|
x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
|
|
47-0248710
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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|
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One ConAgra Drive,
Omaha, Nebraska
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68102-5001
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
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x
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Accelerated filer
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¨
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Non-accelerated filer
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¨
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(Do not check if a smaller reporting company)
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Smaller reporting company
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¨
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Item 1
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Item 2
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Item 3
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Item 4
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Item 1
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Item 1A
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Item 6
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Exhibit 10.3
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Exhibit 101.1
|
|
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Thirteen Weeks Ended
|
||||||
|
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August 30,
2015 |
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August 24,
2014 |
||||
Net sales
|
|
$
|
2,793.8
|
|
|
$
|
2,763.0
|
|
Costs and expenses:
|
|
|
|
|
||||
Cost of goods sold
|
|
2,093.0
|
|
|
2,172.2
|
|
||
Selling, general and administrative expenses
|
|
405.4
|
|
|
393.8
|
|
||
Interest expense, net
|
|
80.3
|
|
|
83.3
|
|
||
Income from continuing operations before income taxes and equity method investment earnings
|
|
215.1
|
|
|
113.7
|
|
||
Income tax expense
|
|
84.9
|
|
|
43.1
|
|
||
Equity method investment earnings
|
|
37.0
|
|
|
25.6
|
|
||
Income from continuing operations
|
|
167.2
|
|
|
96.2
|
|
||
Income (loss) from discontinued operations, net of tax
|
|
(1,319.6
|
)
|
|
388.3
|
|
||
Net income (loss)
|
|
$
|
(1,152.4
|
)
|
|
$
|
484.5
|
|
Less: Net income attributable to noncontrolling interests
|
|
1.7
|
|
|
2.2
|
|
||
Net income (loss) attributable to ConAgra Foods, Inc.
|
|
$
|
(1,154.1
|
)
|
|
$
|
482.3
|
|
Earnings (loss) per share — basic
|
|
|
|
|
||||
Income from continuing operations attributable to ConAgra Foods, Inc. common stockholders
|
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$
|
0.38
|
|
|
$
|
0.22
|
|
Income (loss) from discontinued operations attributable to ConAgra Foods, Inc. common stockholders
|
|
(3.06
|
)
|
|
0.92
|
|
||
Net income (loss) attributable to ConAgra Foods, Inc. common stockholders
|
|
$
|
(2.68
|
)
|
|
$
|
1.14
|
|
Earnings (loss) per share — diluted
|
|
|
|
|
||||
Income from continuing operations attributable to ConAgra Foods, Inc. common stockholders
|
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$
|
0.38
|
|
|
$
|
0.22
|
|
Income (loss) from discontinued operations attributable to ConAgra Foods, Inc. common stockholders
|
|
(3.03
|
)
|
|
0.90
|
|
||
Net income (loss) attributable to ConAgra Foods, Inc. common stockholders
|
|
$
|
(2.65
|
)
|
|
$
|
1.12
|
|
Cash dividends declared per common share
|
|
$
|
0.25
|
|
|
$
|
0.25
|
|
|
Thirteen weeks ended
|
|
Thirteen weeks ended
|
||||||||||||||||
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August 30, 2015
|
|
August 24, 2014
|
||||||||||||||||
|
Pre-Tax Amount
|
Tax (Expense) Benefit
|
After-Tax Amount
|
|
Pre-Tax Amount
|
Tax (Expense) Benefit
|
After-Tax Amount
|
||||||||||||
Net income (loss)
|
$
|
(1,539.5
|
)
|
$
|
387.1
|
|
$
|
(1,152.4
|
)
|
|
$
|
767.2
|
|
$
|
(282.7
|
)
|
$
|
484.5
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||||||
Reclassification for derivative adjustments included in net income
|
—
|
|
—
|
|
—
|
|
|
(0.5
|
)
|
0.2
|
|
(0.3
|
)
|
||||||
Unrealized gains on available-for-sale securities
|
—
|
|
—
|
|
—
|
|
|
0.1
|
|
—
|
|
0.1
|
|
||||||
Unrealized currency translation losses
|
(37.6
|
)
|
—
|
|
(37.6
|
)
|
|
(17.7
|
)
|
—
|
|
(17.7
|
)
|
||||||
Pension and post-employment benefit obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized pension and post-employment benefit obligations
|
6.6
|
|
(1.6
|
)
|
5.0
|
|
|
3.8
|
|
(1.0
|
)
|
2.8
|
|
||||||
Reclassification for pension and post-employment benefit obligations included in net income
|
(1.3
|
)
|
0.5
|
|
(0.8
|
)
|
|
(0.2
|
)
|
0.1
|
|
(0.1
|
)
|
||||||
Comprehensive income (loss)
|
(1,571.8
|
)
|
386.0
|
|
(1,185.8
|
)
|
|
752.7
|
|
(283.4
|
)
|
469.3
|
|
||||||
Comprehensive income (loss) attributable to noncontrolling interests
|
(1.1
|
)
|
(0.3
|
)
|
(1.4
|
)
|
|
(0.8
|
)
|
—
|
|
(0.8
|
)
|
||||||
Comprehensive income (loss) attributable to ConAgra Foods, Inc.
|
$
|
(1,570.7
|
)
|
$
|
386.3
|
|
$
|
(1,184.4
|
)
|
|
$
|
753.5
|
|
$
|
(283.4
|
)
|
$
|
470.1
|
|
|
August 30,
2015 |
|
May 31,
2015 |
||||
ASSETS
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
114.3
|
|
|
$
|
164.7
|
|
Receivables, less allowance for doubtful accounts of $4.4 and $4.1
|
837.3
|
|
|
772.5
|
|
||
Inventories
|
1,827.3
|
|
|
1,715.2
|
|
||
Prepaid expenses and other current assets
|
183.0
|
|
|
276.3
|
|
||
Current assets held for sale
|
740.1
|
|
|
739.0
|
|
||
Total current assets
|
3,702.0
|
|
|
3,667.7
|
|
||
Property, plant and equipment
|
6,169.8
|
|
|
6,197.3
|
|
||
Less accumulated depreciation
|
(3,510.8
|
)
|
|
(3,503.3
|
)
|
||
Property, plant and equipment, net
|
2,659.0
|
|
|
2,694.0
|
|
||
Goodwill
|
4,689.5
|
|
|
4,699.5
|
|
||
Brands, trademarks and other intangibles, net
