INCOME TAXES (Tables)

12 Months Ended

May 31, 2026

Pre-tax income (loss), inclusive of equity method investment earnings, consisted of the following:


	For the Fiscal Years Ended May
(in millions)	2026		2025		2024
United States	$	500.8	$	418.1	$	807.8
Non-U.S.	(82.7)		82.2		147.7
Total pre-tax income	$	418.1	$	500.3	$	955.5

Schedule of Provision for Income Taxes

The provision for income taxes included the following:


	For the Fiscal Years Ended May
(in millions)	2026		2025		2024
Current
U.S. federal	$	79.0	$	85.7	$	140.5
State and local	14.4		6.3		36.1
Non-U.S.	(6.0)		50.7		54.8
Total current provision for taxes	87.4		142.7		231.4

Deferred
U.S. federal	32.9		(1.3)		27.7
State and local	3.8		(0.6)		(14.6)
Non-U.S.	4.0		2.3		(14.5)
Total deferred provision for taxes	$	40.7	$	0.4	$	(1.4)
Total provision for taxes	$	128.1	$	143.1	$	230.0

Schedule of Income Tax Expense Using U.S. Statutory Tax Rate

The following table reconciles the U.S. statutory tax rate of 21% on income before taxes, including equity method earnings, with the actual provision for income taxes:


	For the Fiscal Year Ended May
(in millions)	2026
	Amount ($)		Percent
Provision computed at U.S. Federal statutory rate	$	87.8	21.0	%
Domestic federal tax effects:
Tax credits	(0.4)		(0.1)	%
Effects of cross-border tax laws	(2.3)		(0.6)	%
Non-taxable or non-deductible items	6.2		1.5	%

Other	0.2		—	%
Domestic state and local income taxes, net of federal effect (a)	7.0		1.7	%
Foreign tax effects:
Argentina
Tax rate differential	(5.9)		(1.4)	%
Non-deductible FX translation	9.9		2.4	%
Change in valuation allowance	6.8		1.6	%
Other	3.8		0.9	%
Australia
Change in valuation allowance	8.9		2.1	%
Other	(2.9)		(0.7)	%

Netherlands	(5.6)		(1.3)	%


Other foreign jurisdictions	2.0		0.5	%
Worldwide changes in unrecognized tax benefits	12.6		3.0	%
Effective income tax rate (b)	$	128.1	30.6	%

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(a)Oregon, Illinois, and Texas are the primary jurisdictions contributing to this category, with their state taxes accounting for more than 50 percent of the total tax effect.

(b)The effective income tax rate is calculated as the ratio of income tax expense to pre-tax income, inclusive of equity method investment earnings.

As previously disclosed for fiscal years 2025 and 2024, prior to our adoption of ASU 2023-09, the effective income tax rate differed from the statutory federal income tax rate as follows:


	For the Fiscal Years Ended May
(in millions)	2025			2024
Provision computed at U.S. statutory rate	$	105.1		$	200.7
Increase (decrease) in rate resulting from:
State and local taxes, net of federal benefit	5.1			20.1
Non-U.S. operations (a)	19.0			5.5
Change in valuation allowance (b)	14.7			3.6
Other	(0.8)			0.1
Total income tax expense	$	143.1		$	230.0
Effective income tax rate (c)	28.6		%	24.1		%

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(a)We derive the effective tax rate detriment or (benefit) attributed to non-U.S. income taxed at different rates, including the impact of permanent items. The statutory tax rates range from 8.25% to 35%.

(b)The predominant change in the valuation allowance and effective income tax rate in fiscal 2025 is attributable to the establishment of a valuation allowance against certain international deferred tax assets and international permanent differences.

(c)The effective income tax rate is calculated as the ratio of income tax expense to pre-tax income, inclusive of equity method investment earnings.

Income Taxes Paid

Schedule of Income Taxes Paid

The details of fiscal 2026 cash payments net of refunds are set forth below:


	For the Fiscal Year Ended May
(in millions)	2026
US federal	$	83.2
US state and local	7.7
Foreign:
Netherlands	11.0
Other foreign jurisdictions	16.9
Total foreign	27.9
Total cash taxes paid, net of refunds	$	118.8

Schedule of Deferred Tax Assets and Liabilities

Significant components of our deferred income tax assets and liabilities were as follows:


	May 31, 2026				May 25, 2025
(in millions)	Assets		Liabilities		Assets		Liabilities
Property, plant and equipment	$	—	$	298.5	$	—	$	297.9
Goodwill and other intangible assets	17.7		—		17.1		—
Compensation and benefit related liabilities	20.4		—		26.3		—
Net operating loss and credit carryforwards (a)	47.8		—		34.1		—
Accrued expenses and other liabilities	9.7		—		12.2		—
Inventory and inventory reserves	10.0		—		8.7		—
Lease obligations	28.4		—		28.9		—
Operating lease assets	—		25.9		—		26.6
R&D expenditures capitalization	2.3		—		18.4		—
Equity method investments	—		7.2		—		5.7

Other	7.3		23.4		9.8		12.0
	143.6		355.0		155.5		342.2
Less: Valuation allowance (b)	(83.6)		—		(65.7)		—
Net deferred taxes (c)	$	60.0	$	355.0	$	89.8	$	342.2

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(a)At May 31, 2026, Lamb Weston had approximately $109.3 million of gross ($30.0 million after-tax) non-U.S. net operating loss carryforwards, of which $8.1 million (after-tax) will expire by fiscal 2032. The remaining $21.9 million (after-tax) non-U.S. net operating loss carryforwards will not expire. Lamb Weston also had a non-U.S. tax credit carryforward of $2.3 million, which will expire by fiscal 2034, a state business credit carryforward of $14.5 million (net of federal benefit), which will expire by fiscal 2040, and $1.0 million foreign tax credit.

(b)$48.3 million of the valuation allowance is related to non-amortizable intangible assets in the United States, and $35.3 million is attributable to valuation allowances against certain international deferred tax assets.

(c)Deferred tax assets of $2.4 million and $1.1 million, as of May 31, 2026 and May 25, 2025, respectively, were presented in “Other assets.” Deferred tax liabilities of $297.5 million and $253.5 million as of May 31, 2026 and May 25, 2025, respectively, were presented in “Deferred income taxes” as "Long-term liabilities" on the Consolidated Balance Sheets. The deferred tax asset and liability net position is determined by tax jurisdiction.

Schedule of Unrecognized Tax Benefits

The aggregate changes in the gross amount of unrecognized tax benefits, excluding interest and penalties consisted of the following:


	For the Fiscal Years Ended May
(in millions)	2026		2025		2024
Beginning balance	$	82.6	$	79.6	$	59.6
Decreases from positions established during prior fiscal years	(1.1)		(1.5)		(3.6)
Increases from positions established during current and prior fiscal years	27.5		16.6		29.4
Decreases relating to settlements with taxing authorities	—		(1.7)		(0.5)
Expiration of statute of limitations	(12.7)		(10.4)		(5.3)
Ending balance (a)	$	96.3	$	82.6	$	79.6

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(a)If we were to prevail on the unrecognized tax benefits recorded as of May 31, 2026 and May 25, 2025, it would result in a tax benefit of $83.4 million and $71.4 million, respectively, and a reduction in the effective tax rate. The ending balances exclude $19.5 million and $17.8 million of gross interest and penalties in fiscal 2026 and 2025, respectively. We accrue interest and penalties associated with uncertain tax positions as part of income tax expense.