Company Quick10K Filing
Lamb Weston
Price73.86 EPS3
Shares147 P/E22
MCap10,857 P/FCF18
Net Debt2,238 EBIT734
TEV13,095 TEV/EBIT18
TTM 2019-08-25, in MM, except price, ratios
10-Q 2020-02-23 Filed 2020-04-01
10-Q 2019-11-24 Filed 2020-01-03
10-Q 2019-08-25 Filed 2019-10-02
10-K 2019-05-26 Filed 2019-07-25
10-Q 2019-02-24 Filed 2019-04-02
10-Q 2018-11-25 Filed 2019-01-04
10-Q 2018-08-26 Filed 2018-10-02
10-K 2018-05-27 Filed 2018-07-26
10-Q 2018-02-25 Filed 2018-04-05
10-Q 2017-11-26 Filed 2018-01-04
10-Q 2017-08-27 Filed 2017-10-04
10-K 2017-05-28 Filed 2017-07-25
10-Q 2017-02-26 Filed 2017-04-06
10-Q 2016-11-27 Filed 2017-01-10
8-K 2020-05-12
8-K 2020-05-07
8-K 2020-05-07
8-K 2020-04-17
8-K 2020-04-01
8-K 2020-03-18
8-K 2020-01-03
8-K 2019-10-02
8-K 2019-09-26
8-K 2019-08-05
8-K 2019-07-23
8-K 2019-06-25
8-K 2019-04-18
8-K 2019-04-02
8-K 2019-01-04
8-K 2018-12-18
8-K 2018-11-02
8-K 2018-09-27
8-K 2018-07-25
8-K 2018-04-05
8-K 2018-01-04

LW 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements
Item 2. Management'S Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 ex-31d1.htm
EX-31.2 ex-31d2.htm
EX-32.1 ex-32d1.htm
EX-32.2 ex-32d2.htm

Lamb Weston Earnings 2020-02-23

Balance SheetIncome StatementCash Flow
3.32.61.91.10.4-0.32015201620182020
Assets, Equity
1.10.90.70.40.20.02015201620182020
Rev, G Profit, Net Income
0.30.20.10.0-0.1-0.22015201620182020
Ops, Inv, Fin

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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended February 23, 2020

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                 to 

Commission File Number: 1-37830

LAMB WESTON HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware

 

61-1797411

(State or other jurisdiction of
incorporation or organization)

 

(I.R.S. Employer
Identification No.)

 

 

 

599 S. Rivershore Lane
Eagle, Idaho

 

83616

(Address of principal executive offices)

 

(Zip Code)

(208) 938-1047

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

    

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $1.00 par value

LW

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes     No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes     No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes     No 

As of March 27, 2020, the Registrant had 146,038,893 shares of common stock, par value $1.00 per share, outstanding.

Table of Contents

Table of Contents

Part I. FINANCIAL INFORMATION (Unaudited)

Item 1

Financial Statements

Consolidated Statements of Earnings for the Thirteen and Thirty-Nine Weeks ended February 23, 2020 and February 24, 2019

3

Consolidated Statements of Comprehensive Income (Loss) for the Thirteen and Thirty-Nine Weeks ended February 23, 2020 and February 24, 2019

4

Consolidated Balance Sheets as of February 23, 2020 and May 26, 2019

5

Consolidated Statements of Stockholders’ Equity for the Thirteen and Thirty-Nine Weeks Ended February 23, 2020 and February 24, 2019

6

Consolidated Statements of Cash Flows for the Thirty-Nine Weeks ended February 23, 2020 and February 24, 2019

7

Condensed Notes to Consolidated Financial Statements

8

Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

23

Item 3

Quantitative and Qualitative Disclosures About Market Risk

35

Item 4

Controls and Procedures

35

Part II. OTHER INFORMATION

36

Item 1

Legal Proceedings

36

Item 1A

Risk Factors

36

Item 2

Unregistered Sales of Equity Securities and Use of Proceeds

37

Item 3

Defaults Upon Senior Securities

37

Item 4

Mine Safety Disclosures

37

Item 5

Other Information

37

Item 6

Exhibits

38

Signatures

39

All reports we file with the U.S. Securities and Exchange Commission (“SEC”) are available free of charge via the Electronic Data Gathering Analysis and Retrieval (“EDGAR”) System on the SEC’s website at www.sec.gov. We also provide copies of our SEC filings at no charge upon request and make electronic copies of our reports available through our website at www.lambweston.com as soon as reasonably practicable after filing such material with the SEC.

2

Table of Contents

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Lamb Weston Holdings, Inc.