|
1,392.7
|
|
|
1,313.4
|
|
||
Other assets
|
973.3
|
|
|
933.5
|
|
||
Noncurrent assets held for sale
|
2,417.8
|
|
|
4,234.1
|
|
||
|
$
|
15,834.3
|
|
|
$
|
17,542.2
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Notes payable
|
$
|
13.1
|
|
|
$
|
7.9
|
|
Current installments of long-term debt
|
1,557.3
|
|
|
1,008.0
|
|
||
Accounts payable
|
1,157.7
|
|
|
1,138.8
|
|
||
Accrued payroll
|
153.4
|
|
|
218.2
|
|
||
Other accrued liabilities
|
681.8
|
|
|
649.4
|
|
||
Current liabilities held for sale
|
283.6
|
|
|
287.9
|
|
||
Total current liabilities
|
3,846.9
|
|
|
3,310.2
|
|
||
Senior long-term debt, excluding current installments
|
6,103.7
|
|
|
6,653.0
|
|
||
Subordinated debt
|
195.9
|
|
|
195.9
|
|
||
Other noncurrent liabilities
|
1,980.0
|
|
|
2,023.2
|
|
||
Noncurrent liabilities held for sale
|
263.4
|
|
|
749.9
|
|
||
Total liabilities
|
12,389.9
|
|
|
12,932.2
|
|
||
Commitments and contingencies (Note 13)
|
|
|
|
||||
Common stockholders' equity
|
|
|
|
||||
Common stock of $5 par value, authorized 1,200,000,000 shares; issued 567,907,172
|
2,839.7
|
|
|
2,839.7
|
|
||
Additional paid-in capital
|
1,072.7
|
|
|
1,049.4
|
|
||
Retained earnings
|
3,069.0
|
|
|
4,331.1
|
|
||
Accumulated other comprehensive loss
|
(359.8
|
)
|
|
(329.5
|
)
|
||
Less treasury stock, at cost, 134,995,978 and 139,702,605 common shares
|
(3,258.3
|
)
|
|
(3,364.7
|
)
|
||
Total ConAgra Foods, Inc. common stockholders' equity
|
3,363.3
|
|
|
4,526.0
|
|
||
Noncontrolling interests
|
81.1
|
|
|
84.0
|
|
||
Total stockholders' equity
|
3,444.4
|
|
|
4,610.0
|
|
||
|
$
|
15,834.3
|
|
|
$
|
17,542.2
|
|
|
Thirteen weeks ended
|
||||||
|
August 30,
2015 |
|
August 24,
2014 |
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income (loss)
|
$
|
(1,152.4
|
)
|
|
$
|
484.5
|
|
Income (loss) from discontinued operations
|
(1,319.6
|
)
|
|
388.3
|
|
||
Income (loss) from continuing operations
|
167.2
|
|
|
96.2
|
|
||
Adjustments to reconcile income (loss) from continuing operations to net cash flows from operating activities:
|
|
|
|
||||
Depreciation and amortization
|
91.6
|
|
|
96.0
|
|
||
Asset impairment charges
|
0.6
|
|
|
1.3
|
|
||
Loss on sale of fixed assets
|
2.2
|
|
|
0.9
|
|
||
Earnings of affiliates in excess of distributions
|
(33.9
|
)
|
|
(24.4
|
)
|
||
Share-based payments expense
|
20.6
|
|
|
14.5
|
|
||
Contributions to pension plans
|
(2.7
|
)
|
|
(2.8
|
)
|
||
Pension benefit
|
—
|
|
|
(2.3
|
)
|
||
Other items
|
(9.0
|
)
|
|
23.0
|
|
||
Change in operating assets and liabilities excluding effects of business acquisitions and dispositions:
|
|
|
|
||||
Accounts receivable
|
(64.6
|
)
|
|
(16.6
|
)
|
||
Inventory
|
(111.8
|
)
|
|
(92.1
|
)
|
||
Deferred income taxes and income taxes payable, net
|
(22.2
|
)
|
|
(17.0
|
)
|
||
Prepaid expenses and other current assets
|
10.9
|
|
|
13.5
|
|
||
Accounts payable
|
53.2
|
|
|
71.4
|
|
||
Accrued payroll
|
(55.3
|
)
|
|
32.3
|
|
||
Other accrued liabilities
|
(6.0
|
)
|
|
(33.6
|
)
|
||
Net cash flows from operating activities — continuing operations
|
40.8
|
|
|
160.3
|
|
||
Net cash flows from operating activities — discontinued operations
|
26.0
|
|
|
73.3
|
|
||
Net cash flows from operating activities
|
66.8
|
|
|
233.6
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Additions to property, plant and equipment
|
(108.0
|
)
|
|
(90.4
|
)
|
||
Sale of property, plant and equipment
|
12.9
|
|
|
1.8
|
|
||
Purchase of business, net of cash acquired
|
—
|
|
|
(75.4
|
)
|
||
Purchase of intangible assets
|
(10.4
|
)
|
|
—
|
|
||
Return of investment in equity method investee
|
—
|
|
|
402.9
|
|
||
Net cash flows from investing activities — continuing operations
|
(105.5
|
)
|
|
238.9
|
|
||
Net cash flows from investing activities — discontinued operations
|
(20.0
|
)
|
|
92.7
|
|
||
Net cash flows from investing activities
|
(125.5
|
)
|
|
331.6
|
|
||
Cash flows from financing activities:
|
|
|
|
||||
Net short-term borrowings
|
5.2
|
|
|
407.3
|
|
||
Issuance of long-term debt
|
—
|
|
|
550.0
|
|
||
Repayment of long-term debt
|
(2.5
|
)
|
|
(1,486.7
|
)
|
||
Cash dividends paid
|
(107.1
|
)
|
|
(105.5
|
)
|
||
Exercise of stock options and issuance of other stock awards
|
119.9
|
|
|
27.1
|
|
||
Other items
|
(1.4
|
)
|
|
(5.9
|
)
|
||
Net cash flows from financing activities
|
14.1
|
|
|
(613.7
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(1.6
|
)
|
|
(0.9
|
)
|
||
Net change in cash and cash equivalents
|
(46.2
|
)
|
|
(49.4
|
)
|
||
Discontinued operations cash activity included above:
|
|
|
|
||||
Add: Cash balance included in assets held for sale at beginning of period
|
18.4
|
|
|
64.9
|
|
||
Less: Cash balance included in assets held for sale at end of period
|
22.6
|
|
|
21.9
|
|
||
Cash and cash equivalents at beginning of period
|
164.7
|
|
|
118.2
|
|
||
Cash and cash equivalents at end of period
|
$
|
114.3
|
|
|
$
|
111.8
|
|
|
Thirteen Weeks Ended
|
|
Affected Line Item in the Condensed Consolidated Statement of Operations
1
|
||||||
|
August 30, 2015
|
|
August 24, 2014
|
|
|
||||
Net derivative adjustment, net of tax:
|
|
|
|
|
|
||||
Cash flow hedges
|
$
|
—
|
|
|
$
|
(0.5
|
)
|
|
Interest expense, net
|
|
—
|
|
|
(0.5
|
)
|
|
Total before tax
|
||
|
—
|
|
|
0.2
|
|
|
Income tax expense
|
||
|
$
|
—
|
|
|
$
|
(0.3
|
)
|
|
Net of tax
|
Amortization of pension and postretirement healthcare liabilities:
|
|
|
|
|
|
||||
Net prior service benefit
|
$
|
(1.3
|
)
|
|
$
|
(1.1
|
)
|
|
Selling, general and administrative expenses
|
Net actuarial loss
|
—
|
|
|
0.9
|
|
|
Selling, general and administrative expenses
|
||
|
(1.3
|
)
|
|
(0.2
|
)
|
|
Total before tax
|
||
|
0.5
|
|
|
0.1
|
|
|
Income tax expense
|
||
|
$
|
(0.8
|
)
|
|
$
|
(0.1
|
)
|
|
Net of tax
|
|
Thirteen Weeks Ended
|
||||||
|
August 30, 2015
|
|
August 24, 2014
|
||||
Net sales
|
$
|
894.2
|
|
|
$
|
954.2
|
|
Net gain on sale of businesses
|
