 0.91 $ 0.64
Diluted $ 0.44 $ ( 0.25 ) $ 0.90 $ 0.64
___________________________________________
(a) Potential dilutive shares of common stock under 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 23, 2025 and November 24, 2024, we excluded 1.0 million and 0.6 million, respectively, of shares of stock-based awards from the computation of diluted earnings per share because they would be antidilutive.
3. INCOME TAXES
Income tax expense for the periods presented were as follows:
Thirteen Weeks Ended Twenty-Six Weeks Ended
(in millions) November 23,
2025 November 24,
2024 November 23,
2025 November 24,
2024
Income (loss) before income taxes and equity method earnings $ 94.9 $ ( 24.8 ) $ 207.7 $ 142.1
Equity method investment earnings $ 3.2 $ 2.1 $ 2.6 $ 13.4
Income tax expense $ 36.0 $ 13.4 $ 83.9 $ 64.2
Effective tax rate (a) 36.7 % ( 59.0 )% 39.9 % 41.3 %
___________________________________________
(a) The effective income tax rate is calculated as the ratio of income tax expense to pre-tax income, inclusive of equity method investment earnings. The effective tax rate varies from the U.S. statutory tax rate of 21% principally due to the impact of U.S. state taxes, foreign taxes and currency, permanent differences, and discrete items.
Income Taxes Paid
Income taxes paid, net of refunds, were $ 69.9 million and $ 86.4 million during the twenty-six weeks ended November 23, 2025 and November 24, 2024, respectively.
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4. RESTRUCTURING
We announced a cost savings program (the “Cost Savings Program”) in July 2025 and a restructuring plan (the “Restructuring Plan”) in October 2024, (collectively referred to as the “Plans”). Items classified as “Restructuring expense” on our Consolidated Statement of Earnings that were incurred in fiscal 2026 primarily relate to the Cost Savings Program while expenses incurred in fiscal 2025 relate solely to the Restructuring Plan. We do not expect any future costs in connection with the Restructuring Plan. Costs associated with these initiatives are presented in the table below.
We expect to recognize total pre-tax cash charges of $ 70 million to $ 100 million, most of which will be recognized in fiscal 2026, related to the Cost Savings Program. The charges in the thirteen and twenty-six weeks ended November 23, 2025 largely relate to professional service fees and employee severance and other one-time termination benefits related to headcount reductions.
Thirteen Weeks Ended Twenty-Six Weeks Ended
(in millions) November 23,
2025 November 24,
2024 November 23,
2025 November 24,
2024
Cost Savings Program and Restructuring Plan expenses related to:
Accelerated depreciation, retirement of assets, and other plant charges (a) $ — $ 45.8 $ 1.8 $ 45.8
Potato contract terminations (b) — 64.7 — 64.7
Inventory write-off (b) — 19.8 — 19.8
Employee-related costs (c) 0.9 16.2 9.0 16.2
Professional services and other (d) 13.2 12.6 35.2 12.6
$ 14.1 $ 159.1 $ 46.0 $ 159.1
___________________________________________
(a) Includes charges related to accelerating depreciation of the manufacturing facility permanently closed under the Restructuring Plan, other asset retirements, and plant charges.
(b) Includes the cost of contracted raw potatoes that were not used due to curtailed production and the write-off of inventories, including spare parts, related to the production curtailment under the Restructuring Plan.
(c) Includes employee severance and other one-time termination benefits related to reductions in headcount under the Plans.
(d) Includes professional services and other charges related to the Plans.
