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SEGMENTS
 12 Months Ended
May 31, 2026
Segment Reporting [Abstract]  
SEGMENTS SEGMENTS
We manage operations in two geographical 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 chief operating decision maker group (the “CODM group”) is made up of our executive chair and president and chief executive officer. The CODM group receives periodic management reports under our segment structure. The Company measures profit or loss for each reportable segment using segment adjusted earnings before interest, taxes, depreciation, amortization, unrealized mark-to-market derivative gains and losses (which are a component of both cost of goods sold 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 expense (which is a component of selling, general and administrative expense), and comparability items (which are a component of both cost of goods sold and selling, general and administrative expenses) (“Segment Adjusted EBITDA”). Segment Adjusted EBITDA, along with volume and net sales, informs operating decisions, performance assessment, and resource allocation decisions at the segment level. The CODM group uses volume, 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 the CODM group or utilized for purposes of assessing performance or allocating resources by segment and, as a result, such information has not been presented below.
Lamb Weston’s net sales and Segment Adjusted EBITDA are as follows:
For the year ended May 31, 2026
(in millions)North AmericaInternationalTotal
Net sales$4,395.2 $2,217.1 $6,612.3 
Other segment items (a)3,252.9 2,102.4 5,355.3 
Segment Adjusted EBITDA (b)$1,142.3 $114.7 $1,257.0 
Unallocated corporate costs (c)(109.8)
Depreciation and amortization (d)400.9 
Unrealized derivative gains(20.1)
Foreign currency exchange losses(8.2)
Stock based compensation46.2 
Items impacting comparability:
Cost Savings Program, Restructuring Plan, and other expenses (e)111.6 
Shareholder activism expense (f)4.0 
Pension termination (g)14.2 
Interest expense, net180.5 
Income before income taxes418.1 
Income tax expense128.1 
Net income$290.0 
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(a)Other segment items include cost of goods sold, selling, general, and administrative expenses, and equity method investment income or loss for each segment.
(b)Segment Adjusted EBITDA for fiscal 2026 included net income associated with our equity method investments. Refer to Note 6, “Other Assets,” in these Notes to Consolidated Financial Statements of this Form 10-K.
(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 costs exclude unrealized mark-to-market derivative gains and losses, foreign currency exchange gains and losses, gains from blue chip swap transactions in Argentina, stock-based compensation expense, and 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 from equity method investments of $8.8 million for the fiscal year ended May 31, 2026.
(e)Cost Savings Program, Restructuring Plan, and other expenses relate to costs incurred under the Plans. See Note 4, Cost Savings Program and Restructuring of these 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.
For the year ended May 25, 2025
(in millions)North AmericaInternationalTotal
Net sales$4,265.2 $2,186.1 $6,451.3 
Other segment items (a)3,155.8 1,928.5 5,084.3 
Segment Adjusted EBITDA (b)$1,109.4 $257.6 $1,367.0 
Unallocated corporate costs (c)(107.0)
Depreciation and amortization (d)378.2 
Unrealized derivative gains(23.1)
Foreign currency exchange losses15.2 
Blue chip swap gains (e)(21.1)
Stock based compensation39.5 
Items impacting comparability:
Cost Savings Program, Restructuring Plan, and other expenses (f)185.8 
Shareholder activism expense (g)5.2 
Interest expense, net180.0 
Income before income taxes500.3 
Income tax expense143.1 
Net income$357.2 
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(a)Other segment items include cost of goods sold, selling, general, and administrative expenses, and equity method investment income or loss for each segment
(b)Segment Adjusted EBITDA for fiscal 2025 included the following:
i.Net income associated with our equity method investments. Refer to Note 6, “Other Assets,” in these Notes to Consolidated Financial Statements of this Form 10-K.
ii.An estimated $31 million loss related to the voluntary product withdrawal that was initiated in the fourth quarter of fiscal 2024. The total charge to reporting segments was approximately $19 million to the North America segment and approximately $12 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 costs exclude unrealized mark-to-market derivative gains and losses, foreign currency exchange gains and losses, gains from blue chip swap transactions in Argentina, stock-based compensation expense, and 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 from equity method investments of $8.2 million for the fiscal year ended May 25, 2025.