$
|
—
|
|
|
$
|
626.5
|
|
Goodwill and long-lived asset impairment charges
|
(1,812.3
|
)
|
|
—
|
|
||
Income from operations of discontinued operations before income taxes and equity method investment earnings
|
20.7
|
|
|
1.4
|
|
||
Income (loss) before income taxes
|
(1,791.6
|
)
|
|
627.9
|
|
||
Income tax expense (benefit)
|
(472.0
|
)
|
|
239.6
|
|
||
Income (loss) from discontinued operations, net of tax
|
$
|
(1,319.6
|
)
|
|
$
|
388.3
|
|
|
|
August 30, 2015
|
|
May 31, 2015
|
||||
Cash and cash equivalents
|
|
$
|
22.6
|
|
|
$
|
18.4
|
|
Receivables, less allowance for doubtful accounts of $0.4 and $0.5
|
|
201.8
|
|
|
200.4
|
|
||
Inventories
|
|
511.9
|
|
|
486.0
|
|
||
Prepaid expenses and other current assets
|
|
3.8
|
|
|
34.2
|
|
||
Current assets held for sale
|
|
$
|
740.1
|
|
|
$
|
739.0
|
|
Property, plant and equipment, net
|
|
$
|
898.2
|
|
|
$
|
914.1
|
|
Goodwill
|
|
991.5
|
|
|
1,600.8
|
|
||
Brands, trademarks and other intangibles, net
|
|
525.1
|
|
|
1,716.6
|
|
||
Other assets
|
|
3.0
|
|
|
2.6
|
|
||
Noncurrent assets held for sale
|
|
$
|
2,417.8
|
|
|
$
|
4,234.1
|
|
Accounts payable
|
|
$
|
226.9
|
|
|
$
|
219.5
|
|
Other accrued liabilities
|
|
56.7
|
|
|
68.4
|
|
||
Current liabilities held for sale
|
|
$
|
283.6
|
|
|
$
|
287.9
|
|
Senior long-term debt, excluding current installments
|
|
$
|
39.9
|
|
|
$
|
40.0
|
|
Other noncurrent liabilities
|
|
223.5
|
|
|
709.9
|
|
||
Noncurrent liabilities held for sale
|
|
$
|
263.4
|
|
|
$
|
749.9
|
|
|
Consumer Foods
|
|
Commercial Foods
|
|
Corporate
|
|
Total
|
||||||||
Multi-employer pension costs
|
$
|
1.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.5
|
|
Accelerated depreciation
|
39.3
|
|
|
|
|
|
1.6
|
|
|
40.9
|
|
||||
Other cost of goods sold
|
6.3
|
|
|
—
|
|
|
—
|
|
|
6.3
|
|
||||
Total cost of goods sold
|
47.1
|
|
|
—
|
|
|
1.6
|
|
|
48.7
|
|
||||
Severance and related costs (recoveries)
|
26.2
|
|
|
8.1
|
|
|
11.4
|
|
|
45.7
|
|
||||
Fixed asset impairment / Net gain on disposal
|
1.0
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
||||
Accelerated depreciation
|
—
|
|
|
—
|
|
|
0.8
|
|
|
0.8
|
|
||||
Other selling, general and administrative expenses
|
19.6
|
|
|
—
|
|
|
28.2
|
|
|
47.8
|
|
||||
Total selling, general and administrative expenses
|
46.8
|
|
|
8.1
|
|
|
40.4
|
|
|
95.3
|
|
||||
Consolidated total
|
$
|
93.9
|
|
|
$
|
8.1
|
|
|
$
|
42.0
|
|
|
$
|
144.0
|
|
|
Consumer Foods
|
|
Commercial Foods
|
|
Corporate
|
|
Total
|
||||||||
Accelerated depreciation
|
$
|
3.6
|
|
|
$
|
—
|
|
|
$
|
0.1
|
|
|
$
|
3.7
|
|
Other cost of goods sold
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
||||
Total cost of goods sold
|
3.7
|
|
|
—
|
|
|
0.1
|
|
|
3.8
|
|
||||
Severance and related costs (recoveries)
|
0.8
|
|
|
0.1
|
|
|
3.6
|
|
|
4.5
|
|
||||
Fixed asset impairment / Net gain on disposal
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
||||
Other selling, general and administrative expenses
|
2.2
|
|
|
—
|
|
|
7.0
|
|
|
9.2
|
|
||||
Total selling, general and administrative expenses
|
2.9
|
|
|
0.1
|
|
|
10.6
|
|
|
13.6
|
|
||||
Consolidated total
|
$
|
6.6
|
|
|
$
|
0.1
|
|
|
$
|
10.7
|
|
|
$
|
17.4
|
|
|
Consumer Foods
|
|
Commercial Foods
|
|
Corporate
|
|
Total
|
||||||||
Multi-employer pension costs
|
$
|
1.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.5
|
|
Accelerated depreciation
|
25.1
|
|
|
—
|
|
|
1.1
|
|
|
26.2
|
|
||||
Other cost of goods sold
|
2.2
|
|
|
—
|
|
|
—
|
|
|
2.2
|
|
||||
Total cost of goods sold
|
28.8
|
|
|
—
|
|
|
1.1
|
|
|
29.9
|
|
||||
Severance and related costs (recoveries)
|
22.3
|
|
|
8.1
|
|
|
11.4
|
|
|
41.8
|
|
||||
Fixed asset impairment / Net gain on disposal
|
1.0
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
||||
Accelerated depreciation
|
—
|
|
|
—
|
|
|
0.8
|
|
|
0.8
|
|
||||
Other selling, general and administrative expenses
|
7.8
|
|
|
—
|
|
|
15.0
|
|
|
22.8
|
|
||||
Total selling, general and administrative expenses
|
31.1
|
|
|
8.1
|
|
|
27.2
|
|
|
66.4
|
|
||||
Consolidated total
|
$
|
59.9
|
|
|
$
|
8.1
|
|
|
$
|
28.3
|
|
|
$
|
96.3
|
|
|
Balance at May 31,
2015 |
|
Costs Incurred
and Charged
to Expense
|
|
Costs Paid
or Otherwise Settled
|
|
Changes in Estimates
|
|
Balance at August 30,
2015 |
||||||||||
Multi-employer pension costs
|
$
|
11.4
|
|
|
$
|
0.2
|
|
|
$
|
(0.1
|
)
|
|
$
|
—
|
|
|
$
|
11.5
|
|
Severance
|
16.4
|
|
|
6.1
|
|
|
(9.1
|
)
|
|
(0.4
|
)
|
|
13.0
|
|
|||||
Other costs
|
4.5
|
|
|
8.9
|
|
|
(3.2
|
)
|
|
0.2
|
|
|
10.4
|
|
|||||
Total
|
$
|
32.3
|
|
|
$
|
15.2
|
|
|
$
|
(12.4
|
)
|
|
$
|
(0.2
|
)
|
|
$
|
34.9
|
|
|
Thirteen Weeks Ended
|
||||||
|
August 30,
2015 |
|
August 24,
2014 |
||||
Long-term debt
|
$
|
82.3
|
|
|
$
|
85.1
|
|
Short-term debt
|
0.2
|
|
|
0.5
|
|
||
Interest income
|
(0.2
|
)
|
|
(0.5
|
)
|
||
Interest capitalized
|
(2.0
|
)
|
|
(1.8
|
)
|
||
|
$
|
80.3
|
|
|
$
|
83.3
|
|
|
August 30,
2015 |
|
May 31,
2015 |
||||
Cash and cash equivalents
|
$
|
14.4
|
|
|
$
|
13.7
|
|
Receivables, less allowance for doubtful accounts
|
0.1
|
|
|
0.2
|
|
||
Inventories
|
1.4
|
|
|
1.3
|
|
||
Prepaid expenses and other current assets
|
0.2
|
|
|
0.3
|
|
||
Property, plant and equipment, net
|
53.2
|
|
|
53.2
|
|
||
Goodwill
|
18.8
|
|
|
18.8
|
|
||
Brands, trademarks and other intangibles, net
|
5.7
|
|
|
6.0
|
|
||
Total assets
|
$
|
93.8
|
|
|
$
|
93.5
|
|
Accounts payable
|
$
|
14.3
|
|
|
$
|
16.9
|
|
Accrued payroll
|
0.6
|
|
|
0.7
|
|
||
Other accrued liabilities
|
0.7
|
|
|
0.6
|
|
||
Other noncurrent liabilities (noncontrolling interest)
|
31.3
|
|
|
31.3
|
|
||
Total liabilities
|
$
|
46.9
|
|
|
$
|
49.5
|
|
|
Consumer
Foods
|
|
Commercial
Foods
|
|
Total
|
||||||
Balance as of May 31, 2015
|
$
|
3,824.6
|
|
|
$
|
874.9
|
|
|
$
|
4,699.5
|
|
Currency translation and purchase accounting adjustments
|
(9.5
|
)
|
|
(0.5
|
)
|
|
(10.0
|
)
|
|||
Balance as of August 30, 2015
|
$
|
3,815.1
