BUSINESS SEGMENTS AND RELATED INFORMATION

3 Months Ended

Aug. 24, 2025

BUSINESS SEGMENTS AND RELATED INFORMATION

BUSINESS SEGMENTS AND RELATED INFORMATION

17. BUSINESS SEGMENTS AND RELATED INFORMATION

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 includes branded, temperature-controlled food products sold in various retail channels in the United States.

The International reporting segment principally includes branded food products, in various temperature states, sold in various retail and foodservice channels outside of the United States.

The Foodservice reporting segment includes branded and customized food products, including meals, entrees, sauces, and a variety of custom-manufactured culinary products packaged for sale to restaurants and other foodservice establishments primarily in the United States.

We do not aggregate operating segments when determining our reporting segments.

Our chief operating decision maker (“CODM”) is identified as our Chief Executive Officer. Our CODM uses segment operating profit in the annual plan and forecasting process and considers year-over-year performance when making decisions about allocating resources to our segments. The CODM also uses segment operating profit as an input to the overall compensation measures under our incentive compensation plans. We believe it is appropriate to disclose this measure to help investors analyze segment performance and trends. Segment operating profit is defined as operating profit excluding the effect of items impacting comparability. Items impacting comparability are gains or losses that our CODM believes have had, or are likely to have, a significant impact on segment operating profit and are not indicative of our core operating results. Items impacting comparability include, when they occur, the impacts of gain or loss on divestitures, restructuring activities, deal costs, unrealized gains/(losses) on commodity and foreign exchange hedges (the unrealized gains and losses are recorded in general corporate expenses until realized; once realized, the gains and losses are recorded in the applicable segment’s operating results), impairment losses, certain non-ordinary course legal and regulatory matters, and other unusual gains or losses that are not part of our measurement of segment performance. Corporate unallocated expense; pension and postretirement non-service income; interest expense, net; and equity method investment earnings are centrally managed costs and have been excluded from segment operating profit.

	Thirteen weeks ended August 24, 2025
			Grocery & Snacks		Refrigerated & Frozen		International		Foodservice		Total
Net sales		$	1,079.6	$	1,076.2	$	212.3	$	264.5	$	2,632.6
Segment cost of goods sold1			752.9		866.9		151.4		217.9		1,989.1
Segment SG&A expenses2			105.9		94.9		23.2		18.9		242.9
Segment operating profit		$	220.8	$	114.4	$	37.7	$	27.7	$	400.6
General corporate expenses3											92.3
Loss (gain) on divestitures											(42.4)
Other charges, net4											3.3
Operating profit										$	347.4
Pension and postretirement non-service income											6.1
Interest expense, net											93.8
Equity method investment earnings											29.4
Income before income taxes										$	289.1

	Thirteen weeks ended August 25, 2024
			Grocery & Snacks		Refrigerated & Frozen		International		Foodservice		Total
Net sales		$	1,182.7	$	1,086.4	$	259.1	$	266.7	$	2,794.9
Segment cost of goods sold1			828.2		834.7		192.8		213.5		2,069.2
Segment SG&A expenses2			101.2		92.6		30.5		18.1		242.4
Segment operating profit		$	253.3	$	159.1	$	35.8	$	35.1	$	483.3
General corporate expenses3											92.2
Loss on divestitures											2.3
Other charges, net4											(12.8)
Operating profit										$	401.6
Pension and postretirement non-service income											3.1
Interest expense, net											105.8
Equity method investment earnings											29.1
Income before income taxes										$	328.0

¹ Segment cost of goods sold does not include items recorded in the Cost of goods sold line on our income statement that are presented in the Other charges, net line of this table.

² Segment SG&A expenses are regularly provided to the CODM as a percent of net sales. Segment SG&A expenses do not include items recorded in the Selling, general and administrative expenses line of our income statement that are presented in the Other charges, net line of this table.

³ General corporate expenses relate to certain costs that are shared across multiple segments but are not directly attributable, which include executive compensation, share-based payment expense, and costs associated with certain corporate functions.

⁴ Other charges include net charges related to our restructuring plans and a gain associated with fire-related insurance proceeds.

The following table presents further disaggregation of our net sales:

	Thirteen Weeks Ended
	August 24, 2025		August 25, 2024
Frozen	$	898.5	$	913.4
Staples
Other shelf-stable		568.5		690.3
Refrigerated		177.7		173.0
Snacks		511.1		492.4
International		212.3		266.7
Foodservice		264.5		259.1
Total net sales	$	2,632.6	$	2,794.9

To be consistent with how we present certain disaggregated net sales information to investors, we have categorized certain net sales of our segments as “Staples”, which includes all of our U.S. domestic retail refrigerated products and other shelf-stable grocery products. Management continues to regularly review financial results and make decisions about allocating resources based upon the four reporting segments outlined above.

Assets by Segment

The majority of our manufacturing assets are shared across multiple reporting segments. Output from these facilities used by each reporting segment can change over time. Also, working capital balances are not tracked by reporting segment. Therefore, it is impracticable to allocate those assets to the reporting segments, as well as disclose total assets and capital expenditures by segment. Our CODM does not use assets by segment to evaluate performance or allocate resources. Depreciation and amortization are allocated to our reporting segments based on the output of each reporting segment per facility during each reporting period. Total depreciation expense for the first quarter of fiscal 2026 and 2025 was $84.5 million and $85.7 million, respectively.

The following table presents depreciation and amortization by segment:

	Thirteen Weeks Ended
	August 24, 2025		August 25, 2024
Grocery & Snacks	$	36.1	$	38.5
Refrigerated & Frozen		40.7		42.0
International		3.5		4.1
Foodservice		11.2		10.9
Total Reporting Segments		91.5		95.5
Corporate		3.8		3.6
Total Company	$	95.3	$	99.1