The following amounts related to the Plans are included within the following financial statement captions in the Company’s Consolidated Statements of Earnings:
Thirteen Weeks Ended Twenty-Six Weeks Ended
(in millions) November 23,
2025 November 24,
2024 November 23,
2025 November 24,
2024
Cost Savings Program and Restructuring Plan expenses included in:
Cost of sales $ — $ 75.5 $ ( 0.4 ) $ 75.5
Restructuring expense 14.1 74.6 46.4 74.6
Equity method investment earnings — 9.0 — 9.0
$ 14.1 $ 159.1 $ 46.0 $ 159.1
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Accruals remaining under the Plans are recorded as current liabilities within “Accounts payable” and “Accrued liabilities” in the accompanying Consolidated Balance Sheet at November 23, 2025. The following is a roll-forward of accrued restructuring liabilities related to the Plans:
(in millions) Restructuring Plan Cost Savings Program Total
Accrued restructuring liability, May 25, 2025 $ 21.5 $ — $ 21.5
Additions 1.8 44.2 46.0
Payments ( 23.3 ) ( 32.1 ) ( 55.4 )
Accrued restructuring liability, November 23, 2025 $ — $ 12.1 $ 12.1
5. INVENTORIES
Inventories are valued at the lower of cost (determined using the first-in, first-out method) or net realizable value and include all costs directly associated with manufacturing products: materials, labor, and manufacturing overhead. The components of inventories were as follows:
(in millions) November 23,
2025 May 25,
2025
Raw materials and packaging $ 312.5 $ 171.5
Finished goods 686.1 755.7
Supplies and other 119.2 108.2
Inventories $ 1,117.8 $ 1,035.4
6. PROPERTY, PLANT AND EQUIPMENT
The components of property, plant and equipment were as follows:
(in millions) November 23,
2025 May 25,
2025
Land and land improvements $ 209.1 $ 191.6
Buildings, machinery and equipment 5,574.6 5,136.3
Furniture, fixtures, office equipment and other 154.5 161.9
Construction in progress 222.3 551.7
Property, plant and equipment, at cost 6,160.5 6,041.5
Less accumulated depreciation ( 2,507.6 ) ( 2,353.6 )
Property, plant and equipment, net $ 3,652.9 $ 3,687.9
At November 23, 2025 and May 25, 2025, purchases of property, plant and equipment included in accounts payable were $ 59.1 million and $ 85.4 million, respectively.
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The table below presents a breakdown of depreciation and amortization between Cost of sales (“COS”) and Selling, general and administrative expense (“SG&A”) for the thirteen and twenty-six weeks ended November 23, 2025 and November 24, 2024.
Thirteen Weeks Ended Twenty-Six Weeks Ended
(in millions) November 23,
2025 November 24,
2024 November 23,
2025 November 24,
2024
Depreciation - COS $ 86.2 $ 79.6 $ 168.9 $ 158.1
Depreciation - SG&A 3.2 3.7 6.7 7.0
Depreciation - Restructuring expense (a) — 28.9 — 28.9
$ 89.4 $ 112.2 $ 175.6 $ 194.0
Amortization $ 7.9 $ 7.2 $ 15.9 $ 14.7
Interest capitalized within construction in progress for the thirteen weeks ended November 23, 2025 and November 24, 2024, was $ 1.6 million and $ 8.2 million, respectively; and $ 7.0 million and $ 14.9 million for the twenty-six weeks ended November 23, 2025 and November 24, 2024, respectively.
7. GOODWILL AND OTHER IDENTIFIABLE INTANGIBLE ASSETS
The following table presents changes in goodwill balances, by segment, for the twenty-six weeks ended November 23, 2025:
(in millions) North America International Total
Balance at May 25, 2025 $ 753.2 $ 337.0 $ 1,090.2
Foreign currency translation adjustment 6.5 2.8 9.3
Balance at November 23, 2025 $ 759.7 $ 339.8 $ 1,099.5
Other identifiable intangible assets were as follows:
November 23, 2025 May 25, 2025
(in millions, except useful lives) Weighted
Average
Useful Life
(in years) Gross
Carrying
Amount Accumulated
Amortization Intangible
Assets, Net Weighted
Average
Useful Life
(in years) Gross
Carrying
Amount Accumulated
Amortization Intangible
Assets, Net
Non-amortizing intangible assets (a) n/a $ 18.0 $ — $ 18.0 n/a $ 18.0 $ — $ 18.0
Amortizing intangible assets (b) 13 142.1 ( 49.2 ) 92.9 13 140.8 ( 44.8 ) 96.0
$ 160.1 $ ( 49.2 ) $ 110.9 $ 158.8 $ ( 44.8 ) $ 114.0
___________________________________________
(a) Non-amortizing intangible assets represent brands and trademarks.