|
|
|
$
|
874.4
|
|
|
$
|
4,689.5
|
|
|
August 30, 2015
|
|
May 31, 2015
|
||||||||||||
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
||||||||
Non-amortizing intangible assets
|
$
|
912.9
|
|
|
$
|
—
|
|
|
$
|
916.9
|
|
|
$
|
—
|
|
Amortizing intangible assets
|
628.8
|
|
|
149.0
|
|
|
536.6
|
|
|
140.1
|
|
||||
|
$
|
1,541.7
|
|
|
$
|
149.0
|
|
|
$
|
1,453.5
|
|
|
$
|
140.1
|
|
|
August 30,
2015 |
|
May 31,
2015 |
||||
Prepaid expenses and other current assets
|
$
|
32.3
|
|
|
$
|
32.2
|
|
Other accrued liabilities
|
14.5
|
|
|
14.2
|
|
|
Derivative Assets
|
|
Derivative Liabilities
|
||||||||
|
Balance Sheet
Location
|
|
Fair Value
|
|
Balance Sheet
Location
|
|
Fair Value
|
||||
Commodity contracts
|
Prepaid expenses and other current assets
|
|
$
|
23.7
|
|
|
Other accrued liabilities
|
|
$
|
41.0
|
|
Foreign exchange contracts
|
Prepaid expenses and other current assets
|
|
21.8
|
|
|
Other accrued liabilities
|
|
0.1
|
|
||
Other
|
Prepaid expenses and other current assets
|
|
0.8
|
|
|
Other accrued liabilities
|
|
0.3
|
|
||
Total derivatives not designated as hedging instruments
|
|
|
$
|
46.3
|
|
|
|
|
$
|
41.4
|
|
|
Derivative Assets
|
|
Derivative Liabilities
|
||||||||
|
Balance Sheet
Location
|
|
Fair Value
|
|
Balance Sheet
Location
|
|
Fair Value
|
||||
Commodity contracts
|
Prepaid expenses and other current assets
|
|
$
|
20.8
|
|
|
Other accrued liabilities
|
|
$
|
26.9
|
|
Foreign exchange contracts
|
Prepaid expenses and other current assets
|
|
17.7
|
|
|
Other accrued liabilities
|
|
0.4
|
|
||
Other
|
Prepaid expenses and other current assets
|
|
1.0
|
|
|
Other accrued liabilities
|
|
0.1
|
|
||
Total derivatives not designated as hedging instruments
|
|
|
$
|
39.5
|
|
|
|
|
$
|
27.4
|
|
Derivatives Not Designated as Hedging Instruments
|
|
Location in Condensed Consolidated Statement of Operations of
Gain (Loss) Recognized on Derivatives
|
|
Amount of Gain (Loss)
Recognized on Derivatives
in Condensed Consolidated
Statement of Operations for
the Thirteen Weeks Ended
|
||||||
August 30, 2015
|
|
August 24, 2014
|
||||||||
Commodity contracts
|
|
Cost of goods sold
|
|
$
|
(9.3
|
)
|
|
$
|
(26.9
|
)
|
Foreign exchange contracts
|
|
Cost of goods sold
|
|
—
|
|
|
0.3
|
|
||
Foreign exchange contracts
|
|
Selling, general and administrative expense
|
|
0.1
|
|
|
0.2
|
|
||
Interest rate contracts
|
|
Selling, general and administrative expense
|
|
—
|
|
|
(1.4
|
)
|
||
Total loss from derivative instruments not designated as hedging instruments
|
|
|
|
$
|
(9.2
|
)
|
|
$
|
(27.8
|
)
|
Expected volatility (%)
|
17.85
|
Dividend yield (%)
|
2.81
|
Risk-free interest rate (%)
|
1.70
|
Expected life of stock option (years)
|
4.96
|
|
Thirteen weeks ended
|
||||||
|
August 30,
2015 |
|
August 24,
2014 |
||||
Net income (loss) available to ConAgra Foods, Inc. common stockholders:
|
|
|
|
||||
Income from continuing operations attributable to ConAgra Foods, Inc. common stockholders
|
$
|
165.5
|
|
|
$
|
94.0
|
|
Income (loss) from discontinued operations, net of tax, attributable to ConAgra Foods, Inc. common stockholders
|
(1,319.6
|
)
|
|
388.3
|
|
||
Net income (loss) attributable to ConAgra Foods, Inc. common stockholders
|
$
|
(1,154.1
|
)
|
|
$
|
482.3
|
|
Less: Increase in redemption value of noncontrolling interests in excess of earnings allocated
|
0.4
|
|
|
0.4
|
|
||
Net income (loss) available to ConAgra Foods, Inc. common stockholders
|
$
|
(1,154.5
|
)
|
|
$
|
481.9
|
|
Weighted average shares outstanding:
|
|
|
|
||||
Basic weighted average shares outstanding
|
430.7
|
|
|
423.9
|
|
||
Add: Dilutive effect of stock options, restricted stock unit awards, and other dilutive securities
|
5.0
|
|
|
5.4
|
|
||
Diluted weighted average shares outstanding
|
435.7
|
|
|
429.3
|
|
|
August 30,
2015 |
|
May 31,
2015 |
||||
Raw materials and packaging
|
$
|
329.6
|
|
|
$
|
379.0
|
|
Work in process
|
148.2
|
|
|
128.2
|
|
||
Finished goods
|
1,267.8
|
|
|
1,127.4
|
|
||
Supplies and other
|
81.7
|
|
|
80.6
|
|
||
Total
|
$
|
1,827.3
|
|
|
$
|
1,715.2
|
|
|
Pension Benefits
|
||||||
|
Thirteen Weeks Ended
|
||||||
|
August 30,
2015 |
|
August 24,
2014 |
||||
Service cost
|
$
|
23.8
|
|
|
$
|
22.1
|
|
Interest cost
|
41.0
|
|
|
40.4
|
|
||
Expected return on plan assets
|
(66.9
|
)
|
|
(67.0
|
)
|
||
Amortization of prior service cost
|
0.7
|
|
|
0.9
|
|
||
Special termination benefits
|
—
|
|
|
6.9
|
|
||
Benefit cost — Company plans
|
(1.4
|
)
|
|
3.3
|
|
||
Pension benefit cost — multi-employer plans
|
2.3
|
|
|
3.2
|
|
||
Total benefit cost
|
$
|
0.9
|
|
|
$
|
6.5
|
|
|
Postretirement Benefits
|
||||||
|
Thirteen Weeks Ended
|
||||||
|
August 30,
2015 |
|
August 24,
2014 |
||||
Service cost
|
$
|
0.1
|
|
|
$
|
0.1
|
|
Interest cost
|
2.0
|
|
|
2.5
|
|
||
Amortization of prior service benefit
|
(2.0
|
)
|
|
(2.0
|
)
|
||
Recognized net actuarial loss
|
—
|
|
|
0.9
|
|
||
Total cost
|
$
|
0.1
|
|
|
$
|
1.5
|
|
|
ConAgra Foods, Inc. Stockholders' Equity
|
|
|
|
|
|||||||||||||||||||||||||
|
Common
Shares
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Treasury
Stock
|
|
Noncontrolling
Interests
|
|
Total
Equity
|
|||||||||||||||
Balance at May 31, 2015
|
567.9
|
|
|
$
|
2,839.7
|
|
|
$
|
1,049.4
|
|
|
$
|
4,331.1
|
|
|
$
|
(329.5
|
)
|
|
$
|
(3,364.7
|
)
|
|
$
|
84.0
|
|
|
$
|
4,610.0
|
|
Stock option and incentive plans
|
|
|
|
|
23.7
|
|
|
(0.2
|
)
|
|
|
|
106.4
|
|
|
|
|
129.9
|
|
|||||||||||
Currency translation adjustment
|
|
|
|
|
|
|
|
|
(34.5
|
)
|
|
|
|
(3.1
|
)
|
|
(37.6
|
)
|
||||||||||||
Activities of noncontrolling interests
|
|
|
|
|
(0.4
|
)
|
|
|
|
|
|
|
|
0.2
|
|
|
(0.2
|
)
|
||||||||||||
Pension and postretirement healthcare benefits
|
|
|
|
|
|
|
|
|
4.2
|
|
|
|
|
|
|
4.2
|
|
|||||||||||||
Dividends declared on common stock; $0.25 per share
|
|
|
|
|
|
|
(107.8
|
)
|
|
|
|
|
|
|
|
(107.8
|
)
|
|||||||||||||
Net loss attributable to ConAgra Foods, Inc.
