Company: LW
Filing Date: 2025-04-03
Form Type: 10-Q
Source: 0001679273-25-000026
Chunk: 62

Company: Lamb Weston Holdings, Inc.
Filing Date: 2025-04-03
Form: 10-Q
Item: Part I, Item 8
Chunk 62
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3143.2145.8Earnings per share:Basic$1.03 $1.01 $1.66 $4.11 Diluted$1.03 $1.01 $1.66 $4.09 ___________________________________________(a)Potential dilutive shares of common stock under employee incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock options and the assumed vesting of outstanding restricted stock units and performance awards. As of February 23, 2025, 0.6 million shares of stock-based awards were excluded from the computation of diluted earnings per share because they would be antidilutive. As of February 25, 2024, an insignificant number of stock-based awards were excluded from the computation of diluted earnings per share because they would be antidilutive.

3. INCOME TAXES

Income tax expense for the periods presented were as follows:Thirteen Weeks EndedThirty-Nine Weeks Ended(in millions)February 23,2025February 25,2024February 23,2025February 25,2024Income before income tax expense and equity method earnings$201.4 $188.2 $343.5 $757.3 Equity method investment earnings2.1 1.0 15.5 17.8 Income tax expense57.5 43.1 121.7 179.3 Effective tax rate (a)28.3%22.8%33.9%23.1%___________________________________________(a)The effective income tax rate is calculated as the ratio of income tax expense to pre-tax income, inclusive of equity method investment earnings. The effective tax rate varies from the U.S. statutory tax rate of 21% principally due to the impact of U.S. state taxes, foreign taxes and currency, permanent differences, and discrete items.During the thirteen and thirty-nine weeks ended February 23, 2025, we recorded a $2.6 million and $38.1 million tax benefit, respectively, related to charges in connection with our previously announced restructuring plan (the “Restructuring Plan”) and for the thirty-nine weeks ended February 23, 2025 a discrete tax expense of $18.2 million, primarily related to the establishment of a non-cash full valuation allowance against certain international deferred tax assets. See Note 4, Restructuring Plan, of these Condensed Notes to Consolidated Financial