(b) Amortizing intangible assets are principally composed of licensing agreements, brands, and customer relationships. Foreign intangible assets are affected by foreign currency translation.
8. OTHER ASSETS
The components of other assets were as follows:
(in millions) November 23,
2025 May 25,
2025
Capitalized software costs $ 192.3 $ 208.7
Equity method investments 51.2 47.5
Property, plant and equipment deposits 24.7 30.3
Other 70.3 68.1
Other assets $ 338.5 $ 354.6
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9. ACCRUED LIABILITIES
The components of accrued liabilities were as follows:
(in millions) November 23,
2025 May 25,
2025
Compensation and benefits $ 120.1 $ 104.5
Accrued trade promotions 97.1 88.2
Dividends payable to shareholders 51.4 51.7
Accrued interest 35.0 36.3
Taxes payable 27.2 37.3
Current portion of operating lease obligations 26.1 23.9
Plant accruals 20.4 23.0
Derivative liabilities and payables 6.1 7.0
Other 40.8 39.1
Accrued liabilities $ 424.2 $ 411.0
10. DEBT AND FINANCING OBLIGATIONS
The components of our debt, including financing obligations, were as follows:
(in millions) November 23, 2025 May 25, 2025
Amount Interest Rate Amount Interest Rate
Short-term borrowings:
Revolving credit facility $ 149.7 3.830 % $ 333.2 5.940 %
Other credit facilities (a) 37.3 37.6
187.0 370.8
Long-term debt:
Term A-3 loan facility, due January 2030 (b) 393.8 6.350 405.0 6.900
Term A-4 loan facility, due May 2029 (b) 304.7 6.690 312.8 6.630
Term A-5 loan facility, due September 2031 (b) 481.3 5.660 493.8 5.650
RMB loan facility, due February 2027 142.2 3.800 143.8 4.040
RMB loan facility, due September 2029 19.7 3.800 19.6 3.960
Euro term loan facility, due May 2029 230.3 3.440 227.2 4.510
4.875 % senior notes, due May 2028
500.0 4.875 500.0 4.875
4.125 % senior notes, due January 2030
970.0 4.125 970.0 4.125
4.375 % senior notes, due January 2032
700.0 4.375 700.0 4.375
3,742.0 3,772.2
Financing obligations:
Lease financing obligations due on various dates through 2040 4.5 5.2
Total debt and financing obligations 3,933.5 4,148.2
Debt issuance costs (c) ( 14.9 ) ( 16.8 )
Short-term borrowings ( 187.0 ) ( 370.8 )
Current portion of long-term debt and financing obligations ( 82.7 ) ( 77.8 )
Long-term debt and financing obligations, excluding current portion $ 3,648.9 $ 3,682.8
___________________________________________
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(a) Other credit facilities consist of short-term facilities at our subsidiaries used for working capital purposes. Borrowings under these facilities bear interest at various rates.
(b) The interest rates applicable to the Term A-3, A-4, and A-5 loans do not include anticipated patronage dividends. We have received and expect to continue receiving patronage dividends under these term loan facilities.
(c) Excludes debt issuance costs of $ 3.4 million and $ 3.9 million as of November 23, 2025 and May 25, 2025, respectively, related to our Revolving credit facility, which are recorded in “Other assets” on our Consolidated Balance Sheets.
