v3.26.1
INCOME TAXES (Tables)
 12 Months Ended
May 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of Components of Earnings Before Income Taxes and After-Tax (Loss) Earnings from Joint Ventures and Corresponding Income Taxes Thereon The components of earnings before income taxes and after-tax (loss) earnings from joint ventures and the corresponding income taxes
thereon are as follows:
Fiscal Year
In Millions
2026
2025
2024
Earnings before income taxes and after-tax (loss) earnings from joint ventures:
United States
$441.7
$2,493.2
$2,907.0
Foreign
(36.2)
341.8
121.3
Total earnings before income taxes and after-tax earnings (loss) from joint ventures
$405.5
$2,835.0
$3,028.3
Income taxes:
Currently payable:
Federal
$101.2
$549.0
$512.8
State and local
65.6
80.1
72.0
Foreign
44.3
65.5
58.2
Total current
211.1
694.6
643.0
Deferred:
Federal
216.7
(62.6)
27.4
State and local
1.9
(3.3)
9.7
Foreign
(15.4)
(55.0)
(85.6)
Total deferred
203.2
(120.9)
(48.5)
Total:
Federal
317.9
486.4
540.2
State and local
67.5
76.8
81.7
Foreign
28.9
10.5
(27.4)
Total income taxes
$414.3
$573.7
$594.5
Schedule of Effective Income Tax Rate Reconciliation The following table reconciles the United States federal statutory income tax with our effective income tax for fiscal 2026:
Amount
Percent
United States federal statutory tax
$85.2
21.0%
State and local income taxes, net of federal tax benefits (a)
53.0
13.1
Foreign tax effects
Switzerland
Basis difference
45.3
11.2
Other
(5.2)
(1.3)
Other foreign jurisdictions
11.3
2.8
Effect of cross-border laws (b)
(3.6)
(0.9)
Tax Credits
Research and development
(17.5)
(4.3)
Other
(14.0)
(3.4)
Changes in valuation allowances
(33.1)
(8.2)
Nontaxable or nondeductible items
Nondeductible goodwill
347.5
85.7
Other
5.5
1.4
Changes in unrecognized tax benefits
(9.5)
(2.4)
Other adjustments
Basis difference
(61.7)
(15.2)
Other
11.1
2.7
Effective income tax
$414.3
102.2%
(a)State taxes in California, Georgia, Illinois, New Jersey, Pennsylvania, Texas, and Wisconsin comprised the majority (greater than 50 percent) of
the tax effect in this category.
(b)Includes the impact of any tax credits.
The following table reconciles the United States federal statutory income tax rate to the effective income tax rate for fiscal 2025 and
fiscal 2024.
Fiscal Year
2025
2024
United States federal statutory tax
21.0%
21.0%
State and local income taxes, net of federal tax benefits
2.1
2.1
Foreign rate differences
(1.7)
(1.6)
Research and development tax credit
(1.5)
(1.2)
Stock based compensation
(0.2)
(0.3)
Divestitures, net
(0.3)
—
Other, net
0.8
(0.4)
Effective income tax rate
20.2%
19.6%
Schedule of Net Income Tax Payments Interest payments for fiscal 2026, fiscal 2025, and fiscal 2024 were as follows:
Fiscal Year
In Millions
2026
2025
2024
Cash interest payments
$573.9
$474.4
$464.4
Net income tax payments for fiscal 2026 were as follows:
In Millions
Fiscal Year
2026
United States — federal
$258.7
United States — state and local
72.1
Foreign
60.1
Total income taxes paid, net of refunds
$390.9
Net income tax payments for fiscal 2025 and fiscal 2024 were as follows:
Fiscal Year
In Millions
2025
2024
Total income taxes paid, net of refunds
$599.2
$660.5
Schedule of Tax Effects of Temporary Differences that Give Rise to Deferred Tax Assets and Liabilities The tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows:
In Millions
May 31, 2026
May 25, 2025
Accrued liabilities
$40.4
$42.9
Compensation and employee benefits
119.1
144.3
Unrealized hedges
17.5
23.1
Pension
62.9
74.2
Tax credit carryforwards
89.8
58.1
Stock, partnership, and miscellaneous investments
2.8
4.0
Capitalized research and development
39.8
305.5
Prepayments
—
65.9
Capital losses
26.5
28.5
Net operating losses
35.7
265.2
Other
138.3
161.1
Gross deferred tax assets
572.8
1,172.8
Valuation allowance
214.6
253.7
Net deferred tax assets
358.2
919.1
Brands
1,341.5
1,436.0
Fixed assets
394.3
496.1
Intangible assets
199.0
247.3
Inventories
33.7
31.3
Stock, partnership, and miscellaneous investments
532.5
512.2
Other
123.0
110.9
Gross deferred tax liabilities
2,624.0
2,833.8
Net deferred tax liability
$2,265.8
$1,914.7
Information about our valuation allowance follows:
In Millions
May 31, 2026
Pillsbury acquisition losses
$109.0
State and foreign loss carryforwards
50.1
Capital loss carryforwards
26.5
Other
29.0
Total
$214.6
Information about our tax loss carryforwards follows:
In Millions
May 31, 2026
Foreign loss carryforwards
$28.0
Federal operating loss carryforwards
1.3
State operating loss carryforwards
6.4
Total tax loss carryforwards
$35.7
Our foreign loss carryforwards expire as follows:
In Millions
May 31, 2026
Expire in fiscal 2027 and 2028
$1.3
Expire in fiscal 2029 and beyond
9.2
Do not expire
17.5
Total foreign loss carryforwards
$28.0
Schedule of Changes in Total Gross Unrecognized Tax Benefit Liabilities, Excluding Accrued Interest The following table sets forth changes in our total gross unrecognized tax benefit liabilities, excluding accrued interest, for fiscal 2026
and fiscal 2025. Approximately $94.5 million of this total in fiscal 2026 represents the amount that, if recognized, would affect our
effective income tax rate in future periods. This amount differs from the gross unrecognized tax benefits presented in the table because
certain portions of the liabilities below would impact deferred taxes if recognized. We also would record a decrease in U.S. federal
income taxes upon recognition of the state tax benefits included therein. Our unrecognized tax benefit liability was classified in other
liabilities.
Fiscal Year
In Millions
2026
2025
Balance, beginning of year
$199.0
$149.0
Tax positions related to current year:
Additions
51.2
48.7
Tax positions related to prior years:
Additions
2.8
13.0
Reductions
(38.1)
(2.8)
Settlements
(6.3)
(2.6)
Lapses in statutes of limitations
(4.7)
(6.3)
Balance, end of year
$203.9
$199.0