CONAGRA BRANDS INC. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-Q) – Marketscreener.com

Uncategorized

FORWARD-LOOKING STATEMENTS
——————————————————————————–
Table of Contents
——————————————————————————–
Fiscal 2023 Second Quarter Results
——————————————————————————–
Table of Contents
Items Impacting Comparability
Items of note impacting comparability for the second quarter of fiscal 2023 included the following:
? charges totaling $7.9 million ($6.0 million after-tax) associated with a fire
occurring at one of our manufacturing facilities and
? net charges totaling $1.8 million ($1.3 million after-tax) in connection with
Items of note impacting comparability for the second quarter of fiscal 2022 included the following:
? net charges totaling $12.4 million ($9.3 million after-tax) in connection with
? a gain of $3.3 million ($2.8 million after-tax) related to proceeds received
Items of note impacting the comparability for the first half of fiscal 2023 included the following:
? charges totaling $385.7 million ($326.8 million after-tax) related to the
goodwill and Birds Eye® brand impairments in connection with certain reporting
unit changes within our Refrigerated & Frozen segment,
? charges totaling $26.7 million ($20.1 million after-tax) related to the
impairment of businesses previously held for sale,
? charges totaling $7.9 million ($6.0 million after-tax) associated with a fire
occurring at one of our manufacturing facilities, and
? net charges totaling $6.7 million ($5.0 million after-tax) in connection with
Items of note impacting the comparability for the first half of fiscal 2022 included the following:
? net charges totaling $28.2 million ($21.2 million after-tax) in connection
? an income tax benefit of $3.6 million related to the settlement of a tax
? a gain of $3.3 million ($2.8 million after-tax) related to proceeds received
——————————————————————————–
We reflect our results of operations in four reporting segments: Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice.
The Grocery & Snacks reporting segment principally includes branded, shelf-stable food products sold in various retail channels in the United States.
The Refrigerated & Frozen reporting segment principally includes branded, temperature-controlled food products sold in various retail channels in the United States.
Presentation of Derivative Gains (Losses) from Economic Hedges of Forecasted Cash Flows in Segment Results
——————————————————————————–
Twenty-Six Weeks Ended
——————————————————————————–
Table of Contents
SG&A Expenses (includes general corporate expenses)
Items impacting comparability of earnings
Other changes in expenses compared to the second quarter of fiscal 2022
? an increase in share-based payment expense of $24.4 million primarily due to
an increase to the estimated level of achievement of certain performance
? an increase in advertising and promotion expense of $7.4 million driven by an
? an increase in salary, wage, and fringe benefit expense of $4.3 million,
SG&A expenses for the second quarter of fiscal 2022 included the following items impacting the comparability of earnings:
? expense of $39.2 million related to the impairment of businesses previously
? expenses of $2.5 million in connection with our restructuring plans, and
? expenses of $1.7 million associated with consulting fees for certain tax
SG&A expenses totaled $1.11 billion for the first half of fiscal 2023, an increase of $458.8 million, as compared to the first half of fiscal 2022. SG&A expenses for the first half of fiscal 2023 reflected the following:
Items impacting comparability of earnings
? charges totaling $385.7 million related to the goodwill and Birds Eye® brand
impairments in connection with certain reporting unit changes within our
——————————————————————————–
Table of Contents
Other changes in expenses compared to the first half of fiscal 2022
? an increase in share-based payment expense of $45.8 million primarily due to
an increase to the estimated level of achievement of certain performance
targets, more significant award vesting in the current period, and volatility
? an increase consulting and professional fees of $7.6 million, in part due to
? an increase in advertising and promotion expenses of $7.1 million driven by an
? an increase in salary, wage, and fringe benefit expense of $7.0 million,
? a decrease in deferred compensation expense of $3.9 million primarily due to
SG&A expenses for the first half of fiscal 2022 included the following items impacting the comparability of earnings:
? expense of $39.2 million related to the impairment of businesses previously
? a benefit of $3.3 million related to the sale of a legacy investment, and
? expenses of $1.7 million associated with consulting fees for certain tax
——————————————————————————–
Table of Contents
——————————————————————————–
Table of Contents
Pension and Postretirement Non-service Income
Equity Method Investment Earnings
——————————————————————————–
LIQUIDITY AND CAPITAL RESOURCES
Sources of Liquidity and Capital
Borrowing Facilities and Long-Term Debt
——————————————————————————–
Table of Contents
The liability for gross unrecognized tax benefits related to uncertain tax positions was $29.7 million as of November 27, 2022. For additional information, refer to Note 9, “Income Taxes”, to the Condensed Consolidated Financial Statements contained in this report and Note 13, “Pre-Tax Income and Income Taxes”, to the Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended May 29, 2022.
We expect to have sufficient cash flows from the above cited sources to meet the material cash requirements of these contractual obligations as they become settleable in the ordinary course of business.
——————————————————————————–
We continue to make investments in our business and operating facilities. Our estimate of capital expenditures for fiscal 2023 is approximately $425 million.
The program commenced at about the same time that we began an initiative to negotiate extended payment terms with our suppliers. A number of factors may impact our future payment terms, including our relative creditworthiness, overall market liquidity, and changes in interest rates and other general economic conditions.
Cash Held by International Subsidiaries
——————————————————————————–
Table of Contents
CRITICAL ACCOUNTING ESTIMATES
© Edgar Online, source Glimpses

source

Leave a Reply

Your email address will not be published. Required fields are marked *