XML 49 R34.htm IDEA: XBRL DOCUMENT v3.23.2
Financial Instruments, Risk Management Activities, and Fair Values (Tables)
 12 Months Ended
May 28, 2023
Financial Instruments, Risk Management Activities, And Fair Values [Abstract]  
Schedule of Marketable Debt and Equity Securities and Maturities
Cost
Fair Value
Gross Unrealized Gains
Gross Unrealized Losses
Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year
In Millions
2023
2022
2023
2022
2023
2022
2023
2022
Available for
 
sale
 
debt securities
$
2.3
$
2.3
$
2.3
$
2.3
$
-
$
-
$
-
$
-
Equity securities
117.5
250.1
122.7
255.3
5.2
5.2
10.0
15.1
Total
$
119.8
$
252.4
$
125.0
$
257.6
$
5.2
$
5.2
$
10.0
$
15.1
Marketable Securities
In Millions
Cost
Fair Value
Under 1 year (current)
$
2.3
$
2.3
Equity securities
117.5
122.7
Total
$
119.8
$
125.0
Schedule of Unallocated Corporate items
Fiscal Year
In Millions
2023
2022
2021
Net (loss) gain on mark-to-market valuation of commodity positions
$
(154.4)
$
303.3
$
138.2
Net gain on commodity positions reclassified from unallocated corporate
 
items to segment operating profit
(89.5)
(188.0)
(8.8)
Net mark-to-market revaluation of certain grain inventories
(48.0)
17.8
9.4
Net mark-to-market valuation of certain commodity positions recognized
 
in
 
unallocated corporate items
$
(291.9)
$
133.1
$
138.8
Schedule of Pre-tax Amounts of Cash-Settled Interest Rate Hedges in AOCI
In Millions
Gain/(Loss)
3.65
% notes due
February 15, 2024
$
1.3
4.0
% notes due
April 17, 2025
(1.1)
3.2
% notes due
February 10, 2027
6.3
1.5
% notes due
April 27, 2027
(1.3)
4.2
% notes due
April 17, 2028
(5.0)
3.907
% notes due
April 13, 2029
(4.9)
2.25
% notes due
October 14, 2031
16.5
4.95
% notes due
March 29, 2033
(1.4)
4.55
% notes due
April 17, 2038
(8.1)
5.4
% notes due
June 15, 2040
(9.5)
4.15
% notes due
February 15, 2043
7.8
4.7
% notes due
April 17, 2048
(11.8)
Net pre-tax hedge loss in AOCI
$
(11.2)
Schedule of Interest Rate Swaps
In Millions
May 28, 2023
May 29, 2022
Pay-floating swaps - notional amount
$
1,143.4
$
644.1
Average receive
 
rate
2.6
%
0.4
%
Average pay rate
2.5
%
0.1
%
Schedule Of Fair Value Measurement Inputs
May 28, 2023
May 28, 2023
Fair Values
 
of Assets
Fair Values
 
of Liabilities
In Millions
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Derivatives designated as hedging instruments:
Interest rate contracts (a) (b)
$
-
$
-
$
-
$
-
$
-
$
(62.2)
$
-
$
(62.2)
Foreign exchange contracts (a) (c)
-
10.3
-
10.3
-
(2.5)
-
(2.5)
Total
-
10.3
-
10.3
-
(64.7)
-
(64.7)
Derivatives not designated as hedging
 
instruments:
Foreign exchange contracts (a) (c)
-
0.2
-
0.2
-
(5.6)
-
(5.6)
Commodity contracts (a) (d)
-
0.5
-
0.5
-
(29.3)
-
(29.3)
Grain contracts (a) (d)
-
2.3
-
2.3
-
(11.8)
-
(11.8)
Total
-
3.0
-
3.0
-
(46.7)
-
(46.7)
Other assets and liabilities reported at fair value:
Marketable investments (a) (e) (f)
122.7
2.3
34.8
159.8
-
-
-
-
Long-lived assets (g)
-
1.0
-
1.0
-
-
-
-
Total
122.7
3.3
34.8
160.8
-
-
-
-
Total assets, liabilities, and
 
derivative positions
 
recorded at fair value
$
122.7
$
16.6
$
34.8
$
174.1
$
-
$
(111.4)
$
-
$
(111.4)
May 29, 2022
May 29, 2022
Fair Values
 
