Many commodities we use in the production and distribution of our products are exposed to market price risks. We utilize derivatives

to manage price risk for our principal ingredients and energy costs, including grains (oats, wheat, and corn), oils (principally soybean),

dairy products, natural gas, and diesel fuel. Our primary objective when entering into these derivative contracts is to achieve certainty

with regard to the future price of commodities purchased for use in our supply chain. We manage our exposures through a

combination of purchase orders, long-term contracts with suppliers, exchange-traded futures and options, and over-the-counter options

and swaps. We offset our exposures based on current and projected market conditions and generally seek to acquire the inputs at as

We use derivatives to manage our exposure to changes in commodity prices. We do not perform the assessments required to achieve

hedge accounting for commodity derivative positions. Accordingly, the changes in the values of these derivatives are recorded in cost

Although we do not meet the criteria for cash flow hedge accounting, we believe that these instruments are effective in achieving our

objective of providing certainty in the future price of commodities purchased for use in our supply chain. Accordingly, for purposes of

measuring segment operating performance, these gains and losses are reported in unallocated corporate items outside of segment

operating results until such time that the exposure we are managing affects earnings. At that time, we reclassify the gain or loss from

unallocated corporate items to segment operating profit, allowing our operating segments to realize the economic effects of the

derivative without experiencing any resulting mark-to-market volatility, which remains in unallocated corporate items.

Unallocated corporate items for the quarters and six-month periods ended November 23, 2025, and November 24, 2024, included:


	Quarter Ended		Six-Month Period Ended
In Millions	Nov. 23, 2025	Nov. 24, 2024	Nov. 23, 2025	Nov. 24, 2024
Net (loss) gain on mark-to-market valuation of certain commodity positions	$(4.8)	$3.4	$(5.3)	$(34.3)
Net loss (gain) on commodity positions reclassified from unallocated corporate items to segment operating profit	1.2	19.1	(0.2)	36.3
Net mark-to-market revaluation of certain grain inventories	7.6	6.9	1.0	(1.4)
Net mark-to-market valuation of certain commodity positions recognized in unallocated corporate items	$4.0	$29.4	$(4.5)	$0.6

As of November 23, 2025, the net notional value of commodity derivatives was $143.5 million, of which $79.1 million related to

energy inputs and $64.4 million related to agricultural inputs. These contracts relate to inputs that generally will be utilized within the

We also have net investments in foreign subsidiaries that are denominated in euros. As of November 23, 2025, we hedged a portion of

During the fourth quarter of fiscal 2025, we entered into a €750.0 million notional amount interest rate swap to convert our €750.0

During the second quarter of fiscal 2025, in advance of planned debt financing, we entered into $350.0 million of treasury locks. The

treasury locks were terminated during the second quarter of fiscal 2025, in conjunction with the Company’s issuance of $750.0 million

of fixed-rate notes due January 30, 2035. Upon termination, a gain of $0.1 million was recognized in AOCI and will be amortized

During the second quarter of fiscal 2025, we entered into a $750.0 million notional amount interest rate swap to convert our $750.0

During the second quarter of fiscal 2025, our $500.0 million notional amount interest rate swap to convert our $500.0 million of fixed-

rate notes due November 18, 2025 to a floating rate was called by the counterparty prior to the maturity date. The previously existing

swap was designated as a fair value hedge, and concurrent with the swap being called, we ceased recording market value adjustments

The fair values of the derivative positions used in our risk management activities and other assets recorded at fair value were not

material as of November 23, 2025, and were Level 1 or Level 2 assets and liabilities in the fair value hierarchy. We did not

We offer certain suppliers access to third-party services that allow them to view our scheduled payments online. The third-party

services also allow suppliers to finance advances on our scheduled payments at the sole discretion of the supplier and the third party.

We have no economic interest in these financing arrangements and no direct relationship with the suppliers, the third parties, or any

financial institutions concerning these services, including not providing any form of guarantee and not pledging assets as security to

the third parties or financial institutions. All of our accounts payable remain as obligations to our suppliers as stated in our supplier

agreements. As of November 23, 2025, $1,460.1 million of our total accounts payable were payable to suppliers who utilize these

third-party services. As of May 25, 2025, $1,427.5 million of our total accounts payable were payable to suppliers who utilize these