|
|
|
|
|
|
|
(1,154.1
|
)
|
|
|
|
|
|
|
|
(1,154.1
|
)
|
|||||||||||||
Balance at August 30, 2015
|
567.9
|
|
|
$
|
2,839.7
|
|
|
$
|
1,072.7
|
|
|
$
|
3,069.0
|
|
|
$
|
(359.8
|
)
|
|
$
|
(3,258.3
|
)
|
|
$
|
81.1
|
|
|
$
|
3,444.4
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Net Value
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
$
|
9.7
|
|
|
$
|
22.6
|
|
|
$
|
—
|
|
|
$
|
32.3
|
|
Available-for-sale securities
|
2.8
|
|
|
—
|
|
|
—
|
|
|
2.8
|
|
||||
Deferred compensation assets
|
2.6
|
|
|
—
|
|
|
—
|
|
|
2.6
|
|
||||
Total assets
|
$
|
15.1
|
|
|
$
|
22.6
|
|
|
$
|
—
|
|
|
$
|
37.7
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
$
|
—
|
|
|
$
|
14.5
|
|
|
$
|
—
|
|
|
$
|
14.5
|
|
Deferred compensation liabilities
|
46.6
|
|
|
—
|
|
|
—
|
|
|
46.6
|
|
||||
Total liabilities
|
$
|
46.6
|
|
|
$
|
14.5
|
|
|
$
|
—
|
|
|
$
|
61.1
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Net Value
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
$
|
13.6
|
|
|
$
|
18.6
|
|
|
$
|
—
|
|
|
$
|
32.2
|
|
Available-for-sale securities
|
2.8
|
|
|
—
|
|
|
—
|
|
|
2.8
|
|
||||
Deferred compensation assets
|
2.6
|
|
|
—
|
|
|
—
|
|
|
2.6
|
|
||||
Total assets
|
$
|
19.0
|
|
|
$
|
18.6
|
|
|
$
|
—
|
|
|
$
|
37.6
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
$
|
—
|
|
|
$
|
14.2
|
|
|
$
|
—
|
|
|
$
|
14.2
|
|
Deferred compensation liabilities
|
44.6
|
|
|
—
|
|
|
—
|
|
|
44.6
|
|
||||
Total liabilities
|
$
|
44.6
|
|
|
$
|
14.2
|
|
|
$
|
—
|
|
|
$
|
58.8
|
|
|
Thirteen Weeks Ended
|
||||||
|
August 30,
2015 |
|
August 24,
2014 |
||||
Net sales
|
|
|
|
||||
Consumer Foods
|
$
|
1,697.2
|
|
|
$
|
1,703.0
|
|
Commercial Foods
|
1,096.6
|
|
|
1,060.0
|
|
||
Total net sales
|
$
|
2,793.8
|
|
|
$
|
2,763.0
|
|
Operating profit
|
|
|
|
||||
Consumer Foods
|
$
|
241.5
|
|
|
$
|
193.1
|
|
Commercial Foods
|
138.8
|
|
|
118.9
|
|
||
Total operating profit
|
$
|
380.3
|
|
|
$
|
312.0
|
|
Equity method investment earnings
|
|
|
|
||||
Consumer Foods
|
$
|
0.7
|
|
|
$
|
0.3
|
|
Commercial Foods
|
36.3
|
|
|
25.3
|
|
||
Total equity method investment earnings
|
$
|
37.0
|
|
|
$
|
25.6
|
|
Operating profit plus equity method investment earnings
|
|
|
|
||||
Consumer Foods
|
$
|
242.2
|
|
|
$
|
193.4
|
|
Commercial Foods
|
175.1
|
|
|
144.2
|
|
||
Total operating profit plus equity method investment earnings
|
$
|
417.3
|
|
|
$
|
337.6
|
|
General corporate expense
|
$
|
84.9
|
|
|
$
|
115.0
|
|
Interest expense, net
|
80.3
|
|
|
83.3
|
|
||
Income tax expense
|
84.9
|
|
|
43.1
|
|
||
Income from continuing operations
|
$
|
167.2
|
|
|
$
|
96.2
|
|
Less: Net income attributable to noncontrolling interests
|
1.7
|
|
|
2.2
|
|
||
Income from continuing operations attributable to ConAgra Foods, Inc.
|
$
|
165.5
|
|
|
$
|
94.0
|
|
|
Thirteen Weeks Ended
|
||||||
|
August 30,
2015 |
|
August 24,
2014 |
||||
Net derivative losses incurred
|
$
|
(9.3
|
)
|
|
$
|
(26.5
|
)
|
Less: Net derivative gains (losses) allocated to reporting segments
|
(7.1
|
)
|
|
6.8
|
|
||
Net derivative losses recognized in general corporate expenses
|
$
|
(2.2
|
)
|
|
$
|
(33.3
|
)
|
Net derivative gains (losses) allocated to Consumer Foods
|
$
|
(6.1
|
)
|
|
$
|
3.7
|
|
Net derivative gains (losses) allocated to Commercial Foods
|
(1.0
|
)
|
|
3.1
|
|
||
Net derivative gains (losses) included in segment operating profit
|
$
|
(7.1
|
)
|
|
$
|
6.8
|
|
•
|
charges of $24.6 million ($15.1 million after-tax) related to early extinguishment of debt as a result of the payoff of our term loan facility and the repurchase of certain senior notes prior to maturity,
|
•
|
charges totaling $15.7 million ($9.7 million after-tax) in connection with our restructuring plans,
|
•
|
a benefit of $5.8 million ($5.8 million after-tax) related to the reduction of the legal accrual for pending matters associated with the 2007 peanut butter recall, and
|
•
|
a charge of $3.7 million ($2.3 million after-tax) in connection with a legal matter.
|
|
|
Thirteen Weeks Ended
|
||||||
($ in millions)
|
|
August 30,
2015 |
|
August 24,
2014 |
||||
Net derivative losses incurred
|
|
$
|
(9.3
|
)
|
|
$
|
(26.5
|
)
|
Less: Net derivative gains (losses) allocated to reporting segments
|
|
(7.1
|
)
|
|
6.8
|
|
||
Net derivative losses recognized in general corporate expenses
|
|
$
|
(2.2
|
)
|
|
$
|
(33.3
|
)
|
Net derivative gains (losses) allocated to Consumer Foods
|
|
$
|
(6.1
|
)
|
|
$
|
3.7
|
|
Net derivative gains (losses) allocated to Commercial Foods
|
|
(1.0
|
)
|
|
3.1
|
|
||
Net derivative gains (losses) included in segment operating profit
|
|
$
|
(7.1
|
)
|
|
$
|
6.8
|
|
|
Net Sales
|
|||||||||
|
Thirteen weeks ended
|
|||||||||
($ in millions)
Reporting Segment
|
August 30,
2015 |
|
August 24,
2014 |
|
% Inc
(Dec)
|
|||||
Consumer Foods
|
$
|
1,697.2
|
|
|
$
|
1,703.0
|
|
|
—
|
%
|
Commercial Foods
|
1,096.6
|
|
|
1,060.0
|
|
|
4
|
%
|
||
Total
|
$
|
2,793.8
|
|
|
$
|
2,763.0
|
|
|
1
|
%
|
•
|
expenses of $13.6 million in connection with our SCAE Plan,
|
•
|
an increase in advertising and promotion spending of $7.3 million,
|
•
|
an increase in lease expense related to a $5.7 million put option on leased office buildings, and
|
•
|
an increase of $4.8 million related to share-based incentives.
|
|
Operating Profit
|
|||||||||
|
Thirteen weeks ended
|
|||||||||
($ in millions)
Reporting Segment
|
August 30,
2015 |
|
August 24,
2014 |
|
% Inc
(Dec)
|
|||||
Consumer Foods
|
$
|
241.5
|
|
|
$
|
193.1
|
|
|
25
|
%
|
Commercial Foods
|
138.8
|
|
|
118.9
|
|
|
17
|
%
|
|
Payments Due by Period
(in millions)
|
||||||||||||||||||
Contractual Obligations
|
Total
|
|
Less than
1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
After 5
Years
|
||||||||||
Long-term debt
|
$
|
7,732.5
|
|
|
$
|
1,550.6
|
|
|
$
|
1,710.2
|
|
|
$
|
475.0
|
|
|
$
|
3,996.7
|
|
Capital lease obligations
|
66.6
|
|
|
8.4
|
|
|
13.7
|
|
|
8.3
|
|
|
36.2
|
|
|||||
Operating lease obligations
|
484.5
|
|
|
84.2
|
|
|
142.7
|
|
|
87.9
|
|
|
169.7
|
|
|||||
Purchase obligations
1
|
1,846.6
|
|
|
1,736.8
|
|
|
83.0
|
|
|
23.3
|
|
|
3.5
|
|
|||||
Notes payable
|
13.1
|
|
|
13.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
10,143.3
|
|
|
$
|
3,393.1
|
|
|
$
|
1,949.6
|
|
|
$
|
594.5
|
|
|
$
|
4,206.1
|
|
|
Amount of Commitment Expiration Per Period
(in millions)
|
||||||||||||||||||
Other Commercial Commitments
|
Total
|
|
Less than
1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
After 5
Years
|
||||||||||
Guarantees
|
$
|
87.9
|
|
|
$
|
63.9
|
|
|
$
|
5.4
|
|
|
$
|
8.4
|
|
|
$
|
10.2
|
|
Standby repurchase obligations
|
2.7
|
|
|
1.1
|
|
|
0.5
|
|
|
0.5
|
|
|
0.6
|
|
|||||
Other commitments
|
3.1
|
|
|
2.9
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
93.7
|
|
|
$
|
67.9
|
|
|
$
|
6.1
|
|
|
$
|
8.9
|
|
|
$
|
10.8
|
|
|
Fair Value Impact
|
||||||
In Millions
|
Average
During Thirteen Weeks
Ended August 30, 2015
|
|
Average
During Thirteen Weeks
Ended August 24, 2014
|
||||
Energy commodities
|
$
|
1.1
|
|
|
$
|
1.3
|
|
Agriculture commodities
|
2.7
|
|
|
2.2
|
|
||
Other commodities
|
—
|
|
|
1.2
|
|
||
Foreign exchange
|
0.2
|
|
|
0.2
|
|
|
CONAGRA FOODS, INC.