(e)We enter into blue chip swap transactions to transfer U.S. dollars into Argentina primarily related to funding our capacity expansion in Argentina. 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, Cost Savings Program and Restructuring of these Notes to Consolidated Financial Statements for additional information.
(g)Represents advisory fees related to shareholder activism matters.
For the year ended May 26, 2024
(in millions)North AmericaInternational (a)Total
Net sales$4,363.2 $2,104.4 $6,467.6 
Other segment items (a)3,090.8 1,767.8 4,858.6 
Segment Adjusted EBITDA (b)$1,272.4 $336.6 $1,609.0 
Unallocated corporate costs (c)(145.5)
Depreciation and amortization (d)306.2 
Unrealized derivative losses(24.9)
Foreign currency exchange losses28.6 
Blue chip swap gains (e)(18.0)
Stock based compensation46.8 
Items impacting comparability:
Inventory step-up from acquisition20.7 
Integration and acquisition-related items, net12.8 
Interest expense, net135.8 
Income before income taxes955.5 
Income tax expense230.0 
Net income$725.5 
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(a)Other segment items include cost of goods sold, selling, general, and administrative expenses, and equity method investment income or loss for each segment
(b)Segment Adjusted EBITDA for fiscal 2024 included the following:
i.Net income associated with our equity method investments. Refer to Note 6, “Other Assets,” in these Notes to Consolidated Financial Statements of this Form 10-K.
ii.An estimated $40 million loss related to the voluntary product withdrawal that was initiated in the fourth quarter of fiscal 2024. The total charge to reporting segments was approximately $19 million to the North America segment and approximately $21 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 costs exclude unrealized mark-to-market derivative gains and losses, foreign currency exchange gains and losses, gains from blue chip swap transactions in Argentina, stock-based compensation expense and 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 from equity method investments of $8.3 million for the fiscal year ended May 26, 2024.
(e)We enter into blue chip swap transactions to transfer U.S. dollars into Argentina primarily related to funding our capacity expansion in Argentina. The blue chip swap rate can diverge significantly from Argentina’s official exchange rate.
Assets by Segment
The manufacturing assets of Lamb Weston are shared across both reporting segments. Output from these facilities used by each reporting segment can change from fiscal year to fiscal year. Therefore, it is impracticable to allocate those assets to the reporting segments, as well as disclose total assets by segment.
Concentrations
Lamb Weston’s largest customer, McDonald’s Corporation, accounted for approximately 15%, 15%, and 14% of our consolidated net sales in fiscal 2026, 2025, and 2024, respectively.
Other Information
Sales are classified as domestic or foreign based on the address to which the product is shipped. No individual foreign country is material to the consolidated results.
Fiscal Year Ended
(in millions)202620252024
Net sales
United States$4,289.6 $4,174.5 $4,278.0 
Other2,322.7 2,276.8 2,189.6 
Total net sales$6,612.3 $6,451.3 $6,467.6 
We have 25 production facilities, 14 located in the U.S. and 11 located outside of the U.S. as of May 31, 2026. Long-lived assets exclude goodwill, intangible assets, equity method investments, deferred tax assets, deposits, and other asset balances not considered long-lived.
Fiscal Year Ended
(in millions)20262025
Long-lived assets
United States$2,357.1 $2,333.0 
Netherlands838.0 866.3 
Other782.3 810.5 
Total long-lived assets$3,977.4 $4,009.8 
On June 4, 2026 the Company announced the closure of our Broekhuizenvorst, The Netherlands plant. Refer to Note 15, “Subsequent Events,” in these Notes to Consolidated Financial Statements of this Form 10-K for more information.
Labor
At May 31, 2026, we had approximately 10,000 employees, of which approximately 3,000 of these employees work outside of the U.S. Approximately 30% of our employees are parties to collective bargaining agreements with terms that we believe are typical for the industry in which we operate. Most of the union workers at our U.S. facilities are represented under contracts that expire at various times over the next several years.