Consolidated Statements of Earnings

(unaudited, dollars in millions, except per share amounts)

Thirteen Weeks Ended

Thirty-Nine Weeks Ended

    

February 23,

    

February 24,

    

February 23,

    

February 24,

2020

2019

2020

2019

Net sales

$

937.3

$

926.8

$

2,945.5

$

2,753.1

Cost of sales

686.9

653.4

2,161.4

2,000.1

Gross profit

250.4

273.4

784.1

753.0

Selling, general and administrative expenses

87.9

79.6

258.1

232.6

Income from operations

162.5

193.8

526.0

520.4

Interest expense, net

25.2

27.0

78.8

80.0

Income before income taxes and equity method earnings

 

137.3

 

166.8

 

447.2

 

440.4

Income tax expense

35.7

39.6

115.1

107.9

Equity method investment earnings

9.8

14.2

35.4

44.3

Net income

 

111.4

 

141.4

 

367.5

 

376.8

Less: Income attributable to noncontrolling interests

8.6

Net income attributable to Lamb Weston Holdings, Inc.

$

111.4

$

141.4

$

367.5

$

368.2

Earnings per share

Basic

$

0.76

$

0.96

$

2.51

$

2.44

Diluted

$

0.76

$

0.95

$

2.50

$

2.42

See Condensed Notes to Consolidated Financial Statements.

3

Table of Contents

Lamb Weston Holdings, Inc.

Consolidated Statements of Comprehensive Income (Loss)

(unaudited, dollars in millions)

Thirteen Weeks Ended

Thirteen Weeks Ended

February 23, 2020

February 24, 2019

Tax

Tax 

Pre-Tax

(Expense)

After-Tax

Pre-Tax 

(Expense) 

After-Tax 

    

Amount

    

Benefit

    

Amount

    

Amount

    

Benefit

    

Amount

Net income

$

147.1

$

(35.7)

$

111.4

$

181.0

$

(39.6)

$

141.4

Other comprehensive income (loss):

  

Reclassification of post-retirement benefits out of accumulated other comprehensive income (loss)

0.2

(0.1)

0.1

0.2

 

0.2

Unrealized currency translation gains (losses)

(7.8)

0.6

(7.2)

2.4

 

 

2.4

Comprehensive income (loss) attributable to Lamb Weston Holdings, Inc.

$

139.5

$

(35.2)

$

104.3

$

183.6

$

(39.6)

$

144.0

Thirty-Nine Weeks Ended

Thirty-Nine Weeks Ended

February 23, 2020

February 24, 2019

Tax

Tax 

Pre-Tax

(Expense)

After-Tax

Pre-Tax 

(Expense) 

After-Tax 

    

Amount

    

Benefit

    

Amount

    

Amount

    

Benefit

    

Amount

Net income

$

482.6

$

(115.1)

$

367.5

$

484.7

$

(107.9)

$

376.8

Other comprehensive income (loss):

 

  

 

  

 

 

  

Reclassification of post-retirement benefits out of accumulated other comprehensive income (loss)

 

0.6

(0.2)

 

0.4

 

0.6

(0.1)

 

0.5

Unrealized currency translation gains (losses)

 

(17.3)

 

1.6

 

(15.7)

 

(9.5)

 

 

(9.5)

Comprehensive income (loss)

 

465.9

 

(113.7)

 

352.2

 

475.8

 

(108.0)

 

367.8

Less: Comprehensive income attributable to noncontrolling interests

 

 

 

 

8.6

 

 

8.6

Comprehensive income (loss) attributable to Lamb Weston Holdings, Inc.

$

465.9

$

(113.7)

$

352.2

$

467.2

$

(108.0)

$

359.2

See Condensed Notes to Consolidated Financial Statements.

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Table of Contents

Lamb Weston Holdings, Inc.

Consolidated Balance Sheets

(unaudited, dollars in millions, except share data)

February 23,

May 26,

    

2020

    

2019

ASSETS

 

 

  

  

Current assets:

 

 

  

  

Cash and cash equivalents

 

$

30.1

$

12.2

Receivables, less allowance for doubtful accounts of $0.9 and $1.3

 

368.8

 

340.1

Inventories

 

597.3

 

498.3

Prepaid expenses and other current assets

 

101.3

 

110.9

Total current assets

 

1,097.5

 

961.5

Property, plant and equipment, net

 

1,554.0

 

1,597.8

Operating lease assets

172.4

Equity method investments

253.4

224.6

Goodwill

 

303.0

 

205.9

Intangible assets, net

 

39.0

 

37.6

Other assets

 

46.9

 

20.7

Total assets

$

3,466.2

$

3,048.1

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

 

  

 

  

