DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS

9 Months Ended

Feb. 23, 2014

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS AND OTHER ASSETS HELD FOR SALE

PB Snacks

In the third quarter of fiscal 2014, our Board of Directors approved the sale of a small snack business within the Private Brands segment ("PB Snacks"). The business results were previously reflected in the Private Brands segment. We reflected the results of these operations as discontinued operations for all periods presented. The assets and liabilities of the discontinued business have been reclassified as assets and liabilities held for sale within our Condensed Consolidated Balance Sheets for all periods presented. In the third quarter of fiscal 2014, we recognized an impairment charge related to allocated amounts of goodwill and intangible assets, totaling $25.4 million ($15.2 million after-tax), in anticipation of this divestiture. We expect to complete the sale of this business in the fourth quarter of fiscal 2014.

Lightlife^® Operations

In the second quarter of fiscal 2014, we completed the sale of the assets of the Lightlife^® business for $54.7 million in cash. This business produced and sold vegetarian-based burgers, hot dogs, and other meatless frozen and refrigerated items. The results of this business were previously reflected in the Consumer Foods segment. We reflected the results of these operations as discontinued operations for all periods presented. We recognized a pre-tax gain of $32.1 million ($19.8 million after-tax) on the sale of this business in the second quarter of fiscal 2014. The assets of the discontinued Lightlife business have been reclassified as assets held for sale within our Condensed Consolidated Balance Sheets for all periods presented prior to divestiture.

The summary comparative financial results of discontinued operations were as follows:

	Thirteen weeks ended					Thirty-nine weeks ended
	February 23, 2014			February 24, 2013		February 23, 2014			February 24, 2013
Net sales	$	16.9		$	14.7	$	62.0		$	32.6
Long-lived asset impairment charge	(25.4		)	—		(25.4		)	—
Income (loss) from operations of discontinued operations before income taxes	1.9			0.8		39.1			(1.4		)
Income (loss) before income taxes	(23.5		)	0.8		13.7			(1.4		)
Income tax expense (benefit)	(9.5		)	0.3		6.5			(0.5		)
Income (loss) from discontinued operations, net of tax	$	(14.0	)	$	0.5	$	7.2		$	(0.9	)

Other Assets Held for Sale

During the third quarter of fiscal 2014, we initiated a plan to sell three flour milling facilities within our Commercial Foods segment. These assets have been reclassified as assets held for sale within our Condensed Consolidated Balance Sheets for all periods presented.

Also during the third quarter of fiscal 2014, we began actively marketing for sale an onion processing facility and farmland previously acquired from an onion supplier. These assets are held within our Commercial Foods segment. These assets have been reclassified as assets held for sale within our Condensed Consolidated Balance Sheets for all periods presented.

The assets and liabilities classified as held for sale reflected in our Condensed Consolidated Balance Sheets were as follows:

	February 23, 2014		May 26, 2013
Receivables, less allowance for doubtful accounts	$	7.8	$	6.8
Inventories	45.8		53.3
Prepaids and other current assets	2.4		4.7
Current assets held for sale	$	56.0	$	64.8
Property, plant and equipment, net	$	80.9	$	101.7
Goodwill	—		24.0
Brands, trademarks and other intangibles, net	6.0		18.4
Noncurrent assets held for sale	$	86.9	$	144.1
Accounts payable	$	4.5	$	3.4
Accrued payroll	0.2		0.1
Other accrued liabilities	1.6		1.3
Current liabilities held for sale	$	6.3	$	4.8
Other noncurrent liabilities	$	0.2	$	0.1
Noncurrent liabilities held for sale	$	0.2	$	0.1