|
|
|
|
|
|
By:
|
/s/ JOHN F. GEHRING
|
|
|
John F. Gehring
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
|
By:
|
/s/ ROBERT G. WISE
|
|
|
Robert G. Wise
|
|
|
Senior Vice President and Corporate Controller
|
EXHIBIT
|
|
DESCRIPTION
|
|
|
|
3.1
|
|
ConAgra Foods' Certificate of Incorporation, as restated, incorporated herein by reference to Exhibit 3.1 of ConAgra Foods' current report on Form 8-K filed December 2, 2005
|
|
|
|
3.2
|
|
Amended and Restated By-Laws of ConAgra Foods, Inc., as amended on on May 7, 2015 and further amended on June 18, 2015, incorporated herein by reference to Exhibit 3.1 of ConAgra Foods' current report on Form 8-K dated June 18, 2015
|
|
|
|
4.1
|
|
Indenture, dated as of October 8, 1990, between ConAgra Foods, Inc. and The Bank of New York Mellon (as successor to JPMorgan Chase Bank, N.A. and The Chase Manhattan Bank (National Association)), as trustee, incorporated by reference to Exhibit 4.1 of ConAgra Foods' Registration Statement on Form S-3 (Registration File No. 033-36967)
|
|
|
|
10.1
|
|
Cooperation Agreement, dated as of July 8, 2015, between JANA Partners LLC and ConAgra Foods, Inc., incorporated herein by reference to Exhibit 99.1 of ConAgra Foods, current report on Form 8-K filed July 8, 2015
|
|
|
|
10.2*
|
|
Separation Agreement between Albert Bolles, Ph.D. and ConAgra Foods, Inc. dated August 11, 2015, incorporated herein by reference to Exhibit 10.1 of ConAgra Foods’ current report on Form 8-K filed August 14, 2015
|
|
|
|
10.3*
|
|
Form of Retention Restricted Stock Unit Agreement (Stock Settled) under the ConAgra Foods’ 2014 Stock Plan
|
|
|
|
12
|
|
Statement regarding computation of ratio of earnings to fixed charges
|
|
|
|
31.1
|
|
Section 302 Certificate of Chief Executive Officer
|
|
|
|
31.2
|
|
Section 302 Certificate of Chief Financial Officer
|
|
|
|
32.1
|
|
Section 906 Certificates
|
|
|
|
101.1
|
|
The following materials from ConAgra Foods' Quarterly Report on Form 10-Q for the quarter ended August 30, 2015, formatted in XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Statements of Operations, (ii) the Condensed Consolidated Statements of Comprehensive Income, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Cash Flows, (v) Notes to Condensed Consolidated Financial Statements, and (vi) document and entity information.
|
|
|
|
|
|
Pursuant to Item 601(b)(4) of Regulation S-K, certain instruments with respect to ConAgra Foods' long-term debt are not filed with this Form 10-Q. ConAgra Foods will furnish a copy of any such long-term debt agreement to the Securities and Exchange Commission upon request.
|
1.
|
Award Grant.
ConAgra Foods hereby grants Restricted Stock Units ("RSUs", and each such unit an “RSU”) to the Participant under the ConAgra Foods, Inc. 2014 Stock Plan (the “Plan”), as follows, effective as of ____________ ___, 20__ (the “Date of Grant”):
|
2.
|
Definitions
.
Capitalized terms used herein without definition have the meanings set forth in the Plan. The following terms shall have the respective meanings set forth below:
|
(a)
|
“Continuous Employment
” shall mean the absence of any interruption or termination of employment with the Company and the performance of substantial services. Continuous Employment shall not be considered interrupted or terminated in the case of sick leave, short-term disability (as defined in the Company’s sole discretion), military leave or any other leave of absence approved by the Company unless and until there is a Separation from Service (as defined in
Section 2(e)
below).
|
(b)
|
“
Divestiture
” means a permanent disposition to a person other than the Company of (i) a plant or other facility or property at which the Participant performs a majority of the Participant’s services, or (ii) the business unit for which the Participant performs a majority of the Participant’s services, whether such disposition is effected by means of a sale of assets, a sale of Subsidiary stock or otherwise.
|
(c)
|
“
Early Retirement
” means Separation from Service with the Company when the Participant (i) is at least age 55, and (ii) has at least ten years of credited service with the Company.
|
(d)
|
“
Normal Retirement
” shall mean a Separation from Service with the Company on or after attaining age 65.
|
(e)
|
“
Separation from Service,
”
“termination of employment” and similar terms
means the date that the Participant “separates from service” within the meaning of Section 409A of the Code. Generally, a Participant separates from service if and only if the Participant dies, retires, or otherwise has a termination of employment with the Company determined in accordance with Section 409A of the Code and the following:
|
(i)
|
Leaves of Absence
. The employment relationship is treated as continuing intact while the Participant is on military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed six months, or, if longer, so long as the Participant retains a right to reemployment with the Company under an applicable statute or by contract. A leave of absence constitutes a bona fide leave of absence only if there is a reasonable expectation that the Participant will return to perform services for the Company. If the period of leave exceeds six months and the Participant does not retain a right to reemployment under an applicable statute or by contract, the employment relationship is deemed to terminate on the first date immediately following such six-month period. Notwithstanding the foregoing, where a leave of absence is due to any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than six months, where such impairment causes the Participant to be unable to perform the duties of his or her position of employment or any substantially similar position of employment, a twenty-nine-month period of absence shall be substituted for such six-month period.
|
(ii)
|
Dual Status
. Generally, if a Participant performs services both as an employee and an independent contractor, such Participant must separate from service both as an employee, and as an independent contractor pursuant to standards set forth in Treasury Regulations, to be treated as having a separation from service. However, if a Participant provides services to the Company as an employee and as a member of the Board, and if any plan in which such person participates as a Board member is not aggregated with this Agreement pursuant to Treasury Regulation Section 1.409A-1(c)(2)(ii), then the services provided as a director are not taken into account in determining whether the Participant has a separation from service as an employee for purposes of this Agreement.
|
(iii)
|
Termination of Employment
. Whether a termination of employment has occurred is determined based on whether the facts and circumstances indicate that the Company and the Participant reasonably anticipated that no further services would be performed after a certain date or that the level of bona fide services the Participant would perform after such date (whether as an employee or as an independent contractor except as provided in (ii) above) would permanently decrease to no more than twenty percent of the average level of bona fide services performed (whether as an employee or an independent contractor, except as provided in (ii) above) over the immediately preceding thirty-six-month period (or the full period of services to the Company if the Participant has been providing services to the Company less than thirty-six months). For periods during which a Participant is on a paid bona fide leave of absence and has not otherwise terminated employment as described above, for purposes of this paragraph (iii) the Participant is treated as providing bona fide services at a level equal to the level of services that the Participant would have been required to perform to receive the compensation paid with respect to such leave of absence. Periods during which a Participant is on an unpaid bona fide leave of absence and has not otherwise terminated employment are disregarded for purposes of this paragraph (iii) (including for purposes of determining the applicable thirty-six-month (or shorter) period).
|
(f)
|
“
Specified Employee
” is as defined under Section 409A of the Code and Treasury Regulation Section 1.409A-1(i).
|
(g)
|
“
Successors
” shall mean the beneficiaries, executors, administrators, heirs, successors and assigns of a person.
|
3.
|
Vesting of RSUs
.
|
(h)
|
Normal Vesting
. Subject to the Plan and this Agreement, if the Participant has been in Continuous Employment through the Vesting Date as set forth in
Section 1
, then the RSUs subject to such Vesting Date will become nonforfeitable (“Vest” or similar terms).