Short-term borrowings

$

21.0

$

8.4

Current portion of long-term debt and financing obligations

36.6

38.0

Accounts payable

 

291.9

 

289.2

Accrued liabilities

 

244.2

 

217.2

Total current liabilities

 

593.7

 

552.8

Long-term liabilities:

Long-term debt and financing obligations, excluding current portion

 

2,195.3

 

2,280.2

Deferred income taxes

156.9

125.7

Other noncurrent liabilities

 

249.9

 

94.0

Total long-term liabilities

2,602.1

2,499.9

Commitments and contingencies

Stockholders' equity:

 

  

 

  

Common stock of $1.00 par value, 600,000,000 shares authorized; 146,993,259 and 146,654,827 shares issued

 

147.0

 

146.7

Additional distributed capital

 

(867.0)

 

(890.3)

Retained earnings

 

1,099.2

 

803.6

Accumulated other comprehensive loss

 

(40.6)

 

(25.3)

Treasury stock, at cost, 954,680 and 585,794 common shares

(68.2)

(39.3)

Total stockholders' equity (deficit)

 

270.4

 

(4.6)

Total liabilities and stockholders’ equity

$

3,466.2

$

3,048.1

See Condensed Notes to Consolidated Financial Statements.

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Table of Contents

Lamb Weston Holdings, Inc.

Consolidated Statements of Stockholders’ Equity
(unaudited, dollars in millions, except shares and per share data)

Thirteen Weeks Ended February 23, 2020 and February 24, 2019

    

    

    

Additional 

    

    

Accumulated 

    

Common Stock,

Common

Treasury

Paid-in

Other 

net of Treasury

Stock

Stock

(Distributed)

Retained

Comprehensive 

 Total 

Shares

    

Amount

    

Amount

    

Capital

    

Earnings

    

Income (Loss)

    

 Equity

Balance at November 24, 2019

146,003,204

$

146.8

$

(57.1)

$

(877.0)

$

1,021.9

  

$

(33.5)

  

$

201.1

Dividends declared, $0.2300 per share

(33.6)

(33.6)

Common stock issued

156,235

0.2

3.9

4.1

Stock-settled, stock-based compensation expense

5.6

5.6

Repurchase of common stock and common stock withheld to cover taxes

(120,860)

(11.1)

(11.1)

Other

0.5

(0.5)

Comprehensive income (loss)

111.4

(7.1)

104.3

Balance at February 23, 2020

146,038,579

$

147.0

$

(68.2)

$

(867.0)

$

1,099.2

$

(40.6)

$

270.4

Balance at November 25, 2018

146,491,903

$

146.6

$

(7.3)

$

(900.9)

$

610.4

$

(15.9)

$

(167.1)

Increase in redemption value of noncontrolling interests in excess of earnings allocated

(0.5)

(0.5)

Dividends declared, $0.2000 per share

(29.3)

(29.3)

Common stock issued

3,867

Stock-settled, stock-based compensation expense

4.5

4.5

Repurchase of common stock and common stock withheld to cover taxes

(112,280)

(7.9)

(7.9)

Other

0.1

0.1

Comprehensive income

141.4

2.6

144.0

Balance at February 24, 2019

146,383,490

$

146.6

$

(15.2)

$

(896.8)

$

722.5

$

(13.3)

$

(56.2)

Thirty-Nine Weeks Ended February 23, 2020 and February 24, 2019

    

    

    

Additional 

    

    

Accumulated 

    

Common Stock,

Common

Treasury

Paid-in

Other 

net of Treasury

Stock

Stock

(Distributed)

Retained

Comprehensive 

 Total 

Shares

    

Amount

    

Amount

    

Capital

    

Earnings

    

Income (Loss)

    

 Equity

Balance at May 26, 2019

146,069,033

$

146.7

$

(39.3)

$

(890.3)

$

803.6

  

$

(25.3)

  

$

(4.6)

Adoption of ASC 842 leases

20.5

20.5

Dividends declared, $0.6300 per share

(92.0)

(92.0)

Common stock issued

338,432

0.3

4.0

4.3

Stock-settled, stock-based compensation expense

18.2

18.2

Repurchase of common stock and common stock withheld to cover taxes

(368,886)

(28.9)

(28.9)

Other

1.1

(0.4)

0.7

Comprehensive income (loss)

 

367.5

(15.3)

352.2

Balance at February 23, 2020

146,038,579

$

147.0

$

(68.2)

$

(867.0)

$

1,099.2

$

(40.6)

$

270.4

Balance at May 27, 2018

146,332,332

$

146.4

$

(2.9)

$

(900.4)

$

426.4

$

(4.3)

$

(334.8)