As of November 23, 2025, we had $ 1,350.3 million of available liquidity under our committed revolving credit facility.
For the twenty-six weeks ended November 23, 2025 and November 24, 2024, we paid $ 100.5 million and $ 97.1 million of interest on debt, respectively.
For more information about our debt and financing obligations, interest rates, and debt covenants, see Note 8, Debt and Financing Obligations, of the Notes to Consolidated Financial Statements in “Part II, Item 8. Financial Statements and Supplementary Data” of the Form 10-K.
11. FAIR VALUE MEASUREMENTS
The fair values of cash equivalents, receivables, accounts payable, and short-term debt approximate their carrying amounts due to their short duration.
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:
As of November 23, 2025
(in millions) Level 1 Level 2 Level 3 Fair Value
of Assets
(Liabilities)
Derivative assets (a) $ — $ 2.8 $ — $ 2.8
Derivative liabilities (a) — ( 6.1 ) — ( 6.1 )
Deferred compensation liabilities (b) — ( 30.0 ) — ( 30.0 )
Fair value, net $ — $ ( 33.3 ) $ — $ ( 33.3 )
As of May 25, 2025
(in millions) Level 1 Level 2 Level 3 Fair Value
of Assets
(Liabilities)
Derivative assets (a) $ — $ 10.2 $ — $ 10.2
Derivative liabilities (a) — ( 7.0 ) — ( 7.0 )
Deferred compensation liabilities (b) — ( 27.0 ) — ( 27.0 )
Fair value, net $ — $ ( 23.8 ) $ — $ ( 23.8 )
___________________________________________
(a) Derivative assets and liabilities included in Level 2 primarily represent commodity swaps, option contracts, interest rate swaps and currency contracts. The fair value of these derivatives were determined using valuation models that use market observable inputs including both forward and spot prices. Derivative assets are presented within “Prepaid expenses and other current assets” on our Consolidated Balance Sheets 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. While the underlying assets are actively traded on an exchange, the funds are not. Deferred compensation liabilities are primarily presented within “Other noncurrent liabilities” on our Consolidated Balance Sheets.
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As of November 23, 2025, we had $ 2,956.0 million of fixed-rate and $ 973.0 million of variable-rate debt outstanding. Based on current market rates, the fair value of our fixed-rate debt was estimated to be $ 2,885 million as of November 23, 2025. 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. The fair value of our variable-rate term debt approximates the carrying amount and approximates current market prices.
12. STOCKHOLDERS’ EQUITY
Share Repurchase Program
Our Board of Directors (the “Board”) has authorized a program, with no expiration date, to repurchase up to $ 750.0 million of our common stock. During the thirteen weeks ended November 23, 2025, we repurchased 617,623 shares of our common stock for an aggregate purchase price of $ 39.6 million, or a weighted-average price of $ 64.18 per share. During the twenty-six weeks ended November 23, 2025, we repurchased 804,882 shares of our common stock for an aggregate purchase price of $ 50.0 million, or a weighted-average price of $ 62.12 per share. As of November 23, 2025, approximately $ 308 million remained authorized for repurchase under our share repurchase program.
Dividends
During the twenty-six weeks ended November 23, 2025, we paid $ 103.3 million of cash dividends to our common stockholders. In addition, on November 28, 2025, we paid $ 51.4 million of cash dividends to common stockholders of record as of the close of business on October 31, 2025. On December 17, 2025, the Board declared a cash dividend of $ 0.38 per share of our common stock. This dividend will be paid on February 27, 2026, to common stockholders of record as of the close of business on January 30, 2026.
