Note 16 - Business Segments and Related Information

9 Months Ended

Feb. 25, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

16. 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 principally 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 expense (income); interest expense, net; income taxes; and equity method investment earnings have been excluded from segment operations.

	Thirteen Weeks Ended					Thirty-Nine Weeks Ended
	February 25, 2024		February 26, 2023			February 25, 2024		February 26, 2023
Net sales
Grocery & Snacks	$	1,286.0	$	1,243.7		$	3,784.0	$	3,781.9
Refrigerated & Frozen		1,202.4		1,307.7			3,692.5		3,936.8
International		271.7		259.7			811.5		751.9
Foodservice		272.8		275.4			857.0		833.1
Total net sales	$	3,032.9	$	3,086.5		$	9,145.0	$	9,303.7
Operating profit
Grocery & Snacks	$	299.3	$	256.4		$	837.2	$	847.2
Refrigerated & Frozen		201.5		263.6			620.9		297.6
International		42.2		37.1			71.8		100.9
Foodservice		35.4		23.8			117.5		53.5
Total operating profit	$	578.4	$	580.9		$	1,647.4	$	1,299.2
Equity method investment earnings		41.2		50.5			131.0		149.0
General corporate expense		107.0		90.9			238.5		280.9
Pension and postretirement non-service expense (income)		1.4		(6.0	)		2.1		(18.2	)
Interest expense, net		106.5		104.2			325.8		301.6
Income tax expense		95.9		100.1			297.1		237.0
Net income	$	308.8	$	342.2		$	914.9	$	646.9
Less: Net income attributable to noncontrolling interests		0.2		0.5			0.4		0.8
Net income attributable to Conagra Brands, Inc.	$	308.6	$	341.7		$	914.5	$	646.1

The following table presents further disaggregation of our net sales:

	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	February 25, 2024		February 26, 2023		February 25, 2024		February 26, 2023
Frozen	$	1,021.8	$	1,101.2	$	3,076.3	$	3,267.1
Staples
Other shelf-stable		750.1		719.2		2,174.9		2,167.7
Refrigerated		180.6		206.5		616.2		669.7
Snacks		535.9		524.5		1,609.1		1,614.2
Foodservice		272.8		275.4		857.0		833.1
International		271.7		259.7		811.5		751.9
Total net sales	$	3,032.9	$	3,086.5	$	9,145.0	$	9,303.7

To be consistent with the manner in which 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 was $82.4 million and $251.5 million for the third quarter and first three quarters of fiscal 2024, respectively. Total depreciation expense was $77.7 million and $233.7 million for the third quarter and first three quarters of fiscal 2023, respectively.