of Assets
Fair Values
 
of Liabilities
In Millions
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Derivatives designated as hedging instruments:
Interest rate contracts (a) (b)
$
-
$
-
$
-
$
-
$
-
$
(29.8)
$
-
$
(29.8)
Foreign exchange contracts (a) (c)
-
26.9
-
26.9
-
(4.7)
-
(4.7)
Total
-
26.9
-
26.9
-
(34.5)
-
(34.5)
Derivatives not designated as hedging
 
instruments:
Foreign exchange contracts (a) (c)
-
8.4
-
8.4
-
(15.1)
-
(15.1)
Commodity contracts (a) (d)
10.7
96.9
-
107.6
-
(0.2)
-
(0.2)
Grain contracts (a) (d)
-
28.7
-
28.7
-
(3.0)
-
(3.0)
Total
10.7
134.0
-
144.7
-
(18.3)
-
(18.3)
Other assets and liabilities reported at fair value:
Marketable investments (a) (e) (f)
255.3
2.3
67.2
324.8
-
-
-
-
Total
255.3
2.3
67.2
324.8
-
-
-
-
Total assets, liabilities, and
 
derivative positions
 
recorded at fair value
$
266.0
$
163.2
$
67.2
$
496.4
$
-
$
(52.8)
$
-
$
(52.8)
(
a)
 
These contracts and investments
 
are recorded as prepaid
 
expenses and other current
 
assets, other assets, other
 
current liabilities or
other liabilities,
 
as appropriate,
 
based on
 
whether in
 
a gain
 
or loss
 
position. Certain
 
marketable investments
 
are recorded
 
as cash
and cash equivalents.
 
(b)
 
Based on EURIBOR and
 
swap rates. As
 
of May 29, 2022, the
 
carrying amount of hedged
 
debt designated as
 
the hedged item in
 
a
fair value
 
hedge was
 
$
615.7
 
million and
 
was classified
 
on the
 
Consolidated Balance
 
Sheet within
 
long-term debt.
 
As of
 
May 29,
2022, the cumulative amount of fair value hedging basis adjustments was
 
$
28.4
 
million.
(c)
 
Based on observable market transactions of spot currency rates and forward
 
currency prices.
(d)
 
Based on prices of futures exchanges and recently reported transactions in the marketplace.
(e)
 
Based on prices of common stock, mutual fund net asset values, and bond matrix
 
pricing.
(f)
 
The level 3
 
marketable investment represents
 
an equity security
 
without a readily
 
determinable fair value.
 
During fiscal 2022,
 
we
recorded
 
an impairment
 
charge
 
of $
34.0
 
million resulting
 
from the
 
determination of
 
fair value
 
utilizing level
 
3 inputs
 
including
revised projections of future operating results and observable transaction data
 
for similar instruments.
We did not
 
significantly change our valuation techniques from prior periods.
 
The
 
fair value
 
of our
 
long-term
 
debt
 
is estimated
 
using
 
Level 2
 
inputs based
 
on quoted
 
prices
 
for
 
those
 
instruments. Where
 
quoted
prices are not available, fair value is estimated using
 
discounted cash flows and market-based expectations
 
for interest rates, credit risk
and
 
the
 
contractual
 
terms
 
of
 
the
 
debt
 
instruments.
 
As
 
of
 
May
 
28,
 
2023,
 
the
 
fair
 
value
 
and
 
carrying
 
amount
 
of
 
our
 
long-term
 
debt,
including the
 
current portion,
 
were $
10,929.6
 
million and
 
$
11,674.2
 
million, respectively.
 
As of
 
May 29,
 
2022, the
 
carrying amount
and fair value of our long-term debt, including the current portion, were
 
$
10,508.8
 
million and $
10,809.0
 
million, respectively.
(a)
 
These contracts and investments
 
are recorded as prepaid
 
expenses and other current
 
assets, other assets, other
 
current liabilities or
other liabilities,
 
as appropriate,
 
based on
 
whether in
 
a gain
 
or loss
 
position. Certain
 
marketable investments
 
are recorded
 
as cash
and cash equivalents.
 