Accumulated Other Comprehensive Income
Changes in accumulated other comprehensive income, net of taxes, as of November 23, 2025 were as follows:
(in millions) Foreign
Currency
Translation
Gain Pension and
Post-Retirement
Benefits Other Accumulated
Other
Comprehensive
Income
Balance as of May 25, 2025 $ 58.9 $ ( 4.6 ) $ 0.2 $ 54.5
Other comprehensive income before reclassifications, net of tax 21.9 5.2 — 27.1
Net current-period other comprehensive income 21.9 5.2 — 27.1
Balance as of November 23, 2025 $ 80.8 $ 0.6 $ 0.2 $ 81.6
13. SEGMENTS
We manage our operations in two business segments, North America and International. As a result of how we manage the business, we have two operating segments, each of which is a reportable segment: North America and International. North America includes activity that occurs in the United States, Canada, and Mexico. International includes all activity that does not occur within the North America segment. Both segments primarily manufacture frozen potato products for sale to our customers. These reportable segments are each managed by a general manager and supported by a cross-functional team assigned to support the segment.
Our president and chief executive officer is our chief operating decision maker (the “CODM”). The CODM assesses the performance of our reportable segments and decides how to allocate resources based on segment adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDA”). The adjustments to EBITDA include unrealized mark-to-market derivative gains and losses (which are a component of both cost of sales and selling, general and administrative expenses), foreign currency exchange gains and losses (which are a component of selling, general and administrative expenses), blue chip swap transaction gains (which are a component of selling, general and administrative expenses), stock-based compensation (which is a component of selling, general and administrative expenses), and other items impacting comparability (which are a component of both cost of sales and selling, general and administrative expenses) that are described below (“Segment Adjusted EBITDA”).
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Net sales and Segment Adjusted EBITDA inform operating decisions, performance assessment, and resource allocation decisions at the segment level. Our CODM uses net sales and Segment Adjusted EBITDA in the annual operating plan and forecasting process and considers actual versus plan variances in assessing the performance of each segment. Total asset information by segment is not regularly provided to our CODM or utilized for purposes of assessing performance or allocating resources by segment and, as a result, such information has not been presented below.
The following table illustrates reportable segment net sales and Segment Adjusted EBITDA for the thirteen and twenty-six weeks ended November 23, 2025 and November 24, 2024, respectively.
Thirteen Weeks Ended
November 23,
2025 November 24,
2024
(in millions) North America International Total North America International Total
Net Sales $ 1,069.5 $ 548.6 $ 1,618.1 $ 1,072.1 $ 528.8 $ 1,600.9
Other segment items (a) 781.7 521.4 1,303.1 802.9 480.2 1,283.1
Segment Adjusted EBITDA $ 287.8 $ 27.2 $ 315.0 $ 269.2 $ 48.6 $ 317.8
Unallocated corporate costs (b) ( 29.3 ) ( 23.6 )
Depreciation and amortization (c) 99.7 92.5
Unrealized derivative gains 12.1 3.0
Foreign currency exchange losses 6.8 9.6
Blue chip swap gains (d) — ( 3.3 )
Stock-based compensation 9.5 12.3
Items impacting comparability:
Cost Savings Program, Restructuring Plan, and other expenses (e) 14.1 159.1
Shareholder activism expense (f) — 0.4
Pension settlement (g) 1.1 —
Interest expense, net 44.3 43.3
Income before income taxes 98.1 ( 22.7 )
Income tax expense 36.0 13.4
Net income (loss) $ 62.1 $ ( 36.1 )
___________________________________________
(a) Other segment items include cost of sales, selling, general and administrative expenses, and equity method investment income or loss for each segment.
(b) Unallocated corporate costs include costs related to corporate support staff and support services, which include, but are not limited to, our administrative, information technology, human resources, finance, and accounting functions that are not specifically allocated to the segments. In the table, unallocated corporate costs exclude unrealized derivative gains and losses, foreign currency exchange gains and losses, blue chip swap transaction gains, and other items impacting comparability. These items are added back to reconcile Segment Adjusted EBITDA to net income.
(c) Depreciation and amortization includes interest expense, income tax expense, and depreciation and amortization relating to equity method investments of $ 2.2 million and $ 2.0 million for the thirteen weeks ended November 23, 2025 and November 24, 2024, respectively.
