Company: LW
Filing Date: 2025-08-07
Form Type: ARS
Source: 0001679273-25-000063
Chunk: 146

Company: Lamb Weston Holdings, Inc.
Filing Date: 2025-08-07
Form: ARS
Chunk 146
---
2023, and only 50% of LW EMEA’s adjusted EBITDA is reported in the International segment for those periods. (b) Other segment items include cost of sales, selling, general, and administrative expenses, and equity method investment income or loss for each segment (c) Segment Adjusted EBITDA for fiscal 2023 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. (d) 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 derivative gains and losses, foreign currency exchange gains and losses, blue chip swap transaction gains, and items impacting comparability. These items are added back to reconcile Segment Adjusted EBITDA to Net income. Unallocated corporate costs included only thirteen weeks associated with the acquisition of LW EMEA. For the first three quarters of fiscal 2023, our portion of LW EMEA’s unallocated corporate costs were included in “Equity method investment earnings” in the Consolidated Statements of Earnings in the International segment. (e) Depreciation and amortization includes interest expense, income tax expense, and depreciation and amortization from equity method investments of $29.1 million for the fiscal year ended May 28, 2023. (f) The fiscal year ended May 28, 2023 included a $425.8 million ($379.5 million after-tax) gain recognized in connection with our purchase of an additional 50% equity interest in LW EMEA, increasing our equity ownership from 50% to 100%, and our purchase of an additional 40% equity interest in LWAMSA, increasing our equity ownership from 50% to 90%. The gains related to remeasuring our initial equity interests in LW EMEA and LWAMSA to fair value. 72

Concentrations Lamb Weston’s largest customer, McDonald’s Corporation, accounted for approximately 15%, 14%, and 13% of our consolidated net sales in fiscal 2025, 2024, and 2023, respectively. Information by Geographic Area 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. For the