Adoption of ASC 606 revenue from contracts with customers

13.7

13.7

Increase in redemption value of noncontrolling interests in excess of earnings allocated

(11.4)

(11.4)

Dividends declared, $0.5825 per share

(85.3)

(85.3)

Common stock issued

224,398

0.2

0.9

1.1

Stock-settled, stock-based compensation expense

13.7

13.7

Repurchase of common stock and common stock withheld to cover taxes

(173,240)

(12.3)

(12.3)

Other

0.4

(0.5)

(0.1)

Comprehensive income (loss)

368.2

(9.0)

359.2

Balance at February 24, 2019

146,383,490

$

146.6

$

(15.2)

$

(896.8)

$

722.5

$

(13.3)

$

(56.2)

See Condensed Notes to Consolidated Financial Statements

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Table of Contents

Lamb Weston Holdings, Inc.

Consolidated Statements of Cash Flows

(unaudited, dollars in millions)

Thirty-Nine Weeks Ended

    

February 23,

    

February 24,

2020

2019

Cash flows from operating activities

Net income

$

367.5

$

376.8

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization of intangibles and debt issuance costs

137.5

117.5

Stock-settled, stock-based compensation expense

18.2

13.7

Earnings of joint ventures in excess of distributions

(6.5)

(9.0)

Deferred income taxes

25.3

38.5

Other

1.2

4.1

Changes in operating assets and liabilities, net of acquisitions:

Receivables

(24.3)

(43.3)

Inventories

(94.6)

(104.7)

Income taxes payable/receivable, net

8.1

14.1

Prepaid expenses and other current assets

1.8

(7.0)

Accounts payable

2.1

51.6

Accrued liabilities

(0.6)

(7.9)

Net cash provided by operating activities

$

435.7

$

444.4

Cash flows from investing activities

Acquisition of business, net of cash acquired

(116.7)

(88.6)

Additions to property, plant and equipment

(127.8)

(244.2)

Additions to other long-term assets

(24.2)

(3.1)

Investment in equity method joint venture

(22.6)

Other

1.5

2.0

Net cash used for investing activities

$

(289.8)

$

(333.9)

Cash flows from financing activities

Proceeds from issuance of debt

299.3

Repayments of debt and financing obligations

(327.1)

(57.1)

Dividends paid

(87.7)

(84.0)

Repurchase of common stock and common stock withheld to cover taxes

(28.9)

(12.3)

Proceeds (payments) of short-term borrowings, net

 

12.7

 

89.3

Acquisition of noncontrolling interest

(78.2)

Cash distributions paid to noncontrolling interest

(6.1)

Other

4.0

1.1

Net cash used for financing activities

$

(127.7)

$

(147.3)

Effect of exchange rate changes on cash and cash equivalents

(0.3)

(1.6)

Net increase (decrease) in cash and cash equivalents

 

17.9

 

(38.4)

Cash and cash equivalents, beginning of the period

12.2

55.6

Cash and cash equivalents, end of period

$

30.1

$

17.2

See Condensed Notes to Consolidated Financial Statements.

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Table of Contents

Condensed Notes to Consolidated Financial Statements

1.    NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Lamb Weston Holdings, Inc. (“we,” “us,” “our,” the “Company,” or “Lamb Weston”), along with its joint venture partners, is a leading global producer, distributor, and marketer of value-added frozen potato products and is headquartered in Eagle, Idaho. We have four reportable segments: Global, Foodservice, Retail, and Other. See Note 15, Segments, for additional information on our reportable segments.

Basis of Presentation

The accompanying consolidated financial statements present the financial results of Lamb Weston for the thirteen and thirty-nine weeks ended February 23, 2020 and February 24, 2019, and have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America. These financial statements are unaudited but include all adjustments (consisting only of normal recurring adjustments) that we consider necessary for a fair presentation of such financial statements. The preparation of financial statements involves the use of estimates and accruals. Actual results may vary from those estimates. Results for interim periods should not be considered indicative of results for our full fiscal year, which ends the last Sunday in May. These financial statements and condensed notes should be read together with the combined and consolidated financial statements and notes in our Annual Report on Form 10-K for the fiscal year ended May 26, 2019 (the “Form 10-K”), which we filed with the Securities and Exchange Commission on July 25, 2019.

Certain amounts in the prior period consolidated financial statements have been reclassified to conform with the current period presentation.