(d) We entered into blue chip swap transactions to transfer U.S. dollars into Argentina primarily related to funding our capacity expansion in Argentina, which is now substantially complete. The blue chip swap rate can diverge significantly from Argentina ’ s official exchange rate.
(e) Cost Savings Program, Restructuring Plan, and other expenses relate to costs incurred under the Plans. See Note 4, Restructuring, of these Condensed Notes to Consolidated Financial Statements for additional information
(f) Represents advisory fees related to shareholder activism matters.
(g) The Pension settlement charge was to fully fund the Company’s defined benefit pension plan, enabling lump sum payments to participants and transferring the remaining obligations and related plan assets to an insurer through a group annuity contract.
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Twenty-Six Weeks Ended
November 23,
2025 November 24,
2024
(in millions) North America International Total North America International Total
Net Sales $ 2,154.0 $ 1,123.3 $ 3,277.3 $ 2,175.8 $ 1,079.2 $ 3,255.0
Other segment items (a) 1,606.2 1,038.9 2,645.1 1,628.6 979.2 2,607.8
Segment Adjusted EBITDA (b) $ 547.8 $ 84.4 $ 632.2 $ 547.2 $ 100.0 $ 647.2
Unallocated corporate costs (c) ( 44.4 ) ( 53.6 )
Depreciation and amortization (d) 195.9 183.9
Unrealized derivative gains and losses 7.2 ( 5.9 )
Foreign currency exchange losses 2.1 10.2
Blue chip swap gains (e) — ( 19.9 )
Stock-based compensation 20.1 21.8
Items impacting comparability:
Cost Savings Program, Restructuring Plan, and other expenses (f) 46.0 159.1
Shareholder activism expense (g) 4.0 0.4
Pension settlement (h) 14.2 —
Interest expense, net 88.0 88.5
Income before income taxes 210.3 155.5
Income tax expense 83.9 64.2
Net income $ 126.4 $ 91.3
___________________________________________
(a) Other segment items include cost of sales, selling, general and administrative expenses, and equity method investment income or loss for each segment.
(b) Segment Adjusted EBITDA for the twenty-six weeks ended November 24, 2024 includes an estimated $ 39 million loss related to a voluntary product withdrawal that was initiated in the fourth quarter of fiscal 2024. The total charge to reporting segments was approximately $ 21 million to the North America segment and approximately $ 18 million to the International segment.
(c) Unallocated corporate costs include costs related to corporate support staff and support services, which include, but are not limited to, our administrative, information technology, human resources, finance, and accounting functions that are not specifically allocated to the segments. In the table, unallocated corporate costs exclude unrealized derivative gains and losses, foreign currency exchange gains and losses, blue chip swap transaction gains, and other items impacting comparability. These items are added back to reconcile Segment Adjusted EBITDA to net income.
(d) Depreciation and amortization includes interest expense, income tax expense, and depreciation and amortization relating to equity method investments of $ 4.4 million and $ 4.1 million for the twenty-six weeks ended November 23, 2025 and November 24, 2024, respectively.
(e) We entered into blue chip swap transactions to transfer U.S. dollars into Argentina primarily related to funding our capacity expansion in Argentina, which is now substantially complete. The blue chip swap rate can diverge significantly from Argentina ’ s official exchange rate.
(f) Cost Savings Program, Restructuring Plan, and other expenses relate to costs incurred under the Plans. See Note 4, Restructuring, of these Condensed Notes to Consolidated Financial Statements for additional information
(g) Represents advisory fees related to shareholder activism matters.
(h) The Pension settlement charge was to fully fund the Company’s defined benefit pension plan, enabling lump sum payments to participants and transferring the remaining obligations and related plan assets to an insurer through a group annuity contract.