|
(i)
|
Termination of Employment
. If, prior to the Vesting Date set forth in
Section 1
, the Participant’s employment with the Company shall terminate:
|
(iv)
|
by reason of death, then all RSUs evidenced by this Agreement shall, to the extent such RSUs have not previously been forfeited, become 100% Vested;
|
(v)
|
by reason of involuntary termination due to position elimination or reduction in force (each as defined in the Company's sole discretion), the Participant shall, to the extent such RSUs have not previously been forfeited, become 100% Vested;
|
(vi)
|
by reason of Normal Retirement occurring on or after the date that is 12 months after the Date of Grant, then all RSUs evidenced by this Agreement shall, to the extent such RSUs have not previously been forfeited, become 100% Vested;
|
(vii)
|
by reason of Early Retirement or involuntary termination due to disability (as defined in the Company's sole discretion), or Divestiture, in each case, on or after the date that is 12 months after the Date of Grant, the Participant will Vest in a pro rata portion of the RSUs determined by multiplying the number of RSUs evidenced by this Agreement, to the extent not previously forfeited, by a fraction, the numerator of which is the total number of calendar days during which the Participant was employed by the Company during the period beginning on the Date of Grant and ending on the Separation from Service and the denominator of which is the total number of calendar days beginning on the Date of Grant and ending on the Vesting Date, rounded to the nearest whole number of RSUs;
|
(viii)
|
for Cause prior to the Vesting Date, then all RSUs, whether Vested or unvested prior to the Vesting Date, shall be immediately forfeited without further consideration to the Participant.
|
(j)
|
Accelerated Vesting in Connection with a Change of Control
.
|
(ix)
|
If a Change of Control occurs prior to the Vesting Date, and the Participant has been in Continuous Employment between the Date of Grant and the date of such Change of Control, then all RSUs evidenced by this Agreement shall become 100% Vested, except (A) to the extent such RSUs have previously been forfeited, or (B) to the extent that a Replacement Award is provided to the Participant to replace, continue or adjust the outstanding RSUs (the “Replaced Award”). If the Participant’s employment with the Company (or any of its successors after the Change of Control) (as applicable, the “Successor Company”) is terminated by the Participant for Good Reason or by the Successor Company other than for Cause, in each case within a period of two years after the Change of Control but prior to the Vesting Date, to the extent that the Replacement Award has not previously been forfeited, the Replacement Award will become 100% Vested (and become entitled to settlement as specified in
Section 4(b)(ii)
).
|
(x)
|
For purposes of this Agreement, a “Replacement Award” means an award (A) of the same type (
i.e.
, time-based restricted stock units) as the Replaced Award, (B) that has a value at least equal to the value of the Replaced Award, (C) that relates to publicly traded equity securities of the Successor Company in the Change of Control (or another entity that is affiliated with the Successor Company following the Change of Control), (D) the tax consequences of which for such Participant under the Code, if the Participant is subject to U.S. federal income tax under the Code, are not less favorable to the Participant than the tax consequences of the Replaced Award, and (E) the other terms and conditions of which are not less favorable to the Participant than the terms and conditions of the Replaced Award (including the provisions that would apply in the event of a subsequent change of control). A Replacement Award may be granted only to the extent it does not result in the Replaced Award or Replacement Award failing to comply with or ceasing to be exempt from Section 409A of the Code. Without limiting the generality of the foregoing, the Replacement Award may take the form of a continuation of the Replaced Award if the requirements of the preceding two sentences are satisfied. The determination of whether the conditions of this
Section 3(c)(ii)
are satisfied will be made in good faith by the Committee, as constituted immediately before the Change of Control, in its sole discretion.
|
(xi)
|
For purposes of this Agreement, “Cause” means: (A) the willful and continued failure by the Participant to substantially perform the Participant’s duties with the Successor Company (other than any such failure resulting from termination by the Participant for Good Reason) after a demand for substantial performance is delivered to the Participant that specifically identifies the manner in which the Successor Company believes that the Participant has not substantially performed the Participant’s duties, and the Participant has failed to resume substantial performance of the Participant’s duties on a continuous basis within five
|
(xii)
|
For purposes of this Agreement, “Good Reason” means: (A) any material failure of the Successor Company to comply with and satisfy any of the terms of any employment or change in control (or similar) agreement between the Successor Company and the Participant pursuant to which the Participant provides services to the Successor Company; (B) any significant involuntary reduction of the authority, duties or responsibilities held by the Participant immediately prior to the Change of Control (and, for the avoidance of doubt, involuntary removal of the Participant from an officer position that the Participant holds immediately prior to the Change of Control will not, by itself, constitute a significant involuntary reduction of the authority, duties or responsibilities held by the Participant immediately prior to the Change of Control); (C) any material involuntary reduction in the aggregate remuneration of the Participant as in effect immediately prior to the Change of Control; or (D) requiring the Participant to become based at any office or location more than the minimum number of miles required by the Code for the Participant to claim a moving expense deduction, from the office or location at which the Participant was based immediately prior to such Change of Control, except for travel reasonably required in the performance of the Participant’s responsibilities;
provided
,
however
, that no termination shall be deemed to be for Good Reason unless (x) the Participant provides the Successor Company with written notice setting forth the specific facts or circumstances constituting Good Reason within ninety days after the initial existence of the occurrence of such facts or circumstances, and (y) the Successor Company has failed to cure such facts or circumstances within thirty days of its receipt of such written notice.
|
(xiii)
|
If a Replacement Award is provided, notwithstanding anything in this Agreement to the contrary, any outstanding RSUs which at the time of the Change of Control are not subject to a "substantial risk of forfeiture" (within the meaning of Section 409A of the Code) will be deemed to be Vested at the time of such Change in Control.
|
(k)
|
Forfeiture of RSUs
. Subject to
Section 3(b)(v)
, any RSUs that have not Vested pursuant to
Section 3(a)
,
Section 3(b)
, or
Section 3(c)
as of the Vesting Date will be forfeited automatically and without further notice on such date (or earlier if, and on such date that, the Participant cases to be in Continuous Employment prior to the Vesting Date for any reason other than as described in
Section 3(b)
or
Section 3(c)
).
|
4.
|
Settlement of RSUs
.
|
(a)
|
Normal
. Subject to
Section 4(b)
, the Company will issue to the Participant one share of Stock on the Vesting Date for each RSU that is a Vested RSU on such Vesting Date to the extent the RSU has not previously been forfeited or settled.
|
(b)
|
Other Settlement Events
. Notwithstanding
Section 4(a)
, to the extent the RSUs are Vested RSUs on the dates set forth below and to the extent the Vested RSUs have not previously been forfeited or settled, the Company will settle such Vested RSUs as follows:
|
(xiv)
|
Death
. If there are such Vested RSUs on the Participant's death, within thirty days of the Participant's death, the Company will issue to the person entitled by will or the applicable laws of descent and distribution to such Vested RSUs one share of Stock for each such Vested RSU.
|
(xv)
|
Separation from Service
. If there are such Vested RSUs upon the Participant's Separation from Service, within thirty days of the Participant's Separation from Service, the Company will issue to the Participant one share of Stock for each such Vested RSU.
|
(xvi)
|
Change of Control
. If there are such Vested RSUs upon a Change of Control, the Participant is entitled to receive payment for such Vested RSUs in the form of one share of Stock for each such Vested RSU on the date of the Change of Control;
provided
,
however
, that if such Change of Control would not qualify as a permissible date of distribution under Section 409A(a)(2)(A) of the Code, and the regulations thereunder, and where Section 409A of the Code applies to such distribution, the Participant is entitled to receive the corresponding payment on the date that would have otherwise applied pursuant to
Section 4
as though such Change of Control had not occurred.
|
(c)
|
Payment of Taxes Upon Settlement.