(b)
 
Based on EURIBOR and
 
swap rates. As
 
of May 28, 2023,
 
the carrying amount of
 
hedged debt designated
 
as the hedged item
 
in a
fair value
 
hedge was
 
$
589.7
 
million and
 
was classified
 
on the
 
Consolidated Balance
 
Sheet within
 
long-term debt.
 
As of
 
May 28,
2023, the cumulative amount of fair value hedging basis adjustments was $
53.7
 
million.
(c)
 
Based on observable market transactions of spot currency rates and forward
 
currency prices.
(d)
 
Based on prices of futures exchanges and recently reported transactions in
 
the marketplace.
(e)
 
Based on prices of common stock, mutual fund net asset values, and bond matrix pricing.
(f)
 
The level 3
 
marketable investment represents
 
an equity security
 
without a readily
 
determinable fair value.
 
During fiscal 2023,
 
we
recorded
 
an impairment
 
charge
 
of $
32.4
 
million resulting
 
from the
 
determination of
 
fair value
 
utilizing level
 
3 inputs
 
including
revised projections of future operating results and observable transaction data
 
for similar instruments.
(g)
 
We recorded
 
$
8.6
 
million in non-cash impairment charges
 
in fiscal 2023 to write down
 
certain long-lived assets to their
 
fair value.
Fair value
 
was based
 
on recently
 
reported transactions
 
for similar
 
assets in the
 
marketplace. These
 
assets had
 
a carrying value
 
of
$
9.6
 
million and were associated with the restructuring actions described in Note 4.
Schedule Of Gains And Losses On Hedges
Interest Rate
Contracts
Foreign
Exchange
Contracts
Equity
Contracts
Commodity
Contracts
Total
Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year
Fiscal Year
In Millions
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
Derivatives in Cash Flow Hedging
Relationships:
Amount of (loss) gain recognized in
other comprehensive income (OCI)
$
(6.4)
$
(5.4)
$
9.4
$
13.2
$
-
$
-
$
-
$
-
$
3.0
$
7.8
Amount of net gain (loss) reclassified
from AOCI into earnings (a)
2.2
(4.7)
22.0
(19.5)
-
-
-
-
24.2
(24.2)
Derivatives in Fair Value
 
Hedging
Relationships:
Amount of net loss recognized
 
in earnings (b)
(4.9)
(2.1)
-
-
-
-
-
-
(4.9)
(2.1)
Derivatives Not Designated as
 
Hedging Instruments:
Amount of net (loss) gain recognized
 
in earnings (c)
-
-
(46.2)
(32.8)
(3.4)
(8.0)
(152.6)
257.2
(202.2)
216.4
(a)
 
(Loss) gain reclassified
 
from AOCI into earnings
 
is reported in interest,
 
net for interest rate
 
swaps and in cost
 
of sales and SG&A
expenses for foreign
 
exchange contracts. For the
 
fiscal year ended May 28,
 
2023, the amount of
 
gain reclassified from AOCI
 
into
cost of
 
sales was
 
$
21.1
 
million and
 
the amount
 
of gain
 
reclassified from
 
AOCI into
 
SG&A was
 
$
0.9
 
million. For
 
the fiscal
 
year
ended
 
May 29,
 
2022,
 
the
 
amount
 
of
 
loss
 
reclassified
 
from
 
AOCI
 
into
 
cost
 
of
 
sales
 
was
 
$
11.1
 
million
 
and
 
the
 
amount
 
of
 
loss
reclassified from AOCI into SG&A was $
8.4
 
million.
(b)
 
Loss recognized
 
in earnings is
 
reported in
 
interest, net
 
for interest rate
 
contracts, in
 
cost of sales
 
for commodity
 
contracts, and
 
in
SG&A expenses for equity contracts and foreign exchange contracts.
(c)
 
(Loss) gain recognized in earnings
 
is related to the ineffective
 
portion of the hedging relationship, reported
 
in SG&A expenses for
foreign
 
exchange
 
contracts
 
and
 
interest,
 
net
 
for
 
interest rate
 
contracts.
No
 
amounts
 
were reported
 
as a
 
result
 
of being
 
excluded
from the assessment of hedge effectiveness.
Reconciliation of Net Fair Values of Assets Subject to Offsetting Arrangements
May 28, 2023
Assets
Liabilities
Gross Amounts Not Offset
in the
Balance Sheet (e)
Gross Amounts Not Offset
in the
Balance Sheet (e)
In Millions
Gross
Amounts of
Recognized
Assets
Gross
Liabilities
Offset in the
Balance Sheet
(a)
Net Amounts
of Assets
 