Revenue from Contracts with Customers

Generally, we recognize revenue on a point-in-time basis when the customer takes title to the product and assumes the risks and rewards for the product. However, for customized products, which are products manufactured to customers’ unique specifications, we recognize revenue over time, utilizing an output method based on products produced. This is because once a customized product is manufactured pursuant to a purchase order, we have an enforceable right to payment for that product. Our Global segment sells the majority of our customized products, for which revenue is recognized when a purchase order is received to the extent the product has been manufactured, as opposed to sales of non-customized products, for which revenue is generally recognized upon shipment. As a result, the timing of the receipt of a purchase order may create quarterly fluctuations in this segment.

The nature of our contracts vary based on the business, customer type, and region; however, in all instances it is our customary business practice to receive a valid order from the customer, in which each party’s rights and related payment terms are clearly identifiable. Our payment terms are consistent with industry standards and generally include early pay discounts. Amounts billed and due from customers are short-term in nature and are classified as receivables, since payments are unconditional and only the passage of time is required before payments are due. We generally do not offer financing to our customers. We also do not provide a general right of return. However, customers may seek to return defective or non-conforming products. Following a customer return, we may offer remedies, including cash refunds, credit towards future purchases, or product replacement. As a result, customers’ right of return and related refund or product liabilities are estimated and recorded as reductions in revenue.

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Table of Contents

New and Recently Issued Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Leases

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASC 842”). We adopted the provisions of the guidance effective May 27, 2019 (the beginning of our fiscal year), using the modified retrospective transition method and prior periods were not recast. The adoption of the standard resulted in a $26.6 million ($20.5 million, net of tax) cumulative-effect adjustment to the opening balance of retained earnings for the elimination of $38.7 million of land and $65.3 million of finance lease obligations related to a sale leaseback. The adoption also resulted in the recognition of approximately $155 million of operating lease assets and short-term and long-term operating lease obligations recorded on our consolidated balance sheet related to operating leases. We elected to adopt certain of the optional practical expedients including electing to not reassess lease classification, initial direct costs of existing leases, or whether existing contracts contain a lease. In addition, we elected to account for each contract’s lease and non-lease components as a single lease component. The standard did not have a material impact on our results of operations or cash flows. See Note 6, Leases, for more information.

Accounting Pronouncements Not Yet Adopted

Receivables – Credit Losses

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This update amends the impairment or incurred model by requiring the use of forward-looking information to assess the allowance for doubtful accounts. This guidance is effective in fiscal 2021 (beginning June 1, 2020), including interim periods, with early adoption permitted. In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief. This update provides targeted transition relief allowing for an irrevocable one-time election upon adoption of the new credit losses standard to measure financial assets previously measured at amortized cost using the fair value option. This guidance is effective concurrent with the adoption of ASU 2016-13. The adoption of this standard is not expected to have a significant impact on our financial statements.

Defined Benefit Plans

In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans. This update removes disclosures that are no longer considered cost beneficial, clarifies the specific requirements of disclosures, and adds disclosure requirements identified as relevant to defined benefit pension and other postretirement plans. This guidance is effective for our fiscal 2022 (beginning May 31, 2021) with early adoption permitted. The adoption of this standard is not expected to have a significant impact on our financial statements.

Reference Rate Reform

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This update provides optional guidance for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as interbank offered rates and LIBOR. This guidance includes practical expedients for contract modifications due to reference rate reform. Generally, contract modifications related to reference rate reform may be considered an event that does not require remeasurement or reassessment of a previous accounting determination at the modification date. This guidance is effective immediately; however, it is only available through December 31, 2022. We are currently evaluating the potential impact of this standard on our financial statements.

There were no other accounting pronouncements recently issued that had or are expected to have a material impact on our financial statements.

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2.    EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per common share for the periods presented (dollars and shares in millions, except per share amounts):

Thirteen Weeks Ended

Thirty-Nine Weeks Ended

    

February 23,

    

February 24,

    

February 23,

    

February 24,

2020

2019

2020

2019

Numerator:

 

  

 

  

 

  

 

  

Net income attributable to Lamb Weston Holdings, Inc.

$

111.4

$

141.4

$

367.5

$

368.2

Less: Increase in redemption value of noncontrolling interests in excess of earnings allocated, net of tax benefits (a)

 

 

0.5

 

 

11.4

Net income available to Lamb Weston common stockholders

$

111.4

$

140.9

$

367.5

$

356.8

Denominator:

 

  

 

  

 

  

 

  

Basic weighted average common shares outstanding

 

146.2

 

146.6

 

146.2

 

146.5

Add: Dilutive effect of employee incentive plans (b)

 

1.0

 

0.8

 

0.9

 

0.8

Diluted weighted average common shares outstanding

 

147.2

 

147.4

 

147.1

 

147.3

Earnings per share (a)

Basic

$

0.76

$

0.96

$

2.51

$

2.44

Diluted

$

0.76

$