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14. COMMITMENTS, CONTINGENCIES, GUARANTEES AND LEGAL PROCEEDINGS
We have financial commitments and other obligations that arise in the ordinary course of our business. These include long-term debt, lease obligations, and purchase commitments for goods and services. There have been no material changes to the commitments, contingencies, and guarantees disclosed in Note 14, Commitments, Contingencies, Guarantees, and Legal Proceedings, of the Notes to Consolidated Financial Statements in “Part II, Item 8. Financial Statements and Supplementary Data” of the Form 10-K.
Legal Proceedings
In June 2024, two putative class actions were filed in the U.S. District Court for the District of Idaho against the Company and certain of our current and former executive officers alleging violations of the federal securities laws. The lawsuits were consolidated in November 2024. The amended consolidated complaint alleges the defendants made misrepresentations and omissions regarding the design and implementation of our enterprise resource planning system and the Company’s pricing practices. The complaint asserts claims on behalf of a proposed class of purchasers of the Company’s common stock between July 25, 2023 and December 19, 2024. On April 25, 2025, defendants filed a motion to dismiss. Briefing is complete but no hearing date has been set. In June 2025, a purported Company stockholder filed a verified stockholder derivative complaint (nominally on behalf of the Company) against certain of our current and former directors and officers, alleging violations of the federal securities laws and breach of fiduciary duty stemming from the same or similar purported misrepresentations and omissions regarding the design and implementation of our enterprise resource planning system as the putative class actions. The derivative lawsuit has been stayed pending resolution of the motion to dismiss in the securities class action. We believe the lawsuits lack merit and intend to vigorously defend against the allegations. We are currently unable to predict the outcome of this matter or estimate the range of potential loss, if any, that may result.
In November 2024, a class action complaint was filed in the U.S. District Court for the Northern District of Illinois against the Company, certain of our subsidiaries and a number of other producers of frozen potato products alleging violations of antitrust laws. Additional class action complaints were later filed in the same court, based on similar allegations, bringing antitrust claims on behalf of putative classes of direct purchasers, commercial and institutional indirect purchasers, and end-consumer indirect purchasers. Some complaints named additional defendants. The complaints were ordered to be consolidated and amended. On October 6, 2025, plaintiffs filed three consolidated complaints on behalf of their putative classes, asserting amended claims against the Company, certain of our subsidiaries, other producers of frozen potato products, and a data provider. The consolidated complaints allege, among other things, that beginning at least as early as January 1, 2021, the defendants conspired to raise the price of frozen potato products above competitive levels in violation of U.S. antitrust laws by coordinating prices of frozen potato products and imposing lockstep price increases, allegedly facilitated by the exchange of non-public information about prices and production. The complaints on behalf of the putative classes of indirect purchasers also assert claims under various state laws, including state antitrust laws, unfair competition laws, and consumer protection statutes. The relief sought in the complaints includes treble damages, injunctive relief, equitable monetary relief, pre- and post-judgment interest, costs and attorneys’ fees. On December 5, 2025, defendants filed a motion to dismiss. Briefing is ongoing and the motion remains pending. Class actions based on similar allegations have also been filed in Canada, in the Supreme Court of British Columbia and the Superior Court of Quebec. We believe these complaints lack merit and intend to vigorously defend against the allegations. We are currently unable to predict the outcome of this matter or estimate the range of potential loss, if any, that may result.
We are also a party to various other legal actions arising in the ordinary course of our business. These claims, legal proceedings and litigation principally arise from alleged casualty, product liability, employment, and other disputes. In determining loss contingencies, we consider the likelihood of loss as well as the ability to reasonably estimate the amount of such loss or liability. An estimated loss is recognized when it is considered probable that a liability has been incurred and when the amount of loss can be reasonably estimated. While any claim, proceeding or litigation has an element of uncertainty, we believe the outcome of any of these that are pending or threatened will not have a material adverse effect on our financial condition, results of operations, or cash flows.
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.