(b)
Financial
Instruments
Cash
Collateral
Received
Net Amount
(c)
Gross
Amounts of
Recognized
Liabilities
Gross Assets
Offset in the
Balance Sheet
(a)
Net Amounts
of Liabilities
(b)
Financial
Instruments
Cash
Collateral
Pledged
Net Amount
(d)
Commodity contracts
$
0.5
$
-
$
0.5
$
(0.5)
$
-
$
-
$
(29.3)
$
-
$
(29.3)
$
0.5
$
16.2
$
(12.6)
Interest rate contracts
-
-
-
-
-
-
(69.2)
-
(69.2)
-
44.3
(24.9)
Foreign exchange contracts
10.4
-
10.4
(4.2)
-
6.2
(8.2)
-
(8.2)
4.2
-
(4.0)
Equity contracts
2.8
-
2.8
(1.0)
-
1.8
(1.5)
-
(1.5)
1.0
-
(0.5)
Total
$
13.7
$
-
$
13.7
$
(5.7)
$
-
$
8.0
$
(108.2)
$
-
$
(108.2)
$
5.7
$
60.5
$
(42.0)
May 29, 2022
Assets
Liabilities
Gross Amounts Not Offset
in the Balance Sheet (e)
Gross Amounts Not Offset
in the Balance Sheet (e)
In Millions
Gross
Amounts of
Recognized
Assets
Gross
Liabilities
Offset in the
Balance
Sheet (a)
Net
Amounts of
Assets
 
(b)
Financial
Instruments
Cash
Collateral
Received
Net Amount
(c)
Gross
Amounts of
Recognized
Liabilities
Gross
Assets
Offset in the
Balance
Sheet (a)
Net
Amounts of
Liabilities
(b)
Financial
Instruments
Cash
Collateral
Pledged
Net Amount
(d)
Commodity contracts
$
107.5
$
-
$
107.5
$
(0.2)
$
(62.8)
$
44.5
$
(0.2)
$
-
$
(0.2)
$
0.2
$
-
$
-
Interest rate contracts
-
-
-
-
-
-
(30.7)
-
(30.7)
-
10.6
(20.1)
Foreign exchange contracts
35.3
-
35.3
(6.4)
-
28.9
(19.7)
-
(19.7)
6.4
-
(13.3)
Equity contracts
0.4
-
0.4
(0.3)
-
0.1
(4.0)
-
(4.0)
0.3
-
(3.7)
Total
$
143.2
$
-
$
143.2
$
(6.9)
$
(62.8)
$
73.5
$
(54.6)
$
-
$
(54.6)
$
6.9
$
10.6
$
(37.1)
(a)
 
Includes related collateral offset in our Consolidated Balance Sheets.
 
(b)
 
Net fair value as recorded in our Consolidated Balance Sheets.
 
(c)
 
Fair value of assets that could be reported net in our Consolidated Balance Sheets.
 
(d)
 
Fair value of liabilities that could be reported net in our Consolidated Balance Sheets.
(e)
 
Fair value of assets and liabilities reported on a gross basis in our Consolidated Balance Sheets.
(a)
 
Includes related collateral offset in our Consolidated Balance Sheets.
 
(b)
 
Net fair value as recorded in our Consolidated Balance Sheets.
 
(c)
 
Fair value of assets that could be reported net in our Consolidated Balance Sheets.
 
(d)
 
Fair value of liabilities that could be reported net in our Consolidated Balance Sheets.
(e)
 
Fair value of assets and liabilities reported on a gross basis in our Consolidated Balance Sheets.
Reconciliation of Net Fair Values of Liabilities Subject to Offsetting Arrangements
May 28, 2023
Assets
Liabilities
Gross Amounts Not Offset
in the
Balance Sheet (e)
Gross Amounts Not Offset
in the
Balance Sheet (e)
In Millions
Gross
Amounts of
Recognized
Assets
Gross
Liabilities
Offset in the
Balance Sheet
(a)
Net Amounts
of Assets
 
