DIVESTITURES AND ASSETS HELD FOR SALE

9 Months Ended

Feb. 23, 2025

DIVESTITURES AND ASSETS HELD FOR SALE

DIVESTITURES AND ASSETS HELD FOR SALE

3. DIVESTITURES AND ASSETS HELD FOR SALE

Divestitures

During the first quarter of fiscal 2025, we completed the sale of our 51.8% ownership stake in Agro Tech Foods Limited (“ATFL”) for net proceeds of $76.8 million. Prior to the transaction, our majority ownership of ATFL was consolidated within our International segment. We recognized a loss of $2.3 million on the sale within loss on divestitures in the first quarter of fiscal 2025. In connection with this divestiture, we also released $41.8 million and $38.0 million of currency translation losses from accumulated other comprehensive loss and noncontrolling interests, respectively. In the second quarter of fiscal 2024, we recognized an impairment charge of $34.2 million within loss on divestitures related to this business.

The assets and liabilities related to ATFL have been reclassified as assets and liabilities held for sale within our Condensed Consolidated Balance Sheet for the period presented prior to the divestiture. The assets and liabilities related to ATFL classified as held for sale reflected in our Condensed Consolidated Balance Sheet were as follows:

	May 26, 2024
Current assets	$	32.0
Noncurrent assets (including goodwill of $46.4 million)		89.2
Current liabilities		14.8
Noncurrent liabilities		1.9

Other Assets Held for Sale

As a result of management’s decision to exit a certain manufacturing facility and related warehouse in our Refrigerated & Frozen segment in fiscal 2024, we began to actively market these assets during the first quarter of fiscal 2025. We anticipate entering into a definitive agreement to sell these assets in the next twelve months. Accordingly, these assets have been reclassified as assets held for sale within our Condensed Consolidated Balance Sheets for all periods presented.

We have initiated plans to sell businesses with operating results primarily included within our Grocery & Snacks, Refrigerated & Frozen, and International segments. During the third quarter of fiscal 2025, these businesses met the criteria to be classified as held for sale. The assets and liabilities have been reclassified as assets and liabilities held for sale within our Condensed Consolidated Balance Sheets for all periods presented and are expected to be sold within twelve months of initiating our plans. As a result, based on our current estimates regarding these planned transactions, we recognized an impairment charge of $27.2 million in our Refrigerated & Frozen segment within loss on divestitures in the third quarter of fiscal 2025.

In addition, we actively market certain other assets from time to time. These assets have also been reclassified as assets held for sale within our Condensed Consolidated Balance Sheets for periods prior to the disposal of the individual asset groups.

The assets and liabilities currently classified as held for sale reflected in our Condensed Consolidated Balance Sheets were as follows:

	February 23, 2025		May 26, 2024
Current assets	$	81.4	$	101.5
Noncurrent assets (including goodwill of $247.5 million and $256.8 million, respectively)		529.8		561.8
Current liabilities		2.7		2.7
Noncurrent liabilities		0.9		2.9