Company: LW
Filing Date: 2025-09-30
Form Type: 10-Q
Source: 0001679273-25-000070
Chunk: 67

Company: Lamb Weston Holdings, Inc.
Filing Date: 2025-09-30
Form: 10-Q
Item: Part I, Item 8
Chunk 67
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 measures prepared in accordance with GAAP that are also presented in this report. These measures are not substitutes for their comparable GAAP financial measures, such as net income, gross profit, SG&A, income tax expense, net sales, or other measures prescribed by GAAP, and there are limitations to using non-GAAP financial measures. For example, the non-GAAP financial measures presented in this report may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define these non-GAAP financial measures the same way we do.

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The following table reconciles net income to Adjusted EBITDA:

Thirteen Weeks Ended(in millions)August 24,2025August 25,2024Net income (a)$64.3 $127.4 Interest expense, net43.7 45.2 Income tax expense47.9 50.8 Income from operations including equity method investment earnings155.9 223.4 Depreciation and amortization (b)96.3 91.4 Unrealized derivative gains(4.9)(8.9)Foreign currency exchange (gains) losses(4.7)0.6 Blue chip swap transaction gains (c)— (16.6)Stock-based compensation10.6 9.5 Items impacting comparability:Cost Savings Program, Restructuring Plan, and other expenses (d)31.9 — Shareholder activism expense (e)4.0 — Pension settlement (f)13.1 — Adjusted EBITDA$302.2 $299.4 

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(a)Net income during the thirteen weeks ended August 25, 2024, reflects an approximately $39 million ($30 million after-tax, or $0.21 per share) charge related to a voluntary product withdrawal initiated in the fourth quarter of fiscal 2024. This includes an approximately $15 million charge ($11 million after-tax, or $0.08 per share) in net sales and an approximately $24 million charge ($18 million after-tax, or $0.13 per share) in cost of sales. The total charge was allocated to the reporting segments as follows: $21 million to North America and $18 million to International.

(b)Depreciation and amortization includes interest expense, income tax expense, and depreciation and amortization from equity method investments of $2.2 million and $2.1 million for the