(b)
Financial
Instruments
Cash
Collateral
Received
Net Amount
(c)
Gross
Amounts of
Recognized
Liabilities
Gross Assets
Offset in the
Balance Sheet
(a)
Net Amounts
of Liabilities
(b)
Financial
Instruments
Cash
Collateral
Pledged
Net Amount
(d)
Commodity contracts
$
0.5
$
-
$
0.5
$
(0.5)
$
-
$
-
$
(29.3)
$
-
$
(29.3)
$
0.5
$
16.2
$
(12.6)
Interest rate contracts
-
-
-
-
-
-
(69.2)
-
(69.2)
-
44.3
(24.9)
Foreign exchange contracts
10.4
-
10.4
(4.2)
-
6.2
(8.2)
-
(8.2)
4.2
-
(4.0)
Equity contracts
2.8
-
2.8
(1.0)
-
1.8
(1.5)
-
(1.5)
1.0
-
(0.5)
Total
$
13.7
$
-
$
13.7
$
(5.7)
$
-
$
8.0
$
(108.2)
$
-
$
(108.2)
$
5.7
$
60.5
$
(42.0)
May 29, 2022
Assets
Liabilities
Gross Amounts Not Offset
in the Balance Sheet (e)
Gross Amounts Not Offset
in the Balance Sheet (e)
In Millions
Gross
Amounts of
Recognized
Assets
Gross
Liabilities
Offset in the
Balance
Sheet (a)
Net
Amounts of
Assets
 
(b)
Financial
Instruments
Cash
Collateral
Received
Net Amount
(c)
Gross
Amounts of
Recognized
Liabilities
Gross
Assets
Offset in the
Balance
Sheet (a)
Net
Amounts of
Liabilities
(b)
Financial
Instruments
Cash
Collateral
Pledged
Net Amount
(d)
Commodity contracts
$
107.5
$
-
$
107.5
$
(0.2)
$
(62.8)
$
44.5
$
(0.2)
$
-
$
(0.2)
$
0.2
$
-
$
-
Interest rate contracts
-
-
-
-
-
-
(30.7)
-
(30.7)
-
10.6
(20.1)
Foreign exchange contracts
35.3
-
35.3
(6.4)
-
28.9
(19.7)
-
(19.7)
6.4
-
(13.3)
Equity contracts
0.4
-
0.4
(0.3)
-
0.1
(4.0)
-
(4.0)
0.3
-
(3.7)
Total
$
143.2
$
-
$
143.2
$
(6.9)
$
(62.8)
$
73.5
$
(54.6)
$
-
$
(54.6)
$
6.9
$
10.6
$
(37.1)
(a)
 
Includes related collateral offset in our Consolidated Balance Sheets.
 
(b)
 
Net fair value as recorded in our Consolidated Balance Sheets.
 
(c)
 
Fair value of assets that could be reported net in our Consolidated Balance Sheets.
 
(d)
 
Fair value of liabilities that could be reported net in our Consolidated Balance Sheets.
(e)
 
Fair value of assets and liabilities reported on a gross basis in our Consolidated Balance Sheets.
(a)
 
Includes related collateral offset in our Consolidated Balance Sheets.
 
(b)
 
Net fair value as recorded in our Consolidated Balance Sheets.
 
(c)
 
Fair value of assets that could be reported net in our Consolidated Balance Sheets.
 
(d)
 
Fair value of liabilities that could be reported net in our Consolidated Balance Sheets.
(e)
 
Fair value of assets and liabilities reported on a gross basis in our Consolidated Balance Sheets.
Schedule Of After-tax Amounts Of Cash Flow Hedges In AOCI
In Millions
After-Tax
 
Gain/(Loss)
Unrealized losses from interest rate cash flow hedges
$
(7.8)
Unrealized gains from foreign currency cash flow hedges
13.7
After-tax gains in AOCI related to hedge derivatives
$
5.9
Customer Concentrations
Percent of total
Consolidated
North America
Retail
North America
Foodservice
International
Pet
Walmart (a):
Net sales
21
%
28
%
8
%
2
%
16
%
Accounts receivable
22
%
8
%
3
%
15
%
Five largest customers:
Net sales
51
%
48
%
12
%
67
%
(a)
 
Includes Walmart Inc.
 
and its affiliates.