As a condition of the issuance of shares of Stock upon settlement of RSUs hereunder, the Participant agrees to remit to the Company at the time of settlement any taxes required to be withheld by the Company under Federal, State or local law as a result of the settlement of the RSUs. As a condition of the issuance of shares of Stock upon settlement of RSUs hereunder, the Participant agrees that the Company will deduct from the total shares to be issued as a result of the Vesting of the RSUs a sufficient number of shares to satisfy the minimum statutory withholding amount permissible. In addition, the Participant may deliver previously acquired shares of Stock held by the Participant for at least six months in order to satisfy additional tax withholding above the minimum statutory tax withholding amount permissible; provided, however, the Participant shall not be entitled to deliver such additional shares if it would cause adverse accounting consequences for the Company.
|
(d)
|
Specified Employee
. Notwithstanding anything (including any provision of the Agreement or the Plan) to the contrary, if a Participant is a Specified Employee and if the RSUs are subject to Section 409A of the Code, payment to the Participant on account of a Separation from Service shall, to the extent required to comply with Treasury Regulation Section 1.409A-3(i)(2), be made to the Participant on the earlier of (i) the Participant’s death or (ii) the first business day (or within 30 days after such first business day) that is more than six months after the date of Separation from Service. In the Company’s sole and absolute discretion, interest may be paid due to such delay. Further, any interest will be calculated in the manner determined by the Company in its sole and absolute discretion in a manner that qualifies any interest as reasonable earnings under Section 409A of the Code. Dividend equivalents will not be paid with respect to any dividends that would have been paid during the delay if the Stock had been issued.
|
5.
|
Non-Transferability of RSUs.
The RSUs may not be assigned, transferred, pledged or hypothecated in any manner (otherwise than by will or the laws of descent or distribution) nor may the Participant enter into any transaction for the purpose of, or which has the effect of, reducing the market risk of holding the RSUs by using puts, calls or similar financial techniques. The RSUs subject to this Agreement may be settled during the lifetime of the Participant only with the Participant or the Participant’s guardian or legal representative. Upon any attempt to transfer, assign, pledge, hypothecate, or otherwise dispose of the RSUs or any related rights to the RSUs that is contrary to the provisions of this Agreement or the Plan, or upon the levy of any attachment or similar process upon the RSUs or such rights, the RSUs and such rights shall immediately become null and void. The terms of this Agreement, shall be binding upon the Successors of the Participant.
|
6.
|
Stock Subject to the RSUs; Compliance with Law
.
The Company will not be required to issue or deliver any certificate or certificates for shares to be issued hereunder until such shares have been listed (or authorized for listing upon official notice of issuance) upon each stock exchange on which outstanding shares of the same class are then listed and until the Company has taken such steps as may, in the opinion of counsel for the Company, be required by law and applicable regulations, including the rules and regulations of the Securities and Exchange Commission, and state securities laws and regulations, in connection with the issuance of such shares, and the listing of such shares on each such exchange. The Company will use its best efforts to comply with any such requirements.
|
7.
|
Rights as Stockholder
.
The Participant or his/her Successors shall have no rights as stockholder with respect to any RSUs or underlying shares covered by this Agreement until the Participant or his/her Successors shall have become the beneficial owner of such shares, and, except as provided in
Section 9
of this Agreement, no adjustment shall be made for dividends or distributions or other rights in respect of such shares for which the record date is prior to the date on which the Participant or his/her Successors shall have become the beneficial owner thereof.
|
8.
|
No Dividend Equivalents
.
No dividend equivalents will be paid or accumulated on the RSUs.
|
9.
|
Adjustments Upon Changes in Capitalization; Change of Control
.
In the event of any change in corporate capitalization, corporate transaction, sale or other disposition of assets or similar corporate transaction or event involving the Company as described in Section 5.5 of the Plan, the Committee shall make equitable adjustment as it determines necessary and appropriate in the number and type of shares subject to this Agreement;
provided
,
however
, that no fractional share shall be issued upon subsequent settlement of the RSUs. No adjustment shall be made if such adjustment is prohibited by Section 5.5 of the Plan (relating to Section 409A of the Code).
|
10.
|
Notices.
Each notice relating to this Agreement shall be deemed to have been given on
the date it is received. Each notice to the Company shall be addressed to its principal Office in Omaha, Nebraska, Attention: Compensation. Each notice to the Participant or any other person or persons entitled to shares issuable upon settlement of the RSUs shall be addressed to the Participant’s address and may be in written or electronic form. Anyone to whom a notice may be given under this Agreement may designate a new address by giving notice to the effect.
|
11.
|
Benefits of Agreement.
This Agreement shall inure to the benefit of and be binding upon each successor of the Company. All obligations imposed upon the Participant and all rights granted to the Company under this Agreement shall be binding upon the Participant's Successors. This Agreement shall be the sole and exclusive source of any and all rights which the Participant or his/her Successors may have in respect to the Plan or this Agreement.
|
12.
|
No Right to Continued Employment
. Nothing in this Agreement shall interfere with or affect the rights of the Company or the Participant under any employment agreement or confer upon the Participant any right to continued employment with the Company.
|
13.
|
Resolution of Disputes.
Any dispute or disagreement which should arise under or as a result of or in any way related to the interpretation, construction or application of this Agreement will be determined by the Committee. Any determination made hereunder shall be final, binding and conclusive for all purposes. This Agreement and the legal relations between the parties hereto shall be governed by and construed in accordance with the laws of the state of Delaware.
|
14.
|
Section 409A Compliance.
To the extent applicable, this Agreement is intended to comply with Section 409A of the Code and any regulations or notices provided thereunder. This Agreement and the Plan shall be interpreted in a manner consistent with this intent. The Company reserves the unilateral right to amend this Agreement on written notice to the Participant in order to comply with Section 409A of the Code. It is intended that all compensation and benefits payable or provided to Participant under this Agreement shall, to the extent required to comply with Section 409A of the Code, fully comply with the provisions of Section 409A of the Code and the Treasury Regulations relating thereto so as not to subject Participants to the additional tax, interest or penalties which may be imposed under Section 409A of the Code. None of the Company, its contractors, agents and employees, the Board and each member of the Board shall be liable for any consequences of any failure to follow the requirements of Section 409A of the Code or any guidance or regulations thereunder, unless such failure was the direct result of an action or failure to act that was undertaken by the Company in bad faith.
|
15.
|
Amendment
.
Any amendment to the Plan shall be deemed to be an amendment to this Agreement to the extent that the amendment is applicable hereto.
|
16.
|
Severability
. If any provision of this Agreement or the application of any provision hereof to any person or circumstances is held invalid, unenforceable or otherwise illegal, the remainder of this Agreement and the application of such provision to any other person or circumstances shall not be affected, and the provisions so held to be invalid, unenforceable or otherwise illegal shall be reformed to the extent (and only to the extent) necessary to make it enforceable, valid and legal.
|
17.
|
Electronic Delivery
. The Company may, in its sole discretion, deliver any documents related to the RSUs and the Participant’s participation in the Plan, or future awards that may be granted under the Plan, by electronic means or request the Participant’s consent to participate in the Plan by electronic means. The Participant hereby consents to receive such documents by electronic delivery and, if requested, agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.
|
|
Thirteen Weeks Ended
|
||
August 30, 2015
|
|||
Earnings:
|
|
||
Income from continuing operations before income taxes and equity method investment earnings
|
$
|
215.1
|
|
Add (deduct):
|
|
||
Fixed charges
|
101.5
|
|
|
Distributed income of equity method investees
|
3.1
|
|
|
Capitalized interest
|
(2.0
|
)
|
|
Earnings available for fixed charges (a)
|
$
|
317.7
|
|
|
|
||
Fixed charges:
|
|
||
Interest expense
|
$
|
80.5
|
|
Capitalized interest
|
2.0
|
|
|
One third of rental expense
(1)
|
19.0
|
|
|
Total fixed charges (b)
|
$
|
101.5
|
|
|
|
||
Ratio of earnings to fixed charges (a/b)
|
3.1
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q for the quarter ended
August 30, 2015
of ConAgra Foods, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: October 6, 2015
|
|
|
|
/s/ SEAN M. CONNOLLY
|
|
Sean M. Connolly
|
|
Chief Executive Officer
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q for the quarter ended
August 30, 2015
of ConAgra Foods, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: October 6, 2015
|
|
|
|
/s/ JOHN F. GEHRING
|
|
John F. Gehring
|
|
Executive Vice President and Chief Financial Officer
|
|
October 6, 2015
|
|
|
|
/s/ SEAN M. CONNOLLY
|
|
Sean M. Connolly
|
|
Chief Executive Officer
|
|
October 6, 2015
|
|
|
|
/s/ JOHN F. GEHRING
|
|
John F. Gehring
|
|
Executive Vice President and Chief Financial Officer
|
|